REGULARISING INFORMAL ARTISANAL MINING IN SOUTH AFRICA… · informal artisanal mining (AM) in South Africa. The research was commissioned by Open Society Foundation for South Africa

REGULARISING INFORMAL

ARTISANAL MINING IN

SOUTH AFRICA:

AN EVIDENCE-BASED

REPORT 2019

Artisanal Mining in South Africa

The report written by: Pontsho Ledwaba, Nellie Mutemeri and Christopher Rutledge. The project team would like to

extend appreciation to:

Open Society Foundation for South Africa for funding the project. The following organisations for assisting with

fieldwork and data collection: Northern Cape Artisanal Miners Association (NCAMA), Tswellopele Community Network,

Ekurhuleni Environmental Organisations (EEO) and Community-Based Organisations affiliated with Mining Affected

Communities United in Action (MACUA). The project team would also like to extend appreciation to all the miners that

participated in the research and all the attendees of the artisanal mining workshop held on 03 and 04 September 2019.

For more information on the project, contact:

Pontsho Ledwaba: [email protected]

Photo credits: Pontsho Ledwaba

Introduction and Objectives

ReferencesResearch findings

Building the case for AM in RSA

Policy and strategic framew

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FOR SOUTH AFRICA

ARTISANAL MINING IN SOUTH AFRICA ANNUAL REPORT

EXECUTIVE SUMMARY

This report presents findings of research conducted to inform the development of a strategic framework for regularising

informal artisanal mining (AM) in South Africa. The research was commissioned by Open Society Foundation for South

Africa and implemented by the University of the Witwatersrand and ActionAid South Africa.

Background and objectivesThe research was initiated following recommendations on the need for an evidence-base for the AM sector in South

Africa, to inform political and public discourses and allow for proper engagements between the stakeholders on the

future of the AM sector. In particular, the objectives of the research were:

• To understand the nature, size, share and scope of informal AM activities in South Africa through baseline surveys;

• To unpack institutional frameworks governing informal AM activities in South Africa including those that deem

artisanal mining to be a criminal activity;

• To assess the impact of artisanal mining on the miners themselves, their families as well as those who are

dependent and/or affected by these activities;

• To obtain insights into the broad issues pertaining to AM and views on how the sector can be supported and managed

in South Africa; and

• To develop a strategic framework to support the regularisation of informal AM in South Africa considering ground-

level issues as well as strategic considerations.

Scope of work and methodologyThe research comprised of two main components, namely: baseline surveys and workshop participatory appraisal. The

objective of the baseline surveys was to collect data to build the profile of the AM sector. The surveys were conducted

in three AM sites in Gauteng and Northern Cape province. A total of 1179 surveys were conducted with the miners. The

participatory appraisal took the form of a workshop which was conducted on the 3rd and 4th September 2019. The

main objectives of the workshop were to obtain insights into the challenges facing the AM sector and discuss possible

solutions for consideration in the strategic framework for the sector. The workshop was attended by a total of 75

participants

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RESEARCH FINDINGS AND ANALYSIS

Females accounted 14% of the total respondents

The majority of the respondents are aged between 30 and 39 years. The youth accounted 38% and

respondents above the age of 50 years accounted 17%.

Foreign nationals accounted 29% of the total sample. The majority of foreign nationals are engaged in gold

mining and accounted over 40% of the total respondents.

The Lesotho nationals accounted 54%, while respondents from Mozambique and Zimbabwe accounted

combined 40%.

The majority of the respondents (44%) completed middle school education (i.e. grade 7 to 11). Only 18% of

the respondents have matric qualification.

Over 80% of the respondents are breadwinners at home and 91% have dependents. About 30% of the

respondents are supporting between 4 and 6 dependents.

The majority of respondents (80%) are working as artisanal miners fulltime. AM is the only source of income

for 90% of the dependents.

It was estimated that the miners earn between four and nine times than general workers, farm workers and

domestic workers.

The majority of the respondents (71%) have no prior experience in mining. Only 29% of the respondents have

worked for large-scale mining operations

The majority of the participants (over 80%) consider AM to be a proper job and are happy working as artisanal

miners.

Baseline surveysThe baseline surveys comprised of four sectors, namely: demographics, socio-economic status of the miners,

employment and income and job satisfaction and aspirations. The profile of the miners is summarised below. The data

presented is based on a total sample of 1179 surveys.

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PARTICIPATORY APPRAISAL

The participatory appraisal was conducted to obtain in-depth insights into the challenges facing the AM sector and

possible solutions for consideration in the strategic framework for the AM sector. The main challenges in the sector are:

Challenges facing the AM sector• Police abuse and human rights violationsThere are concerns regarding intimidation and brutality suffered by the

miners in the hands of the police. Linked to this, miners are also violated by criminals and syndicates who steal

their equipment, production and income generated from AM activities. The miners also raised their confusion on

trespassing and arrests related to this since there are no demarcations and signs to show that the areas where they

are mining are private property.

• Health, safety and environment risks Health, safety and environmental issues

present risks to not only the miners but host communities as well. The key health issues include no health

assessments and medical check-ups for the miners, no health facilities where miners can receive treatment for

mining-related diseases, and no training on health-related issues. The safety concerns include no proper use of

personal protective equipment, no rock support for those who work underground leading to fall of ground, and

mining practices do not follow the correct safety and health standards. The negative impacts on the environment

include dust emissions, the use of mercury leading to air and water pollution, and land degradation.

• Lack of access to inputs (capital/equipment /technology)

The challenges identified by the miners with respect to inputs are, lack of access to funding, poor skills development

and limited technology. The miners also raised concerns regarding limited access to mining sites and raised

concerns on being excluded from rehabilitation opportunities in the derelict and ownerless mines project currently

being implemented by government.

• Gender inequality

Gender issues cut across all the challenges in the sector. The following issues were highlighted by the miners: there

is no gender equality in the sector, the female miners are discriminated against in terms of where they can work on

the AM sites and the resources that they exploit, the working relationships and arrangements on sites favour male

counterparts, women suffer abuse from the police and are often pressured into sexual favours to avoid arrests. The

policy takes advantage of the fact that the majority of women do not know their rights and not well-versed with laws

governing gender base violations in the country.

• Women are also exposed to health and safety risks because of limited information. They are exploited by buyers

during mineral sales. The other challenges related to difficulties in in accessing land and mineral rights, and no

support is currently provided to the female miners on access to mineral rights licenses. The other concern was

regarding the stigmatisation of sex workers working on AM sites and the manner in which they are treated.

• Limited access to minerals and land

The miners are currently facing the following challenges in trying to obtain land and mineral rights and work

within the law: the stringent requirements of current legislations, the lack of recognition by the LSM sector and

governments, and AM operators are treated as criminals. The miners also raised concerns on

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• work within the law: the stringent requirements of current legislations, the lack of recognition by the LSM sector

and governments, and AM operators are treated as criminals. The miners also raised concerns on land access

and highlighted failure of government to come up with innovative ways of linking AM to rehabilitation projects. The

miners felt that the recognition of this opportunity will offer benefits to not only the miners, bit also the communities

and government.

• No recognition of the sector

The challenges linked to lack of proper recognition of the sector that were raised by the miners include:

criminalisation of the sector leading to no access to land for mining. The miners are concerned about the

misconceptions about artisanal mining. It was raised that artisanal mining was not understood and as such the

positive benefits of the sector are ignored. Also, because AM is not recognised in the country, the sector is made

vulnerable resulting in criminals taking over the miners’ operations. There is currently no support framework for

the sector and no platforms of engagements where the miners can engage with industry stakeholders particularly

government and large-scale operations.

• Possible solutions to address the identified challenges

In considering the possible solutions to challenges faced by AM in South Africa, it is important that these proposed

interventions consider the historical issues, current realities and future socio-economic agenda of South Africa.

Based on this, the possible solutions for the challenges in the sector were discussed in terms of the key principles

of the Mineral and Petroleum Resources Development Act. The key themes that emerged from this consideration

are; (1) Optimal regulation, (2) Equitable access to resources, (3) Mitigation of negative impacts, (4) Consideration

of sustainability and

• sustainability development, and (5) Optimal processes and engagements. The possible solutions under each theme

are discussed below:

• Optimal regulation

The participants noted that suboptimal regulation could be addressed through ensuring that regulations are adapt-

ed to be more inclusive of the AM sector. It was also felt that encouraging the formation of cooperatives in AM

might facilitate integration of the sector. However, it is also important that regulation recognises miners that work

as individuals. Amendment of the legislative framework to accord full recognition of the sector is an important

consideration. An optimal regulatory framework was felt ought to incorporate schemes to improve market access,

address health and safety as well as skills development to deal with compliance to environmental requirements.

• Equitable access to resources

The solutions noted by the participants to address the challenges associated with lack of equitable access to

resources included innovative approaches like sub-contracting exploitation by LSM to AM, engagement of different

sources of capital, the use of social media for advocacy and platforms for access information as well as for im-

proved transparency and accessing the law. The stakeholder types with a role include government, funding institu-

tions, communities, traditional leaders, research and development institutions.

• Mitigation of negative impacts

The participants also discussed the strategic approaches to managing the negative impacts of AM which they

all acknowledged are problematic for the sector. Key areas of consideration were safety, health, environment

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and social (including community). They considered these from the perspective of opportunities that exist in the

management of impacts. The miners spoke about the challenge of undocumented foreigners in AM. The main

concern being that they are working in the ‘shadows’, which makes the sector vulnerable to practices that have

negative impacts on health, safety and the environment, as well as social issues such as exploitation. Hence getting

organised as AM to engage authorities such as the Department of Home Affairs to address the underlying migration

and related social issues will lead to a reduction of some of the negative impacts resulting from migrants working in

the shadows. An example that the participants cited is the exploitation by middlemen because the miners may not

have access to legal markets.

• The participants mentioned that unrehabilitated old mine dumps are a typical manifestation of the negative

impacts of mining. Much of this is related either to inappropriate EMPs or their inadequate implementation. A non-

regulatory solution suggested is to consider old mine dumps as an opportunity to create jobs through SMMEs and

cooperatives.

• Consideration of sustainability and sustainability development Sustainability and sustainable development require

that exploitation of the mineral resources contributes to assets that are available for future generations to have

meaningful livelihoods. The participants highlighted the importance of addressing the challenges of the current

policy and regulatory framework. They suggest that laws and regulations be amended and properly implemented.

As citizens they see “protest action” as route to forcing the relevant authorities such as DMRE, Department of

Environmental Affairs (DEA) and Department of Justice.

• The participants also perceive access to funding, equipment, land and markets as route to sustainability. Organising

and the formation of AM groups and companies with proper business plans for their mining operations is important

for this. The key stakeholders to support this are DMRE, DTI and financial institutions. With respect to accessing

land, government, municipalities and LSM operations must make land available for AM surface access, supported

by the LED departments in the municipalities and Department of Land Affairs. Responsible use of the land to ensure

sustainable practices can be ensured by the involvement of DEA and communities who need to be consulted on

land use permits. To address the main challenge related to access to markets which is linked to unsustainable

practices, the participants suggested removing the middlemen, and this is something that can be supported by

legitimate markets like the refineries in the case of gold and platinum.

• The participants also mentioned that lack of security for miners, makes them vulnerable to intimidation and poor

practices that do not support sustainability and sustainable development. To secure their positions in AM, the

participants suggested having valid legal documentation for the AM operations. They also felt that training would

give them knowledge and skills about running viable operations that are more secure. The key stakeholders to

support this are DMRE as the regulator, Mining Qualifications Authority (MQA) as the entity mandated to provide

knowledge and skills and learning providers like Mintek. Mintek also offer technical services, which can support the

development of more secure and viable operations. The police and IPID are also important in addressing ongoing

cases of intimidation and abuse.

• Optimal processes and engagements.

Any recommendations for the development of a Strategic Framework for AM South Africa can only be implemented

if there are processes for uptake supported by appropriate platforms for engagement. These processes and

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platforms also need to be supported by robust evidence. The participants considered possible solutions to address

the challenges in the current processes and platforms for AM policy formulation and implementation.

• An important solution that the participants felt needed to be implemented with respect to processes and platforms

for the AM sector was the involvement of the miners in decision making. They also mentioned that they would like

their organisations to be recognised as legitimate structures for engagement. It was felt that empowerment of the

miners through entrepreneurship training and proper implementation of Broad-based Black Economic Empower-

ment (BBBEE) would support that, as would ensuring free informed and prior consent (FPIC) of affected commu-

nities. Structures for supporting AM in formalising and to be more productive could also be used to make sure that

miners have access to information.

Strategic framework for AM in South Africa

The following aspects were considered during the development of the strategic framework for the AM sector: profile and

context in which AM activities are taking place, the international, continental and national objectives and priorities. Spe-

cifically, the role of the AM in socio-economic development was mapped in accordance with the objectives of Sustain-

able Development Goals, which are blueprint for global development, and the African Mining Vision which is positioned

to maximise the benefits of mining for broad-based socio-economic development. The national agenda was also taken

into consideration. Specific attention was directed the socio-economic landscape of the country and the objectives of

the National Development Plan. This also included an appraisal of the mining industry and the challenges it is facing in

contributing to the national agenda. The challenges and opportunities identified in the sector also formed the basis of

the strategic framework.

The figure below summarised the key elements of the proposed strategic framework for the AM sector in South Africa.

The pillars of the framework include aspects related to: mineral development, environment, health and safety issues,

social issues and institutional arrangements.

Broadly, the recommendations for a strategic framework for AM support solving, in a holistic and integrated way, the

problems that the country is encountering in trying to create livelihoods in AM. The framework provides recommenda-

tions towards fostering investment in the sector while introducing efficiency, sustainability and equity for all concerned.

The framework makes provisions towards the obligations of different actors particularly the State on its obligations

towards the sector. The recommendations in the framework also highlights the importance of considering the entire

AM value/supply chain including socio-economic and regulatory perspectives. An elaborated strategic framework is

unpacked in the report.

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As a guiding process, the following process can be followed to develop the strategic framework for the AM sector. The

process comprises of the following stages, namely: understanding the challenges, identifying key actors and potential

roles, formulating a collective agenda; and developing an implementation plan. This is summarised below.

Strategic Framework for AM in South Africa

Mineral Development

• Legal Framework

• Sector Organisation

• Technical Assistance

• Linkages

• Fiscal Regime

• Environmental

Management

• Occupational

Health And Safety

• Gender Equality

• Vulnerable Groups

• Child Labour

• Illegal-Legal Construct

• Relevant Institution

• Roles And Responsibilities

• Implementation Plan

• Monitoring And Evaluation

Environment, health and safety

Social Issues Institutional arragement

Review current regime and national priorities

Geopolitics and political economy of mineral resource extraction

Social dynamics

Championed at the highest political level

Coordinated by the ministry responsible for mineral reosurces

Inclusive of all stakeholders with women and vulnerable groups

Consultative process with tradeoffs

Theory of change

Transformation of the sector

Stakeholder engagement

In-depth analysis of the issues

Gap analysis against good practice

Understanding the key constraints

Formulating solutions

Policy drafting

Implementation of policy including M&E

Understandingthe key challenges

Identifying key actors and potential roles

Formulating a Collective

agendaImplementation

plan

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Proposed way-forwards

In order to advance the findings of this work and recommendations towards the strategic framework for the AM sector

in South Africa, the following are proposed:

1. Further research work needs to be done to obtain an in-depth of the complexities and drivers in the sector. Many of

the recommendations made towards the strategic framework need to be supported by practical evidence. There-

fore, a plan should be put in place to implement the requisite research. Some of the areas that may need immediate

attention is a census to establish a baseline robust statistical base that is representative of the AM sector in the

country.

2. A platform for ongoing engagements needs to be established. The platform envisaged here is one that will provide

for a “safe” space for different stakeholders to engage on the contentious issues of the AM sector in South Africa.

This platform can also be used by stakeholders to share their won perspectives and “concerns” towards the activi-

ties of the sector. The platform can also be used to validate emerging research on the sector and exchange work of

different stakeholders. The authorities mandated with managing the sector as well as other stakeholders may use

this platform to identify learnings that can support policy positions and decisions, advocacy and cooperate respons-

es and other initiatives aimed at supporting the development trajectory of the AM sector in South Africa.

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CONTENTS

Executive Summary iv

List of figures xv

List of tables xv

Abbreviations and Acronyms 1

1. Introduction and Objectives 3

2. Contextual background 3

3. Why evidence-based study? 5

4. Research design and methodology 7

4.1. Location of AM activities 7

4.2. Research approach and scope of work 7

5. Research findings 11

5.1. Baseline surveys 11

5.1.1. Demographic profile 11

5.1.2. Family and dependents 17

5.1.3. Employment and income 20

5.1.4. Job satisfaction and aspirations 33

5.2. Participatory appraisal through focus group discussions 38

5.2.1. Key issues facing AM in South Africa 38

5.2.2. Possible solutions to the challenges facing AM in South Africa 42

5.3 Conclusions 49

5.3.1. Baseline surveys 49

5.3.2. Participatory appraisal 55

6. Building the case for AM in South Africa 55

6.1. International agenda 55

6.2. Continental agenda 57

6.3. National objectives 58

6.3.1. Socio-economic context 58

6.3.2. Policy objectives and the potential role of AM 60

7. Policy submissions and strategic framework 63

7.1. Current policy context and arguments 63

7.2. Recommendations for a strategic framework for AM in South Africa 66

7.1 Key elements for consideration of an AM strategic framework 68

7.3. Guiding process for the development of AM policy 73

8.References 75

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LIST OF FIGURES

Figure 1: The miners administering baseline surveys in Kimberley, Northern Cape 9

Figure 2: Location of AM activities in South Africa 10

Figure 3: Age distribution of the respondents 12

Figure 4: Nationality of AM operators 13

Figure 5: An elderly miner working in Kimberley, Northern Cape 14

Figure 6: Respondents by foreign nationality 15

Figure 7: Marital status of the respondents 16

Figure 8: Levels of education 17

Figure 9: Breadwinners amongst the respondents 18

Figure 10: The number of dependents supported by the respondents 19

Figure 11: Campsite in Kimberley, Northern Cape 20

Figure 12: AM working experience 21

Figure 13: Diamond miners sieving the soil in search of diamonds 21

Figure 14: A gold miner in Carletonville 22

Figure 15: AM experience exceeding three years 22

Figure 16: Drivers to participate in AM 23

Figure 17: Indication of previous employment 24

Figure 18: Working experience in LSM 25

Figure 19: Additional income earned by the respondents 26

Figure 20: Advertising board for local camera-man 26

Figure 21: A female miner growing a vegetable garden for food 27

Figure 22: Income generated by artisanal diamond miners 28

Figure 23: Income exceeding ZAR10,000 in diamond mining 28

Figure 24: Income generated by gold artisanal miners 29

Figure 25: Income exceeding ZAR10,000 in gold mining 30

Figure 26: Gold mining site in Carletonville 31

Figure 27: Respondents’ spending patterns 32

Figure 28: Cars owned by artisanal miners in Kimberley 32

Figure 29: An illustration of what should be considered in the debate on

developing a Strategic Framework for AM 67

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LIST OF TABLES

Table 1: Job satisfaction and aspirations 33

Table 2: Optimal regulation considerations 43

Table 3: Equitable access to resources considerations 45

Table 4: Addressing the negative impacts of mining 46

Table 5: Sustainable development considerations 47

Table 6: Optimal processes and platforms considerations 49

Table 7: NDP objectives and potential role of artisanal mining 61

Table 8: Good practice recommendations for an AM strategic framework for

South Africa 68

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ABBREVIATIONS AND ACRONYMS

Abbreviation/Acronym

AM

ASM

ASPASA

BBBEE

CSMI

CBO

CSO

DEA

Dept

DMR

DMRE

DoL

EEO

EMP

GDP

FPIC

IDP

IPID

JSE

LED

LGDTTQ

LSM

MACUA

MCSA

MPRDA

MQA

NCAMA

NDP

NYDA

OSF-SA

PPE

SAHRC

SALGA

SAPS

SEDA

SMME

SSM

ZAR

Description

Artisanal mining

Artisanal and Small-Scale Mining

Aggregate and Sand Producers Association of Southern Africa

Broad-Based Black Economic Empowerment

The Centre for Sustainability in Mining and Industry

Community-based organisation

Civil Society Organisation

Department of Environmental Affairs

Department

Department of Mineral Resources

Department of Mineral Resources and Energy

Department of Labour

Ekurhuleni Environmental Organisations

Environmental Management Plan

Gross Domestic Product

Free, Prior and Informed Consent

Integrated Development Plan

Independent Police Investigative Directorate

Johannesburg Stock Exchange

Local Economic Development

Lesbian, Gay, Bisexual, Transgender, Transsexual, Queer

Large-scale mining

Mining Affected Communities United in Action

Mineral Council South Africa

Mineral and Petroleum Resources Development Act

Mining Qualification Authority

Northern Cape Artisanal Miners Association

National Development Plan

National Youth Development Agency

Open Society Foundation South Africa

Personal Protective Equipment

South African Human Rights Commission

South African Local Government Association

South African Police Service

Small Enterprise Development Agency

Small Micro Medium Enterprises

Small Scale Mining

South African Rand

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INTRODUCTION

1. Introduction and Objectives

This report presents findings of research conducted to inform the development of a strategy framework for

regularising informal artisanal mining (AM) in South Africa. Specifically, the research aimed to build an evidence-

base for AM in South Africa and to employ the findings to inform and support the formalisation of AM activities in

the country.

The research was underpinned by the following objectives:

1. To understand the nature, size, share and scope of informal AM activities in South Africa through baseline

surveys;

2. To unpack institutional frameworks governing informal AM activities in South Africa including those that

deem artisanal mining to be a criminal activity;

3. To assess the impact of artisanal mining on the miners themselves, their families as well as those who are

dependent and/or affected by these activities;

4. To obtain insights into the broad issues pertaining to AM and views on how the sector can be supported and

managed in South Africa; and

5. To develop a strategic framework to support the regularisation of informal AM in South Africa considering

ground-level issues as well as strategic considerations.

The research was initiated and funded by the Open Society Foundation (OSF-SA). The University of the

Witwatersrand and ActionAid South Africa were commissioned to lead and deliver the objectives of the project.

2. Contextual background

It has been widely argued that while South Africa has undergone major political changes, its mining industry has

struggled to show any significant contribution to the socio-economic objectives of transforming towards a more

inclusive wealth distributor (See Broad Based

In the context of the study, Artisanal and Small-scale Mining (ASM) includes: “all mining activities concerned with

the mining value chain including mineral searching, ore extracting, processing and trading of mineral product;

and apply simple methods, low levels of capital and technology and are labour intensive” This definition was

adopted from the ASM Categorisation Framework developed by Ledwaba and Mutemeri (2017)1. The framework

interprets ASM as a continuum with artisanal mining (AM) on the lower-end and small-scale mining (SSM) on

the upper-end. AM activities are characterised by low levels of tools and technology, less mineral outputs, small

area of production and conducted mainly by individuals or in groups not exceeding five people. The focus of the

study is on AM because the majority of its activities are informal and take place outside the current regulatory

framework. In the context of the study, Artisanal and Small-scale Mining (ASM) includes: “all mining activities

concerned with the mining value chain including mineral searching, ore extracting, processing and trading

of mineral product; and apply simple methods, low levels of capital and technology and are labour intensive”

This definition was adopted from the ASM Categorisation Framework developed by Ledwaba and Mutemeri

(2017)1. The framework interprets ASM as a continuum with artisanal mining (AM) on the lower-end and small-

scale mining (SSM) on the upper-end. AM activities are characterised by low levels of tools and technology,

less mineral outputs, small area of production and conducted mainly by individuals or in groups not exceeding

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five people. The focus of the study is on AM because the majority of its activities are informal and take place

outside the current regulatory framework.Mutemeri (2017)1. The framework interprets ASM as a continuum

with artisanal mining (AM) on the lower-end and small-scale mining (SSM) on the upper-end. AM activities are

characterised by low levels of tools and technology, less mineral outputs, small area of production and conducted

mainly by individuals or in groups not exceeding five people. The focus of the study is on AM because the

majority of its activities are informal and take place outside the current regulatory framework.

Socio-Economic Empowerment Charter, 2018)2. The introduction of a new mining regime through the

enactment of the Mineral and Petroleum Resources Development Act (MPRDA) (No. 28 of 2002)3, which vested

custodianship of the mineral endowment of South Africa in the state, appears not to have transformed the sector

into the engine of socio-economic development that was initially intended.

With the primary objectives of the MPRDA being “…redress[ing] historical socio-economic inequalities, ensuring

broad-based economic empowerment and meaningful participation of disadvantaged persons in the mining

industry”, the progress made since the enactment of the Act has not been encouraging. In the preamble of the

Broad-Based Socio-Economic Empowerment Charter for the Mining and Minerals Industry (i.e. Mining Charter,

2018), the Minister Gwede Mantashe acknowledged that transformation of the mining industry remains low;

the actions of large-scale mining (LSM) operations are driven by the need to “protect” social licence to operate;

the attainment of full participation of disadvantaged South Africans in the mining industry is still far from being

realised; and that the majority of mining communities continue to be subjected to high levels of poverty despite

being owners of mineral resources.

While the South African mining industry is ranked fifth in the global mining industry, the hard reality is that the

benefits from mining have not translated to broad-based development. Many mining communities still live

in abject poverty with limited economic opportunities. The situation is most of these communities has been

worsened by the declining performance of large-scale mining operations. Employment in the LSM sector has

contracted by 25 per cent from 621,001 in 1993 to 464,667 in 20174,5 Further, the Gross Domestic Product (GDP)

contribution of the mining sector has declined significantly from a peak of 21 percent in 1980 to 6.8 percent in

20176.

With the decline in the broad contribution of the LSM sector and limited opportunities in other economic sectors,

many people particularly those in mining communities have turned to artisanal mining for livelihoods and income

generation. Most AM activities in South Africa take place in current and historical mining sites. As is the case in

many developing countries, many AM activities in South Africa are informal and conducted outside the current

regulatory framework. As a result, the sector’s activities have been associated with unacceptable negative

consequences, leading to divergent policy discussions and proposals on how the sector should be managed.

At present, there are two extreme narratives from industry stakeholders. On one hand, there are stakeholders that

promote AM as a vehicle for local economic development and this is supported by evidence linking the sector’s

activities to employment and income generation in poor communities. On the other hand, some stakeholders

are calling for the criminalisation of AM activities based on encroachment of some of the activities on LSM

concessions; their connection to criminal syndicates; and the loss of revenue by the State. While there are merits

for regularising the AM sector, industry stakeholders are yet to come together to interrogate the contentious

issues surrounding the sector’s activities and to find common ground as the country moves towards a shared

vision for inclusive development. The AM Evidence-Based Study was conducted to provide a foundation on which

discussions and debates are framed.

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To this effect, the findings of the study are hoped to

• Stimulate informed discussions and debates on the future of AM in South Africa and its development plan;

and

• Provide a foundation on which political and public discourses are framed to allow proper engagements be-

tween the stakeholders as the country investigates ways of managing the adverse impacts of AM while lever-

aging opportunities for local community developments, local and national economies, reducing the climate

stress and adding to the overall well-being of society.

3. Why evidence-based study?

In 2015, the South African Human Rights Commission (SAHRC) conducted hearings to understand the AM sector

in South Africa7. Several stakeholders participated in the hearings and these included the Department of Miner-

al Resources (DMR), Chamber of Mines (Now Mineral Council South Africa), Department of Health, Department

of Trade and Industry, Aggregate and Sand Producers Association of Southern Africa (ASPASA), South African

Diamond and Precious Metals Regulator and Department of Labour. In the final report the SAHRC alluded to the

complexity of the AM sector which it linked to the lack of research and literature on the AM sector in the country.

One of its conclusions was that:

“There is a need to build the evidence base around South Africa’s unregulated AM sector and to build trust

and networks in this sector. Illegal AM will not go away of its own accord or through brute force. Lawlessness

will mount, if the issue of illegal mining is not confronted. To pursue a path of economic inclusion means

that there is a need for further research that identifies the size, shape, and scope of artisanal mining in the

country”.

While there had been increased interest and coverage of the sector’s activities in the past years (particularly from

the media); there remains poor understanding of the sector’s activities. There is currently no research that pro-

vides a landscape of the sector and explains nuances that exist in the sector. There is limited data with respect

to the number of people engaged in the sector, the spectrum of activities, geographical distribution, demographic

profiles, and technical, social, economic and environmental characteristics of the sector. The knowledge gaps

have opened the sector to misinformation and misinterpretation leading to biased and narrow thinking towards

the sector’s activities. The lack of data has also led to generalisation and “blanket” approach towards the sector

leading to “one-size fits all” policy responses. It is important to understand the context and dynamics that exist

in the sector to ensure that policy responses reflect the issues on the ground.

This research project was initiated to build an evidence-base for the AM sector in South Africa and to address

the knowledge gaps in the sector. In addition, the study was conducted to collect information about the sector to

address the misinformation and misconceptions about the sector, which have influenced the way the artisanal

miners have been perceived in the media and public discourse. Many of these submissions have taken a narrow

and restrictive approach to understanding the AM sector in South Africa. Broadly, the project included baseline

survey to build a profile of the sector. A workshop participatory appraisal of the sector with various stakeholders

to understand the ground-level issues and the nuances in the sector. This report provides findings of both the

survey and participatory appraisal. The conclusions from the outcomes of the research are used to make recom-

mendations for a strategy framework for the regularisation of informal AM in South Africa.

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4. Research design and methodology

4.1. Location of AM activities

As alluded above, the majority of AM activities in South Africa take place in current and historical mining

communities. Figure 2 below attempts to map the location of AM activities in the country. From available reports,

AM activities are taking place in all nine provinces across the country. However, the activities are more prevalent

in the gold sector with the bulk of activities located in Gauteng, Free State, Mpumalanga and the North West

provinces. AM is also widespread in the diamond sector with mining activities taking place in various locations in

the Northern Cape Province. The other commodities exploited by artisanal miners are coal, chrome, base metals,

semi-precious stones, platinum and industrial minerals and construction material e.g. sand and clay mining.

Sand mining and clay extraction for brickmaking takes place in all provinces across the country. Coal mining is

dominant in Mpumalanga and Kwa-Zulu Natal Provinces and chrome mining is conducted in Limpopo Province.

AM activities are carried out in both surface and underground operations. On the surface, AM takes place

on surface deposits (i.e. outcrops) and mining dumps (both waste rock dumps and tailings). Underground

AM activities are conducted in derelict and ownerless mines, non-operational shafts (i.e. shafts put on ‘care

and maintenance’ by LSM operations) and in operational shafts (i.e. the same shafts being worked by LSM

operations).

4.2. Research approach and scope of work

The research project was divided into two main activities, namely: baseline surveys and workshop participatory

appraisal.

Figure 2 shows the locations of AM activities in the country. Due to financial constraints, the baseline surveys

were conducted in Gauteng and Northern Cape provinces (highlighted in figure 2). However, given the spectrum

of AM activities in the country, the workshop was extended to other provinces to obtain a broad understanding of

the issues in the sector across various provinces and mineral commodities.

The objectives of the baseline surveys were to collect data needed to build the profile of the sector and model the

impact of AM on miners themselves and their families (e.g. objectives 1 and 3 of the project). The surveys were

conducted using structured questionnaires. These questionnaires were linked to an opensource online platform,

KoboToolBox application which was developed to assist with data capturing and analysis. The surveys took the

form of an exploratory study. A non-probability sampling technique was used to select a sample for the study.

A combination of volunteering and snowballing sampling techniques was used during the research to identify

participants for the research.

The surveys were conducted in Kimberley in the Northern Cape, Vlakfontein in Gauteng, and Carletonville in

Gauteng. The data was collected periodically in June, August and October 2018. A total of 1179 individual

surveys were conducted in the three areas; 527 individual surveys in Kimberley, 603 surveys in Carletonville and

49 surveys in Vlakfontein in Gauteng. The project team worked with Community-Based Organisations (CBOs)

and the miners in the three areas to collect the data for the surveys. These CBOs were: Northern Cape Artisanal

Miners Association (NCAMA) in Kimberley, Tswellopele Community Network in Carletonville and Ekurhuleni

Environmental Organisation (EEO) in Vlakfontein. The reason for the low number of surveys in Vlakfontein was

difficulty in accessing the sites and the reluctance of the miners to participate in the surveys because of feelings

of insecurity.

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The baseline surveys were conducted as part of Ethical Clearance Protocol Number H17/08/12 as issued by the

University of the Witwatersrand.

The second phase of the project was a workshop participatory appraisal to discuss the nuances in the sector and

important areas for consideration in the AM strategic framework. The workshop was scheduled over two days

taking place from the 03 to 04 September 2019. The first day of the workshop was dedicated to corroborating

the survey findings and explaining the profiles that emanated from the baseline research. The first day was

also used to discuss the broad challenges facing the miners, which are key to the regularisation of the sector.

The sessions on the first day were closed and attended by artisanal miners and community representatives. A

total of 67 participants were present at the workshop. These included miners from various provinces namely:

Gauteng, Northern Cape, Free State, Mpumalanga, North West, Limpopo and Kwa-Zulu Natal. In terms of mineral

commodities, the miners represented gold, diamond, coal and chrome sectors.

The baseline surveys were conducted as part of Ethical Clearance Protocol Number H17/08/12 as issued by the

University of the Witwatersrand.

The second phase of the project was a workshop participatory appraisal to discuss the nuances in the sector and

important areas for consideration in the AM strategic framework. The workshop was scheduled over two days

taking place from the 03 to 04 September 2019. The first day of the workshop was dedicated to corroborating

the survey findings and explaining the profiles that emanated from the baseline research. The first day was

also used to discuss the broad challenges facing the miners, which are key to the regularisation of the sector.

The sessions on the first day were closed and attended by artisanal miners and community representatives. A

total of 67 participants were present at the workshop. These included miners from various provinces namely:

Gauteng, Northern Cape, Free State, Mpumalanga, North West, Limpopo and Kwa-Zulu Natal. In terms of mineral

commodities, the miners represented gold, diamond, coal and chrome sectors.

The second day of the workshop was opened to other stakeholders e.g. government, mining companies,

academia, Civil Society Organisation (CSO), Trade Unions and media houses. A total of 75 participants were part

of the discussions on the second day. The outcome of the second day was discussions on potential solutions

and recommendations for regularising informal AM in South Africa. The discussions were facilitated through

focus group discussions.

Figure 1: The miners administering baseline surveys in Kimberley, Northern Cape

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Figure 2: The miners administering baseline surveys in Kimberley, Northern Cape

North West

The majority of th AM

operators exploit gold. The

builk of activities found in

Klerksdorp and Stilfontein

areas

Limpopo

The province saw the rise in

AM activities in 2016 in chrome

mining. with the retrechments

in LSM operations, many

ex-mininers turned to AM

activities. AM activities are

conducted in villages along the

R37 Toad Burgersfort on the

Bushveld Igneous Complex

MpumalangaAM activities in the province

exploit both coal and gold. cola mining takes places in Witbank,

and Emerlo. Gold in mined in the Barberton area. Coal mining

takes place in abandoned underground mines.

Kwazulu NatalThe AM operators in the

province mine coal.AM is widespread in Newcastle. Coal mining is conducted

underground .

Free StateThe AM operators in the

province mine gold. Am is Widespread in areas surround-

ing Welkom. Mining takes place in abandoned and operating

mines.

North West The majority of th AM operators exploit gold. The builk of activities found in Klerksdorp and Stilfontein areas

Northren CapeThe marority of AM activities take place in the diamond sector. The bulk of activities located in Kimberly area. AM has also expected to Namaqualand and Port Nolloth in the provice. There are also AM activities exploiting tiger’s eye deposits in areas surrounding Prieska. It is estimated that there are about 20,000 diamonds miners in the provice

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5.Researchfindings

This section presents main results from two sources, namely: baseline surveys and the workshop participatory

appraisal through focus group discussions.

5.1. Baseline surveys

The baseline survey was structured into four main components, namely: (1) Demographic profile, (2) Family and

dependants, (3) Employment and income, and (4) Job satisfaction and aspiration. As alluded above, the survey

was conducted with the primary objective of building a profile of artisanal miners in South Africa and to also

understand their socio-economic status as measured through education, income and employment. The survey

also collected data related to job satisfaction and aspiration to understand the miners’ own perspective towards

artisanal mining and its broad impacts on communities. A series of questions were posed to the miners to

establish if they are enjoying their work, their views about artisanal mining and its impact on communities, and

how they think communities perceive artisanal mining.

The data presented is based on a total sample of 1179 with 603 respondents in Carletonville, 527 respondents in

Kimberley, and 49 respondents in Vlakfontein. The respondents in Carletonville and Vlakfontein exploit gold and

in Kimberley, they mine diamonds.

5.1.1.Demographicprofile

Gender

Of the total respondents, females accounted for 14% and males made up the remaining 86%. The highest partici-

pation of female was in Carletonville at 17%.

Age distribution

Figure 3 shows the age distribution of the respondents in the three sites. Due to ethical limitations, only partic-

ipants above the age of 18 years took part in the surveys. As can be seen in the graph, the age distribution is

relatively the same in all three sites. The majority of the respondents are aged between 30 and 39 years. These

are followed by respondents in the age groups 20 to 29 years, and 40 to 29 years. The respondents that fall under

the category of youth in the South African context (e.g. between the age of 18 and 35 years) account 38% of the

total respondents. Interestingly, there is also a considerable percentage of older people (above the age of 50

years) engaging in AM activities. In the case of Kimberley, there is a significant number of respondents (i.e. 24 %)

who are above the age of 50. The oldest respondent was found in Kimberley at the age of 82 years. In the case

of the gold sites, the oldest respondent was 78 years old. Most of these respondents (those above the age of 60

years) are working as artisanal miners to supplement old-age grants received from governments. The government

is currently paying ZAR1780 per month8.

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40%

45%

50%

35%

30%

25%

20%

15%

10%

5%

0%

<20 20-29 30-39 40-49 50-59 60-69 70> Not disclosed

KIMBERLEY VLAKFONTEIN CARLTONVILLE

Figure 3: Age distribution of the respondents

Race and nationality

The majority of the respondents (about 95%) that participated in the survey are Black Africans. Only 4% of the

respondents are Coloured, and these are from Kimberley.

Figure 4 illustrates the nationality patterns. The majority of the respondents are South Africans. Foreign national

accounted 29% of the total respondents. As can be seen in the figure, in the case of Kimberley, South Africans

accounted over 80% of the total respondents and in Vlakfontein, foreign nationals accounted 51% of the total

respondents. In Carletonville, foreign nationals made up 41 % of the total respondents. Based on this data, it can

be seen that there is high percentage of foreign nationals participating in gold sector and this could be linked

to the history labour recruitment of South African gold mining sector in general. It is generally known that the

South African gold sector sourced labour from neighbouring countries over many decades, mostly from Lesotho,

Swaziland, Mozambique, Zimbabwe, Malawi, Botswana and Namibia.

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Figure 4: Nationality of AM operators

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Kimberley Vlakfontein Carletonville

SOUTH AFRICA OTHERS NOT DISCLOSED

Figure 5: An elderly miner working in Kimberley, Northern Cape

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Figure 6 segments the nationality of foreign nationals that participated in the study. The majority of the foreign

nationals come from Lesotho, Mozambique and Zimbabwe. As observed in the figure, the majority of Lesotho

nationals work in the diamond sector in Kimberley, and Mozambique and Zimbabwe nationals work in the gold

sector. The other nationalities occupy a small percentage as can be seen in the figure.

Maritalstatus

Figure 7 shows the marital status of the respondents. Over 60% of the respondents are single. About 30% of the

respondents are married. The trend is relatively the same for all three sites. The other category includes those

who are widowed and divorced.

80%

70%

60%

50%

40%

30%

20%

10%

0%

Lesotho

Mozambique

Zimbabwe

Swaziland

MalawiZambia

Others



Figure 6: Respondents by foreign nationality

Figure 7: Marital status of the respondents

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Single Married Others Not Disclosed

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Education levels

The education levels of the respondents are depicted in figure 8 below. The pattern is relatively similar in all

three sites. In fact, the education levels are consistent with the national patterns. A significant percentage of

the respondents (about 44%) only completed middle school, which is from grade 7 to grade 11. About 25% of

respondents only completed primary schooling. The respondents without formal education accounted for 10 %

of the total sample. Those with matric and further education accounted 18% and 3%, respectively.

5.1.2. Family and dependents

This section of the report provides a snapshot of the miners’ families and dependents. This was included in the

research to determine the number of people who are dependent on AM activities. In the context of the research,

dependents were defined as a person whom the respondents supported financially, and these could include

children, spouses or partners, parents, and other relatives.

Are you a breadwinner at home?

When asked if they were breadwinners at home, over 80% of the respondents in all three sites responded yes.

This is shown in figure 9 below.

70%

60%

50%

40%

30%

20%

10%

0%

No formalEducation

Primary school

Grade 1- 6

Middle schoolGrade 7- 11

Matric Further Education

Not Disclosed


Figure 8: Levels of education

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Figure 9: Breadwinners amongst the respondents

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Kimberley Vlakfontein Carletonville

YES NO NOT DISCLOSED

Figure 9: Breadwinners amongst the respondentsFigure 9: Breadwinners amongst the respondents

Do you have dependents?

The respondents were asked whether they have dependants, and 91%of them responded yes. Figure 10 provides

details on the number of dependents. The majority of the respondents have between 1 and 3 dependants. This is

the case in all three areas. Of the total respondents, 30% have between 4 and 6 dependants, and 13% have seven

and more dependants.

Box 1: Number of people dependent on AM

Assuming the maximum number of dependants for each category, it is estimated that the 1179 respondents

that participated in the study have an estimated 4800 people dependent on them for livelihoods. This comes

from a multiplier effect of 4 people, i.e. on average one miner supports four people.

Figure 10: The number of dependents supported by the respondents

80%

70%

60%

50%

40%

30%

20%

10%

0%

None Between1 and 3

Between4 and 6

Between7 and 9

10 andmore

Not disclosed


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Linked to the above question, the respondents were asked if they stayed with their families. In the case of

Kimberley, 67% of the respondents replied no. This is because the majority of the respondents stay at camps near

the mining sites. The majority of the miners stay in camps permanently and only go home at the end of the year

or when they have made a mineral sale. In the case of Vlakfontein, about 60% of the respondents stay with their

families. For Carletonville, 80% respondents reported staying with their families.

Figure 11: Campsite in Kimberley, Northern Cape

5.1.3. Employment and income

This section provides data on employment history and exposure to mining, pull and push factors, working

arrangements, income generated and spending patterns.

Working experience in AM

Figure 12 illustrates the work experience of the respondents. Overall, 38% of the respondents have been engaged

in AM activities for between 1 and 3 years. More than 40% of the respondents have been working in the sector

for more than 3 years. Figure 15 disaggregates the experience that exceeds three years. Of those that have been

engaged in AM for more than 3 years, 34% indicated to have been working in the sector for between 3 and 5

years. About 28% of the respondents have been working for between 6 and 10 years. There is also a considerable

percentage of the respondents have depended on AM activities for more than 10 years.

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Figure 12: AM working experience

80%

70%

60%

50%

40%

30%

20%

10%

0%

Less than1 year

Between1 and 3

More than3 years

Not disclosed


Figure 13: Diamond miners sieving the soil in search of diamonds

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Figure 14: A gold miner in Carletonville

5.1.2. Family and dependents

This section of the report provides a snapshot of the miners’ families and dependents. This was included in the

research to determine the number of people who are dependent on AM activities. In the context of the research,

dependents were defined as a person whom the respondents supported financially, and these could include

children, spouses or partners, parents, and other relatives.

Are you a breadwinner at home?

When asked if they were breadwinners at home, over 80% of the respondents in all three sites responded yes.

This is shown in figure 9 below.

Figure 15: AM experience exceeding three years

80%

70%

60%

50%

40%

30%

20%

10%

0%

Between3 and 5

Between10 and 15

Between6 and 9

Between16 and 20

more than20 years

Not disclosed


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Drivers to participate in AM activities

Figure 16 summarises the push and pull factors. In the case of the three areas, over 80% of the respondents

were pushed into the AM sector because of limited employment opportunities in their areas. Only 20% of the

respondents were attracted by the prospects of high and quick income.

Linked to the above question, respondents were asked if they were employed prior to becoming artisanal miners.

Of the total respondents, 44% responded yes. Those that were employed, 34% were retrenched from previous

employment, 29% were on contracts, which ended, and 21% resigned from previous employment because of low

remuneration.

Figure 17: Indication of previous employment

80%

100%

70%

90%

60%

50%

40%

30%

20%

10%

0%Kimberley CarltonvilleVlakfontein


Figure 16: Drivers to participate in AM

80%

100%

70%

90%

60%

50%

40%

30%

20%

10%

0%

Limited jobs Quick incomeHigh income Others

KIMBERLEY VLAKFONTEIN CARLTONVILL

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Working experience in LSM sector

There is also a popular view that the majority of artisanal miners have been retrenched by the LSM operations.

Amongst the questions posed to the respondents regarding employment was if they have worked in LSM

operations prior to becoming artisanal miners. The results are depicted in figure 18 below. Of the respondents,

only 29% of the respondents had worked in LSM operations before. The majority of the respondents had no

exposure to mining before.

Of those that have worked in LSM operations, about 47% were employed for between 1 and 5 years, 19% between

6 and 10 years, and 20% worked in LSM operations for more than 10 years. The remaining percentage did not

disclose years of experience.

80%

100%

70%

90%

60%

50%

40%

30%

20%

10%

0%

Kimberley CarltonvilleVlakfontein


Figure 18: Working experience in LSM

Figure 19: Additional income earned by the respondents

Source of livelihoods

The miners were asked if AM was their only source of livelihood and about 90% of the respondents said yes.

More so, over 80% of the respondents work as miners on a fulltime basis. Figure 19 shows the additional income

streams of other respondents. The majority of the respondents (i.e. 39%) receive social grants as additional in-

come. These include the old-age grants as well as child support grants. About 32% of the respondents have their

own businesses (e.g. some are builders, carpenters, hair dressers, and have their own spaza shops). The other

respondents (i.e. 7%) have side jobs (i.e. working in local spaza shops, taxi drivers etc.). In the case of Kimberley,

some respondents indicated to have established small businesses in the campsite to generate income when there

is no production (See figure 20 and 21)..

1%

14% 7%

32%

39%

7%

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Figure 20: Advertising board for local camera-man

Figure 21: A female miner growing a vegetable garden for food

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Income generated from AM activities

On the question of income, most respondents were not comfortable disclosing their income. This was the case in

all three sites. The income data presented here may not be a true reflection of what the respondents are actually

earning from AM.

For the diamond miners, it was difficult to determine the levels of income because their production is not

continuous. They therefore do not have weekly or monthly income. Equated to “lottery” and “gambling”, miners

can go from several months to the entire year without making a sale. When they do find a stone, they can strike it

big and earn millions of Rands. To try and obtain some income data, the miners were asked how much they have

made in the last sale. The responses are depicted in figure 22 below. As observed in the figure, about 37% of the

respondents claimed to have made a sale of less than ZAR1,000 and 20% of the respondents have made between

ZAR1,000 and ZAR2,000. Of the respondents, 16% chose not to answer the question.

40%

35%

30%

25%

20%

15%

10%

5%

0%

Less than R1 000

More than R10 000

Notdisclosed

Between R1 000R2 000



Figure 22: Income generated by artisanal diamond miners

The results for those that reported to have made more than ZAR10,000 are captured in figure 23 below. One

respondent disclosed to have made ZAR1, 7 million from a sale of one stone.

Figure 23: Income exceeding ZAR10,000 in diamond mining

40%

35%

30%

25%

20%

15%

10%

5%

0%

Notdisclosed

Between R20 001 R30 000

Between R30 001 R40 000

Between R40 001 R50 000

Between R50 001 R100 000


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The income data for the gold sites is presented in figures 24 and 25. Again, the majority of the respondents

claim to make between ZAR1,000 and ZAR2,000 per month. In the case of Carletonville, 36% of the respondents

make between ZAR2,001 and ZAR5,000. Those that reported to earn more than ZAR10,000, 39% earn between

ZAR10,001 and ZAR20,000 and 30% earn between R20,001 and ZAR30,000. About 17% of the respondents

revealed to earn more than ZAR50,000 per month. The revenue generated depend on the price of gold, which

fluctuates. At the time of the research, the selling price was ZAR500 per gram. The miners use mercury to

amalgamate the gold and it is sold at ZAR350 per bottle. The miners can process 50 grams of gold from one

bottle of mercury.

60%

50%

40%

30%

20%

10%

0%

Figure 24: Income generated by gold artisanal miners

Notdisclosed

Between 1 000R2 000

Between R2 001 R5 000

Between R5 001 R10 000

More than R10 000

Less than R1 000

Figure 25: Income exceeding ZAR10,000 in gold mining

40%

45%

35%

30%

25%

20%

15%

10%

5%

0%

Between R20 001 R30 000

Between R30 001 R40 000

Between R40 001 R50 000

More thanR50 001


Box 2: Income generated by artisanal gold minersTo validate the income data, the gold miners were asked the selling price of gold and typical production outputs that they can achieve on a daily basis. A gram of gold is sold for about ZAR500. Most miners indicated to producing between 4 and 8 grams of gold on a daily basis. Assuming a 20-days working period per month, the income generated comes to between ZAR2,000 and ZAR4,000 on a daily basis, and ZAR40,000 and ZAR80,000 on a monthly basis. The miners work as individuals and in groups of three people as shown in figure 25 below. In the latter case, the income is shared equally amongst the miners with each earning between ZAR13,000 and ZAR27,000 on a monthly basis.

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Figure 26: Gold mining site in Carletonville

Spending patterns

The respondents were asked to how they spent their money, and this is depicted in figure 27 below. As seen on

the radar chart, the bulk of the income goes to basic necessities. The second largest spend is children’s education

and personal savings. A considerable portion of the income is sent home. This is particularly the case for foreign

nationals.

In the case of Kimberley, most miners reported to have built houses and purchased cars with their earnings from

AM activities. Figure 28 is a picture taken at a meeting with artisanal miners. The whole street was occupied by

cars owned by miners. This could be used as evidence that artisanal miners are making sufficient income, which

is enhancing their standard of living.

60%70%80%90%

Invest back into thebusiness

Entertainment and other

0%10%20%30%40%50%

100%Basic neccessities

Accommodation e.g.Rent

Children education

Send money homePersonal savings

Kimberley

Vlakfontein

Carletonville

Figure 27: Respondents’ spending patterns

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Figure 27: Cars owned by artisanal miners in Kimberley

5.1.4. Job satisfaction and aspirations

The responses to the questions related to job satisfaction and aspirations are summarised in table 1 below.

Do you enjoy

working as a miner?

The majority of the

respondents (e.g. 99%) in

Kimberley responded yes.

About 72% of the respondents

answered yes in Carletonville.

The responses in Vlakfontein

are mixed with only 37%

responding yes

Question Results Discussion

Kimberley

99% 37% 72%1% 39% 3%0% 24% 27%

Vlakfontein Carletonville

26

Yes

Somewhat

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If you get another

job, would you leave

AM?

In line with the above

question, the majority of the

respondents in Vlakfontein

and Carletonville said that they

will leave AM if they obtained

alternative employment. In

Kimberley, the majority of

the respondents (i.e. 60%)

indicated that they will

not leave AM even if they

obtained other jobs. Those

who answered ‘somewhat’

indicated that it will depend

on the earnings offered and

if it was more than what they

are currently earning, they will

leave.


Kimberley

37% 92% 70%3% 6% 3%60% 2% 27%


Are you looking for a

job at present?

When asked if they were seek-

ing employment at present, the

majority of the respondents

in Carletonville answered yes.

Interestingly, in Vlakfontein,

the bulk of the respondents

answered no. This contradicts

with the responses to the

previous questions. However,

it may be that the respondents

have been looking for alterna-

tive employment for too long

and have become despondent.


Kimberley

38% 14% 69%2% 8% 2%60% 78% 28%


27

Yes

Somewhat

No

Yes

Somewhat

No





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Is AM a difficult job

to be engaged in?

When asked if working as AM

was difficult, the majority of

the respondents answered yes.

Over 90% of the respondents

in Vlakfontein indicated that

it was difficult being miners

largely because of security

issues.


Kimberley

63% 96% 70%3% 2% 6%35% 2% 23%


Are you satisfied

with the working

conditions in your

site?

When asked about their work-

ing conditions, as can be seen

in the graph the respondents in

gold mining sites are not hap-

py with the working conditions.

In the case of diamond mining,

the majority of the respon-

dents (i.e. 90%) are satisfied

with the working conditions.


Kimberley

91% 10% 47%3% 65% 6%5% 25% 47%


How worried are you

about your health

and safety?

In line with the responses

above, the majority of the min-

ers in the two gold sites e.g.

Vlakfontein and Carletonville

are very worried about their

health and safety.


Kimberley

40% 84% 5%38% 6% 21%22% 8% 74%


Do you regard being

an AM a proper job?

When asked if they regard

being artisanal miners a

proper job, over 80% of the

respondents in Kimberley and

Carletonville responded yes.

Only 18% of the respondents

in Vlakfontein regarded being

artisanal miners as ‘real’ jobs.


Kimberley

96% 18% 82%2% 53% 5%2% 29% 13%


28

Yes

Somewhat

No

Yes

Somewhat

No

Yes

Somewhat

No

Not worried

Little worried

Very worried





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Do you being an AM

is a respected job in

the community?

How do you think the

community perceive

AM?

Do you think AM has

contributed to the

reduction of poverty

in your community?

The respondents were

asked if their communities

respected artisanal

miners. The majority of the

respondents in Kimberley

and Carletonville expressed

that their communities do

respect their job because

they are contributing to the

community. The majority of

the respondents in Vlakfontein

felt that their jobs were not

being respected by their

community because of the

conflicts between AM and LSM

In line with the previous

questions, the majority of the

respondents in Kimberley and

Carletonville indicated that AM

is perceived positively by the

community. The responses

in Vlakfontein are mixed with

the majority stating that AM is

perceived both positively and

negatively in the community.

The majority of the

respondents expressed that

AM activities have contributed

to poverty alleviation in their

communities.




Kimberley

Kimberley

Kimberley

96%

78%

98%

4%

10%

59%

71%

76%

98%

2%

2%

1%

63%

18%

37%

10%

5%

1%

2%

16%2%

1%

31%

61%8%

4%

17%

12%5%

4%

Vlakfontein

Vlakfontein

Vlakfontein

Carletonville

Carletonville

Carletonville

29

Yes

Somewhat

No

Positive

Negetive

Both

Not sure

Yes

Somewhat

No





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Do you think AM has

contributed to the

establishment of

small businesses in

your community?

Do you think AM

should be promoted

or discouraged?

In terms of small business

development, the majority

of the respondents (i.e.

over 80%) in Kimberley and

Carletonville indicated that

AM activities have stimulated

entrepreneurship leading to the

creation of small businesses.

The AM activities have also

boosted local businesses.

In the case of Vlakfontein,

only 24% of the respondents

answered yes. operations.

In light of the discussions on

the regularisation of AM in the

country, the respondents were

asked whether AM activities

should be promoted or discour-

aged. As can be seen in the

graph, the majority of the re-

spondents expressed that AM

should be promoted. A small

percentage of the respondents

(i.e. 1%) indicated that AM

should be discouraged.



KimberleyYes

Somewhat

No

Promoted

Discouraged

Both

Not Sure

Kimberley

98%

98%

59%

96%

95%

94%

2%

1%

37%

0%

4%

2%

0%

1%0%

4%

0%2%

1%

2%1%

Vlakfontein

Vlakfontein

Carletonville

Carletonville

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5.2. Participatory appraisal through focus group discussions

As mentioned in the methodology, the participatory approach involved identifying the key issues facing the AM

sector in South Africa and identifying possible solutions to these issues, which could form the basis for the

strategic considerations on the effective management of the sector.

5.2.1. Key issues facing AM in South Africa

In order to identify the key issues of concern for the sector, during a plenary of the workshop the participants were

first asked to list their experiences as miners particularly from the perspective of problems and difficulties they

faced in plying their trade. It is important to note that this session was made up of artisanal miners, and CSO and

CBOs from mining-affected communities and did not include other stakeholders such as government, LSM etc.

The challenges identified from this plenary included the following:

• Being arrested and treated as criminals and related loss of property during their interactions with the police.

• AM not being recognised and being discriminated against and not being integrated in the mainstream

economy.

• Market access problems leading to exploitation by buyers and not getting fair prices for the mineral produced.

• Health and safety challenges, for example, exposure to dust, mercury and other health risks and not being

educated on the risks.

• Lack of capital to invest in their ventures.

• Not having access to technology to improve the efficiency and productivity of their operations.

• The presence of middlemen who exploit the miners.

• Licensing fees for mining licence applications, which are not affordable.

• Financial provisions for rehabilitation that are difficult to attain.

• Inappropriate category of license and its provisions.

• Lack of access to information about the types of licenses.

• Exploitation by elites who steal their production using police as proxy.

• The Department of Mineral Resources and Energy (DMRE) (previously DMR) not showing interest in the

miners, not offering any assistance, not being honest and transparent resulting in marginalization.

• Lack of clarity about the laws being contravened by informal miners, and not understanding why they are

charged with ‘trespassing’ when arrested for informal/illegal mining

• Human rights violations during interactions with the police.

• Lack of monitoring from DMRE.

From an analysis of the key issues identified by the participants emerged six (6) themes, which were prioritised for

the focus group discussions. These were:

• Police abuse and human rights violations;

• Health, safety and environment risks;

• Lack of access to inputs (capital/equipment /technology);

• Gender inequality;

• Limited access to minerals and land; and

• No recognition of the sector.

The participants were broken up into groups of eight to unpack the issues of each theme. To capture the

perspective of women on all six themes one group of women was constituted to discuss all the issues from a

gender perspective. The discussions on these themes are captured in the following sections below.

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5.2.1.1. Police abuse and human rights violations

The specific issues that were raised by the participants as affecting them on daily basis in relation to abuse by the

police and human rights violations include:

• Criminals stealing from the artisanal miners after the process of stockpile of ore

• Intimidation and brutality.

• Trespassing - Miners are charged with trespassing even though there is no clear ownership of the land.

• Miners are forced to share their money from mining with the syndicates, and “big fishes” who are sometimes

linked to DMRE, politicians and local municipality.

• Stealing of equipment and machinery which is a major cause of conflict amongst artisanal miners.

5.2.1.2 Health, safety and environment

The issues related to health, safety and the environment present a lot of challenges for AM. The concerns

identified by the participants include:

1. Health• No health assessment impacts carried out.• Miners receive no check-up for illness that might result from exposure of dangerous chemicals used during

the mining process.• The are no health centres where the miners can receive treatment for their mining related ailments.• There is no training on health-related issues.

2. Safety• No proper use of personal protective equipment (PPE) is used.• There is no underground support to prevent rock falls from hanging walls.• The use of items prohibited in the mine, e.g. cigarette, cell phones etc. to prevent hazards.• No compliance with the Labour Relations Act and other laws pertaining to occupational health and safety.• Miners in the gold sector loose teeth and have skin damage because of acid.• Miners in the coal and chrome sectors are injured from ‘fall of ground’.• Lack of proper access roads.• Blasting does not follow standards.

3. Environment• No environmental impact assessments done.• No control of air pollution and dust emissions.

5.2.1.3 Inputs (capital/equipment /technology)

The challenges identified by the miners with respect to inputs include the following:• Lack of access to funding• Poor skills development and limited application of technology in artisanal mining.• Not being recognised and given access to environmental rehabilitation opportunities (of derelict and owner-

less mines) as artisanal miners. • The ‘use it or lose it’ principle is not applied in unrehabilitated and abandoned mines. Miners not given the

opportunity to work on abandoned mining sites.

5.2.1.4 GenderGender issues cut across all themes and the challenges raised by the miners include:• There is no gender equality.• Women are limited to open cast mining, because it is not safe underground because of fights amongst male

miners.• Women artisanal miners are discriminated against by their male counterparts in the industry who consider

them too weak to manage.• Women suffer police abuse, for example: • Women are pressured into sexual favours to avoid arrest by the police.• Often times, women are arrested for no reason and their equipment and minerals are confiscated.• Police take advantage of the fact that women sometimes do not know their rights.

• Women do not have adequate information on health and safety, for example on the chemical hazards from mineral processing and how to prevent exposure.

• Mining is not a safe environment for women.

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• Middlemen take advantage of women in minerals sales.• Women do not have equal access to inputs for their operations.• It is more difficult for women to access land and mineral rights. Women are not being supported to acquire

mining licenses• There is also no support for women who are sex workers on mining sites.

5.2.1.5 Access to minerals and landIn the discussion on access to minerals, the main issues for AM include:• The existence of too much red tape in accessing mineral rights.• Lack of recognition of AM by the entities that predominantly control access, i.e. LSM and government. • License requirements are not suitable artisanal mining cooperatives and individuals. • Lack of creative thinking with respect to land access being incorporated into rehabilitation projects which can

be an opportunity for the miners, communities and government.

5.2.1.6 Recognition of the sectorThe challenges linked to lack of proper recognition of the sector that came from the discussion include: • Criminalisation of the sector and its informal nature of the activities.• Limited access to land for artisanal mining. • Misconceptions about the criminal element in artisanal mining. • No health and safety measures being taken.• Limited access to market for different minerals. • Community benefits in artisanal mining need to be understood and embraced. • Lack of skills development in mineral disciplines.• No support framework for development of artisanal mining in the country. • No platforms for engagement with various stakeholders particularly government and LSM sector. • Middlemen take advantage of women in minerals sales.• Women do not have equal access to inputs for their operations.• It is more difficult for women to access land and mineral rights. Women are not being supported to acquire

mining licenses• There is also no support for women who are sex workers on mining sites.

5.2.1.5 Access to minerals and landIn the discussion on access to minerals, the main issues for AM include:• The existence of too much red tape in accessing mineral rights.• Lack of recognition of AM by the entities that predominantly control access, i.e. LSM and government. • License requirements are not suitable artisanal mining cooperatives and individuals. • Lack of creative thinking with respect to land access being incorporated into rehabilitation projects which can

be an opportunity for the miners, communities and government.

5.2.1.6 Recognition of the sectorThe challenges linked to lack of proper recognition of the sector that came from the discussion include: • Criminalisation of the sector and its informal nature of the activities.• Limited access to land for artisanal mining. • Misconceptions about the criminal element in artisanal mining. • No health and safety measures being taken.• Limited access to market for different minerals. • Community benefits in artisanal mining need to be understood and embraced. • Lack of skills development in mineral disciplines.• No support framework for development of artisanal mining in the country. • No platforms for engagement with various stakeholders particularly government and LSM sector.

5.2.2. Possible solutions to the challenges facing AM in South Africa

In considering the possible solutions to challenges faced by AM in South Africa, it is important that these

proposed interventions consider the historical issues, current realities and future socio-economic agenda of South

Africa. The mining sector as governed by the MPRDA is underpinned by several objectives, including: (1) ensuring

equitable access to mineral resources; (2) expanding opportunities and benefits of disadvantaged and vulnerable

groups in the society in the mining sector; (3) promoting Section 24 of the Constitution; (4) facilitating socio-

economic development and improving welfare of the society; and (5) ensuring sustainable development of the

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country’s mineral endowment. Drawing from these objectives, it is important that the strategy framework for AM

aligns with and promote these principles to ensure the contribution of the AM sector to the broader development

agenda of the country. The proposals for AM strategic framework are discussed in terms of the following areas: • Optimal regulation;• Equitable access to resources;• Mitigation of negative impacts;• Contribution to sustainability and sustainable development; and• Optimal processes and platforms for engagement.

In addition to proffering possible solutions the participants also indicated which stakeholders would play a key role in the implementation of these solutions. The following sections summarise the outcomes of the focus group discussions on these topics.

5.2.2. Optimal regulationIn considering how ‘optimal regulation’ might be achieved, the participants made the recommendations to address the challenges associated with non-optimal regulation and made suggestions on which key stakeholders would have role to play in addressing the current challenges.

Table 2: Optimal regulation considerationscountry’s mineral endowment. Drawing from these objectives, it is im-

portant that the strategy framework for AM aligns with and promote these principles to ensure the contribution of

the AM sector to the broader development agenda of the country. The proposals for AM strategic framework are

discussed in terms of the following areas: • Optimal regulation;• Equitable access to resources;• Mitigation of negative impacts;• Contribution to sustainability and sustainable development; and• Optimal processes and platforms for engagement.

In addition to proffering possible solutions the participants also indicated which stakeholders would play a key role in the implementation of these solutions. The following sections summarise the outcomes of the focus group discussions on these topics.

5.2.2. Optimal regulationIn considering how ‘optimal regulation’ might be achieved, the participants made the recommendations to address the challenges associated with non-optimal regulation and made suggestions on which key stakeholders would have role to play in addressing the current challenges.

Table 2: Optimal regulation considerations

Lack of integration into

the mining sector and

rest of the economy

Lack of recognition

Poor market access

Police brutality

Health and safety

Skills development and

training

Adapt regulations to be inclusive of AM

Encouraging cooperatives could also facilitate integration

Amend the MPRDA to accord full recognition of AM

Support the use of a certification schemes

Appropriate regulations and their enforcement would lead to an

integrated AM not vulnerable to abuse by the police

Ensure that there are requisite benefits for workers, use of appro-

priate regulation to enforce the law, e.g. when renewing the mining

license.

Capacity building in health and environment to support compliance

DMRE, AM, LED in municipality,

Private sector, LSM

AM, DMRE, LSM

DMRE, Mineral Council, Mintek

SAPS, Justice Department, In-

dependent Police Investigation

Directorate (IPID)

Department of Health, Environ-

ment and SAPS

Private sector, public sector, AM

Challenges Solution Stakeholders

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The participants noted that suboptimal regulation could be addressed through ensuring that regulations are

adapted to be more inclusive of the AM sector. It was also felt that encouraging the formation of cooperatives in

AM might facilitate integration of the sector. However, it is also important that regulation recognises miners that

work as individuals. Amendment of the legislative framework to accord full recognition of the sector is an import-

ant consideration. An optimal regulatory framework was felt ought to incorporate schemes to improve market

access, address health and safety as well as skills development to deal with compliance to environmental require-

ments. Providing for enforcement of regulations was also considered important. All different types of stakehold-

ers are important in bringing about the necessary change.

5.2.2.2 Equitable access to resources

Equitable access to resources is the beginning of inclusiveness in the mining sector. The participants considered

the apparent inequitable access to resources from the perspective of mineral rights, inputs, participation of wom-

en and youth and the relationship between ASM versus LSM. They explored non-regulatory approaches as well.

The solutions noted by the participants to address the challenges associated with lack of equitable access to

resources included innovative approaches like sub-contracting exploitation by LSM to AM, engagement of dif-

ferent sources of capital, the use of social media for advocacy and platforms for access information as well as

for improved transparency and accessing the law. The stakeholder types with a role include government, funding

institutions, communities, traditional leaders, research and development institutions.

Table 3: Equitable access to resources considerations

5.2.2.3 Mitigating negative impacts of mining

The participants also discussed the strategic approaches to managing the negative impacts of AM which they all

acknowledged are problematic for the sector. Key areas of consideration were safety, health, environment and

Access to mineral

resources (and land)

Access to finance

Communication resources

Access to information

No public participation for

engagement on policy and

framework

Consider sub-contracting by LSM to communities of appropriate

assets for exploitation at AM. This could be orebodies that are sub-

economic for large scale exploitation or processing waste

products. There is need to identify abandoned sites that can be

allocated to AM activities.

Engage local and international institutions to understand the

requirements and develop innovative solutions.

Use of social media and social media networks to advocate

for equitable access to resources by the AM sector.

Create meaningful engagement platforms to rally all

stakeholders to support access to resources.

Ensure free prior and informed consultation for mineral rights

granting. Simplified language of documents, particularly for

application of mineral rights

LSM, ASM, DMRE

ASM, LSM, Financial institutions and of

Social movement funders

ASM, LSM, Funding institutions

DMRE, Mintek, LED, Community

organisations, Traditional leaders, SEDA,

Women and youth formations, LGBTQ


DMRE, Mintek, Mining houses, Communities, NYDA, Women and youth formations, LGBTQ, local media, Local development agencies, other institutions of research in extractives

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social (including community). They considered these from the perspective of opportunities that exist in the

management of impacts.

The participants discussed how addressing the lack of recognition of the AM sector could mitigate the negative impacts of mining. They cited the Department of Labour (DoL) as appropriate since it is the government department that has the mandate for ensuring good conditions of work (an important aspect of formalisation). Mention of the Johannesburg Stock Exchange (JSE) as important role player was from the perspective that well capitalised mining operations will have adequate capacity to address impacts of mining.

The participants spoke about the challenge of undocumented foreigners in AM. The main concern being that they are working in the ‘shadows’, which makes the sector vulnerable to practices that have negative impacts on health, safety and the environment, as well as social issues such as exploitation. Hence getting organised as AM to engage authorities such as the Department of Home Affairs to address the underlying migration and related social issues will lead to a reduction of some of the negative impacts resulting from migrants working in the ‘shadows’. An example that the participants cited is the exploitation by middlemen because the miners may not have access to legal markets.

The participants mentioned that unrehabilitated old mine dumps are a typical manifestation of the negative impacts of mining. Much of this is related either to inappropriate EMPs or their inadequate implementation. A non-regulatory solution suggested is to consider old mine dumps as an opportunity to create jobs through SMMEs and cooperatives. The key stakeholders to make this happen include Department of Trade and Industry (DTI) which has a mandate for SMME development, DMRE to provide regulatory framework that supports this, Mineral Council of South Africa as private sector representative that can facilitate access to these old mine dumps, and Mintek as

they are leading the implementation of the Derelict and Ownerless Mines Rehabilitation Programme.

5.2.2.4 Sustainability

In considering how to ensure that AM contributes to sustainable development, the participants highlighted

the importance of addressing the challenges of policy and regulatory framework, access to land, funding and

equipment, challenges of security and legitimate markets.

Recognition of the sector

is lacking

Market

Injuries (work related)

Non-South Africans

participation

Rehabilitation of old mine

dumps Environmental

management plans

(EMP)

To engage the department of mineral rights. Water sanitation as

a strategy to mitigate impacts

Remove the middlemen

Formalising the sector and providing training on health and

safety related matters – standards, procedures and practice.

Organize AM to engage on solutions for non-nationals

Development of SMMEs, cooperatives and AM groups to con-

tract for rehabilitation.

JSE, Department of Labour??

DTI, DMRE, Mineral Council of South Africa

Department of Labour, DMRE,

Department of Health, Police (SAPS), miners

Department of Home Affairs

DTI, DMRE, Mineral Council of South Africa,

Mintek


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MPRDA, Mining Charter,

Policies, NEMA

Funding/Equipment

Land

Security

Intimidation

Markets

Amendment, Implement, to protest

Cooperatives, companies, proper business plan

Government, municipalities, mine owners

Training

Legal/valid documents

Cut the middlemen

DMRE, DEA, Justice Department

DMRE, DTI, Banks

Land Affairs, DEA, LED, Communities

Mintek, DMRE, MQA

Police, IPID

JSE, Refinery Company


Sustainability and sustainable development require that exploitation of the mineral resources contributes to

assets that are available for future generations to have meaningful livelihoods. The participants highlighted the

importance of addressing the challenges of the current policy and regulatory framework. They suggest that laws

and regulations be amended and properly implemented. As citizens they see “protest action” as route to forcing

the relevant authorities such as DMRE, Department of Environmental Affairs (DEA) and Department of Justice.

The participants also perceive access to funding, equipment, land and markets as route to sustainability.

Organising and the formation of AM groups and companies with proper business plans for their mining operations

is important for this. The key stakeholders to support this are DMRE, DTI and financial institutions. With respect

to accessing land, government, municipalities and LSM operations must make land available for AM surface

access, supported by the LED departments in the municipalities and Department of Land Affairs. Responsible use

of the land to ensure sustainable practices can be ensured by the involvement of DEA and communities who need

to be consulted on land use permits. To address the main challenge related to access to markets which is linked

to unsustainable practices, the participants suggested removing the middlemen, and this is something that can

be supported by legitimate markets like the refineries in the case of gold and platinum.

The participants also mentioned that lack of security for miners, makes them vulnerable to intimidation and poor

practices that do not support sustainability and sustainable development. To secure their positions in AM, the

participants suggested having valid legal documentation for the AM operations. They also felt that training would

give them knowledge and skills about running viable operations that are more secure. The key stakeholders to

support this are DMRE as the regulator, Mining Qualifications Authority (MQA) as the entity mandated to provide

knowledge and skills and learning providers like Mintek. Mintek also offer technical services, which can support

the development of more secure and viable operations. The police and IPID are also important in addressing

ongoing cases of intimidation and abuse.

5.2.2.5 Optimal processes and platforms

Any recommendations for the development of a Strategic Framework for AM South Africa can only be

implemented if there are processes for uptake supported by appropriate platforms for engagement. These

processes and platforms also need to be supported by robust evidence. The participants considered possible

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solutions to address the challenges in the current processes and platforms for AM policy formulation and

implementation.

An important solution that the participants felt needed to be implemented with respect to processes and

platforms for the AM sector was the involvement of the miners in decision making. They also mentioned that

they would like their organisations to be recognised as legitimate structures for engagement. It was felt that

empowerment of the miners through entrepreneurship training and proper implementation of Broad-based Black

Economic Empowerment (BBBEE) would support that, as would ensuring free informed and prior consent (FPIC)

of affected communities. Structures for supporting AM in formalising and to be more productive could also be

used to make sure that miners have access to information.

5.3 Conclusions

5.3.1. Baseline surveys

Broadly, the following information could be extracted from the baseline survey to inform policy recommendations

and interventions:

• Who is operating the AM sector? From the survey, participants profiles could be segmented from a gender

perspective, age distribution, nationality, and education levels. Essentially, the surveys provide key information,

which is a pre-requisite in identifying target groups for policy-making and interventions.

• The surveys also provide information that could be used to map the level of impact of AM activities on

livelihoods and local socio-economic development. This include information on dependents, spending

patterns, and relationship with small businesses. The survey also contains data that can be used to form the

basis for understanding local economic multipliers, links between the sector and other business activities

which can be used to map and quantify the ecosystem of the AM sector.

• The income data in the surveys can also be used in various assessment such as determining the standard of

No transparency in policy

making

Lack of interface with AM

formal structures

No public participation

platform for affected

parties

Access to information

from DMRE, custodian-

ship

Including us (i.e. AM) when during decision making taken

Entrepreneurship development

Implementation of BBBEE (code of good practice, Act 53 of

2003)

Treat artisanal miners organisations as legitimate structures for

engagement

Support access to funding or resources

Free informed and prior consent (FPIC) Community consultation

LED to organise workshops on how we should formalise AM

Structure to support AM accessing machinery to reach produc-

tion targets

Land rehabilitation process where there is need for sustainable

community, agriculture for food security,

Priority of having our own markets

Infrastructural programme for decent house

DMRE, Department of Health, Department of

Water and Sanitation, LED, Police (SAPS), artis-

anal miners, Mining companies

SALGA, Mining Affected, Labour Department,

Investors

The Communities must be the principal stake-

holders, and artisanal miners. LED, All mining

stakeholders and DMRE


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living of miners and their families or calculating purchasing power of miners in local communities, or potential

revenue that government could earn in the form of taxes or royalties. The data could also be used to inform

legislative provisions that require ‘financial provisions’ to ensure that mining in conducted in a sustainable

manner.

• The data on job satisfaction and aspirations also provides useful information that could also inform policy-

making and interventions. Amongst the findings coming from the surveys is the importance of AM to the

miners and how they perceive it. A number of conclusions can be drawn from the data provided, for example

the majority of the miners expressed their satisfaction with AM with many perceiving the activity as a proper

job. The responses also indicated the majority of the miners have no intention of leaving AM activities. This is

an important finding that would need to be considered when exploring alternative interventions to managing

the sector.

To this effect, some of the conclusions that can be drawn from the surveys regarding the profile of the sector and

the socio-economic status of the miners:

• With the increase in the number of people participating in artisanal mining activities, the sector continues to

provide livelihood opportunities for women. Women are found to account significant percent of the workforce

in AM globally. In the recent estimates provided by the Intergovernmental Forum on Mining, Minerals, Metals

and Sustainable Development (IGF) (2017), women accounted between 10 and 20 percent of the workforce

in Latin America, and between 40 and 50 percent in Africa. In some countries, women make up 100 percent

of the workforce9. In the case of South Africa, previous studies estimated that women accounted 5% to the

total workforce in the sector10). The survey results provide a higher percentage and based on observations

at the site, it is estimated that women account for at least 20% of the total workforce. More women were

encountered on site; however, some of them did not feel comfortable taking part in the research.

• Due to its entry requirements, artisanal mining is able to attract a spectrum of people from various

backgrounds. There has been growing attention in literature on the participation of young people in artisanal

mining in Sub-Saharan Africa11. The attention towards youth in the sector has been motivated by the region’s

burgeoning youth unemployment crisis. As is the case in most African countries, the research showed that

there is a significant percentage of young people in the AM sector in South Africa. In view of this, the sector

could serve as potential avenue for youth employment and entrepreneurship. The research also showed that

there is high participation of population above the age of 35 years, with a considerable percentage of people

above the working-age (e.g. above 65 years) also eking out living from AM activities. Broadly, these age groups

should be considered in policy-making and interventions.

It is common to find foreign nationals working as artisanal miners in various countries. In the case of Ghana, AM

activities are also conducted by miners from China, Togo, Burkina Faso, and Ivory Coast9. One of the popularly

held views in South Africa is that the majority of artisanal miners are foreign nationals, and this is linked to

the history of mining and the migrant labour systems. The research revealed that the majority of the miners

are actually South African citizens. However, foreign nationals also account for a significant share of the total

workforce particularly in the gold sector. While the AM sector is often earmarked for locals, the apparent profiles

necessitate the development of strategies that consider the engagement of foreign nationals in the sector.

Artisanal mining is associated with low skills and education levels. This is because the majority of the miners

come from poor education backgrounds. While this is the case in most countries, research on the sector has

revealed the participation of people with higher levels of education. In Ghana, for example, civil servants and

teachers have turned to artisanal mining because of unemployment challenges in the country9. In the case

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of South Africa, the education profile of the miners is consistent with the national education pattern where

the majority of the working age population are without matric and further education. According to Statistics

South Africa this category of the population is the most affected by unemployment accounting 57% of the

unemployment level6. The survey revealed that artisanal mining is conducted mostly by the section of the

population, which has only completed primary and middle school education. This group was found to have low

skill levels with the majority of them coming from not being employed prior to engaging in artisanal mining

activities. It was found that few have actually worked for LSM operations and had prior experience in mining.

As is the case in most countries where AM occurs, many people depend on artisanal mining activities beyond

the miners themselves. It is estimated that about 150 million people depend of ASM activities globally9.The

research showed that the majority of the miners are breadwinners in their families and have several family

members dependant on them for their livelihoods. For most of the miners, artisanal mining is their only source

of income. Those with secondary income receive government grants, which are usually not enough for most

households because of the high standard of living. As a result, it was found that a considerable percentage of the

workforce engage in artisanal mining to supplement the grants. While the majority of the miners were reported

to have between one and three dependants, a considerable percentage of the miners are supporting four and

more dependants. A high portion of the earnings go to basic necessities (as expected) but also towards children

education. In the case of foreign nationals, most of the earnings are sent home and a portion is spent on rental

accommodation (e.g. feeding into the local economy).

While artisanal mining was once associated with commodity rushes, it has in some situations become a

permanent feature of local and rural economies. For most artisanal miners, the sector’s activities are seen as

medium to long-term employment options. On the debate of whether the activities are poverty-driven or motivated

by entrepreneurship prospects, the South African case study is inclined towards the former with the majority of

the miners pushed into the sector by limited economic opportunities and poverty. It was found that few miners

were attracted by the prospects of “high income” or “quick income” although these two characteristics are

achievable in the sector. The majority of the miners have been working in the sector for more than 3 years, with a

considerable percentage having 10 and more working experience. Most of miners work as artisanal miners on a

permanent basis, usually seven days a week. More so, it was revealed in the survey that the majority of the miners

and hosting communities perceive artisanal mining as a proper job because of the income that is generated

from the sector’s activities, the ability to increase the standard of living of own families, and contribution to local

economies.

While the miners underreported the earnings generated from artisanal mining, the research showed that

significant amounts of income are produced from AM activities. This income is considerably higher than income

earned in other sectors of the economy and available employment opportunities offered by government for

this cohort of people, for example the Expanded Public Works Programme (EPWP), a flagship programme in

South Africa aimed at providing income relief to unemployed people12. Underpinned by mostly infrastructure

development projects, the EPWP provides temporary work to unemployed population in the country. The

programme is linked to skills development offering where upon expiry of the projects, the participants leave with

working experience and skills thereby broadening their chances of finding employment in the labour market. The

EPWP usually target unemployed youth, and run on a contract basis, usually twelve-months. During the duration

of the contract, the participants are given a stipend of ZAR92.31 per day. This amounts to about ZAR2,000 on a

monthly basis, which is much less than what is earned in AM. The same can also be said for the minimum wage

provisions in the law that was promulgated in June 2019 ,13. The approved figures are ZAR20 per hour for general

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worker, ZAR15 per hour for farmworkers, and ZAR15 per hour for domestic workers. This amounts to between

ZAR2,700 and ZAR3,700 per month.

Government signed the National Minimum Wage Bill into law. This policy decision was motivated by the dire socio-economic realities in the country. According

to National Treasury (2016), in parallel to the unemployment crisis, the labour market is associated with low levels of wages barring the country from addressing

poverty and inequality challenges. It was reported than 51% of the population in South Africa live on less than ZAR1,036.07 per month. More so, half of the

workforce earn less than ZAR3,700 per month with over 4.6 million people earning less than ZAR2,500 on a monthly basis. With an estimated minimum dietary

requirement of 2,100 calories per day costing ZAR445.55 per person, a household of five must earn at least ZAR2,227.75 to meet the food requirements. Most

households are unable to do so. The minimum wage was introduced to boost the income levels generated by most households.

• In comparing these figures with the income generated in artisanal mining, the research shows that AM

generates considerably higher incomes. For the gold sector, artisanal miners are able to earn between four

and nine times more income than general workers, farmworkers and domestic workers. The income generated

in the diamond sector is far higher with miners able to make millions from the sale of one stone. To this end,

artisanal mining places the miners in Living Standard Measure (LSM) categories seven and eight (with LSM

10 and LSM 1 being the highest and lowest respectively)14.

• The earnings from artisanal mining are currently untaxed. According to the Mineral Council South Africa,

South Africa is losing ZAR7 billion annually from illegal mining and trading of precious metals and

diamonds15. Artisanal mining could serve as a potential tax base for government if regulated.

• The other major finding from the research could be linked to alternative strategies to managing artisanal

mining activities. With the growth of sector, there has been rising concerns on the impact of the sector on

the environment and the illegal nature of the sector which sometime step over to criminal activities. In a bid

to curb these challenges, the sector has seen the initiation of programmes under the umbrella of alternative

livelihood strategies. These programmes lead mostly by donors and international agencies, governments and

large-scale mining operations have been introduced as alternatives to artisanal mining. In most cases, these

alternative strategies have not been able to reduce the participation of people in artisanal mining. One of

the key questions raised in the research was that if the miners got another job, would they leave mining? The

majority of the miners said that they will not leave artisanal mining. The others said that they would leave AM

if the money was higher than what they were currently earning. For most of the miners, they were content

with their jobs not only because of the money, but also because of the freedom that came with working for

oneself. That is a characteristic that is offered by artisanal mining. The responses related to job satisfaction

and aspirations are important and should be taken into consideration when thinking about alternative

management strategies to AM in the country.

5.3.2. Participatory appraisal

In summary, it is evident that the participants in the sector have a good understanding of the issues that should

be considered, strong positions of how these can be addressed, and which stakeholders can play a key role. Even

though the breadth of stakeholder types in the discussions was limited and dominated by miners and CBOs it is

important for decision makers to consider the discourse that is emerged from the discussions, which points to the

need for:

• Recognition of the sector, appropriately reflected in the policy and legislative framework;

• Processes and platforms where inclusiveness and transparency in decision making is fostered; and

• Further evidence to better to understand the issues.

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6. Building the case for AM in South Africa

With the unprecedented growth of the sector, there is increasing recognition that the sector’s activities cannot be

overlooked both from the benefits perspective as well as through the lenses of understanding the adverse impacts

of the sector. Artisanal mining is recognised globally, taking place in more than 80 countries. There is evidence of

the sector in some countries being the mainstay of local economies playing an integral role in impoverished rural

communities. The sector is also associated with revenue and mineral production, employment creation, youth

and women development, small business development and other positive spill overs in local economies. On the

downside, the sector is associated with complications in health, safety, environment, and economic leakages

affecting not only the miners, but threatening the achievement of development agendas at global, continental,

national and local levels.

6.1. International agenda

In 2015, the United Nations’ member states adopted the Sustainable Development Goals (SDGs) as a roadmap

to guide the eradication of poverty and other socio-economic challenges by 203016. The SDGs comprises of

17 goals aimed at economic prosperity, environmental stewardship and sustainability, and social inclusion.

Having been a pillar of most mineral economies, the mining industry is expected to play a considerable role

in the achievement of the SDGs. This is looked at from both perspectives vis-à-vis the positive and negative

impacts of mining and potential impacts on SGDs. In actual fact, mining has direct and indirect links with all

17 SDGs. Likewise, artisanal mining has a significant role to play in the attainment of SDGs. In mapping the

links between mining and SDGs, the Columbia Centre on Sustainable Development (CCSD) and other authors,

identified the following goals as having direct links with the ASM sector: SDG 1 (No poverty), SDG 3 (Good health

and wellbeing), SDG 8 (Decent work and economic growth), SDG 15 (Life on land) and SDG 16 (Peace, justice and

strong institution)17. The broad contribution of ASM to SDGs are in areas of poverty alleviation, environmental

stewardship, local economic development and broad-based empowerment.

As the case in other countries, the AM sector in South Africa exhibits the potential of contributing to several

SDGs. From the research, direct links can be drawn with SDG 1 (No poverty), SDG 2 (No hunger), SDG 4 (Quality

education), SDG 8 (Decent work and economic growth), SDG 10 (Reduced inequalities) and SDG 11 (Sustainable

cities and communities). Of course, there are negative impacts of artisanal mining that threatens attainment of

SDG 15 (Life on land) and SDG 16 (Peace, justice and strong institution). In view of these strategic contributions,

there is case in South Africa for supporting the formalisation of artisanal mining.

South Africa is also a signatory to the United Nations’ International Covenant on Economic, Social and Cultural

Rights, which it signed in 1994 and ratified in 201518. Underpinned by the promotion of freedom, peace, and

justice, the binding treaty requires governments to recognize the “Right to Work” which links to several of the

SDGs. Article 6 of the treaty states that:

“[t]he States Parties to the present Covenant recognize the right to work, which includes the right of everyone to the

opportunity to gain his living by work which he freely chooses or accepts and will take appropriate steps to safeguard

this right.”

The poor regulation of the sector contravenes with this agreement, which has direct impacts on the achievement

of several SDGs.

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6.2. Continental agenda

The African Mining Vision (AMV) was adopted in 2009 by African Union’s member states as an agenda

to maximise the benefits of mining for broad-based socio-economic development19. Crafted to promote

transparency, equitability and optimal exploitation of mineral resources, the AMV is underpinned by seven

objectives, which are linked to key challenges facing the African mining industry. These encompasses

establishing economic linkages and developing a single African market economy; fostering a minerals industry

that effectively manages resource rents, and industry that is safe, healthy, gender inclusive and accepted by

communities; creating a mining industry that is diversified and globally competitive; growing mining businesses

and creating an favourable environment for the exploitation of both high value and low value minerals; and

developing a mining industry that supports artisanal and small scale mining and promotes the co-existence of

ASM alongside LSM operations.

To this end, the AMV recognises the potential role of ASM in catalysing local and national entrepreneurship,

improving livelihoods of people and building resilient and self-dependent communities. To realise the potential

of the sector, the AMV calls on government to formalise the ASM sector’s activities by creating legislative

frameworks that consider the nature and dynamics of the sector’s activities and providing targeted programmes

aimed at not only addressing the negative impacts of the sector but also enhance the positive benefits of the

sector.

Of the 55 countries that are signatories to the AMV, only 24 countries have embarked on various policy and

legislation interventions to align national frameworks with the underlying principles of the AMV20. South Africa

is amongst the countries that are lagging behind in terms of fully embracing the objectives of the AMV. While the

formalisation of the ASM sector continues to be invaded with challenges, some countries have made significant

progress in transforming the ASM sector and reaping the benefits. For example, in Ghana, ASM activities

contributed 30% to the country’s total gold production in 2016. It is estimated that sector employs about 1.1.

million people with women accounting between 45 to 85% of the workforce21. In Rwanda all mineral production

of that country is by the ASM sector. In Tanzania, it is estimated that artisanal mining contributes 10% to the

national gold production. The sector current employs 1.5 million people with 9,000,000 people depended on the

sector’s activities22.

The ASM sector in South Africa is relatively small in terms of the number of people compared to other countries

with similar mineral endowment. However, it is evident that the sector is growing and becoming an integral part

of the economy particularly in mining communities, which are found to be dealing with a consistent decline in

livelihood strategies due to diminishing opportunities offered by LSM operations. From a continental perspective,

the drive to support the transformation of the ASM sector is rooted in the sector’s potential to contribute towards

employment creation (whether directly or indirectly by acting as a catalyst for small businesses) and broad-based

development by creating opportunities for vulnerable groups in the society. These two objectives resonate with

the South African development agenda and its socio-economic priorities as viewed broadly, and also in terms of

the shortcomings seen in the mining industry. From this perspective, there is a case for South Africa to support

the formalisation of artisanal mining.

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6.3. National objectives

6.3.1. Socio-economic context

While South Africa has made significant progress in addressing the discriminatory practices of apartheid

government, it is beset by socio-economic challenges which hinder it from realising its development agenda.

High on this agenda are the unemployment levels, which surpass most African countries23. The unemployment

rate reached a staggering 29% in the second quarter of 2019. The expanded unemployment rates (which include

discouraged job seekers) was reported to be 60%. To put this in numbers, 6.7 million South Africans of the

working age are unemployed. According to Statistics South Africa those affected by high levels of unemployment

include Black South Africans, people in rural areas, women, the uneducated, unskilled and semi-skilled ex-workers

and the youth. When disaggregating this percentage by education, it is found that 57% of the unemployed persons

have no matric qualification, which means that prospects of finding employment are minimal in the current labour

markets that is unable to absorb graduates with tertiary education.

The situation in South Africa is expected to become worse which its demographic profile constituting an

overwhelming majority of the youth population. Since 1994, South Africa`s working-age population has increased

by 11 million people. In the next 50 years, it is forecasted to grow by another 9 million, peaking in 2065 at about

43.8 million working age individuals24. The next 20 years alone will see an average net increase in the working-

age population of about 280,000 people per year. As a share of the working-age population, the United Nations

(2013) projects that the peak of unemployment in South Africa will occur in 2045, when it will reach 68.3%24.

The World Employment and Social Outlook – Trends 2015 report provides a forecast of global unemployment

levels and explains the factors behind this trend, including continuing inequality and falling wage shares.

The report confirms that:

“[t]he employment situation has not improved much in sub-Saharan Africa, despite better economic growth

performance (than the developed world) until recently. In most of these countries (Sub-Saharan Africa),

underemployment and informal employment are expected to remain stubbornly high over the next five years.”

It thus not a great surprise that the question of work, and gainful employment as a proxy for socio-economic de-

velopment has become an ever-deepening fault line in South Africa. The prospects in South Africa are made less

appealing by the reduced performance of key economic sectors, which have been the backbone of the country’s

economy. In the first quarter of 2019, the country’s economy contracted by 3% with major economic sectors e.g.

mining, agriculture and manufacturing shrinking by between 8.8 and 13.2%26. The mining has been struggling to

return to its peak performance in the 1980s. During that period, the mining sector contributed 21% to Gross Do-

mestic Product (GDP). This has fallen significantly with GDP contribution reported at 8.3% and 7% during the peak

of the commodity cycles in 2008 and in 2016, respectively27.

The employment in the sector has also fallen from the peak in 1987 at 760 000 people employed. In 2008, on the

crest of the commodities cycle, there were 521 035 people employed in the South African mining industry. This

increased to 526 512 in the 2012, before falling every year to 2017. There were 56 368 fewer jobs in the mining

sector in 2017 than in 2008 and in 2018 the number employed in the sector is currently hovering around the 430

000 mark6. Both global pressures (e.g. low commodity prices, decreased demand, and waning investor confi-

dence) and internal challenges (e.g. labour markets volatilities, policy and regulatory uncertainty and inadequate

infrastructure) are attributed to the declining performance of the sector28.

In terms of its transformation agenda, the sector is still characterised by disparities with the minority still receiv-

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ing a large share of the benefits. While the Mineral Council South Africa (MCSA) has iterated the potential of the

mining industry to contribute to the national development agenda; the current performance of the industry in

terms of its contribution to GDP, employment and socio-economic transformation suggests otherwise.

While there is still optimism amongst government officials regarding the attainment of the NDP targets, the pros-

pects are dwindling with the deterioration of the socio-economic landscape in country. The challenges facing the

country need immediate attention. Artisanal mining is amongst the low hanging fruits that offer an employment

base for unemployed people across the country.

6.3.2. Policy objectives and the potential role of AM

One of the founding principles of the Constitution is the need to “improve the quality of lives of all citizens and free

the potential of each person”29. To realise this mandate, government has developed various policy frameworks to

create conducive environment for economic growth and broad-based development. These frameworks included

the Reconstruction Development Programme (RDP) of 1995; the Growth, Employment and Redistribution (GEAR)

strategy of 1996; the Accelerated and Shared Growth Initiative of South Africa (ASGISA) of 2005; the New Growth

Path (NGP) of 2010; and the National Development Plan (NDP) of 2012.

The NDP aspires to eradicate poverty and inequality by 2030. Specifically, the primary milestones of the NDP

include: total elimination of the percentage of households earning below ZAR419 per person (in 2009 prices) and

reducing inequality as measured using the Gini coefficient from 0.69 to 0.630. This is to be attained by increasing

the employment base from 13 million in 2010 to 24 million in 2030 thereby raising the per capita income from

ZAR50, 000 to ZAR120, 000.

In addition, the NDP has declared numerous targets aimed at addressing the past disparities which continue to

restrict the country’s transformation agenda and broad-based socio-economic development. The priority areas

for the NDP include: economy and employment; economy infrastructure; environmental sustainability; integrated

and inclusive rural economy; positioning South Africa in the world; transforming human settlements; improving

education, training and innovation; promoting health; social protection; building safer communities; building a

capable and development state; fighting corruption; and transformation society and unity in the country.

Table 7 provides a description of the objectives of the NDP with direct links to the AM sector. Based on the results

of this research, the potential contribution of artisanal mining to the NDP is summarised in the table.

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NDP OBJECTIVES MAIN ISSUES POTENTIAL ROLE OF AMThe key strategies include: the need for a coordinated approach and investment that take into account climate change and environment pressures, aligning the different strategies under the NDP umbrella, investment in consumer awareness, education, green processes and technologies, investment in renewable energy technologies, the development and marketing of niche products and services, collaborations with neighbouring countries, technologies to reduce carbon emissions in line with international targets, the development of appropriate policy and legislative frameworks to promote public investment, strategies for small-scale rural farmers and commercial farmers to improve rural livelihoods.

sources threatening other livelihood strategies.

3. Integrated and inclusive rural economy

The impetus behind this theme is the need to provide economic and political opportunities for rural communities. This is to be achieved by: agricultural development, land reform and livelihood strategies, access to basic services, health care, education and food security, land use planning and the role of the different government departments.

Majority of AM activities take place in historical and current mining sites where opportunities from large-scale mining have declined. Most of these communities live in abject poverty with limited economic options. AM provides livelihood to vulnerable groups of the population. The sector is contributing towards building resilient communities. AM activities are also playing a role in “levelling the playing field” by allowing disadvantaged communities to participate and benefit from mining activities. The sector is addressing ownership disparities in the mining industry.

4. Improving education, training and innovation

The key aspects of this theme are: quality early childhood development, basic education and higher education. The following are also covered in the chapter – the need for public adult learning centres, sector education and training authorities, professional colleges and community training Centres; and research and development in universities, science councils, department, NGOs and private regarded as being critical to increasing the competitiveness of South Africa.

The research revealed the contribution of AM activities to education. A significant portion of the income earned from artisanal mining is spent on education.

5. Social protection The objective of this chapter is to ensure that no one lives below the poverty line. The chapter deals with issues pertaining to poverty, hunger, and malnutrition. Social protection seeks to find solutions to the many challenges facing vulnerable groups of our society and respond on their needs for livelihoods. Some of the key programmes include: protection for the unemployed poor through labour market policies, social grants, household food security and nutrition etc.

By providing source of income to the unemployed population, AM is contributing towards poverty alleviation enabling households to meet minimum dietary requirements. AM has improved standard of living of households with the high incomes that are generated from the sector.

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7. Policy submissions and strategic framework

7.1. Current policy context and arguments

The legal context “covering” AM activities is provided by the primary mining legislation in South Africa, which

is the Minerals and Petroleum Resources Development Act (No. 28 of 2002). The MPRDA is supported by other

various legislative frameworks such as the National Environmental Management Act, the National Water Act, Mine

Health and Safety Act and others.

Section 3 of the MPRDA grants the custodianship of the country’s mineral resources to the state. It is the respon-

sibility of the state through the DMRE to grant authorisations contemplated in MPRDA, including prospecting

rights, mining rights, mining permits, and environmental authorisations. Essentially, the MPRDA prohibits the re-

moval of minerals and/or mining operations without applying for and obtaining the mining license. In the interpre-

tation of the Act, it means that anyone wishing to mine must apply for a mining license and be granted permission

within the provisions of the MPRDA to commence working. Failure to do so would result in the mining operation

being illegal and subject to prohibition.

There are different types of mining licenses as noted above. For mining activities specifically, one must be in

possession of either a mining right or mining permit. The two licenses allow one to exploit a mineral deposit. The

major difference between the two is the scale of operation, which in turn forms the basis of legal requirements

and provisions subjected to each type of license. Mining rights are granted for areas exceeding five hectares and

are valid for 30 years. On the other hand, mining permits are issued for areas not exceeding 5 hectares and are

valid for a durable of 3 years. Based on the characteristics of LSM and ASM, one can conclude that mining rights

are developed for LSM operations, while mining permits are for ASM operations. This is not explicitly stated in the

law; however, mining permits are promoted as being suitable for ASM operations.

The issuing of mining permits is covered in section 27 of the MPRDA. The requirements for granting a mining

permit include: proof of financial and technical ability, public consultation report, and Environment Management

Authorisation which include the submission of an Environmental Management Plan report (EMPr). The first

component included evidence of skills and training to mine as well as money to afford the mining operation. The

applicant is required to consult interested and affected parties and submit a report to the department. The last

component includes compiling an EMPr which should encompass an environmental impact assessment, mitiga-

tion measures, rehabilitation and closure plans and financial provisions towards meeting the requirements of the

law. The law requires that this document be compiled by an Environmental Assessment Practitioner (EMP) who

are qualified. The cost of an EMPr for mining permit varies depending on the scale of operation, type of minerals

being mined and the envisaged environmental impacts.

Some of the contentions regarding the suitability of mining permits to accommodate artisanal miners and ad-

vance the sector include:

• The potential of the ASM sector in South Africa was first recognised by the Reconstruction and Development

Programme (RDP) and as a result was part of the post-1994 Minerals and Mining Policy for South Africa. The

policy encouraged government to “facilitate the sustainable development of small-scale mining in order to en-

sure the optimal exploitation of small mineral deposits and to enable this sector to make a positive contribu-

tion to the national economy”31. To achieve this, the policy identified key areas in the sector as: mineral rights

access; access to finance and technology; regulation and administration; and environmental management.

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• MPRDA failed to embrace the potential role of AM in the transformation agenda of the mining industry, and

broadly its contribution to local and national development priorities32.

• While the MPRDA does not exclude anyone from applying for a mining license, the requirements of the Act

automatically place aspirant artisanal miners on the periphery of legislation. This is because the majority of

the miners come from poor backgrounds having been pushed into AM by unemployment and poverty. On entry

into the sector, the majority of the miners do not afford the financial requirements needed to obtain mining

permits33.

• It has been argued that AM operators are catered for in the “provisions of the mining permit” because they are

less onerous and hence affordable compared to mining rights. In practice, it is clear that the requirements of

mining permits accommodate only a few in the sector – mostly those in the upper-end of the spectrum which

means to meet the requirements. These are “small-scale operators” who are entrepreneurs. It has been found

that the majority of mining permit holders are well-resourced entrepreneurs and business people taking advan-

tage of the “less onerous” requirements wishing to enter the mining industry as quick as possible. Because of

the “affordable” requirements of the permits and the time it takes for the department of issue these licenses,

most these well-resourced entrepreneurs opt for multiple mining permits instead of mining rights34,35.

• The main financial obstacles associated with obtaining mining permits encompassed two components, that

is the fees requirement to pay consultants to compile the EMPr and the financial provisions for rehabilitation

required before the application can be granted. As mentioned, the cost of rehabilitation differs per operation. It

is reported that is can range from ZAR10,000 to more than ZAR100,000.

• The other criticisms directed to mining permits relate to inadequate consideration of the technical and oper-

ational aspects of the sector, which have also been found to impede the few who managed to access mining

licences. These factors include duration and validity of operations, area extent allocated to sector’s activities,

safety, health and environment requirements.

Broadly, this research is coming from the perspective that while mining permits may have been designed for dis-

advantaged South Africans; they seem to be ‘missing’ the target population. The majority of the population living

below the poverty line cannot access these licenses. With the proliferation of AM activities, there is very little likeli-

hood that miners will comply with current regulations and operate legally.

It is important to note that in the case of Kimberley where artisanal miners were granted mining licenses, the

involved state departments paid the costs of application. Essentially, most of the artisanal miners that are in

possession of mining licenses received some assistance from industry stakeholders. Without appropriate legal

requirements and assistance programmes, the majority of the miners would not be able to secure licenses. Unfor-

tunately, the “milestone” achieved in Kimberley has not served as precedence to exploring appropriate strategies

for supporting the regularising of the AM sector. The current struggle is that until an appropriate strategic frame-

work is developed for the sector, most AM activities will remain outside the law.

7.2. Recommendations for a strategic framework for AM in South Africa

The recommendations for a strategic for AM in South Africa, presented take into consideration the results of the

research work carried out as part of this project as well as an understanding of the good practices observed on

the African continent and elsewhere in the world where AM exists. The research presented in the preceding sec-

tions, looked at the current situation of the AM sector in South Africa using a case study approach and enhanced

by a participatory appraisal approach.

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The baseline survey findings indicated the following key considerations:

• The demographics of AM;

• Socio-economic status of the miners;

• Livelihood positions;

• AM multipliers and linkages; and

• Job satisfaction and aspirations.

The participatory appraisal considered the perspectives and experiences of the central actors in AM, which is the

miners, CBOs, and CSOs from mining-affected communities on topics considered crucial for the debate on ad-

dressing the challenges of AM sector in South Africa. There were guided focus group discussions on these topics;

optimal regulation, fair access to resources, managing negative impacts, and ensuring sustainability (see illustra-

tion in Figure 29): What has emerged from the research is the need to:

• Consider AM as livelihood opportunity and avenue for job creation for impoverished mining communities;

• Recognise the sector, and appropriately and unambiguously reflect it in the policy and legislative frameworks;

• Have processes and platforms for good governance where inclusiveness and transparency in decision making

is fostered; and

• Generate further evidence to better to understand the issues

This is the premise on which recommendations for a Strategic framework for AM in South Africa are presented.

Figure 29: An illustration of what should be considered in the debate on developing a Strategic Framework for AM

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Key element Status/challenges in South Africa

Good practice actions recommended

1 • Mineral development

• Plethora of complicated regulations and procedures

• Unclear permitting category, using unclear language

• No distinction between artisanal mining and small-scale mining

• Onerous and costly obligations• The short validity and restrictions

on license areas do not allow for efficient extraction

• Makes co-habitation impossible without exceptions

• Too much focus of high value commodities like gold, diamonds, platinum etc. and not enough attention of industrial minerals and construction materials

• State obligations to support the AM development are not clearly spelt out

• Criminalisation of the sector is the current attitude with no proper recognition of the opportunity for livelihood support and contribution to economic development of the country through employment creation, contribution to the fiscus etc.

• No provisions to facilitate alignment with land use planning

• No clear indication of effort to support compliance

• Unfair/unclear legal sanctions against informal mining leading to abuse and exploitation

• No clear indication of efforts to align gender and social inclusion policy with the AM policy position

• No clear indication of compliance with regional protocols like the AMV

• Review all relevant legal instruments (including mining, environmental management, land use planning, labour conditions and occupational health and safety, gender and social inclusion, regional and international protocols)

• Must unambiguously provide for ASM license categories, which clearly addresses the issue that there is a continuum of mining activities from artisanal to small-scale; the rights and obligations must reflect the categorisation

• License category to be workable and allow for efficient use of resources

• Provide a regulatory framework with innovative approaches to support compliance such as AM designated areas

• Provide for a regulatory framework that allows for co-habitation with LSM

• Obligations and rights must cater for all minerals exploited by AM

• Legal framework to clearly spell out the obligations of the state to support AM development

• State to address issues of criminality and provide a clear and fair sanctions

• Ensure alignment with international and regional protocols like the Minimata Convention on mercury pollution, the AMV etc.

1.2 Sector organisation AM sector not organised into formal structuresLack of regional associations makes it difficult for other stakeholders to interface with the sector

• Government to support AM sector organisations by giving them legitimacy through structured engagement, in the same way they do with the LSM through MCSA and SAMDA for junior mining companies.

• Government to be more inclusive of the players in AM in policy formulation processes

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1.3 Technical assistance Many challenges related to inefficient operations. This is largely due to limited knowledge and skills.

The current skills provision through the SETAs does not appear to reach AM

The SSM Fund, the current technical assistance programme run by DMRE is not functional and is currently not structured to benefit AM but rather already resourced operations on the SSM end of the ASM spectrum

• Involve AM actors in the develop-ment of SETA skill programmes

• Provide more resources for research into innovative ap-proaches for more efficient AM operations.

• Provide coordinated direct tech-nical support to the sector from the perspective of the “Golden triangle”37

• Review the SSM Fund structure and eligibility requirements to make it more accessible to AM. The Fund must be open to all the activities of the AM value chain.

• Leverage the SSM Fund for more support from other stakehold-ers like LSM and development agencies

1.4 Linkages • AM production is taken as feedstock for other industries not necessarily SMMEs

• Little consideration of the opportunity for mineral linkages in the AM sector particularly at a local level

• The opportunities for creating human capital through AM

• Position AM as business that could also provide opportunities for all linkages (upstream, down-stream and side stream) Ensure that the AM sector is considered in the Integrated Development Plans at local municipalities level, including in local supply chain development to meet the needs of LSM

• Consider setting up beneficiation and value addition hubs in AM producing areas

1.5 Fiscal regime • The prevalence of middlemen particularly in precious minerals like gold and diamonds mean that there are substantial govern-ment revenue losses

• The AM sector is expected to pay the same levels of mineral royalties as LSM and this may be pushing operators to dispose of their minerals through illegal channels

• The fiscal regime should provide incentives for compliance, e.g. technical support for entities that are paying taxes and levies

• Innovative ways to capture gov-ernment revenues e.g. through exporter taxes for high value minerals being exported

2 Environment, Health and Safety

2.1 Relevant institutions • Most AMs operating without EMPs

• Poor practices mean that AM operations have negative impacts on the environment, release of mercury and cyanide into the environment, voids that are not backfilled, indiscriminate disposal of waste

• There appears to be little enforcement of environmental standards

• Most AM do not have the capacity (skills and capital) for good environmental practices

• Due to poor mining and processing methods there is a waste of natural resources

• Provide frameworks that make it easier to comply e.g. aggregated EIAs and EMP in AM designated areas, support from partner LSM operations through formalisation of “informal” activities where amenable

• Provide for incentives to comply, e.g. technical support for those complying

• Capacity building interventions with relevant SETAs

• Formalise existing AMs where possible

• Must provide for innovative solu-tions to aid affordable compli-ance with SHE and other related requirements

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2.1 • Informal AM encroaching on LSM property are not able to have EMPs therefore are not able to remediate the impacts of their mining activities, and LSM are left with the liability

2.2 Occupational health and safety (OHS) • OHS problems are prevalent• The informality of the sector

makes it vulnerable to poor OHS practices, difficult for authorities to enforce the regulations

• The structure of the OHS provisions is geared towards LSM making it difficult for AM to comply

• Ignorance of the health impacts of mining is prevalent

• Most miners lack of knowledge and skills of good practices

• No clear indication of effort to support compliance

• Provide regulatory frameworks that support compliance, e.g. education, incentives and disincentives

• Structure provisions appropriate for AM level, e.g. AM designated areas which are easier to inspect

• Formalise existing AM activities where amenable

3 Social impacts

3.1 Gender equality • Gender equality continues to be illusive

• Women face discrimination even from fellow male AMs

• Gender-based violence perpetuated by other male AMs and authorities is reported

• Women are targeted for sexual favours, and theft of minerals

• Provision of the needs of women is poor due to the informal nature of the operations

• Women in AM are unable to participate and benefit from government-driven gender equality programmes being implemented in LSM because of the informal nature of the AM operations

• Formalisation where possible will enable AM operations to participate in gender equality programmes and interventions

• Involve women in all decision making and policymaking processes

• Implement affirmative action interventions for women miners and women-owned operations

• Develop and implement AM appropriate ways for the needs of women to be provided (e.g. ablution facilities, PPE, child-care etc.)

3.2 Vulnerable people and child labour • The informal nature of AM means that vulnerable persons (such women, children, youth, LGBTTQ) are at particular risk from the negative impacts of mining and miss out on the benefits

• Those with illnesses such HIV/AIDS do not get the support they need

• The involvement of children in AM in South Africa is still an issue

• Formalisation where possible will enable AM operations to participate in programmes and interventions that protects the rights of vulnerable persons

• Awareness raising and education campaigns should be implemented

• Enforcement from relevant authorities through inspections etc

Illegality-legal construct • The presence of a continuum of criminality-informality-formality that is difficult to categorise, hence there are no appropriate distinguishable responses from authorities

Clearly distinguish between crimi-nality (illegal mining that is strongly associated criminal syndicates with a regional-global reach) and informality (i.e. poor people eking a living with no appropriate permits) and develop and implement clear appropriate respons-es. The later should be a targeted with formalisation interventions

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4 Institutional arrangements

4.1 Relevant institutions • Many institutions and stakeholders in South Africa play a role in AM administration, it appears that they are not coordinated in how they deal with AM

• DMRE is the principal entity that has the mandate for managing the sector and it has an SSM Directorate as part of its organisational structure, with regional representation

• Permitting controlled by central government with limited role for local government

• The next most relevant institutions are the DEA, DTI, DoL, Department of Health, Local government, Department of Land Affairs, Department of Education, Police

• Also, of importance to AM are the following SALGA, MQA, MCSA, Labour unions, CSO, CBOs and development agencies

• The DMRE as the principal insti-tution mandated with manage-ment of the mining sector should play a coordinating role clearly spell out the role of each stake-holder

• A one-stop shop should be con-sidered to make it easier for the AM sector to interface with the different stakeholders

• Decentralise administration of the AM sector and involve local government more

4.2 Implementation plan • Currently there is no coherent plan for managing AM that has been communicated by the authority mandated with management of the sector

• What exists is a plethora of initiatives that appear to be disjointed efforts

• The AM Strategic framework should ultimately lead to an AM policy document with an implementation plan (refer to Figure 29)

• The AM policy document should have clear objectives and an implementation plan with clear targets, roles and responsibilities

• The implementation plan should be responsive to the changeable nature of the AM sector and be reviewed on a regular basis

Monitoring and evaluation (M&E) Since there appears to be no coherent implementation plan for the manage-ment of AM there is no M&E evident anywhere

• The implementation plan should be responsive to the changeable nature of the AM sector

7.3. Guiding process for the development of AM policy

Figure 29 illustrates a process framework that South Africa can adopt to guide the development of the AM policy

framework. The key elements of the process are:

• Understanding the challenges;

• Identifying key actors and potential roles;

• Formulating a collective agenda; and

• Developing an implementation plan.

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7.3. Guiding process for the development of AM policy

Figure 29 illustrates a process framework that South Africa can adopt to guide the development of the AM policy

framework. The key elements of the process are:

• Understanding the challenges;

• Identifying key actors and potential roles;

• Formulating a collective agenda; and

• Developing an implementation plan.

Review current regime and national priorities

Geopolitics and political economy of mineral resource extraction

Social dynamics

Championed at the highest political level

Coordinated by the ministry responsible for mineral reosurces

Inclusive of all stakeholders with women and vulnerable groups

Consultative process with tradeoffs

Theory of change

Transformation of the sector

Stakeholder engagement

In-depth analysis of the issues

Gap analysis against good practice

Understanding the key constraints

Formulating solutions

Policy drafting

Implementation of policy including M&E

Understandingthe key challenges


Formulating a Collective

agendaImplementation

plan

Figure 29: An illustration of a process to develop an ASM policy which could be adapted to the South African situation36

Understanding the challenges

This component should be underpinned by evidence-based research and robust context analysis of the sector.

The following analysis can be conducted: scoping assessment to provide a landscape of the sector’s activities,

review of current policy and legislative environment, assessment of past and current government interventions,

technical assessments, social and environmental impact assessments, political economy assessments and value

chain analysis. It is important to generate data to inform the development of the AM policy and interventions.


The integration of the AM sector into the mining industry and the realisation of its potential will require

collaboration of different stakeholders at various levels. This process must be championed at the highest

political level and coordinated by the DMRE. It is important that all stakeholders that interface (both directly and

indirectly) with AM activities be identified to contribute to the development of the AM policy framework. The group

of stakeholders must include vulnerable groups of the society. As part of this, the roles and responsibilities of

various stakeholders must be clearly defined. The outcome of this component could be the establishment of an

AM taskforce, which will be given the responsibility to lead and coordinate the development of the AM policy.

• Formulating a collective agenda for AM

• The outcome of this component should be Vision that best describes the AM sector in the country which all

stakeholders support. Continuous engagements and consultations is paramount to arrive at a point where

there is common ground between various industry stakeholders.

• Developing an implementation plan

The overarching goal of the implementation plan is to translate the strategic objectives into practical and imple-

mentable activities. The implementation plan must communicate the issues facing the sector, proposed solutions

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and interventions, key constraints, stakeholders support and engagement, and timelines with clear milestones for

all activities. The plan should also include a Monitoring and Evaluation (M&E) framework.

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National Association for Artisanal Miners (NAAM).

NAAM it is an association of mining affected communities; civil societies; artisanal forums; interested and

affected parties calling for formalization and decriminalization of the artisanal mining activities in line with the

Peoples Mining Charter.

NAAM’s aim is to bring to the public attention the great value that artisanal miners can add to the country and its

people if only the interests of the few did not trump the interests of the many.

NAAM’s will promote the need for a holistic, collaborative approach by all role players - government; civil society;

and largescale mining houses, to address the opportunities and challenges posed by unregulated artisanal

mining, encouraging a transformed economic model which builds from the bottom up and which aims at sharing

the wealth.

NAAM is formed to enforce; facilitate and monitor the implementation and adherence of these recommendations

into the environmental, social, and governance issues related to; business and human rights in the context of

meaningful development of previously economically oppressed African communities in the extractive industries.

NAAM’s objective is to foster public participation in local economic development planning of work, related

to abandoned mines and tailings; rehabilitation and land reform for improved livelihoods in rural and mining

communities of South Africa

We acknowledge the fact that unregulated activities are synonymous with social, health and environmental ills,

making it even more challenging.

NAAM members are aware that certain artisanal mining activities, such as the use of mercury and working in

dangerous shafts should not be tolerated, hence

NAAM supports and promotes safer artisanal mining processes that have the potential to enable job creation and

support informal trade and other local economic activities– to address the opportunities and challenges posed by

unregulated artisanal mining.

NAAM Contact details

Zethu Hlatswayo (National Spokesperson): 082 930 9312

Paps Lethoka (National Coordinator): 076 028 0187

Millicent Shungube (National Women`s Coordinator): 076 258 7095

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https://businesstech.co.za/news/government/95983/south-africa-unemployment-is-worse-now-than-at-the-

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8. References

1. Ledwaba, P. and Mutemeri, N. (2017). Preliminary study on artisanal and small-scale mining in South Africa.

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Minerals Industry, 2018. 27 September 2018.

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2019.

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Issues and challenges in relation to unregulated artisanal underground and surface mining activities in South

Africa.

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benefits-retirement-and-old-age/old-age-pension. [Accessed: 14 August 2018]

9. Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). (2017). Global

Trends in Artisanal and Small-Scale Mining (ASM): A review of key numbers and issues. Winnipeg: IISD.

10. Dreschler, B. (2001). Small scale mining and sustainable development within SADC region. Minerals Mining

and Sustainable Development (MMDS). Report no. 84.

11. Hilson, G. and Osei, L. (2014). Tackling Youth Unemployment in Sub-Saharan Africa: Is there a role for

Artisanal and Small-Scale Mining? Futures. Vol. 62, Part A. October 2014.

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za/about-government/government-programmes/expanded-public-works-programme. [Accessed: 14 August

2019]

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Implementation. National Minimum Wage Panel Report to the Deputy President.

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15. Mineral Council South Africa. (2019). Illegal mining. Fact sheet.

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un.org/?menu=1300. [Accessed: 02 August 2019]

17. Columbia Center on Sustainable Development (CCSD), United Nation Sustainable Development Solutions

Network, United Nations Development Programme (UNDP), and World Economic Forum. (2016). Mapping

Mining to the Sustainable Development Goals: An Atlas.

18. Programme on Women’s Economic, Social and Cultural Rights (PWESCR). (2015). Human Rights for All.

International Covenant on Economic, Social and Cultural Rights. A handbook. August 2015.

19. United Nations Economic Commission for Africa (UNECA) and African Union. (2009). African Mining Vision



2017.

21. World Bank. (2019). 2019 State of the Artisanal and Small-Scale Mining Sector. Washington, D.C.: World Bank.

22. Mutagwaba, W., Tindyebwa, J.B., Makanta, V., Kabullegu, D., and Maeda, G. (2018). Artisanal and

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8. References

1. Ledwaba, P. and Mutemeri, N. (2017). Preliminary study on artisanal and small-scale mining in South Africa.

2. Government Gazette. (2018). Broad-Based Socio-Economic Empowerment Charter for the Mining and

Minerals Industry, 2018. 27 September 2018.

3. Republic of South Africa. (2002). Mineral and Petroleum Resources Development Act (No. 28) of 2002.

4. Department of Mineral Resources (DMR). (2014). B1/2012 Statistical Tables.

5. Mineral Council South Africa. (2018). Facts and figures 2017. September 2018.

6. Statistics South Africa. (2019). Quarterly Labour Force. P0211 Statistical Release. Q4: 2018. 19 February

2019.

7. South African Human Rights Commission (SAHRC). (2015). Report of the SAHRC Investigative Hearings.

Issues and challenges in relation to unregulated artisanal underground and surface mining activities in South

Africa.

8. South African Government. (Not dated). Old-age pension. Available: https://www.gov.za/services/social-

benefits-retirement-and-old-age/old-age-pension. [Accessed: 14 August 2018]

9. Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). (2017). Global

Trends in Artisanal and Small-Scale Mining (ASM): A review of key numbers and issues. Winnipeg: IISD.

10. Dreschler, B. (2001). Small scale mining and sustainable development within SADC region. Minerals Mining

and Sustainable Development (MMDS). Report no. 84.

11. Hilson, G. and Osei, L. (2014). Tackling Youth Unemployment in Sub-Saharan Africa: Is there a role for

Artisanal and Small-Scale Mining? Futures. Vol. 62, Part A. October 2014.

12. South African Government. (Not dated). Expanded Public Works Programme. Available: https://www.gov.

za/about-government/government-programmes/expanded-public-works-programme. [Accessed: 14 August

2019]

13. National Treasury. (2016). A National Minimum Wage for South Africa. Recommendations on Policy and

Implementation. National Minimum Wage Panel Report to the Deputy President.

14. Department of Planning, Monitoring and Evaluation (DPME). (2016). Development Indicators 2016.

15. Mineral Council South Africa. (2019). Illegal mining. Fact sheet.

16. United Nations. (Not dated). Sustainable Development Goals. Available: https://sustainabledevelopment.

un.org/?menu=1300. [Accessed: 02 August 2019]

17. Columbia Center on Sustainable Development (CCSD), United Nation Sustainable Development Solutions

Network, United Nations Development Programme (UNDP), and World Economic Forum. (2016). Mapping

Mining to the Sustainable Development Goals: An Atlas.

18. Programme on Women’s Economic, Social and Cultural Rights (PWESCR). (2015). Human Rights for All.

International Covenant on Economic, Social and Cultural Rights. A handbook. August 2015.

19. United Nations Economic Commission for Africa (UNECA) and African Union. (2009). African Mining Vision



2017.

21. World Bank. (2019). 2019 State of the Artisanal and Small-Scale Mining Sector. Washington, D.C.: World Bank.

22. Mutagwaba, W., Tindyebwa, J.B., Makanta, V., Kabullegu, D., and Maeda, G. (2018). Artisanal and small-scale

mining in Tanzania – Evidence to inform an ‘action dialogue’. IIED research report, IIED, London.

23. Nonyana, J.Z. and Njuho, P.M. (2018). Modelling the length of time spent in an unemployment state in South

Africa. South African Journal of Science. Vol. 114, No. 11/12. November/December 2018.

24. Business Tech. (2015). South Africa unemployment is worse now than at the end of apartheid. Available:

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Thank You

FOR SOUTH AFRICA

The research was funded by Open Society Foundat ion for South Af -r ica and commissioned by Act ionAid South Afr ica and Univers i ty of

the Witwatersrand with the assistance by Mining Affected Communi -t ies United in Act ion (MACUA).

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ARTISANAL MINING IN SOUTH AFRICA ANNUAL REPORT 4

How to contact Act ionAid in South Afr ica:

Emai l : Genera l informat ion : info .za@act ionaid .orgSuppor ter enquir ies: suppor ters .za@act ionaid .org

Address: 158 Jan Smuts Avenue , Rosebank , Johannesburg

Postal address: Postnet Su i te 235 , Pr ivate Bag , X30500 Houghton 2041

Telephone: +27 (0) 11 731 4560 Fax: +27 (0) 11 492 0667

Documents

REGULARISING INFORMAL ARTISANAL MINING IN SOUTH AFRICA… · informal artisanal mining (AM) in South Africa. The research was commissioned by Open Society Foundation for South Africa