Mining has historically been at the heart of the economy, and will continue to play a critical role. Though considered by some as a “sunset industry”, mining still contributes about 7% to GDP and makes an indirect contribution of 17%.
Gold accounts for a third of exports and the mining sector accounts for almost a third of the JSE’s market capitalisation. The situation is becoming so dire that unless this issue is made the priority SA runs the risk of being unable to persuade anyone to invest in the sector. In December 2019 national police commissioner Khehla Sithole announced the establishment of a new unit to curb illegal mining. At the time, he said the new unit would work with the department of mineral resources & energy and use high-risk forces, which include the task force, the national intervention unit and tactical response teams, in mining hotspot areas.
It is alarming that the violence in affected areas is similar to that in illegal artisanal mine sites in active war zones such as the Democratic Republic of the Congo.Zama-zamas are emblematic of a changing SA landscape. They stem from the unanswered socioeconomic inequalities faced by the country. The Mineral and Petroleum Resources Development Act of 2002 acknowledges artisanal miners, but it is far removed from the reality that gave birth to the emergence of zama-zamas operating illegally.
The Mineral and Petroleum Resources Development Act should be urgently amended, and law enforcement should be given more authority to deal decisively with the criminality in this industry. Amending the act would give law enforcement such as the new unit as proposed by Sithole greater latitude and oversight to spot trends, monitor and proactively tackle syndicates.
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