BRIEFING SESSION: PORTFOLIO

COMMITTEE ON POLICE:

TACKLING ILLICIT MINING ACTIVITIES

IMPACTING SOUTH AFRICA

LIEUTENANT GENERAL MATAKATA

DIRECTORATE FOR PRIORITY CRIME INVESTIGATION

1

Scope of Presentation

1. Introduction

2. Background

3. Project Coordination and Governance

4. Scope and Impact

5. Illicit Value Chain

6. Situational Analysis

7. Key developments

8. Interventions to Mitigate the Threat

9. Statistics covering 1st and 2nd Quarter 2017

10. Projects and Operational successes

11. Convictions

12. Emerging trends

13. Constraints

14. Conclusion

2

Introduction

• To present to the Portfolio Committee on Police the overview of the illicit mining

landscape impacting South Africa and our collaborative operational responses in

• curbing this scourge.

3

Background

• During the previous sitting, on 25 August 2017, the Portfolio Committee on Police

and the Portfolio Committee on Mineral Resources, were respectively briefed on

the operational success, covering the period April 2014 to March 2017.

• Therefore, this briefing primarily reflects the operational performance from April

2017 to September 2017.

4

Project Coordination and Governance

• The National Coordination and Strategic Management Team (NCSMT) is led by

DPCI and coordinated by NICOC.

• Department of Mineral and Resource (DMR) Chairs Free State, Gauteng,

Mpumalanga and Northern Cape Stakeholder Forums to address challenges at

mine and community level.

• Strategic Plan for 2014-2019 and Annual Performance Plan drafted:

– Coordinate and consolidate government’s efforts in combating illegal mining.

– Regional and international cooperation.

– Mitigate illegal mining and illicit trade of precious metals and diamonds.

5

DMR, SAPS (DPCI,CI,

VISPOL& FSL) ; FIC,

SSA, SARS, SADPMR,

NICOC, SANDF, DIRCO,

NPA, DoJ&CD, DHA; MS

Governance Structure

CABINET

IMSC

JCPS

NCSMT NATJOINTS

PROVJOINTS

STAKEHOLDER

FORUM

GP / FS / MP / NC

NATIONAL

OPERATIONAL

COMMITTEE

DPCI SAPS CI

SSA Domestic SARS NPA DMR

SADPMR FIC

SAPS

PROVINCIAL

OPERATIONAL

COMMITTEE

DPCI SANDF SAPS

SSA Domestic SARS NPA DHA

SADPMR Mine Security

MINING

STANDING

COMMITTEE

ON SECURITY

OMT

Mines Snr. Management

Chamber

INTELLIGENCE

Sub - Committee

LEGISLATIVE

Sub - Committee

UN

Sub-- Committee

6

ILLICIT MINING PROGRAMME

Scope and Impact of Illicit mining

8

Impact on National Security

ILLICIT

MINING

TERRITORIAL INTEGRITY

• Illegal Immigration

• Monopoly by Zim and

Basotho gangs

• No-go areas

SAFETY & SECURITY

• Violent crime

• Safety within mines

• Contamination of water

INFRASTRUCTURE

• Copper theft

• Water supply

• Service provision

RSA’s REPUTATION / IMAGE

• Corruption

• Undermines rule of law

• Impacts investor confidence

AUTHORITY OF THE STATE

• Culture of impunity

• No-go areas controlled by

illegal miners

• Corruption

ECONOMIC SECURITY

• Fleecing of natural resources

• Revenue losses

• GDP

• Illicit Economy – parallel

economy

9

Illicit Value Chain

5

4

3

2

1

Gangs and Illegal Mining “Bosses”

Bulk Buyers (Licensed/Permit Holders)

Front Co Exporters Operating from SA

International Refineries and Intermediary Co’s

Illegal Miners

10

Situational Analysis: Identified Hotspots

GP • 13 Hotspots: Springs, Benoni, Boksburg, Brakpan, Langlaagte, Crown

mines, Cleveland, Carletonville, Westonaria, Florida , Denver, Mathole and

Luiperdsvlei

NW • 12 Hotspots: Brits, Mooinooi, Klerksdorp, Hartbeesfontein, Stilfontein,

Khuma, Kanana, Diamonds Taung and Wolmarsstad Clusters

Mahikeng area: Diamonds Bakerville, Sannieshof area and Setlagole

MP • 2 Hotspot: Barberton and Machadodorp (Mamre mine)

LIM • 2 Hotspot: Burgersfort/Atok illicit chrome and Mopani district (Burgersdorp)

gold mining

FS • 1 Hotspot: Welkom

NC • 9 Hotspots: Ghunu ,Buffalsbank, Buffalo Camp, Port Nolloth, Kleinzee,

Koingnaas, Hondeklipbay, Boshoff road dumps and Alexander Bay

TOTAL: 39

11

Key Developments

• Increased targeting of and incursions into operational mines also persist.

• Counter measures: Certain mines initiated a process of rehabilitating and closing

down derelict shafts:

– Managed to significantly stem the supply of food to illegal miners.

– Closures have not prevented access to the mines due to the mine architecture

characterised by inter-linked shafts.

• Interlinked tunnels running between the East and West Rand of Gauteng also limited

impact of rehabilitation efforts in the province:

– Inter-linkages coupled with mining of supporting pillars by illegal miners could

negatively impact on road infrastructure.

– Could result in the development of sinkholes and collapse of roads.

12

1st QUARTER 2017 14

Cont. 14

Cont. 15

Chrome

• During 2016 the illegal mining of chrome emerged in the Limpopo area.

• Several incidents were observed during period April to September 2017, in Limpopo

relating to the theft of chrome.

• In South Africa the mining of chromium reserves is relatively easy, it is done on the

surface.

• The area between Atok and Steelpoort, in Limpopo Province, is one of the richest

chrome reefs.

• A number of trucks and excavators were intercepted, carrying loads of Chrome.

• In most instances, the illegal mining is conducted by local unemployed youngsters and

old ladies.

• Women and children are operating in harsh conditions, without tools and mostly using

their bare hands.

• The intervention by Limpopo SAPS detectives led to the arrest of key threat drivers and

this led to the site visit by Minister Zwane, to observe the incident.

16/39

Cont…

• The nexus between land ownership and mining rights, also manifested in the illegal

mining phenomenon.

• Some traditional leaders, who own surface land rights in the area, reportedly granted

community members permission to mine in certain areas.

• They believe that the land belongs to them.

• Evolution of illegal mining scourge, coupled with its constant displacement, escalates

the threat level of this phenomenon.

• Illegal chrome mining is further exacerbated by policy and legislative uncertainty.

19

INTERVENTIONS TO MITIGATE THE

THREAT

18

Operational Interventions

• Interventions across all levels of value chain by various agencies involved in

project:

– Compliance audits and inspections of licence holders.

– Visible policing.

– Joint and disruptive operations.

– Utilisation of Prevention of Organised Crime Act (POCA), SARS and FIC

investigations.

– MLAs with countries abroad: 19 MLAs to date.

19

Strategic Interventions

• Legislative review.

• Regional Strategy.

• Precious metals Fingerprinting.

• Limiting explosives theft.

• Training.

• Awareness campaigns.

20

International Strategy

• Establishment of an International Regulatory Framework to help address the

international buyers’ market:

– SA in partnership with the Russian Federation tabled a Resolution at the 2013

Commission on Crime Prevention and Criminal Justice (CCPCJ) meeting.

– Resolution passed mandating UNICRI to conduct a global study funded by SA.

– Study completed and findings were tabled at the 25th Session of the UN-

CCPCJ in May 2016.

21

Public Private Partnership

• Public Private Partnerships are key in addressing the threat:

– The private sector is involved in all provincial and national structures established to

deal with the threat.

• The role of the Private sector critical:

– Coordination of efforts within the sector to improve security within respective mines

thus securing the precious metals supply chain.

– For example, the measures implemented by Rand Refinery.

22

Operational Statistics 1st & 2nd Quarter 2017

0

50

100

150

200

250

300

350

400

1st Quarter Disruptive 2nd Quarter Disruptive 1st Quarter Arrests 2nd Quarter Arrests Number of active

project

2017

30 25

116

358

3

23

Operational Statistics 1st quarter 2017

24

Operational Statistics 2nd quarter 2017

NATIONALITY GAUTENG LIMPOPO MPUMALANGA FREE

STATE NORTH

WEST NORTHERN

CAPE TOTAL

LESOTHO 0 0 209 0 0 0 209

ZIMBABWE 0 0 10 0 9 0 19

MOZAMBIQUE 2 0 10 0 1 0 13

RSA 12 7 21 6 20 1 67

TANZANIA 0 0 0 0 0 0 0

ZAMBIA 0 0 0 0 0 0 0

OTHER 35 0 0 15 0 0 50

TOTAL 49 7 250 21 30 1 358

25

Operational Statistics Seizure recorded

R3 200 000

0 R110 000 R45 000

R7 451 540

R155 000 R33 000

R598 065

R0

R1 000 000

R2 000 000

R3 000 000

R4 000 000

R5 000 000

R6 000 000

R7 000 000

R8 000 000

Gold/GBM Diamond Platinum Chrome Gold/GBM Diamond Platinum Chrome

1st Quarter 2nd Quarter

26

Number of Current Projects and Major

Investigations

27

SIGNIFICANT OPERATIONS

28

Significant operations

• Project Pontius:

• During June 2016, a project driven investigation was initiated, focusing on a criminal

group involved in theft and dealing in unwrought precious metals.

• On 2017-08-30, a takedown operation was conducted by DPCI members

(Mpumalanga) in conjunction with TRT, Dog Unit and Mine security personnel

culminating in the following successes:

• Six suspects arrested.

• Dismantling Smelt house associated with the target of the investigation.

• Seizure of an assortment of mining equipment.

• 445KG of gold bearing material and eight pieces of unwrought gold to the value of

R169 000,00.

29

Cont.

Disruptive operations were planned and executed on 27 and 28 July 2017, in the

Evander Gold Mining and the Osizweni area (old Bracken Mine area) Shaft 8 Shaft

at the old dumping site.

The following results were achieved:

• 166 arrests for contravention of offences such as Illegal Immigration, illegal

mining, trespassing and possession of gold bearing material.

• 158kg of gold bearing material.

• Four wanted suspects were also arrested.

30

Cont.

• A joint operation was conducted at the Mathole informal settlement, which is known

to be an area infested with illegal miners. The said operation culminated into the

arrest of 35 illegal immigrants and one for possession of gold bearing material. 22

Smelt houses were dismantled and equipment seized. A total value of about R5

million of GBM were seized.

• An intelligence led operation, including various law enforcements, was conducted

at Denver hostel, culminating in the arrests of 11 illegal miners. An estimated,

R800 000,00 worth of illicit gold bearing material was seized.

31

Number of Convictions: 1st & 2nd Quarter

32

• The illegal surface miners are targeting abandoned farms to conduct their illegal

activities. The North West province is experiencing an increase of illegal miners from

other provinces. The hostility against any type of law enforcement is on the increase

when addressing the illegal miners. The hostility is coming from the illegal miners and

the community. The removing of rock dumps by individuals and the refined and gold

extract without any permits.

• Precious metals, especially gold, finds their way to new and second hand jewellery

manufacturers and refineries. These companies are being used as fronts to legalise

the stolen metals by smelting with alloys.

Emerging Trends

33

Constraints

• The following constraints will, however, continue to hinder the impact of all the efforts:

– Training needs to various stakeholders in identifying Precious Metal and Diamonds

especially at the borders.

– Legislation gaps in addressing transportation/possession of PMDs in transit areas

and Chrome.

– Corruption within the criminal justice system.

– Oversupply of illegal immigrants who take part in illegal mining activities perpetuates

the scourge of illegal mining.

– Persistence of derelict and ownerless mines despite Department of Mineral and

Resource’s rehabilitation programme.

– Unemployment and the dependence amongst communities on each other to sustain

basic living conditions.

38

During the September 2017 sitting of the NCSMT meeting:

• Serious concerns were raised regarding review of the operational response and

successes.

• An assessment was made regarding performance and for all the Departments to

conduct introspection and discussion to conduct turn-around strategies to remedy the

threat and to improve our collective performance.

• The next session is scheduled for January 2018.

Way Forward

35

Conclusion

The DPCI, together with key stake-holders in the National Coordination and Strategic

Management Team, remain committed in tackling the illicit mining threat.

Our ultimate aim is:

• To significantly reduce the illicit mining threat impacting South Africa.

• To disrupt and dismantle criminal groups orchestrating illicit mining activities.

36/39

Thank you

37/39