6 000 Abandoned Mines Cost South Africa Over R41 Billion, Government Collaboration Needed to End The Loss

• South Africa’s economy allegedly loses a staggering R41 billion in revenue annually because of the presence of 6 000 abandoned and dormant mines
• Experts say that there need to be collaborative efforts across different government departments for the nation to tackle illicit mining effectively
• The deputy director general of the Department of Mineral Resources and Energy, Tseliso Maqubela, fears that South Africa will be grey-listed if illicit mining is uprooted

JOHANNESBURG - Harmony Gold Mine is calling for the reinstatement of a specialised police unit to combat illicit trade stemming from illegal mining. It was revealed in a Parliamentary Mineral and Energy Oversite Committee meeting that over 6 000 abandoned mines cost the South African economy R41 billion a year.

eNCA reported that several stakeholders briefed the oversight committee on what they were doing to combat illegal mining on Friday, 12 August.

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The portfolio committee discovered blatant gaps within government after an oversight visit to illegal mining hotspots in Gauteng.

EWN reported that with intensified calls to clamp down on illegal activity of zama zamas, several departments outlined how they will uproot illegal mining in hotspot areas.

Over the last couple of weeks, police officers arrested over 80 suspected illegal miners and alleged illegal immigrants. Still, such strides toward success will prove fruitless unless there is effective collaboration between the Department of Mineral Resources and Energy and Home Affairs.

The portfolio committee admitted that there is no magic bullet for the illegal mining crisis, and chairperson Sahlulele Luzipo says the lack of collaboration between the mineral resources department, South African Police Service, and Home Affairs impedes the fight against illegal mining.

The challenge to combat illegal mining is further compounded by the fact that there are over 600 dormant mines in Gauteng alone. He admits that combating illegal mining is an exercise that should have been undertaken long ago.

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Luzipo said:

“I think what is good about this exercise is, while it may not necessarily be perfect, it begins to show that from an accountability platform, the non-coordination of committees of Parliament in dealing with different issues in society and, in this case, issues of illegal mining."

According to the DDG of Mineral Resources and Energy, Tseliso Maqubela, South Africa faces the risk of being grey-listed because of the perceived uncontrolled illicit financial flow created by illegal mining activities.

Mail and Guardian explains that when a country is placed on a grey list, it indicates that it is being monitored by the Financial Action Task Force (FATF). Being placed on the list means the FATF has identified shortcomings in the nation’s systems to counteract financial crimes.

Illegal mining: Gwede Mantashe reveals it will take 17 years to close abandoned mine shafts

In a related matter, Briefly News reported that Mineral Resources and Energy Minister Gwede Mantashe says that it will take 17 years for the government to close all open mine shafts.

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Mantashe made the statements in front of the National Council of Provinces (NCOP) on Thursday, 11 August.

Police Minister Bheki Cele and Home Affairs Minister Aaron Motsoaledi also attended the parliamentary briefing. The trio were called to address the NCOP on how their departments planned on addressing the menace of illegal mining.

Source: Briefly News