Business Day

Illegal miners plague Sibanye

- Allan Seccombe

A deep undercurre­nt of corruption coupled with a lack of policing and prosecutor­ial skills have allowed illegal gold mining syndicates to run rampant in SA’s gold mines, says Sibanye Gold security head Nash Lutchman.

Illegal mining costs the country about R20bn a year in lost sales, taxes and royalties. Sibanye recently had 461 illegal miners arrested at its four Cooke mines near Johannesbu­rg.

“The syndicates are having a field day. They are laughing all the way to the bank. We don’t have sufficient­ly trained police to deal with this type of miningrela­ted crime. Our National Prosecutio­n Authority lacks the particular skills to prosecute this,” Lutchman said.

“The general corruption at the lower levels in the South African Police Service and private security contribute­s a lot to nothing being done to stop this,” he said, adding that employees and mine security personnel were worsening the problem by smuggling food undergroun­d and aiding illegal miners.

Smuggled food packages were sold for hundreds of rand, prompting Sibanye to ban food going undergroun­d to feed miners who live in the dark for weeks at a time.

The miners could earn up to R22,000 per undergroun­d session, earning R450 per gram of gold in 20g amalgam packages.

Illegal mining brought a host of social ills including assault, murder, bribery, corruption, firearm-related crimes, rape, theft and drug abuse.

Sibanye found 90% of those arrested for illegal mining at its operations were foreign, with many having mining experience as retrenched or out-of-work miners making up the undergroun­d teams.

Gold and diamond mines were the most targeted by the illegal miners.

Sibanye says it is losing about up to 4% of its annual gold output of 1.5-million ounces to illegal gold mining despite increasing­ly stringent security measures to stop illegal miners entering its mines and to stem the flow of food and equipment to them.

Lutchman said Sibanye was experienci­ng a similar problem of people illegally entering its newly acquired platinum mines near Rustenburg — in this case to steal copper cables and other recyclable material.

It was predominan­tly operationa­l and closed gold mines that were targeted by illegal mining syndicates, he said.

Earlier in June, one illegal miner was caught at Cooke with gold valued at R200,000 in his stomach, showing how lucrative the business can be.

Lutchman said despite illegal miners being arrested, they were soon either out on bail or fined and released under relatively mild charges of trespassin­g or theft. One of the best ways to close abandoned or shuttered mines was to collapse tunnels and shafts, making access impossible, he said.

 ?? /The Times ?? Crime seam: Legal miners toil 1km undergroun­d in a shaft at Cooke mines. Sibanye Gold says poor policing and a weak judicial system is enabling illegal miners to muscle in on parts of the sector.
/The Times Crime seam: Legal miners toil 1km undergroun­d in a shaft at Cooke mines. Sibanye Gold says poor policing and a weak judicial system is enabling illegal miners to muscle in on parts of the sector.

Newspapers in English

Newspapers from South Africa