Minister Mantashe: Illegal Mining Costs South Africa Billions

Minister of Mineral and Petroleum Resources, Gwede Mantashe, has warned that illegal mining is one of the most pressing challenges facing South Africa’s mining sector – costing the economy billions in lost revenue.

The Minister was delivering remarks at the South African Human Rights Commission (SAHRC) National Inquiry into Policy Framework around Artisanal Mining.

The inquiry – now in its second leg – is investigating the Policy Framework around artisanal mining, the impact of artisanal mining on the human rights of surrounding communities and the scope and tactics employed in Operation Vala Umgodi.

“The dawn of democracy in 1994 marked a decisive break with this past. It ushered in a constitutional order grounded in human dignity, equality, and freedom, and it gave us the opportunity – and the responsibility – to correct historical injustices.

“For the mining industry, this meant developing a regulatory framework that promotes meaningful participation of historically disadvantaged persons, ensures responsible and sustainable mining, and drives socio-economic development.

“While progress has been made, significant challenges remain. One of the most pressing challenges confronting the sector is illegal mining, which is often conflated with artisanal and small-scale mining,” Mantashe said.

He noted the fundamental differences between artisanal and illegal mining, namely:

• Illegal mining is a criminal activity conducted in direct contravention of South African law. It is part of broader organised economic crimes and is often linked to serious offences, including illicit financial flows, extreme violence, human trafficking, gender-based violence and femicide, as well as the smuggling of weapons and explosives.
• Artisanal and small-scale mining, by contrast, is a legitimate and formalised economic activity, usually undertaken by citizens or legally documented residents, within a regulated framework.

He added that there is a “disturbing trend” emerging from illegal mining incidents with the involvement of undocumented foreign nationals.

He cited examples including:

• In the Stilfontein incident, 1 826 illegal miners surfaced from underground. The majority of those involved were undocumented foreign nationals from Mozambique, Zimbabwe and Lesotho.
• In Barberton, approximately 1 000 illegal miners were arrested, many of whom were also undocumented foreign nationals from Mozambique, Zimbabwe, and Lesotho.

“We must be clear: an individual who enters the country illegally and engages in unlawful economic activity cannot be sanitised or reclassified as an artisanal and small-scale miner.

“Whereas illegal mining was once largely confined to derelict and ownerless mines, it is now increasingly encroaching on operational and licensed mines, posing serious risks to safety, security, and economic stability,” he said.

Lost revenue

Mantashe told the inquiry that illegal mining cost the South African economy and the sector some R49 billion in 2019.

In response, government adopted a strategy including:

• The acceleration of the rehabilitation of derelict and ownerless mines
• Implementing Operation Vala uMgodi to clamp down on illegal mining activities
• Streamlining the regulatory framework to formalise artisanal and small-scale mining, while strengthening sanctions against illegal mining 

Strides have also been made in the rehabilitation of derelict and ownerless mines with at least four asbestos mines rehabilitated and 280 mine openings closed.

“This was made possible by an additional funding of R180 million allocated to the programme in the previous financial year.

“For the current financial year, a further R134.7 million was transferred to Mintek to continue this important work. It is important for the commission to note that the annual number of mines to be rehabilitated is dictated by the annual budget allocation received from the National Treasury.

“The department is also closely monitoring the rehabilitation and safe closure of operational mines to prevent these operations from becoming a burden on the state and future generations,” the minister noted.

Furthermore, a review of the Mineral and Petroleum Resources Development Act (MPRDA) is also underway.

This seeks to:

• Formalise artisanal and small-scale mining,
• Prohibit illegal mining,
• Criminalise the transportation and trade of minerals without prescribed documentation.

“Even as this review continues, the Department has already acted. In 2022, we published the Policy on Artisanal and Small-Scale Mining for implementation. This policy provides a framework to formalise the sector and enable lawful economic participation, primarily for South African citizens and legally documented individuals.

“Let me be clear: this policy does not legitimise illegal mining. It creates pathways for lawful, regulated participation – while ensuring that criminal activity is firmly and decisively addressed,” Mantashe concluded. – SAnews.gov.za