Illegal mining bleeds billions from economy, says Mantashe

Minister of Mineral and Petroleum Resources, Gwede Mantashe, said illegal mining continues to be one of the most pressing challenges in South Africa’s mining sector, resulting in billions in lost revenue.

Mantashe was speaking at the South African Human Rights Commission (SAHRC) National Inquiry into Policy Framework around Artisanal Mining.

His remarks come ahead of the Mining Indaba in Cape Town from 9 to 12 February 2026. The Mining Indaba is Africa’s biggest mining conference, centred around mining investment, policy, sustainability and economic growth on the continent.

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Second leg of the mining inquiry

The inquiry – now in its second leg – is investigating the policy framework around artisanal mining, the impact of artisanal mining on surrounding communities and the scope and tactics employed in law enforcement’s Operation Vala Umgodi.

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

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

Illegal mining costs billions

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

Mantashe said illegal mining cost the South African economy and the sector R49 billion in 2019.

He highlighted that there is a “disturbing trend” emerging from illegal mining incidents with the involvement of undocumented foreign nationals.

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Incidents over the past years

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

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

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

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

Government’s strategy

He highlighted that government have taken the following measures in response to lost revenue due to illegal mining:

• The acceleration of the rehabilitation of derelict and ownerless mines;
• Implementing Operation Vala uMgodi to clamp down on illegal mining activities;
• Streamlining the regulatory framework to formalise artisanal and small-scale mining, while strengthening sanctions against illegal mining;
• Strides have also been made in the rehabilitation of derelict and ownerless mines with at least four asbestos mines rehabilitated and 280 mine openings closed.

Millions spent on strategies

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

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

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

Furthermore, a review of the Mineral and Petroleum Resources Development Act (MPRDA) is also underway.

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