As Gold Prices Soar, People Grab Shovels, Dig Up the Land, and Even Build Shantytowns

South Africa Struggles With Illegal Gold Mining
Poor Residents and Undocumented Migrants Flock to Abandoned Mines
Shantytowns Spring Up as Government Labels Activity "Illegal"

As the spot price of gold hovers around 5,000 dollars (about 7.25 million won) per ounce (oz, approximately 35 g), South Africa, one of Africa's wealthiest countries, is suffering from illegal mining. Residents from neighboring countries are flocking to abandoned gold mines to dig for alluvial gold and gold nuggets, leading to the emergence of shantytowns across the cities.

On the 18th (local time), the BBC in the United Kingdom reported that illegal settlements are increasing near Johannesburg, South Africa's largest city.

Johannesburg was once famous for its gold mines. Even though most of the mines have now been closed, it is still reported that alluvial gold and gold fragments are occasionally found in nearby areas. The problem is that as gold prices have recently soared, illegal miners have begun to pour in to dig for alluvial gold. According to the BBC, these illegal miners are diverse, ranging from the urban poor within South Africa to migrants who have crossed the border from neighboring countries.

Illegal gold miners at work in South Africa. YouTube screenshot.

The miners indiscriminately dig up the ground around the former mining areas with pickaxes and shovels. Some miners strike it rich; one impoverished resident claimed to have found a gold nugget while digging up pastureland where livestock had been grazing.

However, as illegal miners have converged on the area, temporary settlements have begun to spring up on the outskirts of Johannesburg. In response, South Africa's Department of Mineral Resources has designated the gold mining activities taking place in these settlements as "illegal" and strongly condemned them as "acts that destroy the environment." In practice, it is known that illegal miners use dangerous chemicals such as mercury and sodium cyanide without any proper safety measures to separate gold from the ore they extract.

One miner told the BBC, "I know it is illegal, but if the government would grant us mining permits, we could work and pay taxes," appealing that "I have to earn money to pay my children's school fees and feed my family." Another miner insisted, "This is currently the only way to make money," adding that "(thanks to illegal mining) many people are able to work instead of committing crimes and getting arrested."

Meanwhile, spot gold currently trades at about 100 dollars (around 145,000 won) per gram (g). South Africa's monthly minimum wage is 368 dollars (about 534,000 won), meaning that if a miner succeeds in extracting 4 g of gold, they can earn more than the minimum wage.