Unearthing solutions: Battling the menace of illegal mining

For close to 150 years, mining has been the backbone of the South African economy, contributing approximately 7.5 per cent of GDP and around 60 per cent of total exports.[2] However, this vital sector is now under siege from a formidable adversary: illegal mining. For years, illegal miners (colloquially known as Zama Zamas) have caused economic, environmental, and social upheaval, leaving a significant mark on the industry. Operating beyond regulation, illegal mining has evolved into a complex challenge, undermining both the stability of legal mining operations and the livelihoods of affected communities.

As of 2024, illegal mining is estimated to cost South Africa over R70 billion annually in lost revenue, taxes, and royalties, particularly in the gold sector.[3] This figure represents a significant increase from earlier estimates and highlights the growing scale of illegal mining. These losses stem from the direct theft of minerals, loss of royalties, and damage to mining infrastructure, which heightens the risks associated with investing in South Africa’s mining sector. This economic drain not only compromises the integrity of legal mining but also deprives the South African economy of crucial revenue streams.

As illegal mining escalates, it becomes clear that more than just regulatory action is required to safeguard the industry’s future. This article explores the far-reaching impacts of illegal mining and examines potential solutions to restore integrity to South Africa’s mining sector.

Impact on communities

The effects of illegal mining extend beyond mine shafts, profoundly disrupting local communities. Many areas experience a sharp increase in violence and criminal activities, driven by syndicates controlling illegal mining operations. The presence of illegal miners often coincides with rises in gang violence, prostitution, and human trafficking, exacerbating social decay in already vulnerable regions. In some instances, syndicates collude with local officials and police, creating a culture of dependency on the illicit economy. As a result, these communities become not only unsafe but also socially unstable, increasingly reliant on underground economies.

Impact on mining companies

Illegal mining poses a substantial threat to formal mining companies. Many have been forced to invest heavily in security, replace stolen equipment, or repair damage caused by sabotage. Although exact figures vary, it is estimated that mining companies lose approximately R7 billion annually due to illegal mining.[4] These financial burdens affect profitability, hamper operations, and deter further investment.
Concerningly, illegal mining appears to be proliferating. For example, Sibanye-Stillwater recently reported a 241% increase in illegal mining incidents in the first quarter of 2024 compared to the previous year, with 581 cases and 247 arrests. These incidents, along with rising security costs, disrupt operations and increase production costs, reducing the sector’s attractiveness to investors.[5]

The additional costs associated with securing sites and addressing operational disruptions directly impact market confidence. Investors are deterred by the instability in high-risk environments, limiting essential activities such as exploration, development, and expansion, ultimately stunting sector growth.

Impacts on illegal miners

Illegal mining is perilous for the miners themselves. Driven by economic desperation, many operate in abandoned shafts with substandard protective gear and little regard for safety. Accidents and fatalities are tragically common, demonstrated by two separate incidents which occurred in 2023 resulting in the deaths of 20 miners following a fire that broke out in an unused mine in Orkney, North West Province,[6] and the gas explosion in an abandoned mine in Welkom, Free State Province which claimed the lives of approximately 31 miners.[7] These miners, often migrants from neighbouring countries, work under exploitative conditions controlled by criminal syndicates.

The dangers are compounded by the use of hazardous chemicals like mercury and cyanide to extract minerals, exposing miners to serious health risks. Illegal mining not only strips these workers of their dignity but also puts their lives in constant jeopardy.

Impact on the environment

Illegal mining wreaks havoc on the environment, with long-lasting consequences. It frequently flouts environmental laws, leading to severe contamination of water sources and damage to ecosystems. For instance, the use of mercury and cyanide in gold extraction poses serious risks to both human and ecological health.[8] Illegal mining also contributes to soil erosion, deforestation, and the formation of sinkholes, while the lack of rehabilitation leaves ecosystems permanently scarred. This environmental degradation also undermines the sustainability of land for post-mining uses, such as agriculture.

Deploying police and the military

The South African government has frequently deployed police and military forces to combat illegal mining. Operation Prosper, launched in October 2023, involved the deployment of 3,300 SANDF personnel alongside SAPS. While this operation temporarily cleared 6,500 illegal miners from sites like Van Ryan, illegal mining quickly resumed after military forces withdrew in April 2024. This highlights the operation’s short-term impact and underscores the need for sustainable, long-term interventions.

Despite these challenges, policing efforts continue to show some success. Operations like Vala Umgodi in Mpumalanga have confiscated large quantities of illegal mining equipment, including 50 trucks, 200 phendukas (mineral processing equipment), and generators, with over 300 arrests made since March 2024.[9]

The ongoing efforts of multi-disciplinary teams, including the SANDF and other government agencies, are crucial. However, the fight against illegal mining is far from over, as syndicates remain highly organised and quick to re-establish operations.

Private sector prevention

Mining companies have significantly increased investments in security measures and community engagement to combat illegal mining. Many companies now use drones, thermal cameras, and radar systems to monitor and detect illegal activities. Some are also implementing AI technologies to detect patterns and monitor large areas for unauthorised access.

Beyond security, companies are adopting a multi-stakeholder approach, collaborating with communities and local authorities to tackle the underlying causes of illegal mining. By offering educational programmes, employment opportunities, and alternative sources of income, these initiatives aim to reduce the economic desperation that drives illegal mining.

Legislative and policy initiatives

Tackling illegal mining in South Africa requires a comprehensive overhaul of the legislative framework, particularly when it comes to Artisanal and Small-Scale Mining (ASM). Currently, ASM operators may be pushed into illegal activity due to the high barriers to entry, such as complex licensing processes and high costs. By formalising ASM operations, South Africa could provide a legal pathway for these miners, reducing the prevalence of illegal mining while promoting compliance with environmental and safety standards. It is essential, however, that any formalisation efforts take into account the realities on the ground. Formalising activities that exclude the main perpetrators of illegal mining, such as foreign nationals, would not meaningfully reduce these activities. A comprehensive approach that includes all key players is necessary to effectively address the issue.
Lessons from other African countries provide valuable insights into how ASM can be successfully regulated to combat illegal mining. In Ghana, the introduction of a simplified licensing system made it easier for ASMs to operate legally, significantly reducing illegal mining and bringing miners into the formal economy through taxation and royalties. Similarly, Tanzania’s Mineral Policy of 2009 designated specific areas for ASMs and provided technical and financial support to ASMs. This formalisation not only improved safety standards but also enhanced environmental protections. Both countries demonstrate how legal frameworks tailored to the needs of ASMs can mitigate illegal mining while contributing to national economic growth.

Importantly, any regulatory reforms must also prioritise environmental protection. Formalised ASMs should adhere to strict environmental guidelines to prevent the damage often caused by illegal mining.
For South Africa, the combination of regulatory reforms, international best practices, and strengthened enforcement efforts offers a path forward in addressing the illegal mining crisis. By adopting a comprehensive approach that supports both large and small-scale miners, the country can create a more sustainable and equitable future for its mining sector.

Conclusion

While enforcement efforts like Operation Prosper have shown that short-term successes are possible, the resurgence of illegal mining after the withdrawal of security forces highlights the need for more sustainable solutions. A comprehensive strategy, involving the formalisation of ASM and greater regulatory oversight, is crucial to addressing the root causes of illegal mining. By learning from successful examples in Africa, South Africa can create a legal pathway for ASM, reduce environmental harm, and improve the safety of miners and communities. Ultimately, a collaborative approach that integrates law enforcement, regulatory reform, and community engagement is key to curbing illegal mining and ensuring the future sustainability of the mining sector.