South Africa’s mining industry has the potential to be a global leader in driving socioeconomic development and transforming the country, but it is currently hindered by government policy uncertainty, a lack of investment, and administrative obstacles.

Private sector-led Youth Employment Service (YES), says to move forward, the mining sector needs better institutional arrangements, equitable sharing of mining success among stakeholders, and a proactive approach to addressing its historical negative social legacy.

Additionally, the industry should improve the implementation of its social and labour plans (SLPs) to uplift mining communities and help them overcome such challenges.

The South African mining industry has an opportunity to address the issue of youth unemployment by increasing its impact on local communities through job creation.

While mines have been supporting local economic and skills development initiatives, the effectiveness of such programmes relies on active job placement. By partnering with work-readiness initiatives like YES, mining companies can provide youth with job opportunities in various sectors beyond mining.

To drive positive outcomes for both the mining industry and the youth, mining companies are integrating the YES turnkey solution into their SLPs and environmental, social and corporate governance (ESG) strategies.

Through collaboration with any of the 25 YES-vetted host partners across South Africa, mining companies can create youth work experiences in critical sectors such as education, healthcare, digital and conservation. This approach enables young individuals to gain on-the-job experience, further their training, and contribute to the creation of sustainable and thriving workforces.

The host partners are typically nonprofit organisations (NPOs) or small, medium-sized and microenterprises (SMMEs) operating in high-impact sectors such as healthcare, education or conservation, or in future-facing sectors such as digital, information and communications technology, drones and green economies.

Another area where mines could grow their social impact is through bolstering their SMME development plans. The YES model can also see young people deployed in community-based SMMEs, effectively boosting the capacity of local businesses.

Many of these youth jobs and SMMEs are also providing ESG outcomes – such as fighting climate change or providing community health benefits. These ESG outcomes will also assist the relevant mine improve its attractiveness to investors, YES adds.

The social impact of creating jobs and building businesses and capacity is often almost immediate, as about 61% of YES Youth come from grant recipient households, meaning that “one youth income almost immediately has ripple effects across communities”.

“By creating youth employment opportunities in sectors that foster economic, social and environmental stability, mining companies actively pursue their ESG goals while empowering communities beyond mining,” YES notes.

YES also places significant emphasis on monitoring and evaluating the quality of work experience that young individuals gain.

“Through quantitative and qualitative indicators, onsite visits, host partner scorecards, youth surveys and a dedicated call centre, YES ensures the effectiveness of the programme. The call centre, which reaches out to 6 000 youth weekly, augments the monitoring and evaluation efforts, guaranteeing a valuable experience for the youth involved,” YES says.

Mining Charter Alignment

The YES value proposition also aligns with key elements of the Mining Charter, reinforcing its significance in the industry.

“By focusing on ownership, procurement, employment equity, human resource development, mine community development, housing and living conditions, and sustainable development, YES addresses the core goals of the Mining Charter. This integrated approach encourages equal opportunity, skills development, socioeconomic development, and sustainable transformation within the mining industry,” YES explains.

The YES turnkey solution seamlessly integrates with three of the seven Mining Charter principles – namely procurement, human resource development and mining community development – to “align with the mining industry’s goals”.

For procurement, the YES initiative strategically places youth in NPOs and SMMEs within mining communities, enabling them to become an integral part of the value chain.

When engaging with NPOs and SMMEs operating in sectors outside of mining, mining companies empower communities and promote socioeconomic development beyond the immediate mining operations.

To date, over 112 000 youth jobs have been created by 1 400 businesses, marking a significant contribution to youth employment.

Through the salaries paid to these young individuals, an estimated R6-billion has been injected into local economies.

“This integrated approach fosters an inclusive and sustainable mining industry that not only creates employment opportunities but also invests in the overall well-being of communities,” YES concludes.