Nonregulation of mining industry causes illegal mining to thrive, says expert

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Gold extracted from beneath the earth illegally, is quickly moved through a sophisticated value chain and absorbed into the legal market.

JOHANNESBURG - Some energy and mining researchers have labelled illegal mining in South Africa as a multilayered and unregulated industry that continues to thrive.

A researcher at the University of Cape Town and the Bench Marks Foundation, Dr Nteboheng Phakisi-Portas, explained how the value chain of illegal mining works. “Gold will then be sold to a licenced dealer and then ends up being injected into the formal economy and finally you’ll have this gold being sold to the international market.”

 

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