Illegal Mining Flashcards
Introduction
Def illegal mining
Area impacted
What are Zama Zamas
what kinds of mines do they operate in?
Illegal artisanal mining in SA is the most lucrative mining in the whole continent and is described as an escalating global threat in 2023
It involves the theft and transnational smuggling of precious metals, especially
gold, by the Commission for Crime Prevention and Criminal Justice in Vienna,
Austria.
It affects six provinces in SA
affecting a vast areas of 6000 disused mines across SA and includes a complete takeover of closed mines without licences
Overview of what illegal mining entails and who is involved (Zama Zamas and people who operate the mines)
There are an estimated 30 000 illegal miners colloquially known as zama zamas, a Zulu
expression meaning either ‘take a chance’ or ‘try your luck’
they operate in ownerless or disused mines
or infiltrate active mines
They identify vulnerable mines
blast their way in from the top and ascend old mines using ropes
powerful criminal syndicates who launder minerals into the legal supply chains
Background
Illegal mining in SA didn’t emerge overnight but was caused by multiple intertwined factors
Arrival of democracy in 1994
During apartheid years migrant labour was the bedrock of the mining sector and was cheap labour for the industry
There was a desire to transform the mining sector
they did this by redressing some legacies of the apartheid such as exclusion of blacks, women , juniors and small Scale mining enterprises
Part 2 of background
changes were made
were made ito the legislative framework
employment numbers increased
Minerals and Petroleum Resource and Development Act (MPRDA) 2002 was enacted which brought the most significant change by giving recognition to the Artisanal and Small scale Mining (ASM) Sector
After 1995
Two dynamics created
Dropped in employment numbers which impacted areas beyond South Africa
- There is an abundance in men who are skilled enough to work in mines or impart their knowledge to younger generations
- social crisis and lay offs lead to the unemployed men accepting any work, legal or illegal
Perceptions of Zama Zamas are often negative
Mineral Council of SA estimates that 70% of Zama Zamas are undocumented foreign nationals
This leads to a negative perception of Zama Zamas by the public
They are characterized as pests
Said to breach both mining and labour laws
responsible for social ills which further breeds Xenophobic responses
Impact of Brooding of Xenophobic responses
This leads to a failure to recognise the true criminals behind the Zama Zama phenomen
and prohibits appropriate policy and enforcement responses
Modus Operandi
- Recruitment: Zama Zamas are often recruited from neighboring countries and may
not be aware of the illegal nature of their work. - Exploitative Practices: Miners face high costs for equipment, and syndicates deduct
expenses from their earnings. Violence is used to enforce discipline and quotas.
Associated issues
Involvement in social problems like slave labor, human trafficking, land
degradation, and deforestation.
- Adverse impact on government and business revenue and the long-term
sustainability of mines.
- Growing scale and complexity, necessitating increased cooperation and
collaboration among various stakeholders.
- Facilitation by the current socioeconomic context, including high unemployment
and corruption.
- Local communities supplying food, alcohol, and cigarettes to illegal miners
Different types of crimes committed by Zama Zamas
Mozambique=departure point for SA gold
Hand carry gold policy=allows the selling of merch to Dubai gold traders without need to provide the source of the gold, payment of export taxes or presentation of docs
China and India buy and process illegal copper cables
Corrupt police officers= are in the pockets of Zama Zamas
Illegal explosives= Threat to local communities and compromise support pillars in mines
this results in tremors or man made earthquakes
(Man made risk leading to external risks)
High Cost of illegal Mining
- Financially
- ito danger and chaos
- Lost gold production exceeding R14 billion per year
which makes SA the biggest source of illicit gold
and also results in loss of millions of rands in tax revenue
true cost is incalculable and affects both private and public infrastructure
where security updates need to be made
- Competing syndicates use firearms for protection and against mine security
Turf wars, unregistered blastings, rockslides and mining accidents occur on a daily basis
These factors make SA illegal mining more chaotic and conflict-ridden than others
- SA Reserves are finite and declining and so is the labour force in industrial mines
Security concerns
- Zama zamas using military-style defenses.
- Extensive arsenals, including semiautomatic rifles, assault rifles, hand grenades,
and explosives. - Illegal mining syndicates are well-resourced and pose a significant security threat
Five tier crime syndicate hierarchy
INDIVIDUAL CRIMINAL MINERS
Level 1s
Recruited by levels 2
Partial recruitment takes place (know there’s employment but don’t know that its illegal)
Subjected to debt bondage
Those working in industrial mines pay once of fee to access mine shafts
Amount paid is not related to the market price of gold but how skilled they are
GANG AND ILLEGAL MINING BOSSES
Level 2s
Lynchpins between level 1s and level 2s
Buy gold and front the costs associated with running the enterprise
Enforce disciple
Defend turf wars violently
Pay off mine security and shift managers for access to mineshafts as well as tip-offs
BULK BUYERS OF NATIONAL OR REGIONAL LEVELS
Level 3s who are the established members of the underworld.
Launder illicit gold to the legal chain supply
melt and mix the Dore with alloys to make it consistent with the jewellery
Deliver it to the refineries
FRONT COMPANY EXPORTERS
level 4s
operate outside of SA by taking illegally produced gold to the UAE and Switzerland
INTERNATIONAL INTERMEDIARY COMPANIES AND BUYERS
Mine Site level hierarchy
- DIGGERS
At the bottom of the chain
work weeks or even months underground in dangerous and cramped spaces - WOMEN
not allowed to work underground but work alongside crushers - BURNERS
responsible for benefication and value added processing by adding mercury and processing ore into amalgam)
Why there’s lack of progress
Department of Mineral Resources and its affliated agencies South African Diamonds and Precious Metals Regulations (SADPMR)
SADPMR hads complained about having lack of access to DMR officals for reporting, has no proper leadership
MPRDA shares responsibility with DMR
for bestowing responsibility on SADPMR when they have no investigation skills or shown no indication to carry out this function through which was shown through their reporting of progress only when asked by official channels
and by stripping SAPS of this responsibility, which they had shown to carry out with due diligence
