KEY POINTS
- Illegal mining is increasingly linked to organised crime, violence, weapons, human trafficking and mineral theft.
- The activities cost South Africa revenue, jobs, exports and investment while increasing security and operational costs for legitimate mines.
- The Minerals Council wants tougher laws, stronger policing and cooperation between government, law enforcement, communities and the mining industry.
Illegal mining is increasingly putting South Africa’s formal mining industry under pressure, with criminal syndicates, violence, mineral theft and environmental destruction creating serious risks for companies, workers and surrounding communities.
The Minerals Council of South Africa has warned that illegal mining, commonly associated with so-called “zama zamas”, is no longer simply an issue of unauthorised mineral extraction but a growing organised-crime problem.
Illegal mining operations are often linked to criminal networks with connections beyond South Africa. Rival groups frequently compete for control of mining areas, while some illegal miners are heavily armed and reportedly have access to explosives.
The situation becomes particularly dangerous when illegal miners enter active mining operations. According to the Minerals Council, some groups have used ambushes and booby traps against mine employees, security personnel and rival illegal miners.
Billions lost through mineral and infrastructure theft
Illegal mining is also placing a significant financial burden on South Africa’s economy and formal mining industry.
The activities result in losses of mineral revenues, taxes, employment opportunities, capital investment, exports, foreign exchange earnings and procurement opportunities. Mining companies are also forced to spend more on security and replacing stolen infrastructure and equipment.
Mineral theft from operating mines, combined with infrastructure vandalism and theft, increases the overall cost of production and makes mining operations more difficult and expensive to maintain.
The Minerals Council warned that the continued growth of illegal mining could undermine the long-term sustainability of South Africa’s formal mining sector and its contribution to the wider economy.
The impact of illegal mining extends well beyond mining companies and government revenue.
Communities located around illegal mining areas can face increased levels of violence, murder, rape, extortion and other forms of criminal activity. The Minerals Council also raised concerns about human and child trafficking, with vulnerable people allegedly being exploited as illegal miners or sex workers.
Environmental damage is another major concern. Illegal operations often extract minerals without observing the health, safety and environmental standards required of legitimate mining companies.
Unregulated mining can damage water sources and surrounding ecosystems, leaving communities to deal with the consequences of uncontrolled mineral extraction.
