Some Sekhukhune residents in Limpopo have cautiously welcomed the arrest of two people believed to be directors of a company that was found in possession of chrome worth R20-million.
Gary and Justin Mitchell’s arrest by the Hawks last week, has been hailed as a milestone in efforts to dismantle illegal mining rings in the mineral-rich Sekhukhune area. Locals have, however, reiterated calls for the issuing of small-scale mining licenses.
South Africa is home to more than 70% of the world’s chrome reserves. Ore from the Bushveld Igneous Complex in the Steelpoort Valley in Sekhukhune produce 75% of the world’s ferrochrome.
Chrome is essential for various applications, notably the production of stainless steel.
The informal mining and trade of chrome have always plagued the Sekhukhune area. A week ago, a landmark arrest saw the directors of a company, believed to be part of an illegal chrome mining syndicate, face criminal charges.
Chrome worth R20-million was confiscated at Gary and Justin Mitchell’s property in Steelpoort. The pair have been granted R5 000 bail each by the Praktiseer Magistrate’s Court. Their matter is due back in court in January next year.
A local police officer alleges that some law enforcement officers in the area are in cahoots with illegal mining rings. The officer says this as officers’ salaries are not enough to feed their families.
“It’s everywhere all the police, even if you are not working, it’s not your working day but if there is a promise, especially during the night you have to go there and get some money because around the month you can make something like R30 000. And manage to pay rent, pay for my children school fees, R15 000 is nothing and we can’t stop doing this until they increase our salaries,” a police officer said.
Visuals: Sekhukhune residents welcome arrest in R20 million chrome bust
The Institute for Security Studies believes the arrest of the Mitchells could be a step in the right direction of seeing the people who benefit the most from illegal mining, being held criminally liable.
“So, the people that actually benefits the least are the illegal miners themselves because you know they don’t get a really good prices so we’re looking here at transnational organised crime syndicates as they are the guys that are making big money. We see that syndicates have to compromise state actors in order to protect them and to facilitate the operations and that is anything from senior political officials, state actors, the police and the judiciary,” says Willem Els from ISS Africa.
At Ga-Maroga, most economic activities have ground to a halt. The impoverished village is largely dependent on illegal mining activities.
But President Cyril Ramaphosa’s deployment of soldiers last year, to curb illegal mining, has had the desired result.
A local business forum has welcomed the deployment of soldiers, though it has resulted in an increase in poverty in the area.
“It’s tough, this area was flourishing. Those who are not working are now stuck. They were working, they were mining even though it is illegal. The reason why they were doing that it is because they don’t have other means. They were mining, they were making money, the economy is down. Shops are closed now. People are now stealing. We just want a license even if it is just permits. We know people die when they mine illegally but if we get permits then it will be regulated. The government will assist and will help us to run those processes and run those mines in terms of safety and everything,” says Daniel Mabilane from Maroga SMME Forum.
Over 20 000 jobs in the automotive, construction and manufacturing sectors and an annual R42 billion contributions to the country’s GDP, can be traced to the chrome mining sector. But the losses incurred by the country as a result of illegal mining and trade in the metal are also believed to be significant.
“We really don’t know the extent, we have estimates and there is not scientifically done, but what we can speak of hundreds of millions and even billions per annum that is going to waste in South Africa and it also depletes our resources in one place and second reasons also it really deprived the structure economy in order because remember these legal minerals are now smuggled out of the country and they don’t pay any tax,” Els added.
The South African National Defence Force is yet to comment on the progress resulting from its presence in the Sekhukhune area.
Video: Illegal mining – Directors arrested in R20 million chrome bust
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