JOHANNESBURG (Business Day) -- Gold theft from mines was estimated at R2 billion ($280 million) annually, the Chamber of Mines said today. Chamber of Mines deputy legal adviser Anton van Achterbergh said that a report, compiled by the Institute of Security Studies (ISS), "confirmed... that about R1.8-R2 billion worth of gold is stolen every year."
Van Achterbergh said that quantifying gold theft was "unscientific" and a "guesstimate". "It's not like Pick 'n Pay where you can say, 'what do I have on my shelf and what's been stolen'?"
"Any attempt at quantification is generally a rough guess."
The report, called the Theft of Precious Metals from South African Mines and Refineries, also showed that theft of platinum and other precious metals was a problem, said Van Achterbergh.
Gold production in South Africa last year was 300 tonnes, said Chamber of Mines senior executive Frans Barker. "It has gone down (since last year). In 2004 it was 342 tonnes.
"The report's being finalised as we speak and should be available very soon," said Van Achterbergh. He said that the best indicator of how much gold had been stolen was when arrests were made.
"Generally, at least we know what's being dealt with," he said.
Meanwhile, over the past six months police have been targeting underground gold smugglers in the Randfontein and Welkom areas, with 60 arrests made to date. National police spokeswoman Sally de Beer said yesterday: "Over the past six months, there have been operations in six mines in the Randfontein and Welkom areas."
She said police were approached six months ago by private security companies in the areas to help deal with gold smugglers, known as zamas. "There's only so much they (security companies) can do," said De Beer.
The operation drew members from the special police task force, the national intervention unit and South African Police Service explosive experts. Members first had to acclimatise to the environment underground, such as the heat and the confined spaces before the operation began, said De Beer.
Explosive experts were needed because zamas were known to set home-made booby traps and use hand grenades to mine the gold ore and scare off security personnel, she said. "To date, 60 (smugglers) have been arrested," she said. "They are living underground for months at a time. They eat, sleep and even smoke under there. This is very dangerous because there is methane gas and it could explode," she said. "They are a danger to legitimate miners, security and police."
De Beer said that no police had been injured over the six-month period but that some security personnel had suffered minor injuries. Smugglers gained entry into the mines through disused shafts and using legitimate miners' clock cards.
De Beer said that reports she had received had placed the quantity of gold smuggled at $700 million per year, but that according to her sources, it was a "hugely exaggerated figure."
Andrew Davidson, a spokesman for Gold Fields, said he could not comment on gold smuggling at other mines but said: "Gold theft is a problem (for mines) but these thieves are also stealing from the government and from us." "This affects you and me," he said.
Davidson added that details regarding the quantity of gold stolen were only available from the Chamber of Mines. The Chamber would not comment at this stage on industry statistics surrounding gold theft.
