Report
of the Portfolio Committee on Mineral Resources on the oversight visits in four
Provinces to investigate illegal mining activities, dated 18 November 2009:
The Portfolio Committee on Mineral Resources, having
undertaken oversight visits on 11 – 14 August 2009 in four Provinces to investigate illegal mining
activities, reports as follows:
1. Introduction
The Portfolio Committee on Mineral Resources, on 7 and
8 July 2009, held public hearings in Parliament to investigate the death in
early June 2009 of over 86 suspected illegal miners at Harmony Gold Mine in
2.
Composition
of Delegation:
3. Harmony Gold Mine,
3.1 Officials present
The Department of Mineral
Resources (DMR) was represented by:
·
Mr Thabo Gazi: Chief Inspector of
Mines,
·
Mr
David Msiza: Deputy Inspector of Mines,
·
Mr J Bezuidenhout: Principal Inspector of Mines,
·
Mr
Aubrey Tshivhandekano
·
Mr Deon Mathee, and
·
Mr Zakhele Hlongwane: Parliamentary
Officer.
The South African Police Services (SAPS) was
represented by:
Harmony Gold Mine was represented by:
The National Union of
Mineworkers was represented by:
·
Mr
Lucky Mazibuko,
·
Mr E
M Olehile,
·
Mr M Mataboye.
·
Mr
Eric Gcilitshane
·
Mr
James Mbantwa
·
Mr
Patrick Hlabizulu
Solidarity
·
Mr
Paul Mardon: Head: Occupational Health and Safety
3.2 Overview and Proceedings
Harmony Mines presentation
Harmony representatives made a presentation to the
delegation on the extent of illegal mining activities at the mine. Frequent
joint security operations involving SAPS and mine security have been conducted
to try and ‘flush-out’ illegal miners from their underground hide-outs. This
has unfortunately produced minimum results. The inter-linking of shafts from
one mine to another makes it very difficult to control and contain the problem.
An additional concern, to the company, is the increasingly high number of
Harmony employees participating in these illegal activities. More than 29
employees, including management, were charged and disciplined in July 2009
bringing the total figure to 150. This is in comparison to 64 in 2007 and 80 in
2008. Overall figures also show a tremendous rise in the number of arrests of
illegal miners. In 2007, 473 were arrested; in 2008 the number almost doubled
to 757 and the current figure in July 2009 was 894. A similar trend is
evidenced in the number of illegal miners killed in underground activities: 36
in 2007 and 105 in July 2009. Most of the illegal miners are foreigners from
neighboring countries recruited under false promises who end up being trained
at hostels like G-hostel. G-hostel has been raided by special units of SAPS a
number of times, but still remains the main hub for these illegal mining
activities.
The participation of members of SAPS and their crime
intelligence unit in these criminal activities was also highlighted by Harmony
and confirmed by officials of SAPS at the presentation. Future security
operations will be conducted by SAPS units from outside the
The company also screened a video tape to the
Delegation that showed how mine employees were intimidated and viciously beaten
by illegal miners. The tape also showed how corrupt employees were caught with
food and other items strapped to their waist, to be sold underground to the
criminals. Some illegal miners remain underground for up to six months before
emerging to the surface. Young boys and women are also taken underground for
prostitution by these criminals.
SAPS, in their briefing, mentioned that the real
targets behind the funding of these criminals are based in
The Delegation was prevented by Harmony Mine officials
from going down any of the shafts. The company claimed that they were not made
aware of the request and therefore prior security arrangements were not made.
The Delegation was not satisfied with this response. The Delegation was
provided with inadequate protection and advised, therefore, by the DMR not to
proceed to the shafts because of potential health and safety hazards. The
Department received an intelligent alert that Members will be held hostage by
the criminals if they go underground.
3.3 Visit to Masimong
shaft
The Delegation was also taken to one of the main
entrance shafts (Masimong) at Harmony and shown how
the security system has been upgraded to try and control access to the mine.
Biometrics hand scanners have been introduced and the clocking system was
upgraded. CCTV is operational at all turnstile gates and a scanner will be
installed at the main intake center to screen all new recruits and prevent
convicted persons from being employed. The illegal miners used closed small
goods locomotives to exit shafts with stolen goods.
3.4 Visit to G-hostel
Members of the Provincial Portfolio Committee on
Public Works joined the Delegation on their visit to G-hostel and undertook to
do further oversight work in the area and share the outcome with the
Delegation. The Delegation, escorted by the SAPS, made a short visit to
G-hostel to try and get a better perspective on the activities related to
illegal mining. The criminals were able to scatter a few seconds before the
police could pounce on them. In their haste to escape they abandoned their
equipment, which included trays filled with stolen gold bearing material ready
to be processed.
The Delegation saw the problem first hand when one
person was arrested for being in possession of narcotics. G-hostel is owned and
managed by the municipality and is supposed to accommodate municipal employees
and their families. The hostel residents complained to the Delegation that the
local authorities were not concerned with their problems. The retrenchment of
mine workers and others in the area resulted in a huge increase of residents.
Foreigners practicing criminal activities also contributed to the increase in
numbers. According to the SAPS many of the residents are involved in illegal
activities, including the illegal selling of drugs, liquor and firearms. The
living conditions of residents are very poor and most of the roads are strewn
with sewerage and potholes are evident. G-hostel also poses serious health
hazards to the inhabitants and contributes to low levels of learning in schools
in the area and those schools situated nearby.
4. Impala Platinum Mine,
The visit to Impala
Platinum Mine in Rustenburg was informed by the death
of nine mine workers in an incident in late July 2009. The incident was still
under investigation during the visit.
4.1 Officials present
Impala Platinum Mine was
represented by:
·
Mr. Paul Dunne: Operations Executive
·
Mr. Frikkie Holl: General Manager
·
Mr. John Siemens: Mine
Manager
Health and Safety Representatives
The Department of Mineral
Resources was represented by:
The National Union of Mineworkers (NUM) was
represented by:
Solidarity
4.2 Overview and Proceedings
Department of Mineral Resources
Mr. T Ngwenya from the
Department of Mineral Resources made a presentation on the Department’s
perspective on the possible causes of the incident. He mentioned that there was
a reduction in mine fatalities, from 66 in 2007 to 48 in 2008. The Department
suspects, though, that some of the big mining companies are resorting to
cost-cutting measures on mine health and safety standards to try and contain the
current economic situation. Meetings were held with mining houses on this. Seismicity used to be a problem confined mostly to the gold
producing industry, but it now includes platinum mining as well. Silicosis and
noise induced hearing loss are some of the major illnesses experienced by
mineworkers. Most of the fatalities, in the mines, are caused by Fall Of Ground (FOG), transportation and mining and machinery. It
is believed that up to 95% of all mine incidents are preventable, including the
recent one at Impala where 9 mineworkers lost their lives.
Investigations conducted on the incident by DMR
pointed to gravity induced Fall Of Ground (FOG)
accident and seismicity was not suspected. The
incident originated from a weak side of a joint, where some hydra bolts
apparently snapped. The FOG was thicker than the length of the hydra bolts.
The Department immediately conducted an in loco inspection and issued a
notification in terms of section 54 of the Mine Health Safety Act (MHSA) on the
same day. The section empowers an inspector to halt or suspend mine operations.
Impala was further instructed to:
a)
engage an external independent rock engineering
expert;
b)
audit rock-related hazards in all working
places; and
c)
review
the Prevention Code of Practice and Procedure on FOG before any production
work.
The Department, together with organised
labour, mine management and
experts, met almost daily before a withdrawal of the instruction, was issued.
Some of the challenges that the Department still experiences with the mining
sector, include:
The Department has instituted an investigation and the
report is expected in two months time followed by a full enquiry on the
incident.
4.3 Impala Platinum Mine
Mr. Frikkie Holl from Impala Platinum Mine shared the views of the
company on the accident with the Delegation. Impala immediately dispatched a
high powered team, which included senior management to the site of the
accident. This was the worst accident experienced at Impala. The deceased miners
were all rock drill operators. It was reported to Impala Management that the
nine workers started their shift, after being given the go-ahead by their
supervisor. The supervisor, when noticing the possible hazard at the work area,
felt that re-enforcing the pillages of the mine shaft ceiling (mining roof
bolt) would help. The assessment of the shift-boss (senior supervisor) 3 hours
later, after inspecting the work area, was that the area was dangerous and
instructed evacuation to another more secure work area. The FOG accident
happened during the evacuation period. Impala Mine, as a result of the
accident, has introduced new preventative measures, including changing
production methods and strengthening routine inspection to prevent a future
re-occurrence of the accident. The Delegation interrogated the presentation
extensively and assured the company that the Committee will follow the
investigation and enquiry closely.
5.
5.1 Officials present
Department of Mineral
Resources was represented by:
·
Mr. Louis Bezuidenhout:
Principal Inspector, and
·
Mr. Mthokozisi Zondi: Regional Operations Manager
·
Mr. Zakhele Hlongwane: Parliamentary Officer
Solidarity represented by:
·
Mr. Paul Mardon: Head:
Occupational Health and Safety
SAPS represented by:
·
Mr. Rudi Neethling:
Head: Detectives,
·
CJ Ndubane:
Communications Officer
NUM represented by:
·
Mr. Derrick Magagula:
Chairperson,
Community represented by:
·
Pastor Humphrey Gininda:
Community Police Forum
Barberton Mine represented by:
Health
and Safety representatives
5.2
The Delegation traveled to Barberton Gold Mine in
The criminals also make use of company locomotives to
force their way out of the shafts.
In one particular case, during a security raid where a
number of illegal miners were arrested, it was discovered that among those
arrested were Harmony mine employees that were on leave. The company has
increased its number of security guards and has 115 CCTV cameras at working
areas. Disused entrances have also been sealed. It has instituted
biometric/fingerprint access control and embarked on other security measures to
try and prevent the criminals from gaining entrance to the mine. In one other
case reported recently a criminal miner was killed and two injured underground
when they fell down a steep ore pass when the ladders broke. According to the
injured they were a group of nine but the front six managed to get out safely.
They were from Matsulu town which is about 70km from
the mine. This shows the extent of the influx from outside communities. The
injured criminals also reported that there was another group still underground
in that same area.
Further escalation of the illegal mining activities
may result in the possible closure of mining activities. The impact of such
steps could have a crippling affect on the community in general. Barberton Mine
estimates that the number of criminal miners underground at certain times is in
excess of 500, and they remain underground for five days and longer.
Reports from the police are that some of the most
influential “bosses” earn in excess of one million rand
per year. The organised groups consist of 4 to 30
members. Illegal gold buyers/illegal miners established their own protection
groups which resulted in a number of deaths underground.
The SAPS representative also spoke of the small number
of members operating in the province. The Delegation noted that this was a
possible factor in the difficulty of arresting the situation.
The current legislation is not sufficient to curb the
illegal activities of these criminals and should be reviewed. Most are charged
under the Trespass Act which carries a fine not exceeding R2000. What are
required are a more coordinated approach and the involvement of the National
Intervention Unit and Task Force as well as the newly established Directorate of
Priority Crime Investigations (The Hawks). The mine also
showed the Delegation a video cassette in which mine security and a large
number of illegal miners armed with AK 47s were involved in an underground
shoot-out.
Shoot – outs between different gangs causing number of
casualties has become daily occurrence. It was reported by a member of the
police forum that the illegal miners do their gold processing from underneath a
bridge in the area.
The Delegation, including organised
labour and civil representatives questioned
extensively on the presentation. The company agreed that more should be done to
motivate the community to provide information on criminal activities in the
area.
The Delegation observed that the situation in
6. Coronation Coal Mine,
The Delegation was taken to
6.1 Officials present
Department of Mineral
Resources was represented by:
NUM was represented by:
·
Mr. Sifiso Nkosi
Solidarity was represented
by:
·
Mr. Paul Mardon: Head:
Occupational Health and Safety
The Vryheid
Community was represented by:
·
Mr. A M Masondo: Councillor:
·
Mr D Thabethe, community member
6.2 Kwanotshelwa village
The Delegation was taken to
Kwanotshelwa village, a few kilometers from
Coronation mine, and shown where the illegal miners were operating in the
processing of high grade coal. The site is a stone’s throw away from nearby
houses. The fumes, released with the burning of the anthracite coal, have
health consequences for the nearby community. People have complained of
suffering from respiratory and other related illnesses. The Delegation observed
that most of the produce derived from illegal mining is utilized for domestic
use and the rest are sold to the community for domestic use. The DMR will be
encouraged to investigate whether this subsistence mining should be
nurtured.
7. Conclusion
The country has lost so far
more than 200 lives as a result of illegal mining. More than R5.6 billion in
revenue is lost every year. The prevalence of markets, both local and
international, for illicit gold, is a determining factor in the fight against
these criminal activities.
The Portfolio Committee on
Mineral Resources, having considered the written and oral submissions made by
individuals and organisations at both the public
hearings and the oversight visits, notes the following:
The presentations centered
on a number of key concerns:
-
illegal miners included foreigners;
-
growing use of violence and firearms by illegal
miners;
-
involvement of mine employees, management and
mine security;
-
involvement of corrupt SAPS members;
-
the frequent arrest of lower rank criminals;
-
the need to pursue syndicate heads;
-
the need to tighten current legislation; and
-
the
need to investigate markets for illicit minerals.
While there is consensus
regarding the challenges and some of the solutions amongst the organisations, there are also differences in the approaches
to address the respective situations.
8. Recommendations
The Portfolio Committee on
Mineral Resources hereby makes the following recommendations:
8.1 Legislation
The Committee, concerned
with possible gaps in current mining and related legislation, recommends that
the Department of Mineral Resources consider amending:
·
Regulation
3.1.1 of the Minerals Act, 1991, which deals with
unauthorized entry at a mine, in order to increase the punishment to 12-30
months imprisonment;
·
Section
143 of the Precious Metals Act, which prohibits the
buying, selling, deal in, receiving or disposing of any unwrought precious
metals in order to increase the sentence from a fine of R2000 or six months imprisonment, to a minimum fine of
R50, 000 with a maximum fine of R500,000
or 10 years imprisonment.
·
The
Mine Health and Safety Amendment Act to increase the fine for
non-compliance by mine houses in respect of the safe-keeping of explosives from
the current R200 000 to a maximum fine
of R1 million.
DMR should engage the Department of Justice and
Constitutional Development to consider amending the Trespass Act in order to
increase the sentence for violation to R10,
000 fine or 10 years imprisonment.
8.2 Foreign
illegal miners
The Committee, concerned
with the large number of illegal foreigners participating in illegal mining and
other related criminal activities, recommends that DMR engage the Department of
Home Affairs to tighten border controls and halt illegal immigration.
8.3 SAPS
Regarding the alleged
corrupt members of SAPS involved in illegal mining activities, the Committee
recommends that the Department of Mineral Resources engage the Department of
Justice and Constitutional Development and the Department of Police for advice
on the possible prosecution and sentencing of the corrupt officials. The
Committee also recommends improving the co-operation and exchange of
information between securities at mining houses, SAPS, SANDF, NIA. NPA and the
Justice Department towards the arrest and prosecution of syndicate kingpins
hiding in areas like Northcliff in
The Committee recommends
that DMR engage the Department of Trade and Industry (DTI) to assist in
investigating who are the traders of illicit gold in
8.4 Mine
employees
The Committee, concerned
with the participation of mine employees in illegal mining activities,
recommends improving the co-operation between mine houses and organised labour on the dangers
associated with this criminal activity. Trade Unions should discourage their
members from participating or supporting illegal mining.
8.5
Mine
Companies
The Committee believed that
the responsibility of access to mines rest with mine owners. Mothballed shafts
at mines in the
8.6
G-
hostel
The Committee, concerned
with the appalling living conditions in G-hostel, the huge backlog in the
provision of housing and mindful of the separations of power, recommends that
DMR engage the Welkom Municipality to consider
converting the hostel into single family units and that the conversion be
completed by the end of 2011.
8.7
Coronation
Mine
The Committee further
recommends that the DMR advocate the fencing off of the open cast coal shafts.
9. Acknowledgement
The Committee wishes to
thank all the stakeholders who participated in both the public hearings and the
oversight visits. Their insights and contributions assisted the Committee in
grasping the extent of the illegal mining activities carried out by criminals.
The Committee, in particular, wishes to commend the Department of Mineral
Resources (DMR) and Organised Labour
(NUM and Solidarity) for the commitment and support provided during the public
hearings and oversight visits. Special thanks also to Sister Linda and staff of
the
Report to be considered.