MININGBattling the
MININGBattling the menaceof illegal miningThere are solutions to the long-standing problem ofillegal mining, argue the NSDV’s Dominic Varrie, CandidateAttorney, and Mandy Hattingh, Legal Practitioner.Illegal mining canbe dangerous andunhealthy.For close to 150 years, mining has been the backbone of theSouth African economy, contributing approximately 7.5% ofGDP and around 60% of total exports. However, this vital sectoris under siege from a formidable adversary: illegal mining.For years, illegal miners (colloquially known as Zama Zamas) havecaused economic, environmental and social upheaval, leaving asignificant mark on the industry. Operating beyond regulation,illegal mining has evolved into a complex challenge, underminingboth the stability of legal mining operations and the livelihoods ofaffected communities.As of 2024, illegal mining was estimated to cost South Africaover R70-billion annually in lost revenue, taxes and royalties,particularly in the gold sector (www.gov.za/blog/illegal-mining).This figure represents a significant increase from earlier estimatesand highlights the growing scale of illegal mining. These lossesstem from both the direct theft of minerals, loss of royalties andthe damage caused to mining infrastructure, which heightens therisks associated with investing in South Africa’s mining sector. Thiseconomic drain not only compromises the integrity of legal miningbut also deprives the South African economy of crucial revenuestreams.As illegal mining escalates, it becomes clear that more than justregulatory action is required to safeguard the industry’s future.This article explores the far-reaching impacts of illegal mining andexamines potential solutions to restore integrity to South Africa’smining sector.ImpactsOn communities: The effects of illegal mining extend beyondmine shafts, profoundly disrupting local communities. Many areasexperience a sharp increase in violence and criminal activities,driven by syndicates controlling illegal mining operations. Thepresence of illegal miners often coincides with rises in gang violence,prostitution and human trafficking, exacerbating social decay inalready vulnerable regions. In some instances, syndicates colludewith local officials and police, creating a culture of dependencyon the illicit economy. As a result, these communities becomenot only unsafe but also socially unstable, increasingly reliant onunderground economies.On mining companies: Illegal mining poses a substantial threatto formal mining companies. Many have been forced to heavilyinvest in security, replace stolen equipment or repair damagecaused by sabotage. Although exact figures vary, it is estimated thatmining companies lose approximately R7-billion annually due toillegal mining. These financial burdens affect profitability, hamperoperations and deter further investment.Concerningly, illegal mining appears to be proliferating. Forexample, Sibanye-Stillwater reported a 241% increase in illegalmining incidents in the first quarter of 2024 compared to theprevious year, with 581 cases and 247 arrests. These incidents, alongwith rising security costs, disrupt operations and increase productioncosts, reducing the sector's attractiveness to investors.The additional costs associated with securing sites and addressingoperational disruptions directly impact market confidence. Investorsare deterred by the instability in high-risk environments, limitingessential activities such as exploration, development and expansion,ultimately stunting sector growth.On illegal miners: Illegal mining is perilous for the minersthemselves. Driven by economic desperation, many operate inabandoned shafts with substandard protective gear and littleregard for safety. Accidents and fatalities are tragically common,demonstrated by two separate incidents which occurred in 2023resulting in the deaths of 20 miners following a fire that broke outin an unused mine in Orkney, North West Province, and the gasexplosion in an abandoned mine in Welkom, Free State Province,which claimed the lives of approximately 31 miners. These miners,often migrants from neighbouring countries, work under exploitativeconditions controlled by criminal syndicates.The dangers are compounded by the use of hazardous chemicalslike mercury and cyanide to extract minerals, exposing miners to20 | www.opportunityonline.co.zaPHOTO: Neneqo Fotógrafo on Pexels
MININGserious health risks. Illegal mining not only strips these workers oftheir dignity but also puts their lives in constant jeopardy.On the environment: Illegal mining wreaks havoc on theenvironment, with long-lasting consequences. It frequently floutsenvironmental laws, leading to severe contamination of watersources and damage to ecosystems. For instance, the use of mercuryand cyanide in gold extraction poses serious risks to both humanand ecological health. Illegal mining also contributes to soilerosion, deforestation and the formation of sinkholes, while thelack of rehabilitation leaves ecosystems permanently scarred. Thisenvironmental degradation also undermines the sustainability ofland for post-mining uses, such as agriculture.Prevention mechanismsDeploying police and the military: The South African governmenthas frequently deployed police and military forces to combat illegalmining. Operation Prosper, launched in October 2023, involved thedeployment of 3 300 SANDF personnel alongside SAPS. While thisoperation temporarily cleared 6 500 illegal miners from sites like VanRyan, illegal mining quickly resumed after military forces withdrewin April 2024. This highlights the operation's short-term impact andunderscores the need for sustainable, long-term interventions.Despite these challenges, policing efforts continue to showsome success. Operations like Vala Umgodi in Mpumalanga haveconfiscated large quantities of illegal mining equipment, including50 trucks, 200 phendukas (mineral-processing equipment) andgenerators, with over 300 arrests made since March 2024.The ongoing efforts of multi-disciplinary teams, including theSANDF and other government agencies, are crucial. However, thefight against illegal mining is far from over, as syndicates remainhighly organised and quick to re-establish operations.Private sector prevention: Mining companies have significantlyincreased investments in security measures and communityengagement to combat illegal mining. Many companies now usedrones, thermal cameras and radar systems to monitor and detectillegal activities. Some are also implementing AI technologies todetect patterns and monitor large areas for unauthorised access.Beyond security, companies are adopting a multi-stakeholderapproach, collaborating with communities and local authorities totackle the underlying causes of illegal mining. By offering educationalprogrammes, employment opportunities and alternative sources ofincome, these initiatives aim to reduce the economic desperationthat drives illegal mining.Legislative and policy initiatives: Tackling illegal mining inSouth Africa requires a comprehensive overhaul of the legislativeframework, particularly when it comes to Artisanal and Small-ScaleMining (ASM). Currently, ASM operators may be pushed into illegalactivity due to the high barriers to entry, such as complex licensingprocesses and high costs. By formalising ASM operations, SouthAfrica could provide a legal pathway for these miners, reducingthe prevalence of illegal mining while promoting compliance withenvironmental and safety standards. It is essential, however, that anyformalisation efforts take into account the realities on the ground.Formalising activities that exclude the main perpetrators of illegalmining, such as foreign nationals, would not meaningfully reducethese activities. A comprehensive approach that includes all keyplayers is necessary to effectively address the issue.Lessons from other African countries provide valuable insightsinto how ASM can be successfully regulated to combat illegalmining. In Ghana, the introduction of a simplified licensing systemmade it easier for ASMs to operate legally, significantly reducingillegal mining and bringing miners into the formal economy throughtaxation and royalties. Similarly, Tanzania’s Mineral Policy of 2009designated specific areas for ASM and provided technical andfinancial support to ASMs. This formalisation not only improvedsafety standards but also enhanced environmental protections. Bothcountries demonstrate how legal frameworks tailored to the needsof ASMs can mitigate illegal mining while contributing to nationaleconomic growth.Importantly, any regulatory reforms must also prioritiseenvironmental protection. Formalised ASMs should adhere to strictenvironmental guidelines to prevent the damage often caused byillegal mining.For South Africa, the combination of regulatory reforms,international best practices and strengthened enforcement effortsoffers a path forward in addressing the illegal mining crisis. Byadopting a comprehensive approach that supports both large andsmall-scale miners, the country can create a more sustainable andequitable future for its mining sector.ConclusionWhile enforcement efforts like Operation Prosper have shown thatshort-term successes are possible, the resurgence of illegal miningafter the withdrawal of security forces highlights the need for moresustainable solutions. A comprehensive strategy, involving theformalisation of ASM and greater regulatory oversight, is crucialto addressing the root causes of illegal mining. By learning fromsuccessful examples in Africa, South Africa can create a legal pathwayfor ASM, reduce environmental harm and improve the safety ofminers and communities. Ultimately, a collaborative approach thatintegrates law enforcement, regulatory reform and communityengagement is key to curbing illegal mining and ensuring the futuresustainability of the mining sector.Sources: Al Jazeera; IOL; Mining Focus Africa; MiningMX; Citizen/Lowvelder; www.gov.za.news; www.gov.za.blogABOUT NSDVNSDV is a fully integrated law firm specialising in mining, construction,energy and environmental law. NSDV combines a pool of highlyskilled lawyers and environmental consultants to provide relevantbusiness consultation and specialised legal services with a practicaloutlook, often in conjunction. “People over Paper” is the firm’sunofficial mantra, but one that embodies NSDV’s non-combativebut collaborative approach using its vast network with regulatorsand people of influence. Started in 2018, the law firm has grownfrom three to 28 professionals based in Johannesburg, practisingand advising across Africa.www.opportunityonline.co.za | 21
