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23 September 2020 | Story Leonie Bolleurs | Photo Supplied
Zama Sithole

Zama Sithole, a master’s student in Environmental Managementat the University of the Free State (UFS), would one day like to assist communal artisanal small-scale miners (ASM) to legalise their work. Although the ASMs are not involved in turf wars or criminality as in the case of zama-zamas, they are deemed illegal workers.

The prime mining legislation, the Mineral and Petroleum Resources Development Act, makes no provision for subsistence or communal ASM activities. Such miners are therefore considered illegal miners.

“ASM employs more than 20 million people globally and a country such as South Africa, with an unemployment rate of 30,1%, should assimilate this type of mining as a legal form of employment,” says Zama.

“Their only client base is the surrounding communities. Mining, besides government grants, is their only source of income.”

Zama aspires to assist the illegal miners to become legal and reap the benefits of skills and funding to increase their income.

“And guidance from the regulatory authorities will ensure that the communal ASM miners become more aware of environmental management,” she adds.

Zama recently presented her research, titled: Shortcomings of the South African Legislative Framework in Addressing Communal Artisanal Small-scale Mining: A Blaauwbosch Case Studyat the 2020 Environmental Law Association (ELA) Annual Student Conference.

She also received the award for Best Speaker at the conference.

In her research, Zama focuses on Blaauwbosch, a rural township area located south-east of Newcastle in northern KwaZulu-Natal, where subsistence coal and clay opencast mining by community members has been going on for more than four decades.

Environmental degradation

According to the Mineral and Petroleum Resources Development Act, mining is only deemed legal if there is a mining permit, mining right, production right or preferent mining right authorised by the Department of Mineral Resources. Since communal ASMs are unregulated, environmental degradation is rife.

According to her investigation, environmental hazards such as traces of acid mine drainage and poor air quality (due to spontaneous combustion), are localised in the area. This is a deterrent to the surrounding community that has minimal health and safety awareness.

Owing to the fact that communal ASM miners are not assimilated into the legislation, the competent authorities such as the Department of Mineral Resources and Energy and the Department of Water and Sanitation cannot offer mineral regulation and environmental guidance support.

Losing revenue

Zama says government is also losing revenue by not legalising this unique sector. She believes it is important to differentiate between communal ASMs and the ‘zama-zama’ type of mining.
 
She also found that according to the Mining and Minerals Policy (1998), “regulations in respect of mining should be relevant, understandable and affordable to the small-scale miner and should be enforced in a site-specific manner.” ... “Tax and royalty rates, levies, and financial guarantees for rehabilitation should not constrain the development of small-scale operations.”

“However, to date, this has not been realised,” Zama states.

Communal ASM miners thus cannot benefit from government-funded initiatives to upskill them in terms of mining and environmental management.

Making a difference

Zama plans to conduct more research to understand the dynamics of how other countries have legalised this sector and draw learnings from this to determine how it can be applied in the South African context.

“In our country, there is very limited data and hence understanding on communal ASM. This could be one of the reasons why the government cannot make an informed decision on how to legalise this sector,” she says.

News Archive

Delegates encouraged to ‘walk the talk’ on fraud prevention
2017-11-27

Description: Fraud Tags: fraud, corruption, crime, business, Free State, MEC of Finance, Elzabe Rockman, PricewaterhouseCoopers, Standard Bank, Association of Certified Fraud Examiners, Monte Bello 

Representatives from the UFS Business School with Nick Olivier, Certified
Fraud Examiner (right), at the International Fraud Awareness Week’s
Free State Conference.
Photo: Lerato Sebe


‘Walking the Talk on Fraud Prevention’ was this year’s theme during the annual International Fraud Awareness Week’s Free State Conference held at Monte Bello, Bloemfontein, on 16 and 17 November.

The conference was hosted by the Business School of the University of the Free State (UFS), in collaboration with the Free State Provincial Treasury, Standard Bank, the Association of Certified Fraud Examiners (ACFE), and PricewaterhouseCoopers.

Detecting and taking action against corruption
The Free State MEC of Finance, Honourable Elzabe Rockman, says corruption is not only a provincial or national issue, but rather a global issue. “Through this interaction with the International Fraud Awareness Week, we reach a much broader audience, both inside and outside government.” She says this should make a direct contribution to increasing awareness of what constitutes fraud, and improving our ability to detect it and to take action.

Implications caused by fraud
One of the speakers at the seminar, Nick Olivier, a Certified Fraud Examiner (CFE), did a presentation labelled, ‘WTF – Where to focus in the corruption noise’, highlighting the impact which fraudulent crime has on companies. “With the private sector, the impact is huge because the company will have to spend money on investigations or lawyers to get their money back.” He mentions that in government, various things are affected by fraud, such as the economy, the country’s resources, the lives of citizens and the society. 
“We need to start obeying the regulations which were implemented in our environments so that we do not need to do investigations, because every citizen has a duty to do the right thing,” says Olivier.

Tender procurement and bribery were listed as the top corruption crimes in both the private and government sectors.

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