How do mining companies impact local employment?

Modern mining is not particularly labour intensive but it does create jobs and the number is often significant compared to the size of the local community. The jobs created are normally well paid by local standards, and provide considerable training. In addition it is common for one mining employee to support a number of family members.

Recognised practice in international mining companies is to use local labour as far as possible supplying training as appropriate.  Additional employment will be created through the local sourcing of supplies and services, including construction services. Again best practice in international mining companies now calls for as many supplies as possible to be sourced locally.

By spending their wages, employees in the mining company and in local suppliers will create additional employment through multiplier effects. The training given to employees will increase the level of skills in the community.

The Chamber of Mines in South Africa estimates that, while employment in the industry is just under 190,000, it probably supports around 2 million people in total.  Studies have indicated that each mining employee supports 7 to 10 people. In addition employment in supplier industries accounts for around one third of the number of mining employees and these employees' own dependents have to be added to the total. 

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