• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 1 hour Satellite Moons to Replace Streetlamps?!
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 40 mins U.S. Shale Oil Debt: Deep the Denial
  • 18 hours EU to Splash Billions on Battery Factories
  • 23 mins The Dirt on Clean Electric Cars
  • 1 hour Owning stocks long-term low risk?
  • 2 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 1 day The Balkans Are Coming Apart at the Seams Again
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 13 hours The end of "King Coal" in the Wales
Alt Text

Gold Demand In This Key Market Just Surged 82%

After having registered lows over…

Alt Text

Gold Prices Under Pressure As Indians Stop Buying

Indian dore gold imports have…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

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:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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