Chair, please accept my apology for running late. Sometimes programmes tend to clash, so I once more tender my apology for coming a bit late.
Hon members, today's debate deals with issues of illegal mining. Theft of gold and illicit mining is nothing new in South Africa, as theft has been occurring since the inception of the gold mining industry.
Illicit mining in South Africa started to gain momentum from the late 1990s. Illicit mining first reared its ugly head in Welkom as far back as 1999. The department and mining companies have been working together over the last decade to put an end to this problem, but with little success. The recent unfortunate loss of 91 illegal diggers' lives in Welkom has again put into sharp relief the scourge of illicit mining, and has focused public attention on the issue like never before.
Illicit mining poses serious challenges for the industry. This issue is extremely complex and it should not be underestimated. Illegal mining is a huge multibillion rand criminal industry featuring national and international syndicates and is valued at some R5,6 billion.
These gold smuggling syndicates are highly organised, dangerous and well resourced. When considering the question of how these syndicates manage to transport food and other consumables deep down into the mines, it is clear that illicit mining is being assisted by legal miners, both workers and managers.
Explosives and equipment are also transported and stolen from underground stores of operating mines. Thousands of diggers - many coming from Lesotho, Mozambique and Zimbabwe - are willing to risk their lives to profit from these illegal activities.
These illegal diggers are armed and dangerous. We want to send a clear message that poverty cannot be an excuse for criminal activities. I want to make it clear that all those involved in illegal mining are no different from those ruthless criminals involved in cash-in-transit heists who mercilessly kill our policemen and policewomen.
In Barberton, in the province of Mpumalanga, illegal diggers are now taking over equipment and work places. They openly carry a huge number of weapons, including AK47s and 9mm pistols. Intergang fights and shoot-outs are now a daily occurrence in this area.
Confrontations between illegal miners, the police and security personnel are becoming more frequent. Legal miners have also been abducted in Barberton and illegal miners use human shields when confronting the police. In Welkom, booby traps using explosives are set for the police and security personnel.
Therefore, illicit mining is also spilling over into illegal activities, including child prostitution and child labour. Both employees and communities are experiencing serious threats where illicit mining takes place. These illegal activities are impacting negatively on the economy, robbing our country and its people of valuable resources which could otherwise have been used to improve the lives of our people.
The sophistication of these gold smuggling syndicates cannot be underestimated. The so-called zama zamas are the diggers recruited from the ranks of experienced, unemployed miners, and are known to stay underground for up to a year. They protect their turf from other illegal miners or threaten and attack legal miners.
At another level, local gangs are also involved in, amongst other things, recruitment and the supply of food and basic necessities underground. This creates networks of mine officials and security guards who receive bribes for their support and even provide legal support to arrested illegal miners.
The local syndicates interface with the exporter who then smuggles gold out of the country. The smuggled gold then changes hands with intermediaries or front companies and ends up with international buyers. These illicit mining activities threaten to undermine the country's economy, and social and security policies which have been coined, not only for enhancing the Republic's reputation as an investment destination of choice, but also for its citizens to enjoy the fruits of our democracy.
To this end, this government has taken decisive steps to ensure that we deal firmly with illegal mining. On 2 June 2009, we visited Welkom immediately after receiving the news of the 36 deaths there, to see for ourselves and get a first-hand understanding of the issue.
We visited Welkom again, on 13 June 2009, to discuss the issues with a wide range of role-players, including the local communities, municipalities, business people, mining companies and trade unions. Representatives of the SAPS, both nationally and provincially, were also in attendance.
Subsequent to that, we established the Free State Illegal Mining Stakeholder Forum, constituted by community leaders, organised labour, municipalities, mining companies, the Department of Mineral Resources, and the SAPS as well as the Department of Justice and Constitutional Development. Other relevant departments are also consulted to provide assistance where necessary.
The Free State Illegal Mining Stakeholder Forum has since developed an action plan to eradicate illegal mining activities in the region. The stakeholder forum continually monitors progress made on the implementation of the action plan by the relevant stakeholders, as a sign of the forum's success. There are now reports that illegal miners have been migrating to the West Rand in Gauteng.
Having been presented with this matter, Cabinet noted the serious nature of the threat that illegal mining poses to the country, and took a decision that the matter be attended to by the Justice Crime Prevention Security cluster, the relevant structure to deal with this criminality.
We have since presented this criminal matter to the Inter-Ministerial Security Cluster, which agreed, amongst other things, that the newly-formed Hawks must take over and investigate illicit mining in its totality; that relevant legislation must be applied without fear or favour to deal with racketeering, money laundering, illegal possession of minerals and so on; and that an investigation should determine whether or not local police and prosecutors in the relevant magisterial district are involved with the illegal mining syndicates.
A delegation of Ministers of the JCPS cluster and I will soon visit some of the affected areas to assess for ourselves what else can be done to deal comprehensively with the issue of illicit mining.
In conclusion, I want to assure this House that my department and, indeed, this government of South Africa, have taken decisive steps to tackle the issue of illegal mining head-on. However, I also want to assure the criminal syndicates involved in illegal mining that we have resolved to crush them. We are determined, we are strengthened and we will continue in our efforts. They will continue to feel the heat as government closes in on them, until they stop robbing our people of the minerals that, as per the Freedom Charter, belong to them. I thank you. [Applause.]
Hon Chairperson, hon Minister, hon colleagues, let me start by thanking the Minister for making herself available for this debate about the report. Illegal mining has taken a lot out of our country in terms of finance. Research has shown that R10 million leaves the country per year.
Thank you, Minister, for your consideration. It shows that government, the ANC-led government and the ANC Ministers are really passionate about delivering on the instructions that they got from the President and from the ruling party.
It is quite strange because this illegal mining activity happens on privately-owned mines. The Minister could have just folded her arms and said, "It's privately-owned property, they must deal with it!" But because - and I want the DA to listen, especially hon Faber and hon Watson - we have a caring government that does not only care about money, but cares about the people of South Africa as well, the Minister took those steps.
Hon Watson, if you listened, you would have heard what steps Minister has taken. Hon Watson and hon Faber, the Minister took proactive steps!
The DA is criticising, but doesn't come up with solutions to the problems. The ANC and the Minister took steps to curb this. As I said, it is privately-owned property! We need to give the DA a lesson on the distinction between state- and privately-owned property.
Without any waste of time, I want to put the recommendations of the committee. The committee has sat and felt that a debate is necessary because this is of national interest. The committee has come up with certain recommendations. I would like to thank the members of the committee who have been proactive, who went to Welkom and engaged with various people there.
The committee has recommended that the Department of Mining and the Department of Police should report back to Parliament. Thank you, Minister, for doing that. Thank you for the willingness you have shown on a regular basis regarding the progress made in respect of remedial steps taken by the state, mining houses and mine owners to combat and prevent illegal mining, and improve the security and safety at mines.
Parliament needs to tighten the laws pertaining to the Justice cluster, and the Minister has alluded to that. Thank you, once again, Minister.
Hon Sinclair, be assured, I am not an imbongi for the Minister, but we need to give praise where it is due. You could see that she is a hands-on Minister. She is not a Minister who serves the "congress of the people of Europe," as one of your colleagues has spelt it out. She is a Minister for the people of South Africa.
THE HOUSE CHAIRPERSON (Mr R J Tau): Order! Is that a point of order?
I am confused. I don't know whether it is a Member of Parliament or an imbongi who is at the podium because it sounds like an imbongi and not a Member of Parliament.
THE HOUSE CHAIRPERSON (Mr R J Tau): I am not going to carry that. You may continue.
The hon Bloem is confused. He was a member of the ANC until 22 April 2009, and he said that he did not know how his name appeared on the list. He is totally confused. They are a confused "congress of the people". I don't think I need to answer him on that.
As I said, I'm not going to answer hon Bloem because he is totally confused. You cannot say, "I don't know how my name appeared on the Cope list" and the next thing you are sitting in the ANC chairs. That is total confusion. If the ANC didn't take the necessary steps, I don't know what would have happened. [Interjections.]
The proper terminology must be defined and agreed upon in the various sectors, as the Minister has alluded to. There should be co-operation between mining houses, labour unions, the SAPS and the Department of Justice. The SAPS should perform top-level arrests and name and shame syndicate kingpins.
The Department of Minerals and Energy must force licensed gold dealers to keep a register of buyers and sellers. Mining companies should tighten up security and invest in proper security systems. The Mine Health and Safety Inspectorate should be strengthened in order to implement effectively the Mine Health and Safety Amendment Act, Act 74 of 2008, and to investigate and enforce compliance with the Act, which will hopefully result in reducing occupational injuries and ill health.
The Mine Health and Safety Amendment Act should be amended to increase the fine for noncompliance in respect of the safekeeping of explosives from the current R200 000 to R1 million. Underground security patrols should be encouraged. Security should be increased at functioning mines, including search procedures, to prevent the theft and smuggling of equipment and explosives.
The shortcomings in dealing with illegal mining need to be addressed, especially gaps in current legislation. I put this report before this House for support. Thank you. [Applause.]
Chairperson, hon Minister, it is good to have you here, hon members. As the NCOP committee, we visited the Eland Shaft, and we were briefed by all stakeholders except the zama-zamas. Those who were underground would not speak to us and those that were above ground were dead - a lot of them. They died at the beginning of June.
We found out about three major things at the shaft. The illegal mining industry is growing fast; the second issue was that it is organised crime on a big scale. I don't know if I heard the Minister correctly. She spoke about R5,6 billion. The figure that was mentioned to us was R10 billion, so it varies a bit. Billions! Yes, it's a big industry. Until these unfortunate deaths, the ANC and the Department of Mining had been turning a blind eye to all of this. [Interjections.] It has been coming for a long time; illegal mining is a big contributor to organised crime in South Africa, and it needs to be stopped.
The so-called zama zamas channel an estimated R10 billion each year into the hands of criminal syndicates. These funds go into drug distribution, prostitution rings and all other sorts of unsavoury practices - in short, activities that make South Africa a more dangerous and unlawful place.
It is obvious that cutting down on these activities would have a drastic and immediate effect on the ability of organised crime to function and will, therefore, improve the security situation in South Africa. Rather than spending millions upon millions of rands on government VIP protection, the people of South Africa would be much better served if crime could be tackled at its roots.
In order to do this, the DA happens to be agreeing with the Minister. We would like the Hawks to form a special unit, and this is what we are proposing, to exclusively clamp down on the zama zamas. The case for such a unit is clear. It is a relatively specialised area, and it is a source of criminal funding that can be turned off if policed correctly.
Up to now, the government has had its head in the sand, so to speak. There has been no political will to curb the spread of illegal mining at these decommissioned mines, thereby creating a huge gap to fill the pockets of criminals. The Department of Mining is clearly incapable of dealing with this matter, and is either unwilling or unable to take action against this problem. It is true that monitoring the decrepit mines may be seen as counterproductive to a country that needs all of its security resources available. But the argument is clear; stop this huge influx of funding to criminals and organised crime will be reduced.
South Africa needs to be smart about how we are going to tackle the enormous crime problem. Merely waiting for something to happen, as the Department of Mining has done until the beginning of June, is not going to solve anything. On the contrary, the problem is getting worse and is getting more difficult to clamp down on it, as it is becoming more entrenched.
Some may argue that clamping down on illegal mining is unfair because these people are merely scavenging the remains of old mines. This argument does not hold up, especially since organised crime is part of the package. Unemployed people are severely exploited, often having to stay underground for up to six months. The Minister said it is double that time, so let us believe her. It is inhumane and surely falls beyond the ANC's conception of decent work.
The DA will take the matter further as the zama zamas are becoming everybody's problem. The government needs to do something.
In closing, the DA sympathises with the families of those zama zamas who died so tragically early in June this year. These deaths are placed at the door of the Department of Mining. It took these deaths to bring the horse to the water, and now we will help the horse to drink the water! I thank you. [Applause.]
Chairperson, hon Minister and hon colleagues, in a recent interview with the Mail & Guardian published on 15 June 2009, Sipho Mahabane, who has been involved in this activity for four years, admitted that, and I quote: "There'll always be a demand for gold on the black market". He continues by submitting that gold smugglers from Limpopo and foreign gold smugglers, mainly from Mozambique and Zimbabwe, and local businesspeople control the illegal mining operations in the area. He says that the kingpins operate syndicates which include legal miners, shift managers and security guards. These kingpins regularly visit the now notorious G Hostel.
That is according to Mahabane, who is one of the thousands who are involved in a R10 billion industry. Taking Mahabane's admission as a true reflection and synopsis of the daily life of an illegal miner, the purpose of the visit to Welkom on 7 July was to assess the unacceptable situation, which includes the tragic death of many, but also the loss of millions of rands of revenue to the state. It is necessary, Chairperson, to ask three critical questions. Firstly, who and where is the market for this R10 billion activity? Secondly, what is the role of the formal mining sector and mining houses in this illegal activity? Thirdly, why can't the notorious G Hostel be decriminalised? The recommendations of the committee, supported by Cope, certainly strive to answer these questions and challenges.
It is, however, necessary to add to these recommendations by suggesting that a specialist unit of the SAPS be considered. It seems that the SAPS is involved and, in some instances, highly infested, regarding these investigations and activity.
This is also applicable to the approach regarding the G Hostel, and the inability to decriminalise the alleged bastion of criminality in Welkom and in the Free State.
Chairperson, it's necessary that the hon Minister, the Cabinet and government must seriously engage and also come up with suggestions and recommendations with regard to how to address this unacceptable situation. The one issue that needs to be addressed is the quantum of these activities. I heard hon Adams speak about R10 million, the Minister spoke about R5,6 billion, and our activity indicates R10 billion. But we know hon Adams by now. He always gets confused by a zero here or a zero there. [Laughter.] But we don't blame you for that. Chairperson, we accept his chairpersonship, and we want to thank him for taking us with; it is not always that Cope has the privilege to travel with the ANC. We are always sidelined.
Chairperson, in conclusion, Cope is supporting this report, and we trust that these recommendations submitted by the committee will not only stop the illegal mining activity in Welkom, but also in the rest of South Africa, including the diamond and the platinum industries. I thank you. [Applause.]
Chairperson, hon Minister, colleagues, in the Freedom Charter we said: "The people shall share in the country's wealth!" However, are we sharing in the country's wealth? We also said in our manifesto that we will fight against crime and corruption. Now, look at the zama zamas; where do they come from?
Let us look at the background of being in a recession and that the mines have been closing down for the past 10 years and the zama zamas have been there since the apartheid days. As a miner in those days I used to work at some stage at Eland mines. We were visiting G Hostel and the zama zamas were there. What did the apartheid government do? Nothing! [Interjections.]
The ANC government and this committee went down there because it cares for the people. [Interjections.]
THE HOUSE CHAIRPERSON (Mr R J Tau): Order!
As you move over, you realise that financial crime has forced most of the mining projects to be mothballed because the investors did not have money or they were doubtful about investing huge amounts of money because of the credit crunch.
Also, because of the retrenchments that have been taking place, over 300 miners have been retrenched. Most of those miners are from Lesotho or Mozambique. Those people don't go back home and therefore end up around the mining area. That has resulted in unemployment increasing as rated in the Human Development Index, HDI. In other words, the standard of living deteriorates because most of the activities around those towns are linked to the mines. The problem is: Whose responsibility is that?
The hon Sinclair says the government has turned a blind eye. We never turned a blind eye. We would not have gone down there if we had turned a blind eye. [Interjections.] Excuse me, hon member - I wanted to say the hon Van Lingen. The fact that we did go down there to investigate was to show that we care about the lives of the people and we care about making a better life for all.
The Gini coefficient in South Africa is one of the highest, irrespective of the fact that the per capita income in South Africa is the highest in the whole of Africa. The reason for this is that these mining houses who disinvest planned to do so years ago.
I say this because I also used to be a geologist and I sat in the management meetings. For instance, Anglo American took a decision 10 years before democracy that it wanted to disinvest in South Africa so that when the ANC takes over only 40% of its gold would be mined in South Africa.
They moved over to Ashanti in Central Africa because the oil reserves there were still shallow and there was a lot of cheap labour and that would result in high profits. That was the strategy that was laid by Anglo American 10 years before democracy due to their mineral intelligence department. Now you come here and tell us that the ANC government does not care - that is not true!
Who is involved in illegal mining? As you are aware, the mining houses are pulling out and these people who go underground cannot move from one area to another underground, two or three kilometres, without a guide. I have been a geologist and have worked on the mines for ten years underground. I know what it is like there. It is dark, hot and one cannot breathe once the air is turned off. Now, who was guiding them when they moved from one shaft to the other?
As we were informed by the chief health inspector, they move up to 34 km from one shaft to another. For those 34 km they go up and down the inclines because underground it is not as flat as one would think. You go up steeply and go down the slopes and have to crawl in some tunnels. Now, who was guiding those people underground? That is why we say it is a syndicate, and mine management must involve some people who are sitting there at top positions in ivory towers who are pumping money to these people - they must be involved. [Interjections.]
Hon Sinclair is right in saying there are kingpins because we were told by the secretary of the mines that even though we were there, the zama zamas would, within five minutes thereafter, know about what was said in that meeting. We have said that we will fight crime and corruption and the Minister is right when she says that the law must bite.
Perhaps we should look at our laws, the Mine Health and Safety Act. We must look at our compensation Acts, because as we were informed just last week by the chief inspector on health, most of the people who die in the mines don't die from falling ground or locomotives that move underground.
The main cause of death used to be the locomotives that moved underground, followed by falling ground, but most people die at home because of pulmonary TB. The causes of that is the silicosis that is in their lungs, which they get from the mines and the mines are doing nothing about it.
Therefore, hon Minister, that is what we must look at; we should make sure that the law bites. These people go back home from wherever they came, either Mozambique or Lesotho, and that is where they die a slow death. And the reason is that they get separated from the mines without being medically checked by anybody. Unfortunately, I am also one of those people who got separated from the mine without being medically checked.
We must make sure that those people who are separated from the mines or leave the mines permanently are properly checked to make sure that when they pass away their families get paid by the mines if their death is due to the effects of working in the mines. Then the mine must pay.
Another example is, if one goes to the Free State goldfields, one finds that some underground water has been contaminated due to all the acids and minerals that come from the sludge. If you water your garden with that water you will kill all your plants. You cannot plough in a certain area between Virginia and Welkom because whatever you plant there dies and the cause is the mines and slime dams. [Interjections.]
Order! Hon member, can I call you to order. I am busy presiding here and I have got a watch here. Whatever watch you have, don't allow it to instruct me to do something that I am sure I am not supposed to do. So, please, you are quite distracting with that kind of behaviour.
Thank you, Chairperson. I am left with 43 seconds. In short, they say the more the rules are imposed the more they are broken. So, the lasting solution, hon Minister, is for us to go back to those mines and ensure that we revitalise the economic situation of those mines, not only in Welkom but also in Barberton and other areas where these town are turning into ghost towns.
The key solution is that we revitalise the economy of those areas so that people can find jobs and be able to put food on the table, and thus better the lives of the people. Thank you. [Applause.]
Thank you, Chairperson, for this debate. I would like to thank the chairperson, hon Adams, for leading on this matter of illegal mining, and also the hon members of the committee for the visit. Hon Bloem, apparently you are from Welkom. They say you are part of the zama zamas! [Laughter.]
I would also like to take this opportunity to welcome the report by the committee. We will look at what we can do, because the intention is to make sure that we continuously improve on the situation and stamp out illegal mining.
Hon Van Lingen, we have covered issues that you've raised. There is no caring government like the ANC government. I am here precisely because I care. I went to Welkom because the ANC cares. If I were a Minister under DA government, I am not sure if I would have gone to the place. [Interjections.]
I must indicate to you that I didn't just go there to visit, but to see the situation. I have even been underground, unlike you who only ends up at the top. I am not scared to confront any situation which challenges and threatens my community in South Africa. We will continue to make sure that we do the right thing. We are not going to run away. We are not going to see ourselves as useless, as you say we are. We will take responsibility.
I must indicate that the issue of mine health and safety must be separated from criminal activities. The Mine Health and Safety Act cannot regulate criminal activities. That's pure crime - let's not run away from it. It's illegal mining, whether they are driven by poverty or not. It is wrong and we cannot justify a wrong thing in this country. If we justify illegal mining, we must also justify those who are involved in cash-in-transit heists and kill our police officers and security personnel. It is the same thing. Crime is crime and it must be condemned at all times. It cannot be tolerated.
The steps that we, together with the Justice, Crime Prevention and Security, JCPS, cluster are taking are steps to make sure that we combat and eradicate these forms of activities. They have been pushed to other areas. Barberton, we are coming! Rest assured, we are not lame ducks, especially not me. I am not a lame duck. Hon Makhubela of Cope can attest to that. When I make an undertaking, I live by it and make sure that I oblige.
Hon Sinclair, the ANC cares. It cared yesterday, it cares today and it will care tomorrow. That is why we will make sure that we involve everybody at all times, because we are not selfish and we are not scared of anything.
When we took the theme, "Working together we can do more" it's because we wanted you to come to the table, to come with us to fight this problem. If you don't, this problem will haunt this country; it won't grow our economy and it will cause our country to decline. We cannot afford this. We cannot lead this country into anarchy.
We will fight any form of criminal activity from any quarter, even those who are collaborating. We will make sure that we do the right thing.
I am surprised that the DA is calling on the Hawks to take up the matter. You said it is not going to make it; it is a lame duck! You said it's a hawk that cannot fly. It is flying, my dear, it is flying! And it is flying with colours. It has flown! Six criminals down; four criminals opposite my home, down! All because of the Hawks!
This problem has been referred to the Hawks. Just wait and see, and listen. They are there and we are there as the ANC; we are decisive and we don't beat about the bush. Government is led by the ANC. Thank you. [Applause.] Debate concluded.
Question put: That the Report be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution.
Consideration of First Report of Joint Rules Committee, 2009
Order disposed of without debate.
Question put: That the Report be adopted.
IN FAVOUR: Eastern Cape, Free State, Gauteng, Kwa-Zulu natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly adopted in accordance with section 65 of the Constitution.