PAN African Resources has arrested about 4,000 illegal miners at its Mpumalanga underground operations in South Africa over the past year. This was after the gold producer confirmed it had detained 494 miners at its Sheba mine in Barberton.
Pan African spokesman Hethen Hira was quoted by BusinessLive as saying the mountainous terrain and visible gold deposits from 140 years of mining made the area particularly vulnerable to illegal operations. Arrests averaged an astonishing 150 to 200 per week.
Local police resources proved insufficient to handle the scale of illegal mining, prompting Pan African to request extension of the controversial Vala Umgodi operation to Barberton, said Hira. The police intervention discovered underground camps equipped with cooking facilities and refrigeration equipment.
“We knew where the camps were but wanted assistance from police to have a more permanent impact,” said Hira. Air wing patrols now monitor the mountain area as part of ongoing operations with national police.
The illegal mining surge has significantly impacted operations.
In May, Pan African reported that gold theft, including employee collusion with illegal miners, made some Barberton units unsustainable, forcing 244 worker retrenchments and reduced production. The mines employ 3,759 people, making them the region’s largest employer.
Security costs have increased from $25 to $40 per gold ounce due to illegal mining pressures, said BusinessLive.
Illegal mining extends througout the industry, especially as record gold prices drive increased theft. Sibanye-Stillwater reported its highest illegal mining incidents in over a decade, recording 540 incidents and 1,487 arrests at South African operations last year, said BusinessLive.
