Concerted effort needed to combat South Africa's illegal mining scourge

A multipronged approach involving both the mining industry and government is required to better deal with illegal mining in South Africa, where bloody skirmishes pitting rival gangs profiting from this illicit pursuit and the illegal mineworkers themselves are a frequent occurrence, with police officers and security guards sometimes caught in the crossfire when they try to intervene.

Fatalities also occur when the illegal mineworkers, or zama-zamas, are trapped underground in fall-of-ground incidents or when they inhale dangerous gases. There have also been incidents where illegal miners, fearing to return to the surface after being tipped off about above-ground ambushes by rival illegal mining gangs or syndicate leaders, perish in underground workings.

The deaths are a frequent occurrence, but the number of victims is difficult to determine, as the bodies of many illegal mineworkers are often not retrieved from underground, as, in many instances, it is too dangerous for rescue teams to attempt to reach the illegal miners when they are trapped, let alone investigate the incident or retrieve their bodies and collect evidence.

The violence and underworld dealings associated with illegal mining have led to growing public interest in this activity, as civil society demands answers on how these illegal operations can still continue unabated.

There have also been growing calls for intervention, with many commentators suggesting that the illegal mining industry should be legalised. However, many complex issues will have to be dealt with before any consideration is given to legalising the industry, which may not be entirely feasible.

According to Chamber of Mines (CoM) spokesperson Charmane Russell, the illegal mining industry “is believed to run into billions of rands yearly”.

She tells Mining Weekly that it is often organised criminally and carried out under the auspices of organised criminal syndicates. “Illegal miners operate outside the law and are often heavily armed,” she notes, adding that they may operate in disused underground mines or trespass on operating mines, setting up ambushes and booby traps for employees, security guards and rival groups of illegal miners.

Illegal mineworkers also trespass on old above-ground mine dumps, where they pan for gold.

However, Russell points out that illegal mining is not unique to South Africa, citing research undertaken by the United Nations Interregional Crime and Justice Research Institute, which shows that several serious crimes are associated with the illegal mining of precious metals. These include corruption, money laundering, illegal migration, gender-based violence, child labour and links with armed terrorist groups.

She says it is difficult to establish illegal mining hot spots in South Africa, because there is no comprehensive survey detailing their locations. However, the practice often takes place at abandoned mines and, in many cases, in disused portions of operating mines as well, she adds.

Illegal mining is “extremely dangerous”, with illegal miners risking their lives to open cemented shafts using explosives in places where surface adits and shafts have been located, says Russell, adding that underground conditions are far from ideal. “They often live underground for extended periods . . . without the necessary protective gear and other safety materials once they have gained access into these operations.”

Illicit Market
Russell says the illegal mining market is a well-managed five-tier system. Tier 1 comprises underground workers, mostly undocumented immigrants, many of whom previously worked on underground mines, which means they may have varying degrees of underground mining skills. Most of these operators use chemicals (predominantly mercury) underground for primitive processing, resulting in less ore being transported to the surface, which helps them avoid detection or raising suspicion.

Tier 2 comprises the buyers on the surface in the vicinity of a mine, who are often involved in organising the activities of Tier 1 operators, supplying them with food, protection and equipment.

Tier 3 involves regional bulk buyers – often entities with permits issued by the Department of Mineral Resources (DMR) under the auspices of the Precious Metals Act of 2005.

Tier 4 operators are the national and international distributors, who often act as legitimate movers of commodities through front companies and legitimate exporters.

Tier 5 constitutes the end recipient – top international receivers, such as refineries and intermediary companies.

The only way of dealing with illegal mining, states Russell, is to focus on its supply and demand sides, which requires dealing with each tier of the syndicates. “Illegal mining presents significant challenges, which no one stakeholder is able to address on its own.”

She adds that the mining industry, through the CoM and its member companies, will continue to work with other stakeholders, including the DMR and the South African Police Service, to address this serious challenge.

Broader Impact
Illegal mining presents a range of negative social and financial impacts, including serious risk to the safety of the illegal mineworkers themselves. “Safety standards are generally not observed, which is why tunnel collapses and falls of ground are common,” Russel says.

Illegal mining can also result in underground fires, damage to infrastructure and negative impacts on the environment – particularly through the use of mercury.

In addition, damage and losses are often caused when illegal mining activities start to encroach on the activities of operating mines, with criminal elements introduced into nearby communities and subsequently proliferating. “A great deal of illegal mining is managed by organised criminal groups,” says Russell.

The illicit sale of illegally mined commodities leads to losses for the fiscus through unpaid royalties and taxes.

Challenges
The DMR is ultimately responsible for maintaining disused mines, Russell notes.

“While mining companies and the DMR have gone to great lengths to ensure that all entrances to disused mines are sealed, often with thick concrete slabs, illegal miners are extremely resourceful and are often able to gain access to old shafts by opening sealed-off areas using explosives.”

Russell states that the CoM’s structures have researched and developed views on illegal mining, and will continue to assess ways of addressing the issue, adding that “the CoM welcomes interaction with government on this matter”.

Current mining legislation was put in place for various purposes, including protecting the safety of people who work in mines.

Further, small-scale mining and artisanal mining have emerged in a number of sectors. “Minerals where we have seen a rise in small-scale mining include coal, phosphates, chrome, diamonds and aggregates,” says Russell, adding that it is important to distinguish between illegal mining and small-scale or artisanal mining. Small-scale mining is encouraged under the Mineral and Petroleum Resources Development Act (MPRDA), with the CoM having established a special unit dedicated to supporting small-scale mining.

Such mining has emerged in a number of sectors, particularly where the barriers to entry are low, such as operations that do not require large and costly infrastructure and/or unaffordable specialist skills. “These tend to be surface or shallow operations,” says Russell.

This sector is regulated to not only ensure that there is control over the allocation of mineral resources in a way that is beneficial to South Africa and promotes transformation but also protect the environment, communities and employees, she elaborates.

To empower small-scale and artisanal miners, Russell suggests employing a collective approach involving government, civil society and the mining industry. She says these parties need to develop ways to support artisanal and small-scale mining that enhance the country’s mineral resources, “thereby calling them to account”.

Such a collaborative approach should also delve into methods that serve to align the objectives of the MPRDA and the Mining Charter, thereby ensuring that mining operations contribute to, and do not harm, nearby communities.

Further, solutions and measures need to be developed to address the safety and health of all mineworkers, communities and the environment, as well as methods for the promotion of a fair and sustainable contribution to the fiscus by small-scale and artisanal mining. Such an approach should also not compromise the security of South Africa’s borders or its communities.

“These issues are all critical ones and require deep consideration by experts in government, industry, academia and other experts and interested parties,” she says.

The CoM is committed to assisting small-scale miners through its Emerging Miners’ Desk by providing advice and support, and serving as a resource centre for the smaller CoM member companies. Services include providing smaller member companies with advice and assistance in terms of raising finance for projects, geology and engineering, skills development and compliance with the MPRDA and the Mining Charter.