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Opinionista

Illegal mines are breeding grounds for criminals and an environmental threat

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Fred Arendse is Founding President of the Junior Mining Council, a voluntary membership entity that caters to the unique needs of the junior mining sector.

In light of the formidable challenge posed by illegal mining, a question arises: How many years can South Africa realistically expect to sustain key commodities such as gold, coal, iron ore and platinum group metals?

For a long time there existed a naive belief that the eradication of illegal mining could be achieved through a singular confrontation, like the timeless tale of David and Goliath. Much like the victorious shepherd armed with a sling and five smooth stones, the prevailing assumption was that a single decisive action could conquer the formidable issue.

In recent times, South Africa has grappled with an escalating challenge that imperils the very bedrock of its mining industry: Illegal mining. While not unique to mineral-rich nations, the engagement in mining activities without requisite statutory authorisation poses substantial risks to the safety and well-being of those involved. Furthermore, it undermines the integrity of the mining sector and erodes investor confidence.

Speaking at the inaugural launch of the Junior Mining Council (JMC) at the Johannesburg Stock Exchange earlier this year, vice-president of the Black Business Council, Gregory Mofokeng, said transformation in the mining sector should no longer be handled with kid gloves, emphasising that the JMC must confront this reality. One of the primary responsibilities of the JMC would be to tackle the pervasive issue of illegal mining.

His words resonated deeply, eliciting a profound silence in the auditorium, signalling that the task for the fledgling JMC had already been defined.

While some may view these twin challenges as monumental for an entity in its infancy, the stark reality is that the exigencies confronting the mining industry, particularly junior miners, affords no luxury of delay or hesitation.

Illegal mining is listed in the same category as electricity constraints and logistical constraints for bulk commodity exports, a clear demonstration of how serious the problem is.

Even the government’s ambitious plan to eliminate illegal mining syndicates has been accompanied by warnings from security experts, who caution that it will not be a simple undertaking. The syndicates are highly organised, armed, equipped and funded, making their dissolution a complex process.

Illegal mining, or zama zamas as they are commonly called, are estimated to cost the mining industry about R7-billion annually, exacerbating the strain on the already diminishing fiscus by syphoning off billions in lost tax and royalties.

In a nation blessed with abundant mineral resources, South Africa’s mining industry has long stood as a cornerstone of its economy. However, this abundance does not equate to sufficiency for unchecked greed. In light of the formidable challenge posed by illegal mining, the question arises: How many years can South Africa realistically expect to sustain key commodities such as gold, coal, iron ore and platinum group metals?

If PwC South Africa’s 2023 “SA Mine: Adapt to Thrive” report (as presented at the recent Joburg Mining Indaba) is anything to go by, the regression in various metrics in the mining sector is due to several changes across the industry. These include the decrease in profits and operating cash flows, as well as the fact that in some provinces we have as few as six years of mining left based on currently declared reserves.

Illegal mining is listed in the same category as electricity constraints and logistical constraints for bulk commodity exports, a clear demonstration of how serious the problem is.

Sites for illegal mining have become breeding grounds for criminal activities, posing threats to the environment, surrounding communities and the safety of those engaging in illegal mining. The ramifications of this issue extend beyond the immediate dangers, since it contributes to the erosion of the industry’s reputation and hinders its sustainable development.

South Africa is not the only country that is confronted by illicit mining. Illegal gold mining has plagued Colombia, its ecosystems and communities, where, as in South Africa, it not only posed environmental risks but also fuelled criminal activities. In response, the government, in collaboration with local communities and mining companies, launched a war to eliminate organised armed illegal mining groups.

Key measures included the destruction of 32 mining production units in Tutendo, Certegui and Rio Quito, Chocó department, valued at $2.8-million, and identification and closure of illegal mining sites, putting a stop to criminal mining operations. Colombia also implemented stringent penalties for offenders.

According to data from the Colombian Ministry of Defence, between August 2022 and February 2023, Colombian security forces acted on nearly 1,000 illegal mines, seizing and then destroying hundreds of items of machinery and equipment for illegal extraction, Colombian news site Portafolio reported.

Ghana, known for its rich mineral resources, continues to experience illegal small-scale mining, particularly in gold-rich areas. Despite attempts by successive governments to remedy the situation, a combination of policy reforms, increased law enforcement and community engagement has not yielded positive results.

Sealing legacy mining shafts and access points should become mandatory. This not only prevents unauthorised entry but also safeguards the environment from potential degradation caused by unregulated mining. 

While socioeconomic factors are at play, bureaucratic licensing regimes, a weak legal framework, political and traditional leadership failures and corrupt officials have been blamed as among the causes of the problem.

The comparison between artisanal and small-scale mining (ASM) in Ghana and South Africa, as discussed in the Journal of the Southern African Institute of Mining and Metallurgy asserts the vital role ASM plays in the economies of resource-rich African countries.

The authors note that Ghana’s 2006 Minerals and Mining Act (MMA), while incorporating previous mining laws, has contributed to an intensification of illegal artisanal mining in the country.

How to deal with it

It is becoming clear that greater efforts are needed to promote ASM as an economic activity to sustain livelihoods in rural communities and small-scale mining. We must draw lessons from successes and failures, and project them to our course.

In this regard, the JMC concurs with the Minerals Council SA that dealing with this challenge requires focusing on both the supply and demand side of illegal mining.

Closing redundant shafts will also mitigate the menace of illegal mining. This will involve identifying and securing all inactive shafts that are vulnerable to unauthorised access. By implementing a systematic approach to closing such shafts, we can significantly reduce opportunities for illegal mining. 

Read more in Daily Maverick: R1.5-billion multi-pronged asset seizure order sees authorities tighten illegal coal mining noose

Sealing legacy mining shafts and access points should become mandatory. This not only prevents unauthorised entry but also safeguards the environment from potential degradation caused by unregulated mining. 

No single stakeholder can eliminate illegal mining. Collaboration between government agencies, mining companies and local communities is of paramount importance to ensure effective surveillance and monitoring. Technology also has a role to play – satellite imagery and drones will save us time and money in this fight.

We must advocate for proactive community engagement and education initiatives. Educational programmes should also highlight the economic and environmental benefits of legal mining, encouraging a shift towards sustainable practices. This should be extensive and deliberate, and conducted with the same intensity as voter education campaigns.

The tale of David and Goliath teaches us that pride leads to a fall and one should never underestimate one’s opponent. The time for action is now – akin to this timeless tale, we must be bold, courageous and have faith. The war against illegal mining is to secure a sustainable and responsible future not only for South Africa’s mining sector but for all South Africans and future generations. DM

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