Harmonisation of legislation urged to curb illegal mining

With abandoned mines at the centre of crime syndicates across the country, illegal mining continues to cost the country’s economy more than R70 billion in gold a year.

According to officials, despite recent police crackdowns and military deployments, the situation remains the same.

This results in huge losses in revenue for the government and the mining sector.

Illegal mining takes a hit

More than 100 illegal miners resurfaced from underground at Margaret shaft in Stilfontein in the North West on Tuesday.

These followed the nearly 600 illegal miners who resurfaced over the weekend.

Former chair of the portfolio committee on mineral resources and energy, Sahlulele Luzipo, argued while strides had been made, real progress depended on amending laws that fail to establish clear custodianship and accountability for mining sites.

“We still face issues with derelict mines, which often revert to previous owners, or lack clear custodianship. Many problems arise from mines under maintenance or in business rescue, where dormant gold mines attract illegal mining,” he said.

The department estimated in 2007 that the rehabilitation of abandoned mines would cost R100 billion.

Given inflation and an increase in abandoned mines, this figure is likely to be higher today. While the auditor-general reported 5 906 abandoned mines in 2009, this had increased to 6 100 by 2021.

Luzipo said there had been slow progress in closing and rehabilitating mines, but harmonising legislation could streamline state interventions.

“Amending the Mineral and Petroleum Resources Development Act should clearly assign custodianship to the department responsible for mining activities. “This would ensure that if operations are halted, mining rights can be reassigned or retired, allowing new management or repurposing without delay,” Luzipo said.

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Thousands arrested, diamonds worth millions seized

Acting national police commissioner Lieutenant-General Shadrack Sibiya highlighted recent efforts against illegal mining, reporting that since last December, authorities had made over 13 000 arrests across seven provinces, seizing R5 million in cash and uncut diamonds worth R32 million.

“The gold industry – particularly the trade in second-hand gold – remains largely unregulated. “We also need stronger regulations around refineries, where gold is processed,” Luzipo said.

Crime expert William Els said while illegal miners sold the gold to second-hand jewellery shops and pawnshops, the trade involved smuggling small gold bars out of the country, often with the help of corrupt officials.

In November 2023, President Cyril Ramaphosa deployed more than 3 000 South African National Defence Force members to support the South African Police Service in combating illegal mining over a six-month period.

“The biggest challenges is a deficit of over 8 000 detectives,” said Els.

“This shortage means many cases aren’t investigated thoroughly and sometimes arrested individuals must be released within 48 hours if we can’t process them on time.”

Els also pointed out the slow and inconsistent implementation of the 2006 Mining Protocol among Southern African Development Community countries.

Luzipo called for a multipronged approach, including targeting the demand for illegal gold. “Arresting individuals won’t solve it if we aren’t addressing the root cause,” he said.

“The goal should be to target the end market for illegal gold and kingpins.”

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