A study conducted by Bench Marks Foundation, a religious non-profit organisation that monitors companies in South Africa and in the region, found that licensed mining companies purchase gold from illegal miners.
Report claims Zama zamas syndicates sell products to legitimate companies and fund political campaigns
Authorities began the rescue operation at a mine shaft more than 2km underground, using a metal cage in an operation that was to last ten days. A junior miner or a jeweller, would pay a negotiator a certain amount of money to buy gold from the illegal miners. The primary buyer could also be licensed dealers and the gold is then injected back into the formal economy, the report revealed, adding that gold is also being sold to formal refineries including those that export to international markets. The study indicated that police could be involved in this chain.
Van Wyk said the link to politicians and political party campaigns emerged after police identified the suspects who were involved in the mass shooting at a Soweto tavern in which 16 people were killed in July 2022. He that the minerals being unearthed by the Zama zamas were also being sold to companies that had retrenched workers and closed their operations. Van Wyk said illegal miners were not unionised and it is cheaper to mine with Zama zamas than with unionised workers.
Van Wyk added that this was a dirty business that involved politicians, police, mining companies, subcontractors, labour brokers and security companies. “The operation itself involves a lot of corruption. A lot is happening, including human trafficking and that is why it would be impossible for this operation to be regulated.
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