There is a strong link between legally and illegally mined gold, “as the two come to convergence between Level 3 and Level 5 of the commodity value chain”, says African Centre for Migration & Society PhD candidate Janet Munakamwe.
About R2-billion is lost every year as a result of illegal mining in South Africa, states Munakamwe, noting that this is carried out at both informal and formal mines. Seventy per cent of arrested illegal miners are also illegal immigrants, who mine as a means to feed their families.
“Moreover, it is a great concern that illegal mining plays a central role in poor households’ livelihoods and a lot of attention is given to the criminal aspect of this mining activity, while less attention is given to the destination of the illegally mined gold, which could be at national refineries level or at market level,” she adds.
Munakamwe explains that, in as much as illegal miners may be driven by poverty to commit the crime, a moral economy based on principles of mutuality exists.
Referring to an article in The Times on gold smugglers, she mentions that there is a link between Zimbabwean and South African gold smuggling, with buyers based in Europe who are dealers in precious metals in their countries.
“Last month, the South African Police Service raided a warehouse outside OR Tambo International Airport where 48 kg of gold bars valued at R20-million was found. “They had been prepared for stamping with official South African gold serial numbers, which designate that the metal has been officially mined and refined in the country.”
In another incident, gold was taken to farms in and around Modimolle, in Limpopo, where illicit refineries smelted and refined the gold. After this, using South African mining officials, gold clearance documentation and special serial and insignia stamps were sourced.
Moreover, illegal miners also have the option to take the gold they mine to the border, where, through corrupt officials, the gold is disguised as household items that workers send to their families.
Socioeconomically, Munakamwe notes, in some instances, immigrants are forced to mine illegally as a result of being desperate to make money to feed their families.
“This, however, affects their health as they are subjected to disease as no health and safety precautions are taken,” she says.
Munakamwe concludes that there is a need to analyse illegal mining using a moral economy framework which recognises the involvement of legal mining in the act of illegal mining.