HOSTEL TURNED INTO GOLD FACTORY
G-Hostel in Thabong, Free State, is a haven for magomosha (illegal underground miners), whose business has opened other sub-economies like prostitution
BUCKETS containing muddy residue are lined up as men known as “magomosha” kneel over them, carefully examining their contents.
Others crush rocks found deep in mine shafts to separate the gold from the rock.
Another burns a cylinder with mercury and gold dust inside.
Welcome to Welkom’s notorious G Hostel in Thabong township – also known as Free State’s biggest factory for processing illicit gold. Behind the peeling walls is an illegal operation believed to produce millions of rands worth of gold weekly.
Magomosha are armed, highly skilled and risk-taking illegal miners who bribe their way through closed and active mines in order to access the gold-laced underbelly of the earth.
They spend months digging up gold before selling their loot to syndicates, who then sell it at enormous prices on the black market.
The mining industry loses about R6-billion annually through illegal mining.
Despite the dingy look, overcrowding and obvious lack of service delivery, the 83-roomed G Hostel is a haven for magomosha to process gold and make deals with syndicates who come in flashy cars.
The noise from shebeens along the untarred streets and prostitutes marketing their wares in the dark corridors give the hostel a certain “edge”.
Less than a kilometre away is Thabong police station, that is seemingly toothless in dealing with the brazen illegal trading happening on their doorstep.
Allegations of police colluding with illegal miners were validated by the arrest of 21 Welkom police officers last year for being involved in illicit gold mining.
They are on suspension and will appear in court in May.
At the time, Hawks spokesman Captain Paul Ramaloko said some officers pocketed cash from illegal miners instead of arresting them.
During Sowetan’s visit to the hostel, police vehicles were seen driving in and out without making any arrests.
Magomosha operate from an open space in the centre of the hostel. The residents have become used to it. Some have even rented out their rooms to be used as processing plants and weighing rooms.
Magomosha regularly watch business news bulletins to monitor international gold prices.
Their business has also opened other sub-economies like prostitution and mercury dealing.
The mercury is used to release gold particles from the soil, and 250ml could cost R15 000.
Hospital laboratory employees with access to the jelly-like chemical have created a niche market by selling it to magomosha.
*Mojalefa, an illegal miner, is proud to be part of magomosha.
“Zama zamas work on the surface. We work underground. We start off by being financially reliant on syndicates that we work with,” Mojalefa explains.
“We get indebted to them because they have connections in the mines who can smuggle us into the shafts. Syndicates pay up to R35 000 per head.”
The loan comes with an interest of over 50%. “The more time we spend underground the more gold we get and sell back to the syndicate to break even and then make our profit. We can pocket up to R500 000 by the time we get out.”
Most transactions are concluded underground. “Mineworkers are our means of survival. They get us food, alcohol and sex. We only deal in R100 and R200 notes, no coins,” Mojalefa says.
His peers – dressed in torn vests and overalls despite claiming they earn large amounts of money – look anything but rich.
“Some get too excited when they make a big score. We don’t use banks, so the money is always accessible. We quickly become broke and then we are forced to go back to illegal mining to feed the habits we had developed when we had money. It’s a cycle,” says Mojalefa.
Matjhabeng local municipality recently revealed its plans to demolish G Hostel before the end of this year and establish formal housing. This was because of the activities taking place and poor payment for municipal services.
Shutting down the hostel is not a solution, says Jack Ramohomane, chairman of the anti-zama zama committee. “It’s unfair. In 1994 the provincial government invested R800-million to renovate the place, but they never did.”
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