ABSTRACT
Homeownership has not been a priority for mining companies in South Africa in recent decades. This was mainly a result of the construction of ‘mining villages’ adjacent to mining operations. Company housing has been deemed a benefit in that mining operations are usually located significant distances from other towns. In the past decade, the emphasis in government policy has shifted so as to put an end to the increasing number of ‘ghost towns’ when operations have ended. This has also left the employees without housing ownership. With the development and expansion of two operations between 15 and 25 km from Postmasburg, one of the companies took the initiative of moving all the housing stock to Postmasburg and of promoting a homeownership initiative. This was based on a unique model in which a one-off housing subsidy was provided to all employees who participated in the scheme. This hugely increased the affordability of housing and was further supported by a monthly housing subsidy and an ‘instalment lease agreement’. Accordingly, both the mining company and its employees benefited from a homeownership scheme that culminates in formal ownership through provision of a title deed at the end of the contract. This approach also strongly supports the development of sustainable towns and thus represents a move away from ‘mining villages’.
