BRIEFING SESSION: PORTFOLIO COMMITTEE ON POLICE: TACKLING ILLICIT MINING ACTIVITIES IMPACTING

LIEUTENANT GENERAL MATAKATA DIRECTORATE FOR PRIORITY CRIME INVESTIGATION

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Scope of Presentation

1. Introduction 2. Background 3. Project Coordination and Governance 4. Scope and Impact 5. Illicit Value Chain 6. Situational Analysis 7. Key developments 8. Interventions to Mitigate the Threat 9. Statistics covering 1st and 2nd Quarter 2017 10. Projects and Operational successes 11. Convictions 12. Emerging trends 13. Constraints 14. Conclusion

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Introduction

• To present to the Portfolio Committee on Police the overview of the illicit mining landscape impacting South Africa and our collaborative operational responses in

• curbing this scourge. 4 Background

• During the previous sitting, on 25 August 2017, the Portfolio Committee on Police and the Portfolio Committee on Mineral Resources, were respectively briefed on the operational success, covering the period April 2014 to March 2017.

• Therefore, this briefing primarily reflects the operational performance from April 2017 to September 2017. 5 Project Coordination and Governance

• The National Coordination and Strategic Management Team (NCSMT) is led by DPCI and coordinated by NICOC.

• Department of Mineral and Resource (DMR) Chairs Free State, Gauteng, Mpumalanga and Northern Cape Stakeholder Forums to address challenges at mine and community level.

• Strategic Plan for 2014-2019 and Annual Performance Plan drafted:

– Coordinate and consolidate government’s efforts in combating illegal mining.

– Regional and international cooperation.

– Mitigate illegal mining and illicit trade of precious metals and diamonds.

6 Governance Structure

MINING STANDING COMMITTEE CABINET NATIONAL ON SECURITY OPERATIONAL PROVINCIAL OMT COMMITTEE OPERATIONAL IMSC Mines Snr. DPCI COMMITTEE Management SAPS CI Chamber SSA Domestic DPCI JCPS SARS SANDF NPA SAPS

DMR SSA Domestic SARS SADPMR NATJOINTS NCSMT FIC NPA DHA SAPS SADPMR DMR, SAPS (DPCI,CI, Mine Security VISPOL& FSL) ; FIC, PROVJOINTS SSA, SARS, SADPMR, NICOC, SANDF, DIRCO, NPA, DoJ&CD, DHA; MS STAKEHOLDER GPFORUM / FS / MP INTELLIGENCE LEGISLATIVE UN Sub - Committee Sub - Committee Sub-- Committee / NC

ILLICIT MINING PROGRAMME 8 Scope and Impact of Illicit mining 9 Impact on National Security

RSA’s REPUTATION / IMAGE INFRASTRUCTURE • Corruption • Copper theft • Undermines rule of law • Water supply • Impacts investor confidence • Service provision

SAFETY & SECURITY TERRITORIAL INTEGRITY • Violent crime • Illegal Immigration ILLICIT • Safety within mines • Monopoly by Zim and MINING • Contamination of water Basotho gangs • No-go areas

ECONOMIC SECURITY • Fleecing of natural resources AUTHORITY OF THE STATE • Revenue losses • Culture of impunity • GDP • No-go areas controlled by • Illicit Economy – parallel illegal miners economy • Corruption 10 Illicit Value Chain

International Refineries and Intermediary Co’s 5

Front Co Exporters Operating from SA 4

3 Bulk Buyers (Licensed/Permit Holders)

2 Gangs and Illegal Mining “Bosses”

1 Illegal Miners 11 Situational Analysis: Identified Hotspots

GP • 13 Hotspots: Springs, Benoni, Boksburg, Brakpan, Langlaagte, Crown mines, Cleveland, Carletonville, Westonaria, Florida , Denver, Mathole and Luiperdsvlei NW • 12 Hotspots: Brits, Mooinooi, Klerksdorp, Hartbeesfontein, Stilfontein, Khuma, Kanana, Diamonds Taung and Wolmarsstad Clusters area: Diamonds Bakerville, area and MP • 2 Hotspot: Barberton and Machadodorp (Mamre mine) LIM • 2 Hotspot: Burgersfort/Atok illicit chrome and Mopani district (Burgersdorp) gold mining FS • 1 Hotspot: Welkom NC • 9 Hotspots: Ghunu ,Buffalsbank, Buffalo Camp, Port Nolloth, Kleinzee, Koingnaas, Hondeklipbay, Boshoff road dumps and Alexander Bay

TOTAL: 39 12

Key Developments

• Increased targeting of and incursions into operational mines also persist.

• Counter measures: Certain mines initiated a process of rehabilitating and closing down derelict shafts:

– Managed to significantly stem the supply of food to illegal miners.

– Closures have not prevented access to the mines due to the mine architecture characterised by inter-linked shafts.

• Interlinked tunnels running between the East and West Rand of Gauteng also limited impact of rehabilitation efforts in the province:

– Inter-linkages coupled with mining of supporting pillars by illegal miners could negatively impact on road infrastructure.

– Could result in the development of sinkholes and collapse of roads.

14 1st QUARTER 2017 14 Cont. 15 Cont. 16/39 Chrome

• During 2016 the illegal mining of chrome emerged in the Limpopo area. • Several incidents were observed during period April to September 2017, in Limpopo relating to the theft of chrome. • In South Africa the mining of chromium reserves is relatively easy, it is done on the surface. • The area between Atok and Steelpoort, in Limpopo Province, is one of the richest chrome reefs. • A number of trucks and excavators were intercepted, carrying loads of Chrome. • In most instances, the illegal mining is conducted by local unemployed youngsters and old ladies. • Women and children are operating in harsh conditions, without tools and mostly using their bare hands. • The intervention by Limpopo SAPS detectives led to the arrest of key threat drivers and this led to the site visit by Minister Zwane, to observe the incident. 19 Cont…

• The nexus between land ownership and mining rights, also manifested in the illegal mining phenomenon.

• Some traditional leaders, who own surface land rights in the area, reportedly granted community members permission to mine in certain areas.

• They believe that the land belongs to them.

• Evolution of illegal mining scourge, coupled with its constant displacement, escalates the threat level of this phenomenon.

• Illegal chrome mining is further exacerbated by policy and legislative uncertainty.

INTERVENTIONS TO MITIGATE THE THREAT

18 19 Operational Interventions

• Interventions across all levels of value chain by various agencies involved in project:

– Compliance audits and inspections of licence holders.

– Visible policing.

– Joint and disruptive operations.

– Utilisation of Prevention of Organised Crime Act (POCA), SARS and FIC investigations.

– MLAs with countries abroad: 19 MLAs to date.

20 Strategic Interventions

• Legislative review.

• Regional Strategy.

• Precious metals Fingerprinting.

• Limiting explosives theft.

• Training.

• Awareness campaigns.

21 International Strategy

• Establishment of an International Regulatory Framework to help address the international buyers’ market:

– SA in partnership with the Russian Federation tabled a Resolution at the 2013 Commission on Crime Prevention and Criminal Justice (CCPCJ) meeting.

– Resolution passed mandating UNICRI to conduct a global study funded by SA.

– Study completed and findings were tabled at the 25th Session of the UN- CCPCJ in May 2016.

22 Public Private Partnership

• Public Private Partnerships are key in addressing the threat:

– The private sector is involved in all provincial and national structures established to deal with the threat.

• The role of the Private sector critical:

– Coordination of efforts within the sector to improve security within respective mines thus securing the precious metals supply chain.

– For example, the measures implemented by Rand Refinery.

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Operational Statistics 1st & 2nd Quarter 2017

358 400

350

300

250

200 116 150

100 30 25 3 50

0 1st Quarter Disruptive 2nd Quarter Disruptive 1st Quarter Arrests 2nd Quarter Arrests Number of active project 2017 24

Operational Statistics 1st quarter 2017 25

Operational Statistics 2nd quarter 2017

FREE NORTH NORTHERN NATIONALITY GAUTENG LIMPOPO MPUMALANGA STATE WEST CAPE TOTAL

LESOTHO 0 0 209 0 0 0 209

ZIMBABWE 0 0 10 0 9 0 19

MOZAMBIQUE 2 0 10 0 1 0 13

RSA 12 7 21 6 20 1 67

TANZANIA 0 0 0 0 0 0 0

ZAMBIA 0 0 0 0 0 0 0

OTHER 35 0 0 15 0 0 50

TOTAL 49 7 250 21 30 1 358 26

Operational Statistics Seizure recorded

R8 000 000 R7 451 540

R7 000 000

R6 000 000

R5 000 000

R4 000 000

R3 200 000 R3 000 000

R2 000 000

R1 000 000 R598 065 R155 000 0 R110 000 R45 000 R33 000 R0 Gold/GBM Diamond Platinum Chrome Gold/GBM Diamond Platinum Chrome 1st Quarter 2nd Quarter 27 Number of Current Projects and Major Investigations SIGNIFICANT OPERATIONS

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Significant operations

• Project Pontius:

• During June 2016, a project driven investigation was initiated, focusing on a criminal group involved in theft and dealing in unwrought precious metals.

• On 2017-08-30, a takedown operation was conducted by DPCI members (Mpumalanga) in conjunction with TRT, Dog Unit and Mine security personnel culminating in the following successes:

• Six suspects arrested.

• Dismantling Smelt house associated with the target of the investigation.

• Seizure of an assortment of mining equipment.

• 445KG of gold bearing material and eight pieces of unwrought gold to the value of R169 000,00.

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Cont.

Disruptive operations were planned and executed on 27 and 28 July 2017, in the Evander Gold Mining and the Osizweni area (old Bracken Mine area) Shaft 8 Shaft at the old dumping site.

The following results were achieved:

• 166 arrests for contravention of offences such as Illegal Immigration, illegal mining, trespassing and possession of gold bearing material.

• 158kg of gold bearing material.

• Four wanted suspects were also arrested.

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Cont.

• A joint operation was conducted at the Mathole informal settlement, which is known to be an area infested with illegal miners. The said operation culminated into the arrest of 35 illegal immigrants and one for possession of gold bearing material. 22 Smelt houses were dismantled and equipment seized. A total value of about R5 million of GBM were seized.

• An intelligence led operation, including various law enforcements, was conducted at Denver hostel, culminating in the arrests of 11 illegal miners. An estimated, R800 000,00 worth of illicit gold bearing material was seized.

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Number of Convictions: 1st & 2nd Quarter 33 Emerging Trends

• The illegal surface miners are targeting abandoned farms to conduct their illegal activities. The North West province is experiencing an increase of illegal miners from other provinces. The hostility against any type of law enforcement is on the increase when addressing the illegal miners. The hostility is coming from the illegal miners and the community. The removing of rock dumps by individuals and the refined and gold extract without any permits.

• Precious metals, especially gold, finds their way to new and second hand jewellery manufacturers and refineries. These companies are being used as fronts to legalise the stolen metals by smelting with alloys. 38

Constraints

• The following constraints will, however, continue to hinder the impact of all the efforts:

– Training needs to various stakeholders in identifying Precious Metal and Diamonds especially at the borders.

– Legislation gaps in addressing transportation/possession of PMDs in transit areas and Chrome.

– Corruption within the criminal justice system.

– Oversupply of illegal immigrants who take part in illegal mining activities perpetuates the scourge of illegal mining.

– Persistence of derelict and ownerless mines despite Department of Mineral and Resource’s rehabilitation programme.

– Unemployment and the dependence amongst communities on each other to sustain basic living conditions.

35 Way Forward

During the September 2017 sitting of the NCSMT meeting: • Serious concerns were raised regarding review of the operational response and successes. • An assessment was made regarding performance and for all the Departments to conduct introspection and discussion to conduct turn-around strategies to remedy the threat and to improve our collective performance. • The next session is scheduled for January 2018. 36/39 Conclusion

The DPCI, together with key stake-holders in the National Coordination and Strategic Management Team, remain committed in tackling the illicit mining threat.

Our ultimate aim is:

• To significantly reduce the illicit mining threat impacting South Africa.

• To disrupt and dismantle criminal groups orchestrating illicit mining activities.

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Thank you