Illegal mining has been highlighted as a national threat and a priority by the South African government and is estimated to have accounted for over R7.5-billion in lost revenue last year.

South Africa Chamber of Mines security coordinator Neil Metzer highlighted this in his keynote address at the inaugural African Mine Security Summit hosted by conference organisers Fleming Gulf Conferences in Johannesburg last month.

The same sentiments were shared by Mineral Resources Minister Susan Shabangu when she spoke in February after rescue operations to remove illegal miners trapped underground. The Minister called for more sustainable methods for the closure of open holes and shafts to prevent illegal miners from reopening sealed access points.

In his address, Metzer drew attention to the illegal mining value chain and the various levels at which the illegal mining syndicates operate.

The first level is illegal or artisinal mining, second is the mining gangs or illegal mining bosses – the runners that collect the ore from the illegal miners, and third are bulk buyers, which buy the ore from the runners and sell it to front companies or refiners.

Level four of the syndicates comprise the front companies that distribute and export the ore, and level five consists of the international refineries. The front companies are situated in South Africa - they use the country as a transit point abroad and legalise stolen commodities in other countries through the refining of the ore, explains Metzer.

His address also drew attention to how illegal mining impacts on various other crimes, including human smuggling and trafficking.

“It has been identified that 70% of illegal miners are illegal immigrants from neighbouring countries, such as Lesotho and Zimbabwe, and include children for cheap underground labour and women for prostitution purposes.” he highlighted.

Illegal mining is also linked to the trade and smuggling of illegal weapons and explosives, which illegal miners use to arm themselves and also to booby trap areas underground.

In addition, illegal mining is accompanied by several security concerns, including protests against mining companies, attacks on the community, illegal migration, assassin-style murders, attacks on police officers and security companies and turf wars.

Health and safety concerns as a result of illegal mining include the sabotage of water pipelines, the interruption of electricity owing to cable theft, threats to employees owing to violence, the disruption to fresh air supply underground, and the excavation and reopening of sealed and rehabilitated mines.

The environment is also impacted, especially in terms of the contamination of water. “Mercury is used in the beneficiation process and this is often discarded into water sources and the surrounding environment,” Metzer notes.

There is a high level of violence among illegal miners, including turf wars, violence against mine employers and armed robberies. Illegal mining also contributes to the creation of an illicit economy.

Four Main Trafficking Routes
Metzer illustrated the four main worldwide illicit precious metals trafficking routes. These comprise the routes from South Africa into Africa, China, the UAE and Europe; a route from Brazil into Africa and South Africa, the route into Europe from Colombia, Russia and Canada; as well as the route from Canada into Europe.

“Many boarders have become too porous, allowing illegal transportation through several boarder crossings, airports and maritime ports around the world.”

Illicit mining is not regulated internationally and not appropriately policed locally and its continued existence is dependent on organised crime and corruption.

Metzer believes that the gaps in the current responses to illegal mining – including different approaches in dealing with illegal mining, a lack of communication and cooperation between law enforcement, mining houses, community and other stakeholders and the Department of Home Affairs’ lack of a more permanent solution to repatriate illegal immigrants – are a significant challenge in mitigating the scourge of illegal mining.

“What we need going forward is a universal approach to provide a global, legal and operational framework of understanding and cooperation between the mining industry, governments, the community and law enforcement to
effectively deal with illegal mining and the criminal linkages between illicit trafficking in precious metals, organised crime and financial support of criminal and terrorist activities at local, regional and global levels to effectively deal with illegal mining.

“Global support is also crucial and we need to identify the global weaknesses in legislation and control systems and fix this,” he concludes.