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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

Deputy Governor of SA Reserve Bank inspires students
2016-08-19

Description: Deputy Governor of SA Reserve Bank  Tags: Deputy Governor of SA Reserve Bank

Dr Lyndon du Plessis, Head of Department of Public
Administration and Management, Francois Groepe,
Deputy Governor of the South African Reserve Bank,
Prof Philippe Burger, Head of the
Department of Economics and B.Com Hons student,
Mosoeu Mabote.

Photo: Siobhan Canavan

Students from the Faculty of Economic and Management Sciences had the opportunity to learn from the best in the field when the Deputy Governor of the South African Reserve Bank, Francois Groepe, presented a seminar on the changing roles of central banks.

According to Groepe, we are currently living in challenging times as central banks are called on to do more.

“Central banks have limits, and these limits are not always understood,” he said on 11 August 2016 in the Equitas Auditorium on the Bloemfontein Campus.

How central banks contribute to inflation

There are two main generally-expected roles from central banks: the obvious one of providing bank notes and coins, and the other, maintaining price stability.

According to Groepe, the aim of keeping prices stable is to ensure easier planning for the future, and to assist the poor.

“The poor are the ones more vulnerable to higher inflation because they hardly have enough to get by,” he said.

A negative impact on monetary policies could affect the economy negatively. This is as a result of higher inflation caused by the increase in food prices.

Furthermore, the 12% government debt renders a negative yield in the economy.

The stability of finances in South Africa


Financial stability is not an end in itself, but, like price stability, is generally regarded as an important precondition for sustainable economic growth, development, and employment creation.

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