R60 billion lost to illegal mining in 2024, says Minister

Thursday, January 23, 2025

Illegal mining is waging war on the South African economy, with the illicit trade costing the economy at least R60 billion in 2024.

This is according to the Minister of Mineral and Petroleum Resources, Gwede Mantashe, who briefed the media on Thursday.

“Our view on illegal mining remains unchanged. Illegal mining is a criminal activity and a war on the economy. There can be no two ways about it. 

“The truth of the matter is that those that are involved in illegal mining, both the syndicates and the active illegal miners, have no regard for the health and safety of others, nor are they concerned about the laws that regulate the industry. They are in it for their own selfish gains and have no regard for the country. In 2024 alone, the country lost an estimated R60 billion to illicit precious metal trade,” Mantashe said. 

The Minister insisted that the department was working with law enforcement to root out the scourge. 

“As government, we will continue our fight against illegal mining through initiatives such as the Operation Vala Umgodi which continues to help us deal decisively with illegal mining in Limpopo, Gauteng, Mpumalanga, Free State, Northern Cape and the North West.

“We wish to assure the nation that the state will not take responsibility for the reckless actions of illegal miners,” he said.

Replying to questions from journalists, the Minister called on mining companies to take responsibility for rehabilitating mines.

“An operational mine must do rehabilitation as they operate. There are big chunks of holes which were left…[these are] what we call derelict and ownerless mines. Those are mines that were operated under Apartheid where there was no legislation enforcing rehabilitation. The state has taken responsibility to attend to that,” he said.

Turning to the situation at Stilfontein where at least 78 illegal miners have died, Mantashe called out the owners of the abandoned gold mine – urging them to take responsibility.

“If you go to…a mine that’s neglected, you go and stay there for three months and you starve yourself to death, how does that become the responsibility of the state? Capital owned mines exploit them, make money and when there’s a risk, that risk must be offloaded to the state…that cannot be correct.

“The Stilfontein goldmine…is not an ownerless and derelict mine. It is owned by an existing company and that company must take responsibility. The state intervened to facilitate the rescue operation as an interim measure. But that owner must take the ultimate responsibility for that disaster, not the state,” he said.

 The rescue operation at the abandoned Buffelsfontein gold mine near Stilfontein was recently concluded with at least 246 illegal miners being brought to the surface alive, while 78 bodies were recovered. – SAnews.gov.za