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Illegal gold mining thriving in S Africa

Commodity Online
JOHANNESBURG: With the Gold prices soaring, South Africa is facing a serious problem of illegal mining. The country has been facing the issue for years but the rise in prices of the yellow metal has caused a surge in illegal mining also.

Following several deaths during illegal mining in Welkom, the Parliament’s select committee on economic development visited gold producer Harmony’s Eland shaft.

Over 80 illegal miners have died at the Eland shaft, after succumbing to smoke inhalation during an underground fire.

Committee said the aim of the visit was for the committee to familiarise itself with the circumstances and issues surrounding the illegal mining before debating the issue in the National Assembly.

A stakeholders meeting was likely to take place within the next week, and from there the committee would meet with the National Council for Provinces and the National Assembly. A full report will then be compiled to take to Parliament.

The committee was looking at all avenues of possible recourse against illegal mining, and would support any decision made by the mining minister.

At the moment, legislation is very vague in terms of illegal mining. They can only catch them and charge them for trespassing, the trespassers then pay a fine and they are released the next day. The committee feels that the country needs proper legislation to tackle the issue.

The committee was also in support of the endeavours undertaken by mining houses to root out illegal mining and corruption.

Illegal mining and corruption is robbing the country of economic and financial support. But not only that, it also has a very negative impact on the communities surrounding the mines, the panel said.

The committee would also be approaching government departments, such as the Department of Home Affairs, as some of the issues overlapped.

About 100 people have died this year as a result of illegal mining activities near Welkom and Barberton.

In 2007, 23 illegal miners were killed in an underground fire in a disused shaft of Harmony’s St Helena mine in the Free State.
MCX GOLDGUINEA 31 March 2012 contract was trading at Rs 22586 , up Rs. 106 . What's your view on it?
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