• 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 2 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 2 days Venezuela Officially In Default
  • 2 days Iran Prepares To Export LNG To Boost Trade Relations
  • 2 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 3 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 3 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 3 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 3 days Santos Admits It Rejected $7.2B Takeover Bid
  • 4 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 4 days Russian Hackers Target British Energy Industry
  • 4 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 4 days Lower Oil Prices Benefit European Refiners
  • 4 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 5 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 5 days OPEC To Recruit New Members To Fight Market Imbalance
  • 5 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 6 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 6 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 6 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 6 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 9 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Alt Text

Did These Mining Giants Just Confirm The Next Gold Frontier?

After Ecuador’s President removed a…

Alt Text

Can Mali Maintain Its Gold Mining Status?

Mali could be about to…

Alt Text

Expect Mine Closures In This Key Gold Mining Nation

Major gold mining nation South…

This South African Gold Miner Just Declared War On Illegal Miners

Gold refining

Small-scale mining is a growing issue across Africa. With regulators in Ghana this week making their first moves to shut down artisanal operations — part of an emerging campaign against environmental damage.

And in Africa’s top gold-producing nation, South Africa, things are getting even more serious. With one of the country’s top miners unveiling a never-before attempted strategy to deal with informal and illegal gold mining at its operations.

That’s Sibanye Gold. Which said over the weekend it is moving to completely drive out small-scale miners from its South African mines.

Sibanye’s management said they are setting a goal to have all illegal miners cleared out by next January. Making the company the first-ever in South Africa to implement such a “zero tolerance” policy.

This a critical gauntlet being thrown down. With illegal mining being a rampant problem across South Africa’s gold sector — often carried out by well-organized and well-funded gangs, who rob gold ore from active shafts at big mines.

To get rid of them, Sibanye is dedicating significant resources. With a budget of 200 million rand ($15 million) set aside by management for programs like rewarding whistleblowers — and installing high-tech check points at mine entrances to keep out illegal miners. Related: The Bullish Case For Oil Is Fading Fast

The move is potentially a big one economically for Sibanye. The company hasn’t released estimates of its specific losses from illegal mining — but a recent study from the South African Chamber of Mines pegged losses from stolen gold for the mining sector as a whole at a stunning $1.5 billion.

That suggests a successful campaign could make a huge difference to Sibanye’s bottom line. Which in turn could help revitalize operations for the company, and perhaps other South African miners who might follow Sibanye’s example.

The move also shows just how desperate South Africa’s miners are getting in trying to restore profitability. Watch to see how effective Sibanye’s fast-unfolding campaign will be — and if this can indeed give a lift to the company, and the wider gold mining sector.

Here’s to going clean.

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News