Platinum Wealth, Community Participation and Social Inequality in South AfricaÆs Royal Bafokeng Community û A Paradox of Plenty?

The Royal Bafokeng community in South AfricaÆs North West Province represents a unique case in Sub-Saharan Africa in terms of its positioning in the natural resource economy. It receives royalties directly from mining firms for the extraction of Platinum Group Metals, which include platinum, ferrochrome, rhodium and palladium. In 2007, royalty income of about R290 million (approximately US$32.2 million) was reported. Such direct revenues have enabled the community to invest in educational, medical and other social infrastructure, thus complementing governmentÆs social provisioning efforts. Indeed, the Bafokeng community owes its present-day modernisation efforts to mineral rights, and in particular, the legal-institutional arrangement that has enabled it to play an active role in South AfricaÆs lucrative extractive economy. However, the distribution of platinum wealth in this community is not only uneven, but also appears to have had little impact on the broader socio-economic conditions in the community. Despite claims by community leaders of heavy investment in education and skills development, the community continues to be faced with very high levels of unemployment, illiteracy, sprawling informal settlements, poor access to medical facilities and malnutrition. This paper examines the sociological paradoxes and contradictions thrown up by the approach adopted to involve community members in the mobilisation of mining royalties for developmental ends. The central argument is that the current æmodelÆ contradicts the communityÆs stated goals of using platinum wealth to drive up broad-based development and modernisation. This is mainly because it leaves out the vast majority of community members, who are uneducated and unskilled. The core analysis is based on pilot data from an ongoing study in the Royal Bafokeng community.