Illegal Mining: The Hidden Crisis Threatening S.A’s Mining

Illegal mining has escalated from a background issue to a national crisis. In 2023, a tragic incident in Orkney, North West, claimed the lives of twenty individuals in an abandoned mine due to an underground fire. Unfortunately, such occurrences have become alarmingly frequent throughout South Africa.

At Dhahabu Mining, we cannot turn a blind eye to this pressing matter. As a company dedicated to ethical mining practices, we recognize the importance of addressing the repercussions of illegal mining not only on the economy but also on communities, workers, and the environment.

What’s Really Happening?

Illegal mining operations, driven by informal miners referred to as zama zamas, are prevalent in various provinces. Many of these operations are under the control of criminal syndicates and occur in hazardous, abandoned shafts.

The Department of Mineral Resources and Energy reports that illegal mining costs South Africa over R70 billion annually in gold losses alone.

This situation adversely affects national revenue, legitimate businesses, and long-term investment in the mining sector. The consequences extend further, as these activities also:

  • Harm the environment
  • Endanger lives
  • Contribute to crime in surrounding communities

Last year in Mpumalanga, four illegal miners lost their lives during a violent confrontation at the Transvaal Gold Mining Estate just one of many tragic examples.

(Source: Calvin Augustine, GCIS, 2024)

What’s Being Done About It?

The government is taking action, and rightly so. In late 2023, President Ramaphosa sanctioned the deployment of 3,300 SANDF members to assist SAPS in addressing illegal mining hotspots. Various departments, including Mineral Resources, Home Affairs, and Environmental Affairs, are collaborating as part of a national task team to combat this crisis.

There is also a move toward long-term solutions:

  • The Artisanal and Small-Scale Mining Policy (2022) aims to formalize small operations by establishing clear permits and definitions.
  • Proposals for specialized units within SAPS to tackle illegal mining and the theft of precious metals are being considered.

    (Source: Webber Wentzel, Legal Brief, 2022)

Where Dhahabu Mining Stands

As a chrome mining company, we are acutely aware of the long-term damage that illegal mining inflicts—on livelihoods, trust, and the industry’s reputation. 

 Our core values guide our actions:

  • We mine responsibly, adhering to all legal and safety standards.
  • We care about people, fostering job creation through legitimate means.
  • We protect our environment, committing to sustainable practices.
  • We believe in collaboration, especially with communities and regulators dedicated to enhancing this sector.

We also support initiatives to make small-scale mining more accessible but only through proper regulation and safety measures, not shortcuts.

The Bottom Line

Illegal mining impacts us all. It’s not solely a matter of lost revenue it encompasses safety, fairness, and safeguarding our resources for future generations. We believe it is time for the industry, government, and the public to unite in efforts to reverse this trend.

Let’s support companies that operate ethically. Together, we can create a future for mining that benefits everyone legally, sustainably, and responsibly.