Illegal mining compact aims to tackle Zama Zamas, poverty and abandoned mines

As Africa positions itself as a key supplier of critical minerals for the global green energy transition, industry leaders warn that illegal mining threatens both communities and long-term stability.

Speaking ahead of Mining Indaba 2026, Collen Dlamini, head of public affairs for South Africa at Investing in Africa’s Resources, said the proposed Illegal Mining Compact recognises that illegal mining is often rooted in poverty and abandoned mines.

“Africa holds 55% of global cobalt and 90% of platinum group metals,” Dlamini noted. “Without stability and community social licence, these critical minerals cannot be mined safely to fuel the global green energy transition.”

A complex problem, not a simple fix

Dlamini cautioned against simplistic explanations of the Zama Zama phenomenon.

“It’s too simplistic. It’s a very complex problem which South Africa has been grappling with for many, many years, and not just South Africa, but the rest of the Continent,” he said.

While illegal miners extract resources unlawfully, Dlamini said their presence highlights mining’s continued economic importance. “A lot of people thought mining was a sunset industry. It is not,” he said, pointing to rising demand for minerals used in everyday technologies like smartphones and electric vehicles.

He added that illegal mining often fuels broader social problems. “Illegal mining is a gateway to other social ills such as substance abuse, criminality and gender-based violence, and this affects communities in a big way.”

Formalising artisanal mining

The compact also aligns with moves to formalise artisanal and small-scale mining in South Africa. While currently unregulated, this sector was introduced into policy last year through proposed amendments to mineral resources legislation.

“This will shift artisanal mining from the informal into the formal sector,” Dlamini explained. “It will become a much more inclusive sector, leading to many more jobs being created in communities.”

He said other African countries that have taken this route have seen success.

Communities and traditional leaders at the centre

A key feature of the compact is the involvement of traditional leaders, alongside mining companies, government and law enforcement.

“For the longest time, the government engaged with mining houses while communities were never part of the conversation,” Dlamini said. “Traditional leaders command respect, legitimacy and trust in communities, and we can really benefit from their wisdom.”

He said the aim is a “collaborative, data-driven and community-based approach” that ensures mining wealth translates into lasting infrastructure such as clinics and schools, even after mines close.

Beyond exporting raw materials

The compact also feeds into long-standing calls for beneficiation and local value addition.

“We need to move the needle from Africa being an exporter of rocks,” Dlamini said. He pointed to recent government commitments to reduce electricity costs for smelters as a potential game changer.

“If we beneficiate minerals locally and export finished products, rather than exporting raw materials and importing finished goods, that will grow our economy and change the trajectory of mining in Africa,” he said.

Dlamini believes the Illegal Mining Compact is ‘a step in the right direction’, adding: “This is a collective burden we carry as a society, and partnerships are the only way we deal with it decisively.”

For more details, listen to Dlamini using the audio player below: