Proceedings of Annual South Africa Business Research Conference
11 - 12 January 2016, Taj Hotel, Cape Town, South Africa, ISBN: 978-1-922069-95-5
Are Mineral Resources a Curse or a Blessing? A Critical
Analysis of Corporate Governance in the Mining Sector in
Selected Countries
Linda Muswaka
Mining companies are often perceived as capital extractors primarily concerned with wealth
maximization for the shareholders. This observation stems from the accusation that, these
companies do not pay the full cost of their operations; but profits are made and enhanced
at the expense of stakeholders’ interests. This assertion is often refuted by mining
companies who point to their commitment to corporate governance principles, and cite
social and philanthropic initiatives as evidence. However, two questions arise. Firstly,
whether the corporate social responsibility claims are compatible with the social realities of
mining companies’ stakeholders such as the employees and the communities in which
mining operations takes place. Secondly, the question is whether mineral resources are a
curse or a blessing. This paper seeks to explore these issues. The paper attempts to give
a comparative analysis of corporate governance in the mining sector in few selected
comparable jurisdictions. The aims are two-fold. Firstly, to further the discussion on the
need to consider stakeholder interests in corporate governance. Secondly, to draw lessons
from countries with effective corporate governance systems.

Linda Muswaka, Faculty of Law, School of Postgraduate Studies and Research, North West University,
South Africa. E-mail: leemuswaka@gmail.com.