gold piracy hits mines 
Posted 06 December 2006

GOLD worth nearly $300m is stolen every year by underground pirates from mines in SA, according to the findings of a new report. The Institute for Security Studies has warned that the scale of the thefts could force the closure of a number of less profitable mines and a subsequent loss in jobs in an industry that is regarded as a cornerstone of the economy.

“Gold theft has been occurring for many years, so we are constantly vigilant,” said Gold Fields spokesman Andrew Davidson. The mining giant has a special unit in place that works undercover to flush out the gold thieves.

The Institute for Security Studies investigation has revealed that gold worth about R2bn is pillaged each year either by one-man bands or by precious-metals smuggling syndicates. The report also found that 41% of the gold thieves were mine employees and that 56% were unemployed.

“As long as poverty exists, there will be criminals trying to obtain precious metals,” said the study.

SA has also seen a rise in illegal underground mining, where illegal miners stay underground for long periods of time, obtaining food from legitimate miners.

SAPA, 6 December 2006