ATC240209: Report of the Portfolio Committee on Mineral Resources and Energy on the Oversight Visit to North West and Gauteng Provinces, Dated 09 February 2024.

Mineral Resources and Energy

Report of the Portfolio Committee on Mineral Resources and Energy on the Oversight Visit to North West and Gauteng Provinces, Dated 09 February 2024.

 

1. INTRODUCTION

 

The Portfolio Committee on Mineral Resources and Energy (hereafter, “the Committee”) undertook an oversight visit from 24 to 27 August 2023 to the North West and Gauteng Provinces on illegal mining.

 

The oversight visit was triggered by the incident which had occurred in Riverlea-area, Johannesburg. After five (5) bodies (believed to be illegal miners) were found in the Riverlea area and the Zamimpilo informal settlement (south of Johannesburg) in early August 2021, residents barricaded the roads with burning tyres demanding the police act against illegal miners (commonly known as Zama Zamas) in the area.

 

The Committee had conducted an investigate oversight visit on illegal mining in 2023, therefore, saw it fit that as it attend to the issue of Riverlea, it also follow-up on the recommendations it made on the investigative oversight report on illegal mining.

 

This report provides a detailed synopsis of the Committees oversight visit.

 

1. COMPOSITION OF DELEGATION

 

1. Members of Parliament

 

Name of Member	Political Party
Hon. S Luzipo	African National Congress (ANC)
Hon. MG Mahlaule	African National Congress (ANC)
Hon. N Tyobeka-Makeke	African National Congress (ANC)
Hon. VT Malinga	African National Congress (ANC)
Hon. M Wolmarans	African National Congress (ANC)
Hon. P Madokwe	Economic Freedom Fighters (EFF)
Hon. Jafta	Africa Independent Congress (AIC)

 

2.2 Parliamentary Staff

 

Name	Designation
Ms. A Boss	Committee Secretary
Mr. S Maboda	Content Advisor
Ms. P Mahlati	Committee Assistant
Ms M Masutha	Committee Researcher

 

1. REPORT ON THE OVERSIGHT VISIT

 

3.1 North West

 

On their joint investigative oversight report on illegal mining, the Portfolio Committees on Minerals Resources and Energy, Home Affairs and Police, recommended that:

 

• “The DMRE, in collaboration with relevant stakeholders, should ensure that old mine shafts are demolished and rehabilitated. The DMRE, to submit progress report on this by the end of January 2023, particularly in relation to a commitment that was made in the North West Province.
• A follow-up oversight by the Committee on Mineral Resources and Energy needs to be conducted, particularly to the North West Province, to ensure that recommendations on collaboration are being addressed and proper closure of mines.

 

The above recommendations were informed by a number of challenges that Committees observed in the North West Province. These observations included concerns about the statement that was made by the Department of Mineral Resources and Energy (DMRE) that indicated that mining rights, in the form of a letter, were given by Traditional Leaders.  There were concerns about the mining rights that were issued by farm owners/Traditional Leaders to the ‘so called investors’ allowing them to mine without proper authorisation. This action or practise was strongly condemned by the Committee for allowing people to utilise the mining rights without complying with the laws and prescripts.

 

Members expressed dismay with the DMRE in the North West province and complained that they were not getting satisfactory responses. This was particularly concerning when answers were not provided for who had the mining rights for some of the mining operations that were taking place in Vogelstruisnek/Witrantjies and Moloagane Village, where illegal mining of chrome was rife. Moreover, it was clear from the presentations and engagements that the Department of Police and the Department of Mineral Resources in the North West Province were not working together sufficiently to address the challenges of illegal mining. They were encouraged to work together more closely in fighting this crime so as to improve the current situation.

 

In the Province, in the three sites that were visited, the Committees noted with concern the excavators that were allegedly being used by illegal miners. The South African Police Service needed confirmation of the mining rights holders in the areas, to be able to confiscate the excavators and equipment.

 

It is against this backdrop that the Committee conducted a follow-up oversight visit in North West from 24 – 25 August 2023. The following section provides a detailed report on the North West Oversight Visit.

 

3.2.1 Briefing by the Department of Mineral Resources and Energy  

 

The Acting Director General, Mr. Maqubela delivered a presentation which reflected on the Committee’s 2022 recommendations as contained in the investigative oversight report, as well as matters related to illegal mining in North West and Gauteng Provinces.

In his opening remarks, Mr. Maqubela, indicated that he was excited by the Government’ response on illegal mining, and added that the Security Cluster is actively addressing the matter and believes that significant inroads are being made, and illegal mining will be defeated. He proceeded to report on the progress that the DMRE has made thus far in responding to the Committee recommendations – these are discussed below.

 

 

 

 

 

Amendment of the legislation in response to the challenge of illegal mining  

 

Mr. Maqubela reported that the DMRE and Law Enforcement Agencies within the Justice, Crime Prevention and Security Cluster (JCPS) Cluster has drafted General Laws Amendment Bill to effect technical amendments to the following pieces of legislation:

 

• Mineral and Petroleum Resources Development Act, 2002 (No 28 of 2002) to strengthen the provision in relation to the criminalization of illegal mining (section 5 A), to broaden the definition of “authorised person” to enable, for instance, the SAPS to assist the Regulator in compliance functions amend sections 98 (offences) and 99 (penalties) to include section 5A as one of the listed offences and increase penalties.
• Precious Metals Act, 2005 (No 37 of 2005) to amend section 20 to increase penalties.
• Diamonds Act, 1986 (No 56 of 1986) to review offences and increase penalties.
• Hazardous Substances Act, 1973 (No 15 of 1973) to review the current grading of mercury/other chemicals used in the extraction of precious metals to enhance control.
• Criminal Procedure Act, 1977 (No 51 of 1977) to list illegal mining in Schedule 1 to enable arrests without a warrant.

 

Mr. Maqubela indicated that these amendments will be tabled before Cabinet in September 2023 and consultation and parliamentary processes will be conducted before the end of 2023. However, it was noted that the Immigration Act (No 13 of 2002) was not included in the list of Acts to be amended. Section 34(1)(b) and (d) of the Immigration Act favoured illegal immigrants, as they were released back into the communities after being issued with a notice to leave South Africa. Mr. Maqubela committed to verify the exclusion of the Immigration Act.

 

Workshop with Traditional Leaders on mining and related matters

It was reported that workshops with traditional leaders, in North West and other provinces were arranged or conducted as follows:

 

Table 3: Workshops with Traditional Leaders

Province	Date and Place
North West	Rustenburg (in conjunction with SALGA) 1 December 2022 Follow up will be on 6 September 2023 in Rustenburg Dr Ruth Mopati Ngaka Modimo Molema (planned for November 2023
Limpopo	Held on 19 July, 20 July and 16 March 2023 at Hlanganani, Tshikundamalema and Siyandane.
KwaZulu Natal	Held on 23 June 2023, Amakhosi in collaboration with Department of Forestry, Fisheries and the Environment Water Sanitation.

Source: Department of Mineral Resources and Energy, (2023)

 

Monopoly of mining rights in the Burgersfort area relating to SAMNCOR Chrome LTD, Glencore and Anglo American

 

The Department noted this and indicated that it will be considering mechanisms for collaborations between large scale miners and other role players. It was further stated that the Department always has to strike a balance between the growth of investment in the country and broadening the participation by other investors.  Mr. Maqubela said that whenever there is an opportunity for divestment by the major mining companies, the DMRE always seeks to ensure participation by Historically Disadvantaged South Africans (HDSA).

 

The Department must expedite the implementation of its Small Scale and Artisanal Policy

 

In terms of the response on progress made in respect of this recommendation, the Department reported that a number of applications have been screened for potential funding. The next step is to award funding to the most deserving applicants with the available budget. Awareness on Department’s support for Small Scale Mining is being intensified. It was reported that the Department is also considering partnerships with mining houses to enable small and access to markets. Furthermore, policy positions of the Small Scale and Artisanal Mining Policy will be formally regulated through amendments to the Act and Regulations or setting up a new legislative regime for Small Scale and Artisanal Mining.

 

Regulating gold as a strategic mineral

 

It was reported that a process to amend and overhaul the MPRDA was started in July 2023 with the multi sectoral Mining Indaba held in Gauteng.  This process will also include the listing and regulation of critical strategic minerals that will significantly contribute to the economic development of the country. It was also indicated that two-day African Critical Minerals Summit will be held on 29 and 20 August 2023 in Johannesburg. Therefore, there will be further engagements on this issue, and the discussions may also enhance the process that the Department is engaged on regarding the overhaul of the MPRDA and the listing of strategic critical minerals.

 

Council for Geoscience (CGS) and Mintek should collaborate with the SAPS to use the technologies developed to track illegal miners as a preventative measure.

 

In respect of this recommendation, the Department reported that it has discussed and engaged the National Coordination and Strategic Management Team (NCSMT) and that draft specifications for an onsite monitoring tool have been developed regarding the following:

 

• Provide platform to address the need for situation awareness and collaboration amongst users through the consolidation of information.
• Incorporates information from various elements and sensors into a consolidated view that provides commanders of armed forces units with real time situation awareness.
• Provide notifications of events, tracks discovered, images and other types of information received in real time from identified hotspot areas.
• Secure, private cloud-based platform with both mobile and web-based applications which are used to view and contribute information to the system.
• Exchange information with a diverse set of services and sensors, such as detection systems and various other entity tracking systems.
• In addition to consolidating information from various sources, thus allowing for the secure, controlled distribution of information with the ability to share and collaborate with several users from including the SAPS/Armed forces.
• Assist in establishment and maintenance of the Control Centre wherein several users will operate.

 

The Department noted that there are budgetary constraints in respect of implementing this recommendation. However, it was indicated that a discussion is underway within NCSMT to source funding from affected departments as well as from Organised Business (Mineral Council).

 

Budget allocation for the closure of Derelict and Ownerless Mines

 

Currently the Department is receiving an annual allocation of approximately R143 million for the rehabilitation of derelict and ownerless mines nationally as per the Annual Performance Pla. Of the R143 million, R122 438 000 is allocated for rehabilitation of 40 holings and 3 asbestos mines per annum. The remaining R20 562 000 is for research support for derelict and ownerless mines and holings. Furthermore, National Treasury is being engaged to increase funding allocations for this programme to target high risk areas.

 

Moreover, the Department stated that during the 2022/23 financial year, it successfully closed 95 shafts. These included the 26 located in and around Krugersdorp as per presentation that was delivered to the Committee in 2022. In Gauteng alone, there are about 518 shafts/holing's that still need to be closed. These holings/shafts are located in Mogale City (54), Johannesburg Metro (94), Ekurhuleni Metro (354) and Lesedi Municipality (14).

 

Concerning the Riverlea and Zamimpilo – area in Johannesburg, 24 shafts holings have been identified. In order to address the immediate risk, the Department through Mintek temporarily backfilled 14 holings opened by illegal miners. Mintek is currently finalising the procurement process to permanently seal the 24 shafts holings identified.  The Department indicated that the closure of the 24 shafts holings will be completed by the end of September 2023.

 

Progress on demolition and rehabilitation of old mine shafts

 

The Department report that Scott Shaft belonged to Stilfontein Gold Mine Ltd which was liquidated, and that illegal mining is rampant in this shaft. Stilfontein Gold Mine does not have financial provision for rehabilitation as it was abandoned prior to the Mineral and Petroleum Resources Development Act coming into effect – thus there was no legislative requirement to make provision. The Department is currently considering option of pursuing the former owners of the then liquidated mine to recover costs for rehabilitation. Furthermore, the Department reported that Shaft 2, 3, 5 belong China African Precious Metals (CAPM)Ltd, an active mining operation. It is important to note that an environmental was approved for rehabilitation of the 3 shafts subsequent to the Committee visit to these shafts in 2022, the company has changed the approach through a recent study to consider feasibility of re-opening the shafts in 2024. This will determine whether to close the shaft or remine the shafts.

 

Collaboration with law enforcement agencies, SAPS and DMRE in order to address illegal mining

 

The Department gave progress broadly on this indicating that law enforcement agencies have formulated a number of structures to deal with the illegal mining in all provinces. The structures referred to include the National Coordinating Strategic Management Team (NCSMT), National Organizing Committee (NOC), Provincial Organizing Committee (POC), Mine Crime Combating Forums (MCCF) at SAPS cluster district level. According to the Department, these

forums are multi-disciplinary and multi sectoral including SAPS, Directorate for Priority Crime Investigation (DPCI), National Prosecuting Authority (NPA), DMRE, Department of Water and Sanitation (DWS), Department of Fisheries, Forestry and Environment (DFFE).  The forums coordinate activities to plan and disrupt illegal mining activities in different provinces.

 

It was reported that operations in North-West had been undertaken in Vogelstruinek, Tweelagte, Palmietfontein and Ruighoek. Arrests of people who were mining illegally including seizing of assets, chrome and equipment were undertaken. However, for the purposes of the Committee recommendation, the interest on collaboration was within the North West Province, and it became clear that there was no collaboration between the DMRE and the SAPS.

 

Consequence Management for the Government Officials who are found to be involved in corrupt activities relating to illegal mining.

 

The Department was not aware of any official involved in illegal mining and committed that should this information come to light appropriate action will be instituted.

 

Status of mines in business rescue, liquidation, care, and maintenance in North West

 

Five (5) mines were reported to be under business rescue, eighteen (18) under maintenance, and two (2) under liquidation.

 

Status of rights/permits granted in the Volgestruisnek farm or between Volgestruisnek/Witranjies village and moloagane village, Rustenburg

 

From what the Department reported, it appears that about 27 rights/permits were issued in these areas. However, it was apparent that there was double granting of rights/permits.

 

3.2.2 Site visits: Scot shaft – Stilfontein Mine, China African Precious Metals Gold Mine, and Volgestruisnek/Witranjies Farm

 

The abovementioned areas were visited by the Committees during the 2022 investigative oversight visit on illegal mining. The Committee visited the same areas to assess progress on what has been since September 2022. Below is summary of what the Committee had found.

 

• Scot shaft – Stilfontein Mine: The Committees had proposed that the shaft should be demolished and flatted. This did not happen. Instead, the Department stated that the mine is under liquidation and that the owners of the mine are being, in an effort to find legal ways for the company to take responsibility for the rehabilitation of the area. Members of the Committee urged that, the Department should find ways of making the structure safe, while they are pursuing the legal means.

•  China African Precious Metals Gold Mine: During the 2022 oversight visit, the Committees were informed that this shaft or mine will undergone a rehabilitation process, and that the process would be completed by the end of January 2023. However, this did not happen, instead the company plans to reopen the mine in 2024 – however, this is dependent on the feasibility studies that the company is undertaking. It was confirmed that there was no illegal mining taking place in the mine.
• Volgestruisnek/Witranjies Farm: The Committee found that the situation was worse than it was in 2022 when it visited the area. The situation was described as ‘disaster’ – the illegal mining of chrome is now taking place few metres from the houses. The Department was urged to address this matter with the relevant stakeholder as matter of urgency. The Department committed that it would meet with all stakeholders during the week of 28 August 2023, including meeting with all the right/permit holders in these areas.  

 

After the above engagements in the North West Province, the Committee proceeded to the next province, Gauteng. The following sections reports on the oversight visits undertaken in the Gauteng Province.

4.Gauteng

 

1. Briefing by SAPS and DMRE on the Riverlea incident

 

On 26 August 2023, the Committee was briefed by the DMRE and the Gauteng SAPS on the Riverlea incident. Whilst they did not make a formal presentation, the Department of Home Affairs, and the National Prosecuting Authority (NPA) also gave their inputs.

 

4.1.1     DMRE Presentation

The Chief Director: Mine Rehabilitation. Mr. Andries Moatse told the Committee that DMRE receives an allocation of R143 million for the rehabilitation of derelict and ownerless mines,R122 438 000 for asbestos mines per annum – this includes the targets of forty holings and 03 asbestos mines, R20 562 000 for research support for derelict and ownerless mines. In the 2022/23 financial year, about 21 shafts were sealed in Gauteng  – in Roodeport, Crown Mines, Benoni, Brakpan, Krugersdorp, Randfontien, Nigel, City Deep, and Germiston. In Riverlea (Langlaagte – Zamimpilo Informal Settlement) the issue is gold illegal mining and the DMRE has sealed 26 shafts.. In Gauteng, 518 shafts still need to be sealed.  However, the challenge with the illegal miners is that once the shaft is closed and holes are sealed the miners simply reopen using explosives or dig around the sealed area to gain access to the minerals.

The DMRE breakdown of the shaft/holings in Gauteng still to be closed is in Mogale City (54), Johannesburg Metro (94), Ekurhuleni Metro (354), and Lesedi Municipality (14). The DMRE has identified 24 shafts/holdings in Riverlea. The closing of these shafts will happen in this financial year. Mintek is currently finalizing the procurement for the sealing of the 24 shafts. The DMRE will use the National Treasury annual 2023/24 allocation of funds of which R30 million is budgeted for closing shafts.  The DMRE has also indicated that in August they are able to approach National Treasury for additional funding for unavoidable and unforeseen circumstance which requires an amendment of the budget and reallocation of funds to which this will fall under.

 

4.1.2     SAPS

The SAPS official indicated that the Gauteng Province experiences illicit mining activities throughout the various policing districts. This is predominately in the areas of Langlaagte (Zamimpilo), Riverlea, Selby, Dobonsonville, Roodeport, Florida and Cleveland.  Langlaagte mining activities for gold in the main are concentrated at derelict and unused mines within the Zamimpilo informal settlements.  A total of 17 open mine shafts utilized by Zama Zama were identified. Crimes associated with illegal mining include – murder, attempted murder, aggravated robbery, theft of copper cable, rape, theft and damage to essential infrastructure, discharging of firearm in municipal built up areas, illegal connection of electricity and water. The police station of Langlaagte has conducted the following interventions: intensified high visibility operations inclusive of vehicle and foot patrols in the inner perimeter and within the immediate surroundings of prioritized areas. Operations have been conducted at identified illegal mining hotspots. Further multi-disciplinary integrated district operations with stakeholders and Department of Home Affairs and City of Johannesburg, including the extension of operations with support of neighboring policing stations under the implementation of Project Ice.

At a national level, similar multi-disciplinary approach including the National Intervention Unit, Mobile Operations Unit, Special Task Force and Tactical Response Teams and Public Order Policing and Crime Intelligence. There has been an establishment of a processing center for undocumented person in conjunction with the Department of Home Affairs.

In terms of the operational successes which includes the district and national collaborations, it was reported that 262 undocumented persons were arrested between 31 July and 24 August 2023. There was confiscation of illegal mining equipment consisting of Phenduka, stampers and steelpot crushers, generators, commercial explosive, spades, liquor (233 570 ml) and dagga (1 plastic bag) during the same period.  The police station has received concerns from the community namely, vandalisation of George Park is not patrolled by SAPS, concern of the underground gas, petroleum and water pipelines, increase in shootings, use of explosives at night, illegal miners being in possession of automatic rifles and other firearms and poor reaction times of the police station.

• These concerns are noted by police station. And highlighted the following: a total of 10 new vehicles were allocated to the station for the previous two financial years with an addition 3 expected. Additional human resources pending finalization of training. Continuous monitoring of outstanding complaints has been timeously attended to during the quarter.
• The SAPS has highlighted that there are significant contributing factors and challenges which includes social ills relating to abuse of liquor, drug dealing and gangsterism, and high levels of unemployment in the area.
• SAPS highlighted various recommendations namely: DMRE assistance to proper and permanent closure of derelict and ownerless mines. Entities such as PRASA, Telkom and Eskom must fulfil their obligations relating to security of their respective infrastructure and assets. Provincial Liquor Board must intervene on the problematic liquor outlets and Human Settlements must address the poor infrastructure and environmental design of the police station and Zamimpilo settlement.

 

1. Home Affairs

• Home Affairs Official highlighted that the Department of Home Affairs has already sought to rectify the legislative gaps. The Department confirmed that for the Border Management Authority (BMA) control, the inspectorate has increase personnel.  It was reported that there is engagement with the relevant persons in the countries of origin of the illegal miners such as Lesotho, Mozambique, Malawi and Kingdom of eSwatini. Another issue was that for entry into Lesotho from South Africa, there is no customs checking.

 

1. NPA

The NPA indicated that the challenge is the shortchanging and gaps in the legislation which create a problem in successful prosecution of illegal miners. The jurisdiction of the crimes committed means that most of the illegal miners that are arrested are prosecuted in the Magistrates court to which the illegal miners are quickly released. The lack of criminalisation of illegal mining in legislation also complicates the rate at which the illegal miners can be successfully prosecuted. The aspect of admissible evidence for successful prosecution was also highlighted as a key issue.

 

1. Community meeting

 

The Committee met with the Community representatives of Riverlea to share their experiences, and the following was raised by the community representatives:

 

• Mr. Ford Harrison asked what has taken place with the R43 million rehabilitation funds that the CRG mine has left for rehabilitation with the DMRE. He further requested for local beneficiation for the youth to participate in mining activities.

 

• Ms. Cynthia Hobbs asked where  was Home Affairs as most of the miners are from outside of the country and mostly Lesotho and Zimbabwe and further asks about the statement made by the DMRE for availability of R2 million for rehabilitation before the end of September  2023 to close the 24 holings in Riverlea. She wanted to know where this money was going to come from whereas the community is aware of R43 million rehabilitation fund. She further asked whether this is remaining from money spent already and asked for transparency.

 

• Rev. Mark Katen, Riverlea Mining Forum asked about George Harrison Park and whether the DMRE has an update specifically of when closure will take place, by who and when because these open holes and the illegal mining thereof are a serious problem in the community.  

 

• Mr. Cedrick said that the issues of illegal mining in the community are significant. It was like the community is living in a war zone, the illegal miners used gunshots to communicate to each other, the gangs add further issue, the violence, so the community is always in a situation of guns being shot. The community members are only safe in their homes, so they felt like prisoners while the illegal miners do what they like in the community.

 

DMRE responded as follows on issues raised by Community members:

• The George Harrison Park – the holings and shafts, the DMRE is aware of the issue and has sealed the holes, but the holes have been reopened and additional holes have emerged. It is a serious crisis, but DMRE made assurance that they will seal the holes. The issue of George Harrison also includes the acid mine draining which the DMRE has become aware of in 2010 and there has been an Inter-Ministerial meeting between Ministers of DMRE and Department of Water and Sanitation to have a clear mandate to treatment of water – this is under the DMRE Ingress Control Programme with the Council for Geoscience (CGS).

 

• The R43 million financial provision: The purpose of the financial provision is with licensing phase which guarantee that the project will be able to rehabilitate the mine or protect the state should the project close. This money is not released until the mine or business is closed in its entirety.

 

• Training of the community was noted by the DMRE.

 

• Update on Riverlea: The DMRE has backfilled 15 holes and in the process to close the shafts permanently. This is the process undertaken with Mintek. Broadly, the DMRE and Mintek have developed a project plan and is advanced to the level of procurement. The DMRE committed that the holings in Riverlea will be done by end of September 2023.  With Riverlea, the shafts are occupied by illegal miners therefore there is a need to check before closing whether persons are underground first – this is part of the process. The sealing of shafts/holes will be from the reallocation of funds from the National Treasury.

 

 

Follow up questions from the community:

 

• Ms Yolanda Lotts (Riverlea Mining Forum) asked for clarity regarding the license awarded in the Mainreef area.  Further, the DRD unit must have fence which is not there, and this is where the Zama Zama’s are operating which is located behind the community. She further wanted to know how CRG obtained a permit near a school and the community.  Also, this unit operates under different names.

 

The Chairperson of the Portfolio Committee on Mineral Resources and Energy indicated that these question will require the DMRE to check and come back to the community with a written response, including the rehabilitation funds and confirmation of liquidation of the company, and the funds usage. This was agreed by the DMRE.

 

1. National Joint Operational and Intelligence Structure (NATJOINTS)  

 

Ms Nqobile Khanyile from the DMRE presented on behalf of the structure the summary observations and recommendations to the Committee on threats on illegal mining related criminal activities on the oversight visit of 24-27 August 2023.

 

The following were reported as nature of challenges:

• The market for illicit mining is growing domestically, regionally, and internationally.
• There is a growing and uncontrolled immigration of undocumented persons from the neighbouring State and has a big impact on the criminality that surrounds illegal mining (murders, illegal firearms, explosives, human trafficking and drugs among others).
• There is limited intelligence to deter the scourge of criminality in illegal mining and this is affecting security of the State and its sovereignty.
• Derelict and Ownerless, abandoned mines are the pull factors that enables the crime of illegal mining.
• Informal settlement build on top of outcrops, old mines and high-risk areas making them suitable to act as ingress points and digging of new holing.
• There is a need for spatial planning that will discourage rampant opening of holings in previously mined areas.
• Lack of financial resources to create sufficient capacity to deal with all associated challenges including enforcement of laws.
• Environmental liabilities which will be left to the State.
• Corruption in law enforcement agencies, government, mining companies, community, and many other enablers.
• Legislation needs to be strengthened to deal pull factors that drives this type of crime.
• Collaboration is needed to improve cooperation between law enforcement agencies to optimise limited resources and capabilities such as SAPS, SAPS Crime Intelligence, Directorate for Priority Crime Investigations (DPCI), State Security Agency (SSA),NPA, Asset Forfeiture Unit (AFU), South African Revenue Service (SARS( and Customs, DMRE, Department of Home Affairs (DHA), DIRCO, Cooperative Governance and Traditional Affairs (COGTA), Department of Human Settlements (DHS), Department of Water and Sanitation (DWS), Department of Justice and Constitutional Development (DOJ&CD), South African Defence Force (SANDF), South African Reserve Bank (SARB), Financial Intelligence Centre (FIC), Provincial and Local Government, State Owned Entities, Parastatals and Research Institutes.

 

With regards to compliance monitoring and enforcement, the DMRE must undertake compliance monitoring in operational mines and ensure the following:

 

• Mines take responsibility for rehabilitation.
• Rehabilitation funds must be adequately provided so that no mine is abandoned and not sufficiently provided for.
• DMRE must hold accountable mining companies who neglect their rehabilitation duties.
• There must be strict oversight and regulation of second-hand gold and refineries to disrupt the practice of illegal gold smuggling,
• A principle of “use or lose it” must be applied in the minerals industries.

 

With regards to immigration, DHA must control illegal immigration in the county by ensuring that all undocumented immigrants are prosecuted and thereafter be deported. Discussion with neighbouring countries contributing to illegal immigration must be undertaken by DHA and the Department of International Relations and Cooperation (DIRCO) with the aim of discouraging the scourge. TheBMA, Public Works, South African National Defence Force (SANDF) need to consider strengthening border controls for management of immigration into the country.  Here is a need for harmonization of the application of immigration legislation by Department of Justice and Constitutional Development (DJ&CD).

 

It was stated that the intelligence agencies and detectives must undertake an analysis of illegal mining activities, an analysis of the countries of origin and the character of the people who enables this serious crime. Training of investigators, development of standardised charge sheet for illegal miners, over and above trespassing. Consideration of the General Laws Amendment Bill to accelerate the implementation of the proposed changes to the identified legislations.

 

The structures responsible for serious and organised economic crime and corruption are required to:

• Target organised crime, economic crime and corruption, using specialised units and officers in the fight against illegal mining.
• Deal with the syndicate elements of this practise of illegal mining for reasons that it has inter-linkages with other organised crime which include human smuggling and trafficking, money laundering, illegal weapons and explosives, violent crime, environmental degradation, the illicit economy, transnational organised crime, customs offences and tax evasion,
• Crimes that undermine the sovereignty of the State and are a threat to national security requires serious consideration.

 

With regards to Prosecution, The NPA and law enforcement agencies must:

 

• Ensure that all persons including enablers of illegal mining are prosecuted and heavy sentences metered against them.
• The crime of illegal mining must be classified as a priority, serious and organised crime. Consequently, be prosecuted at a higher courts (e,g Regional and High Courts).
• Establishment of specialised criminal courts (where possible and feasible)- will be dependent on the workload in each area and availability of resources.

 

With regard to Small Scale Mining (SSM), there needs to be a coordinated SSM legislation and support mechanism for small and emerging miners. The financial support for small scale mining initiatives is insignificant to fully support the programme. Appropriate legislative framework and implementation plan on the permitting, training, monitoring and enforcement of Artisanal Small-Scale Mining (ASSM)- Definition of Artisanal and Small Scale to be aligned across relevant legislation. Community engagement and public participation to communicate the Small-Scale Mining Policy and legitimate points of entry into the mining value chain, engagement with traditional leaders and community forums.

 

The following recommendations were addressed to the Portfolio Committee:

 

• South African Government should implement the Economic and Social Council (ECOSOC) Resolution of 2019/23 titled: Combating transnational organised crime and its links to illicit trafficking in precious metals and illegal mining, including by enhancing the security of supply chains of precious metals and encourage other State to do so if this problem is to be effectively deal with.
• Co-operation of Law Enforcement agencies with those of neighbouring states to jointly fight the scourge of illegal mining, trade and illicit economy.
• Urgently dealing with the illegal immigration and porous borders with our neighbouring States.
• The State’s Intelligence Agencies must play an active role in developing intelligence on the syndicates involved in illegal mining and assist to affirm the State sovereignty.
• The draft General Laws Amendment processes to expedite resolving this matter so that it makes illegal mining be dealt with as a serious crime (i.e carrying custodial sentence and/or with high penalties).
• Legislative amendments to deal with possession of Chrome so that it is regulated to deter its conveyancing (just like Precious Metals and Diamonds).
• For the small-scale mining, Government must provide for the regulation of the small-scale mining and identify appropriate support mechanisms for prospective beneficiaries of ASSM including the appropriate financial resources.
• The Provincial and Local Government should consider dealing with informal settlement to assist efforts to halt their establishment.
• Whilst fiscal limitations are acknowledged, financial resources are a serious constraint in dealing the challenge of illegal mining in this country.

 

4.4 Directorate for Priority Crime Investigation (HAWKS)

 

The Directorate provided progress report on the recommendations and the status of illegal/ illicit mining since the oversight visit in 2022 by the Portfolio Committee Mineral Resources and Energy, Home Affairs and Police. The following progress was reported in respect of the Committee recommendations implementation:

 

Recommendation 3: “To enhance police capacity, training and skills of members at local, provincial and national level”.

 

Feedback: No dedicated capacity in provinces to investigate Precious Metals and Diamond matters, therefore the DPCI Precious Metals and Diamond Section embarked on a process not only to create capacity but also to enhance and equip the investigators with knowledge and skills in order to address and investigate illegal mining successfully. Capacitation is ongoing.

 

Recommendation 4: “Specialised policing resources to target illegal mining at the local policing structures must be strengthened to neutralise illegal mining”.

 

Feedback:  Specialised policing resources must be identified by policing structures (Border Police, DPCI, Detectives etc at provincial level in conjunction with the respective mining houses and private security companies. This should also include the appropriate training relative to the application of the specialised resources.

 

Recommendation 8: “The success of the multidisciplinary approach by the Free State in addressing illegal mining should be replicated in all affected provinces”.

 

Feedback: Although provinces attending the National Operational Committee ( and the National Coordinating Strategic Management Team (have been sensitised about the methodology implemented in the Free State, this practice is once again to be emphasised to all provincial coordinators The DPCI coordinator for precious metals and diamonds in the Free State has already been approached regarding guidance in this regard in an effort to align all provinces with the strategy adopted in the Free State. For the successful implementation of this strategy, all relevant role players in the mining industry, especially those in mining security and private security companies need to participate. It also needs to be tailor made to each province`s unique circumstances and modus operandi of the illegal miners.

 

Recommendation 14: “CGS and Mintek should collaborate with SAPS to use the technologies developed to track illegal miners Mining”.

 

Feedback: Training of officials and the procurement of the necessary resources are being facilitated through the respective offices in SAPS.

 

Recommendation 19: “Need for collaboration with DMRE, DOJ& CD, DCS and SAPS”.

 

Feedback: The National Coordinating Strategic Management Team (is attended by all role players and stakeholders It has been noted that attendees, from time to time, need to be encouraged to attend regularly.  The Dept of Correctional Service has also been invited. The

Dept of Justice and Constitutional Development has been identified as an imperative role player to be included in NCSMT at the next meeting The Precious Metals and Diamond Section (continuously consults with the Regulator (regarding compliance inspections and new applications for licences

 

Recommendation 20: “Consequence management for government officials who are found to be involved in corrupt activities relating to illegal mining”.

 

Feedback: Cases in which government officials are found partaking in illegal mining and related crimes are investigated and court ready cases are enrolled for prosecution Sunnyside CAS 868 06 2019 Fraud This investigation involves high prominent figures from the Department of Mineral Resources and Energy (the case is set down for the 30 Aug 2023).

 

Recommendation 21: “Profiling of illegal mining role players”

 

Feedback: The profiling of illegal miners, kingpins and beneficiaries is an ongoing process managed by DPCI PCMC at national and provincial level with regard to project investigations and major investigations conducted by the DPCI. The SSA, Crime Intelligence, Financial Intelligence Centre, Mining Security and Private security companies are also consulted in this regard. It was reported that, these respective databases are consulted on a daily basis.

 

1. COMMITTEE OBSERVATIONS

 

This section provides a synopsis of the key issues observed by the Committee, particularly emanating from the presentations, discussions, and the walkabouts.

 

• There is considerable progress made in addressing illegal mining in the country, compared to when the Committee conducted oversight last year, including good progress on the implementation of the recommendations of the Committee.
• Operations conducted by the SAPS and other law enforcement agencies may become a futile exercise if the areas are not immediately rehabilitated.
• The commitment made by the DMRE to close the 24 holings/shafts in the Riverlea area by the end of September 2023 is welcomed. Of concern though is that, closing holings is not a permanent solution, when one is closed another is opened. It is important that when the holes are closed, immediately the land gets used for any developmental purposes like sports ground. This becomes easier when the land belongs to the Government, like in the case of Riverlea where it was reported that the land belonged to the City of Johannesburg.
• Across the various departments that presented, lack of financial resources appeared to be another key hindrance to successfully deal with illegal mining. The non participation of National Treasury makes  matters worse.
• The classification of illegal mining as a national priority crime enables the jurisdiction of higher courts and special units such as the Special Commercial Crimes Unit and Special Commercial Crimes Court to investigate and prosecute the cases of illegal mining as organized crime cases for higher sentences and more relevant personal to prosecute/investigate.
• It was clear that there is still no coordination between the DMRE North West regional office and the SAPS in the province. However, the commitment made by DMRE to the effect that they would be holding a stakeholder meeting during the week of 29 August 2023 was welcomed.
• The Committee welcomes intervention by the China African Precious Metals mine in North West for recommitting to open the mine once the feasibility studies are concluded. It was acknowledged that this initiative has successfully stopped illegal mining in their facility.
• It was noted with concern that entry into Lesotho from South Africa requires or there is no customs checking.

 

1. COMMITTEE RECOMMENDATIONS

 

The Portfolio Committees, having conducted the oversight visit, recommend that:

 

1. The Department of Mineral Resources and Energy in the immediate should consider illegal mining as a project with a dedicated project manager.
2. The Department of Mineral Resources and Energy inspectors work closely with regional offices and the department should consider rotating them. They also should have an inspection plan and keep data on both legal and illegal mining, including where there is a double granting of licenses. The state should ensure the safety and security of inspectors as they carry out their work.
3. The Department of Mineral Resources and Energy submit a progress report on resolving coordination issues, including the outcomes of the stakeholder engagement meeting in the North West by the 30th of September 2023.
4. The Department of Mineral Resources and Energy improve on licensing and also put mechanisms in place to end double granting.  It must also accelerate the process of small-scale and artisanal mining, especially in places like Witrantjies Village in North West and Burgersfort in Limpopo, amongst others.
5. Noting that there is an overarching strategy to deal with illegal mining, there should also be a costing exercise in order to determine the financial resources required.
6. When holes have been closed off, the land must be utilized for formal land use purposes to effectively deal with illegal mining.
7. By the end of November 2023, the China African Precious Metals mine through the Department should submit a progress report on feasibility study it is conducting  relating to the possibility of reopening the mine in 2024.
8. For the Steelfontien Gold Mine in North West, the DMRE must demolish and flatten the shaft structure while the legal processes are proceeding regarding the liquidation query.
9. There should be an effective oversight over the refineries, smelters and wash plats.
10. There needs to be an analysis of the nexus of illegal mining and Lesotho.
11. By the fourth quarter of the current financial year, the National Security Task Team on illegal mining should brief the Portfolio Committees on Mineral Resources and Energy, Home Affairs, Police, Justice and Correctional Services on progress made to address illegal mining.
12.  The Regional Manager of Gauteng should convene a meeting with the community of  Riverlea and account on the issues that the community had raised and  report back to the  Committee as a matter of urgency..