THE Minerals Council SA has called on the South African government to approve a dedicated illegal mining strategy as precious metal theft and smuggling continue to damage the local industry, said BusinessLive on Wednesday.
Speaking to a portfolio committee on Tuesday, Minerals Council CEO Mzila Mthenjane identified illegal mining as an ongoing challenge for South Africa’s mining sector.
Mthenjane referenced the Stilfontein incident as helping to reveal the drivers behind illegal mining and approaches to artisanal and small-scale mining, said BusinessLive.
Demands for clearer legal frameworks have intensified since January, when 72 illegal miners died at an abandoned gold mine in Stilfontein, making international headlines.
Police and military forces have increased their crackdown since December through joint operation “Vala Umgodi”, which blocks essential supplies from reaching abandoned mines.
Policymakers have responded by including illegal mining clauses in the recently published Mineral Resource Development Bill, representing the most substantial changes to South Africa’s mineral law since 2002.
However, the Minerals Council criticised the bill in May, stating it failed to reflect their contributions.
South Africa’s main mining law has faced criticism for its limited definition of illegal mining, which restricts police sentencing powers. Current legislation allows offenders to be charged with minor crimes like trespassing, said the newspaper.
The state estimates approximately 6,000 abandoned mines exist in South Africa, with nearly $1bn lost annually through illicit mining activities.
Sibanye-Stillwater reported its highest illegal mining incidents in over a decade last year, with 540 incidents and 1,487 arrests at its South African gold operations.
Record gold prices have driven increased gold theft, forcing Pan African Resources to retrench 244 workers at its Barberton mines in May.
