Mining companies are increasingly being required to adhere to the requirements of a social licence to operate. Although this licence is largely seen as an informal agreement, the South African government is increasingly looking to formalise it. Social and labour plans and community trusts to ensure local ownership are two policy approaches used to foster the idea of a social licence to operate. We consider a case in which much conflict has been experienced. Based on 10 in-depth interviews and an assessment of court documents and media reports, our case study shows that community trusts should not be viewed as automatically ensuring a larger degree of local buy-in. They are problematic in many ways. In practice they could increase community conflict. They do not address historical concerns about dispossession and exclusion, and formalising local ownership in law will not necessarily resolve local conflicts. To create a community trust it is first necessary to identify a community, and communities are not necessarily unified structures. And finally, governance requirements complicate community trusts.
Matebesi, S., & Marais, L. (2018). Social licensing and mining in South Africa: Reflections from community protests at a mining site. Resources Policy.