Mining companies could fulfil their social obligations by investing in these projects
As part of its obligation to address the climate crisis, the South African government has committed to implementing a just energy transition, while supporting social development and economic growth. Shifting away from fossil fuels towards clean, renewable energy could be of huge benefit to mining-affected communities, but only if these plans are properly supported. A just transition would mean establishing a low-carbon economy while at the same time creating jobs and reducing poverty. It should not leave workers and communities in areas dependent on fossil fuels behind.
Unfortunately, the government and the private sector in South Africa have instead interpreted a just transition to mean the privatisation of energy - in other words, the movement away from Eskom towards independent power producers. Any social programmes they do envision tend to be small and mostly symbolic.
There is an alternative: democratically managed production, distribution and consumption of energy to meet social needs, rather than prioritising profits.
Much work has been done by labour movements, communities and civil society organisations around the world surveying case studies where social ownership has been implemented successfully. In countries that include Germany, the United Kingdom, Brazil, India and Indonesia, socially-owned solar or hydro power, often backed by government grants or local businesses, has been used to enhance access to electricity, decrease expenses, and improve environmental health.
But this has not yet been explored for mining-affected communities in South Africa.
As part of their mining rights, mines already have a legal obligation to undertake community development projects through social and labour plans (SLPs). SLPs are an important tool for addressing inequality - setting out how mines intend to share the benefits of mining with communities impacted by their operations. These include, for example, initiatives for upgrading local schools, providing water and sanitation, and supporting local economic activity. Once a company is awarded a mining right, the social and labour plan they submitted becomes a binding legal document.
SLP community projects have often fallen short of their laudable objectives. Community led-socially owned renewables are the kind of developmental and participatory project that could breathe new life into them. Many mining companies in South Africa have already started to invest in renewables to meet their own energy needs and diversify their income.
Burgersfort example
The Centre for Applied Legal Studies (CALS) has researched SLPs in South Africa. CALS is working with a community organisation called the Sekhukhune Combined Mining Affected Communities (SCMAC) - as well as civil society organisations 350 Africa, Ahinasa, and Lawyers for Human Rights - to research the viability of a social ownership project in Burgersfort, Limpopo.
The area hosts a number of platinum and chrome mines, though research has shown that surrounding communities have not had a meaningful improvement in their quality of life in spite of mines' SLP commitments.
SCMAC is advocating for the mines in Burgersfort to supply surrounding communities with renewable energy. It is proposing is a grid-tied mini solar farm installed at a central point in the community.
Most of the houses in the surrounding villages are already connected to the grid and this could allow the community not only to generate their own power but - in the future - to sell electricity back to Eskom or to mines in the area. SCMAC is also recommending forming a co-operative as the legal entity which owns the solar farm. This would allow community members to be engaged in running the project as a collective.
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The co-operative is expected to begin small but expand over time. For the co-operative model to work, SCMAC will need the endorsement of the community and support from government and the mining industry.
On 28 February 2025, SCMAC took the next step in this process by presenting the proposed model to the community before using the findings of the research to engage with other stakeholders.
Socially-owned renewable energy is a viable alternative which has the potential to generate income and development opportunities in Burgersfort and in other mining-affected communities around the country. This would be an example of a truly just energy transition.
Robert Krause is the acting head of Environmental Justice and Lee-Anne Bruce is a communications specialist at the Centre for Applied Legal Studies, Wits University.
Views expressed are not necessarily those of GroundUp.
