Stakeholder management as a conflict resolution mechanism within mining host communities

Abstract

Mining host communities are directly impacted by the mining companies’ actions or their lack of concern for them, resulting in protest actions that in turn, hinder the mines’ operations. Causes of conflict between mining companies and the host communities had been studied in detail regarding such causes of conflict. However, within a South African context, little was known as to whether these sources of conflict differ across various host communities. There was also limited research conducted regarding the current engagement frameworks. The purpose of this research was to garner an understanding of whether these sources of conflict differ across the mining communities living in different provinces in South Africa and which frameworks and models have been utilised by various mining companies to address conflicts between the communities and the mines. The aim was to identify which engagement frameworks worked and which ones did not work. Through qualitative analysis, semi-structured interviews were conducted with 20 participants from various mining communities and mining company representatives. This study found that the main sources of conflict include challenges caused by poor communication and lacking engagement, insufficient alignment within communities’ needs, the provision of education and training opportunities, unmet expectations regarding employment opportunities, environmental challenges, and lacking government support and support for businesses within the communities. These sources of conflict do not differ across the interviewed host communities. Additionally, regarding the currently utilised engagement frameworks and how mining companies manage stakeholders, gaps were identified related to stakeholder identification, understanding of stakeholders’ needs and developing suitable engagement principles. Most mining companies do not seem to embed the stakeholder management framework and related outcomes into their overall business strategies. The result of the study provides an overarching framework that addresses the gaps in prior studies and provides key learnings. This contributes towards literature through stakeholder theory and stakeholder management, as well as to business strategies through the development of a framework that supports improved relationships between mining companies and mining host communities, reduces conflicts and thereby enhances the sustainability of businesses.