SHERG Magazine
Incidents in the Mining Industry
According to the Department of Mineral Resources, the overall number of deaths in the South African mining industry has declined over the past decades, but the greatest impact of mining accidents is noticed amongst the family members and colleagues left behind after a mine worker lost his or her life1. The department has established a database called SAMRASS to record and analyse accidents and dangerous occurrences at mines1. The department also publishes monthly mine accident statistics on its website1.
However, the mining industry still faces many challenges and risks in ensuring workers’ health and safety. For example, in May 2022, four workers were killed by a mudslide at Harmony Gold’s Kusasalethu mine, bringing the number of South African mine workers killed at work in 2022 to 19 to date2. The Minerals Council of South Africa said it was aiming to end mine fatalities and improve safety performance through various initiatives, such as technology, training, and leadership2.
The mining industry is also prone to scandals and controversies that can damage its reputation and credibility. Some of the incidents that shook the industry include:
- Bre-X’s fake gold mine: In 1997, Bre-X Minerals, a Canadian company, claimed to have discovered a massive gold deposit in Indonesia, which turned out to be a fraud. The company’s stock price plummeted from $280 to pennies, wiping out billions of dollars of investors’ money3.
- Glencore’s Project Caesar: In 2018, Glencore, a Swiss-based mining giant, was accused of evading US sanctions by doing business with an Israeli billionaire who had ties to the Democratic Republic of Congo’s former president. The company was also alleged to have paid bribes and engaged in corruption in several countries3.
- Rio Tinto’s Benga coal mine: In 2020, Rio Tinto, an Anglo-Australian company, was criticised for destroying a 46,000-year-old Aboriginal heritage site in Western Australia as part of its iron ore mining operations. The company faced public backlash and legal action from the indigenous groups and the government3.
- BSGR’s bribery in Guinea: In 2014, BSGR, a mining company owned by Israeli tycoon Beny Steinmetz, was accused of paying bribes to secure lucrative iron ore rights in Guinea. The company denied any wrongdoing but was stripped of its mining rights by the Guinean government and faced investigations in several countries3.