Public finances, service delivery, and mine closure in Koffiefontein (Free State, South Africa): From stepping stone to stumbling block

Abstract

This article examines the interrelationship between mining activities, the local municipality, and public finance in Koffiefontein (Letsemeng Local Municipality). The international literature suggests that, all over the world, mine closure has had a severe negative influence on municipal and public finances. Furthermore, addressing the influence of mine closure requires the involvement of all spheres of government. After being historically dependent on the mining industry, the beginning of the 1990s saw a major downscaling of this industry. The existing symbiosis benefits the municipality to a large degree; but in view of possible mine closure, a high level of dependence has been created in Koffiefontein. It is argued in the article that mine closure will influence negatively municipal revenue and service delivery and will increase the number of indigent households. In order to address these problems, specific planning should be conducted for mine closure. The contribution of various spheres of government is also needed, since such planning cannot be managed by the Local Municipality alone.