Sibanye-Stillwater has reported a dramatic increase in illegal mining incidents around its South African gold operations amid soaring gold prices. The illegal miners, known as “Zama Zamas,” predominantly come from Lesotho and Mozambique, which historically supplied much of the migrant labor for the industry.
The company has documented a 241% rise in illegal mining incidents in the first quarter of 2024 compared to the same period in 2023. Security services have made 247 arrests related to illegal mining and other criminal activities, marking a 312% increase from last year.
James Wellsted, a spokesperson for Sibanye-Stillwater, noted that while the rise in incidents coincides with high gold prices, it’s unclear if the two are directly linked. The increase in arrests may also reflect heightened security measures and the effectiveness of the company’s preventative strategies. Measures to disrupt supply routes have led to 410 illegal miners surrendering, and stricter policies on underground food supplies have been enforced to combat employee collusion with illegal miners.
Employee collusion remains a significant issue, with 103 mine employees and 67 contractors detected aiding illegal miners in Q1. Many of these incidents involve the provision of food to miners in both operational and abandoned sites.
The decline of the migrant labor system, which once heavily relied on workers from Lesotho, Mozambique, and other regions, has exacerbated the issue. The number of foreign workers in South Africa’s mines dropped dramatically from nearly 500,000 under apartheid to about 35,000 in 2022. While wages and working conditions have improved significantly, many former miners’ families are left without economic opportunities, contributing to the rise in illegal mining.
Illegal gold mining has become a major criminal enterprise, with much of the illicit gold being laundered and entering the global market. This phenomenon is fueled by coercion, intimidation, and violence, as highlighted by reports of threats against miners’ families.
The legacy of exploitative labor practices and the stagnation of economic development in countries like Lesotho continue to drive illegal mining activities. While remittances from South Africa once made up a substantial portion of Lesotho’s GDP, they now contribute a fraction of their former value, further fueling the illegal gold trade.
