Mining has been central to South Africa’s economic development for more than a century. It has contributed significantly to tax revenue, foreign exchange earnings, and employment creation.

However, its history is also marked by deep structural exclusion. For decades, the mining industry was dominated by large corporations, with little to no meaningful participation by historically disadvantaged South Africans – black people in general, and Africans in particular.

The industry has also left a legacy of serious social and environmental challenges, including environmental degradation, the displacement of communities, and adverse health impacts.

The dawn of democracy in 1994 marked a decisive break with this past. It ushered in a constitutional order grounded in human dignity, equality, and freedom, and it gave us the opportunity – and the responsibility – to correct historical injustices.

For the mining industry, this meant developing a regulatory framework that promotes meaningful participation of historically disadvantaged persons, ensures responsible and sustainable mining, and drives socio-economic development.

While progress has been made, significant challenges remain. One of the most pressing challenges confronting the sector is illegal mining, which is often conflated with artisanal and small-scale mining. These two are fundamentally different and must not be confused.

In 2022, government clearly distinguished between the two:

Illegal mining is a criminal activity conducted in direct contravention of South African law. It is part of broader organised economic crimes and is often linked to serious offences, including illicit financial flows, extreme violence, human trafficking, gender-based violence and femicide, as well as the smuggling of weapons and explosives.

Artisanal and small-scale mining, by contrast, is a legitimate and formalised economic activity, usually undertaken by citizens or legally documented residents, within a regulated framework.

A disturbing trend emerging from many illegal mining incidents is the involvement of undocumented foreign nationals.

For example:

In the Stilfontein incident, 1 826 illegal miners surfaced from underground. The majority of those involved were undocumented foreign nationals from Mozambique, Zimbabwe, and Lesotho.

In Barberton, approximately 1 000 illegal miners were arrested, many of whom were also undocumented foreign nationals from Mozambique, Zimbabwe, and Lesotho.

We must be clear: an individual who enters the country illegally and engages in unlawful economic activity cannot be sanitised or reclassified as an artisanal and small-scale miner.

Whereas illegal mining was once largely confined to derelict and ownerless mines, it is now increasingly encroaching on operational and licensed mines, posing serious risks to safety, security, and economic stability.

In 2019, the mining industry estimated that illegal mining cost the South African economy and the sector approximately R49 billion in lost revenue.

In response, the government adopted a multi-pronged strategy, which includes:

Accelerating the rehabilitation of derelict and ownerless mines,

Implementing Operation Vala uMgodi to clamp down on illegal mining activities, and

Streamlining the regulatory framework to formalise artisanal mining and small-scale mining, while strengthening sanctions against illegal mining.

When tabling the Department’s Budget Vote last year, we reported on significant strides made by Mintek in rehabilitating derelict and ownerless mines. At the time, we reported that:

At least four (4) asbestos mines in Limpopo and Northern Cape had been rehabilitated, and

A total of 280 mine openings had been safely closed.

This was made possible by an additional funding of R180 million allocated to the programme in the previous financial year.

For the current financial year, a further R134.7 million was transferred to Mintek to continue this important work. It is important for the Commission to note that the annual number of mines to be rehabilitated is dictated by the annual budget allocation received from the National Treasury.

The Department is also closely monitoring the rehabilitation and safe closure of operational mines to prevent these operations from becoming a burden on the state and future generations.

Regarding law enforcement, I am confident that the Ministry of Police has elaborated on the scope and operational tactics of Operation Vala uMgodi. What can be stated is that measurable progress is being made in disrupting illegal mining networks.

However, challenges remain. Many offenders are released due to weaknesses in existing legal framework. We continue to believe that the establishment of a specialised police unit and stronger legislative provisions are necessary to decisively deal with this criminal activity.

It is against this background that the ongoing review of the Mineral and Petroleum Resources Development Act (MPRDA) seeks to:

Formalise artisanal and small-scale mining,

Prohibit illegal mining,

Criminalise the transportation and trade of minerals without prescribed documentation.

Even as this review continues, the Department has already acted. In 2022, we published the Policy on Artisanal and Small-Scale Mining for implementation. This policy provides a framework to formalise the sector and enable lawful economic participation, primarily for South African citizens and legally documented individuals.

Let me be clear: this policy does not legitimise illegal mining. It creates pathways for lawful, regulated participation – while ensuring that criminal activity is firmly and decisively addressed.

I thank you