How illegal gold mining is thriving in South Africa's abandoned shafts
Anywhere between 5% and 30% of gold in South Africa – once the world's top producer – is mined illegally, laundered, and shipped as legitimately mined precious metal.
However, it's impossible to really quantify the extent of the damage to the economy caused because of these illegal shipments, according to a new report from SWISSAID, an NGO based in Switzerland. Although gold output is declining, it still contributes billions to South Africa's economy.
SWISSAID's report stated that, because South Africa is clinging to an opaque gold trade reporting system dating back to apartheid, there is no quantifiable way of completely and accurately determining total imports and exports, as well as the origin, of the yellow metal.
As a result, it states, this 'opacity makes the identification and calculation of illicit gold flows almost impossible'.
However, through data provided by industry players as well as Rand Refinery, Africa's largest precious metals refinery, SWISSAID said it was able to circumvent deficiencies in gold trade statistics and arrive at 'what is arguably the most realistic picture of the South African gold trade to date'.
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