/ 27 January 2025

Stilfontein crisis underlines the need to regulate artisanal mining

Stilfontein
The crisis at a disused gold mine in Stilfontein, North West, which has dragged on for months, has tested the ability of the government to curb illegal mining through Operation Vala Umgodi.. (File photo AP)

The crisis at a disused gold mine in Stilfontein, North West, which has dragged on for months, has tested the ability of the government to curb illegal mining through Operation Vala Umgodi. 

A closer examination reveals a clash between the right to life and the state’s obligation to fight crime. Regrettably, the death toll — that could have been prevented — stood at 87 as of 17 January 2025, while some social media reports present a figure of 114 deaths. 

Operation Vala Umgodi, “close the hole”, was brought into effect to control illegal underground mining. It is reported that illegal gold mining costs South Africa R70 billion annually in black market sales. The state does not benefit from this. 

Illegal mining has seen an extension of turf wars between rival gangs. In many cases, gunfire is exchanged, leaving communities surrounding the mines living in fear. 

Illegal mines damage critical underground infrastructure, such as water pipes and power cables. It also causes sinkholes, with some residential properties sinking into the ground as a result of the network of tunnels, particularly in Gauteng. 

Operation Vala Umgodi has civic groups coming out in support of regulating artisanal mining, which not only benefits those willing to extract rock or soil containing fragments of gold but also entrepreneurs such as the hawkers selling food, toiletries and other essentials to the miners.  

It is not denied that the department of mineral resources and energy, through its Small-Scale Mining Directorate, promotes small-scale mining activities in South Africa.  However, not many people are aware of it nor has the department done enough to  promote this cause. 

The department could improve its public image through the promotion of small-scale mining. For example, according to its website, there is a Small Scale  Mining Fund, which offers financial assistance to approved beneficiaries to cover operating expenses.

There have been many complaints that artisanal mining is dominated by people of other nationalities, namely Zimbabweans, Mozambicans and Basotho, with the latter reportedly being the kingpins. Questions arise as to who is supplying the equipment, such as dynamite, and supplying the cash to buy the processed gold. 

Furthermore, who is actually in control of these illegal activities? Just looking at the Stilfontien operation, the police confirm that most of the 1 437 of the miners who have been arrested and detained are just foot soldiers. Most of the interviewed rescued miners say they were tricked into taking up this job. 

None of the controllers have been apprehended — except for the supervisors who were underground with the foot soldiers. To make matters worse, an alleged kingpin from Lesotho escaped from police custody after being arrested when he resurfaced. 

It is hoped that there will be justice for the loved ones of the incarcerated and deceased foot soldiers, mostly undocumented immigrants who were genuinely unaware of the criminal conduct in these mines. 

At the same time, the government is complaining that illegal mining is sabotaging the economy. However, there is potential to regularise these activities through calling on aspiring small-scale miners to register themselves as cooperatives who pay tax. It would also help to reduce joblessness. 

About 30% of South Africa’s population — 19.2 million — relies on social grants. The figure is expected to grow to 19.7 million in 2026-27. The government is expected to spend R266.21 billion on social grants in 2024-25, yet R70 billion is lost to illegal mining activities.

It is no secret that many wealthy people are leaving South Africa, because of the high tax rate. About 38 000 taxpayers ended their tax residency in the 2024-25 tax year, seeing the South African Revenue Service lose about R3 billion in potential tax. The analysed data shows a continuous decline in the number of taxpayers over the past five years. 

This underlines the need for the government to revisit its policies on regularised artisanal mining activities.

It is nearly impossible to prevent undocumented migrants trying to earn a living in illegal mines. The numbers speak for themselves. Of the over 2 000 illegal miners who resurfaced when rescue efforts came to an end on 16 January 2025, only 26 were South Africans.

The government needs to regularise such migrants through seasonal mining permits. It is a reality that despite Operation Vala Umgodi illegal activities are likely to increase, overstretching state resources. 

Regularising the trade and giving seasonal permits would go some way to prevent criminals from dominating this industry. 

Regularised artisanal mining could also boost the security industry through protection services guarding these mines. It would also mean the presence of security in areas not suitable for mining, preventing problems such as sinkholes and criminals from taking over decommissioned mines. 

This would help avert human rights catastrophes. It would also reduce embarrassment for the government from bad press across the world, such as that around the Stilfontein crisis, where there was evidence that police, under a directive from the department of mineral resources and energy, cut off food supplies. 

The Stilfontein situation is a wake-up call to the government. Regulating artisanal mining could cut joblessness and boost tax revenue that could be used for urgent needs.

Hoitsimolimo Mutlokwa is a post doctoral researcher at the Centre for Labour Law in the University of the Free State’s Faculty of Law.

One Reply to “Stilfontein crisis underlines the need to regulate artisanal mining”

  1. Great article that is insightful and lends potential solutions to what seems such a situation of hopelessness. Let’s hope the government can take a leaf from this.