A new study has uncovered a shocking truth about the illicit gold mining industry in South Africa: legitimate mining companies are reportedly part of a syndicate purchasing gold from illegal miners, known as Zama zamas, and funneling it into the formal economy. The research, conducted by Bench Marks Foundation, a non-profit organization that monitors corporate behavior, has shed light on the widespread involvement of various players—from mining firms to police officers—in perpetuating this underground trade. The findings suggest that illegal mining is not only devastating the local economy but is also entrenched in corruption and political influence.
Illegal mining in South Africa has become a massive, unregulated market. According to Bench Marks’ General Manager, Busi Thabane, there are over 6,000 abandoned mines across the country, many of which are exploited by informal miners, often those who were laid off by formal mining operations. These miners, deprived of pensions and unemployment benefits, have turned to the illegal sector, contributing to an estimated R70 billion in losses annually to the South African economy from gold alone. The economic consequences are staggering, with both the government and legitimate mining companies facing substantial revenue losses as a result of the thriving underground industry.
The Bench Marks report reveals that these illegal gold miners are selling to a range of buyers, including scrap metal dealers, syndicates, and even law enforcement officers. These intermediaries play a critical role in bringing the illegally sourced gold into the formal economy, where it often ends up being processed in refineries or sold to international markets. In many cases, licensed gold dealers are complicit in the transactions, acting as middlemen between the Zama zamas and formal buyers. The report also highlighted that some junior miners and jewelry manufacturers are direct beneficiaries of illegally sourced gold, perpetuating the cycle of corruption and exploitation.
Adding to the complexity of the situation is the alleged involvement of political figures. According to Bench Marks’ researcher, David van Wyk, some illegal mining syndicates have been linked to political campaigns in South Africa and its neighboring countries. This connection became apparent following a deadly shooting in a Soweto tavern in July 2022, which was reportedly a turf war between two rival factions involved in illegal mining. Media reports suggest that the leaders of these factions were seen handing out cash to supporters of Lesotho’s ruling party, the All Basotho Convention (ABC), in the weeks leading up to the country’s general elections.
Van Wyk described the syndicate behind the illegal mining trade as a group of wealthy individuals who control the industry, often driving luxury cars and living in mansions. He claims these syndicates are also involved in financing political campaigns, further embedding illegal mining into the socio-political fabric of the region. “These are people driving fancy cars, living in mansions, and controlling the trade,” he said, adding that they are also responsible for funding political movements.
Illegal mining in South Africa, Van Wyk explained, is more cost-effective for companies compared to formal mining operations, particularly because they do not have to adhere to labor laws or pay benefits to the workers. The miners—many of whom are unregulated and not unionized—are paid significantly less, and the companies avoid the costs of providing pensions, workmen’s compensation, or contributions to the Unemployment Insurance Fund (UIF). Additionally, illegal mines operate without the overhead costs associated with water, electricity, or infrastructure, making them an appealing option for companies seeking to cut costs.
The broader implications of these findings suggest that illegal mining syndicates are not only impacting South Africa but have ties to larger regional networks across Africa, including the Democratic Republic of Congo, where similar practices are known to occur. The practice of exploiting cheap, unregulated labor is reportedly spreading across the continent, presenting significant challenges for governments and law enforcement agencies attempting to tackle the issue.
Meanwhile, South African authorities have struggled to control the situation. In one recent operation at the Buffelsfontein Gold Mine in Stilfontein, police tried to force illegal miners to the surface by cutting off their water and food supplies for months. The operation, which started in January 2025, brought 216 miners up alive, while 78 were found dead. However, efforts to stamp out illegal mining have proven largely ineffective, partly due to the involvement of various parties in the syndicate, including security companies and even law enforcement personnel.
Environmental activist Tiny Dlamini believes the problem is exacerbated by the complicity of those in positions of power, from local government officials to high-ranking politicians. “A lot is happening, including human trafficking, and that is why it would be impossible for this operation to be regulated,” Dlamini said. She called for more involvement from geologists and scientists to help address the issue and find ways to bring the sector under control.
As the government continues to grapple with the enormous scope of illegal mining in South Africa, the findings of this report highlight the deeply entrenched networks that sustain this underground economy. Until these networks are dismantled, and accountability is enforced across all levels—government, law enforcement, and the private sector—the illegal mining trade will continue to flourish, undermining the country’s economy and perpetuating a cycle of corruption and exploitation.
