/ 22 November 2024

Illegal mining proliferates when the state fails to issue closure certificates and regulate compliance

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Standoff: Zama zamas mining at abandoned sites exacerbate environmental harm and cause security issues. Photo: Delwyn Verasamy

Very few mines and no large mines have been issued with closure certificates so they ultimately enter liquidation, resulting in thousands of abandoned mines — which has contributed to the proliferation of illegal operations by zama zamas at these derelict mine sites.

This is according to the draft national mine closure strategy and the national strategy for the management of derelict and ownerless mines by the department of mineral resources and energy published in August for public comment.

This week, the ongoing standoff involving apparently thousands of illegal miners trapped underground in an abandoned gold mine in Stilfontein in the North West continued after police blocked delivery of supplies earlier this month to try to force them to the surface.

The draft strategy noted that the failure to close and rehabilitate mines has a profoundly negative effect on the economy and the social fabric of mining communities.

“Legislation allows for the implementation of strategies to manage these cumulative effects. To date, these have not been formalised,” it said. “While legislation recognises these impacts, successful transitions from mining to a sustainable post-mining economy are rare. 

“Communities often feel that they are excluded from decisions regarding their future, as mining and mine closures affect the environment and local economy.”

The strategy seeks to better align mine closure practices with both the imperative to develop viable post-mining economies and current legislation. “This can be achieved by changing the approach to mine closure from environmental remediation towards planning and implementing programmes for economic succession on mine properties,” it said.

The diversified commercial and economic use of mining property and infrastructure, starting before mine closure, can create the basis for a sustainable post-mining economy.

The draft said illegal mining is a “serious threat to mine rehabilitation”, besides posing other socio-economic and security problems, with zama zamas reopening mine workings, causing localised subsidence and local and regional pollution.

It identified illegal mining as a “critical obstacle” to its implementation, and said the practice depletes resources with no benefit accruing to the fiscus through royalties and taxes, while communities bear the cost of damaged infrastructure and increased crime. Illegal mining also drains the resources needed for law enforcement.

While it is important to distinguish between illegal mining and artisanal mining, a “substantial proportion of mining at artisanal scale is carried out illegally”. 

Aligning the derelict and ownerless mines rehabilitation programme with economically viable post-mining land use aimed at promoting post-mining economies in mine closure areas “may reduce illegal mining activities as most of these illegal operations take place at abandoned mine sites”.

Mariette Liefferink, the chief executive of the Federation for a Sustainable Environment, said she did not know of any ownerless mines in the Klerksdorp, Orkney, Stilfontein and Hartbeesfontein areas. 

“In the case of a mine which has been liquidated, although the state still may have responsibility for environmental remediation, in terms of sections 45 and 46 of the Mineral and Petroleum Resources Development Act, they cannot be regarded as ownerless,” she said.

In addition, there were a number of “pass -the-parcel” situations in the area, she said, citing how AngloGold Ashanti’s assets had been acquired by Harmony Gold Mining Company, for example. 

Section 46 of the Act directs that if the holder of a mining right or permit or the previous owner of works, as the case may be, or his or her successor in title is deceased or cannot be traced, or in the case of a juristic person, has ceased to exist, has been liquidated or cannot be traced, the minister may instruct the relevant regional manager to take the necessary measures to prevent pollution or ecological degradation of the environment or to rehabilitate dangerous health or social occurrences or to make an area safe.

No closure certificates have been issued by the department’s regional manager to holders of mines in the Witwatersrand goldfields, where the operations have ceased or where there was a lapsing or abandonment of this right or permit or relinquishment of a portion of land to which the right or permit related, Liefferink said.

“This has resulted in mines either placing their operations in care and maintenance, or abandoning their operations or applying for liquidation. The failure by the department to issue closure certificates to fulfil the abovementioned functions has resulted in a proliferation of illegal mining.” 

Illegal mining, Liefferink said, is “extremely prolific” for the reason that the department, even when a mining company applies for closure, “does not grant closure certificates because when a closure certificate is granted by the regional manager of the department, the responsibility then falls back on the state and the state doesn’t want that responsibility”.

“The financial provision regulations require that financial provision must be made for latent and residual impacts, including the pumping and treatment of extraneous and polluted water, which is a very onerous obligation on either the mining company or the state, and the state does not have the resources to manage the closed mines for many years after closure,” she said.

Ceasing mining without proper closure and remediation, liquidation and care and maintenance, as well as failure to monitor compliance with social and labour plans and environmental management programmes, contribute to unlawful mining.

Care and maintenance is provided for in chapter three of the financial provision regulations for circumstances where a mine is unable to operate for economic or other reasons but has a reasonable prospect of resuming operations should these factors change. This provision has “cynically been used as a loophole” for avoiding expensive closure programmes, Liefferink said.

Operations placed under care and maintenance must be maintained in line with these regulations, ensuring that all critical mining infrastructure is kept in an operable condition, that adequate security is provided to protect infrastructure and equipment and to prevent illegal mining, and the period of care and maintenance is clearly defined. 

“The above regulations are often not adhered to and the non-compliances are not enforced by the department, which also results in a proliferation of illegal mining activities,” Liefferink said.

She said the “long overdue” draft national strategy had been on Minister Gwede Mantashe’s desk since May 2023 for signatures “so we are very anxious that this strategy be published”.

“It will address the loopholes with regard to liquidation, pass the parcel, economic succession and the diversification of economic development during the life of mine. It will address the interconnection between the different mines in the same region.”

But a strategy is not legally enforceable. “The strategy must still result in a policy and a policy must again translate into regulations, which are legally enforceable.”

The government has recently deployed the army in troubled areas.

The draft document noted that the socio-economic and security aspects of the problem meant it was “beyond the scope of this strategy to resolve this issue”.

“While the competency of mining and environmental regulators forms a part of the response to illegal mining, the illegality of the operations and factors such as the associated violence and links with crime syndicates highlights the role of the policing and justice arms of government,” the document said.

The department had not responded to the Mail & Guardian’s inquiries by the time of publication.