Socio-economics

Conventional cost accounting at the mines studied could not report on physical structure or materials flow, so environmental costs such as water, energy and consumables stayed hidden and chances to cut them were lost. Four case studies across different commodities and mining methods showed the same limitations. An environmental management accounting model is proposed to identify and allocate those costs.

Section performance was limited by the will and motivation of the workforce, not by equipment, layout or technical competence, all of which were found sound. Team based bonus payments were the strongest motivator and reinforced cooperation across shifts and functions, but dependence on bonus income to meet monthly expenses turned it into a source of stress. Recognition in front of colleagues and family motivated strongly.

Mines already provide substantial training and their junior managers were found motivated and committed, yet development at this level remains problematic. Gaps sat in commercial exposure, financial and accounting skills, industrial relations, quality standards, administration and project management. The report sets out the attributes to screen for at appointment and a framework that makes candidates responsible for their own development.

Relinquishment criteria follow from the agreed post-mining land use. The land use is the goal and the criteria measure whether it has been reached. The guideline sets out a framework for approving those criteria at each mining phase, from the initial environmental management plan through to decommissioning, and compares South African practice with Australian, Canadian and international guidance.

Compares labour intensive mechanised drill and blast underground mining with capital intensive bord and pillar using continuous miners, and adds the option of substituting locally made goods for imported supplies. Input data came from two mines running both types of section under comparable geological conditions, covering worker numbers, skill profiles, cost structures and import dependence, then calibrated to industry totals to drive a socio-economic model.

Builds on an earlier productivity audit that identified fluctuating bonuses and incentives as an influence on output, safety and employee stress. The work examines how salaries, production bonuses and safety bonuses are graded and distributed across employee categories, how workers perceive that distribution, and whether incentives in practice motivate production and safe working. Stress and morale are treated as measures of wellbeing.

Sustainability in mining is still framed in neoclassical economic terms, measured by profit, shareholder value and growth, with social and environmental dimensions added in response to regulation. Six air quality and waste minimisation projects run over seven years were assessed against seven dimensions of the biosphere and fell well short. A collaborative model is proposed for a sector built on mining waste residues.

Three modes of intervention were found in coal company procurement: preferential procurement rules, segmentation of goods and services by suitability for transformation, and support programmes for small suppliers. Progress stalled where supplier development was handled by staff carrying other duties, since work not tied to production loses time and has no target. The remedy proposed is procurement targets linked down through commercial and production management.