Mining sector organised crime concerns rise after lawyer killing

Industry fears reputational damage among international investors as violence increasingly affects white-collar employees.

The killing of Sibanye-Stillwater lawyer Chinette Gallichan outside a courtroom last month has heightened concerns about organised crime in South Africa's mining sector and its potential impact on the country's investment reputation.¹²

Gallichan, 35, was shot in broad daylight outside the court where she had been representing Sibanye in a labour dispute, illustrating what mining companies describe as an escalating pattern of violence now affecting white-collar workers in the industry.¹²

Pan African Resources, a small-cap gold miner operating in Mpumalanga, said it now provides security to mine managers and other white-collar employees who have faced threats from organised criminal networks.¹² The company told Business Day that "organised crime has had a significant impact on the security of senior management structures, as well as employees dealing with security, employment opportunities, labour relations, procurement processes and production."¹²

Pan African, which has arrested thousands of illegal miners at its Barberton operations in recent years, alleged that police corruption at the Barberton police station has been directly linked to illegal mining activity.¹²

The concerns emerge as record gold prices have intensified illegal mining activity and President Cyril Ramaphosa has deployed armed military forces to combat so-called zama zamas in small towns surrounding mining operations.¹² Industry observers say the combination of rising commodity prices and criminal activity is creating heightened tensions in mining communities.¹²