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Zama zama economics: R10k for a KFC bucket, R20k for a prostitute — 2.4km under the earth

Cops estimate at least R3m in cash circulates underground in North West at any given time

Illegal miners can work up to 2.4km below the surface.
Illegal miners can work up to 2.4km below the surface. (Sandile Ndlovu)
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. (Nolo Moima)

In a near parallel world, millions of rands worth of trade is conducted daily by organised crime gangs working kilometres underground in operational, mothballed, disused and derelict mineshafts across SA’s gold reef.

A month-long investigation by TimesLIVE, Premium, based on interviews with sources within the police and zama zama gangs, has revealed how tens of millions of rand is spent daily on providing illegal miners with anything and everything they need from tools, explosives and weapons to KFC chicken buckets, cans of bully beef and baked beans, sex workers and security guards as well as corrupt police officers for protection.

But for those working underground it is affordable — some claim they earn as much as R40,000 a month, and if they don’t have cash in hand, they pay with gold.

Costs vary, depending on where along SA’s gold reef the illegal miners operate and the difficulty or ease in securing and bringing the produce down to the zama zamas. 

Some of the shafts zama zama’s illegally operate in, such as those around Klerksdorp in the North West, are 2.4km deep.

Sources have told TimesLIVE Investigations that a KFC bucket (which normally costs about R280) can cost R10,000 with sex workers costing illegal miners anywhere up to R20,000 an hour.  The miners pay for the sex workers beforehand, with those controlling the illegal mining operations acting as middlemen bringing them down to the miners and taking them out of the mines again. By the time the sex workers arrive the money has already been paid over to the middlemen who pay the sex workers.

Security guards, who are hired to provide protection from police, criminals and rival gangs, can cost up to R5,000 a day. They need the guards for protection from police officers conducting operations and from being attacked by rival gangs.

Speaking on condition of anonymity, a police officer from the anti-illegal mining investigations task team in the North West, which has some of SA’s most lucrative gold-bearing reef and is one of the country’s largest illegal mining hotspots, said from their estimates, at least R3m in cash was circulating underground in the province at any given time.

The tunnels and shafts in Orkney, Stilfontein, Klerksdorp and Potchefstroom are literally floating in cash. You must understand. These guys go down for several months at a time.

He said their estimates were based on the number of goods trucks and their size, which were observed delivering food and other supplies to those underground.

“The tunnels and shafts in Orkney, Stilfontein, Klerksdorp and Potchefstroom are literally floating in cash.

“You must understand. These guys go down for several months at a time. They can be underground for up to six months. In this area there are easily 5,000 illegal miners underground at a time. Each one pays R20,000 in cash to go down a shaft.

“The zama zamas must pay the same in cash or the equivalent in gold to be brought back to the surface.”

He described the earnings of zama zamas as “staggering”.

“Three weeks ago we recovered a 7.3kg ball of gold bearing ore from a small group of illegal miners. It was 87% pure and worth roughly R5m.

“The value of gold coming out of the shafts is staggering. Just from one shaft zama zamas are bringing out between R20m and R40m worth of gold ore every two weeks. They control five shafts here, with similar values of gold being brought out of those shafts.”

The policeman said while illegal miners were usually able to carry two weeks of food with them when they first went underground, to sustain themselves they had to buy from those running the syndicate operations underground.

“Everything underground is literally 10 times more than what you pay on the surface. What costs you R10 on the surface, costs you R100 underground.”

He said penlight batteries for head torches cost roughly R200, while replacing a torch could cost a R1,000.

“Food and water are definitely the most expensive, especially things like bread. A loaf costs roughly R1,000, depending on how fresh it is.

“A one-litre container of milk costs R700, a one litre Coke R500 and a can of Dragon energy drink R100. A KFC bucket costs R10,000 and a KFC Streetwise Two costs R1,000. A can of bully beef costs R200 and baked beans R100.”

He said underground there were different compartments which were used for cooking, sleeping and sex.

“To use a ‘bedroom’ costs about R300. Prostitutes cost R20,000. If you want people to start processing your gold you are charged about R500, depending on how much ore you have and how long it takes.

“Protection from corrupt police officers and mine security guards will cost R5,000 a day. For that you will receive early warnings of police anti-illegal mining operations and raids by rival gangs or criminals waiting on the surface to steal the miners’ gold.”

Anything I want I can get. I have a tab. I pay it at the end of my shift.  The guys who cook for us, bring us food and the ladies who come down to give us sex prefer if we pay in gold, but if you have cash then that is fine too.

A Welkom zama zama said the syndicates had equipped the mineshafts they operated in with tuck-shops.

“Anything I want I can get. I have a tab. I pay it at the end of my shift. The guys who cook for us, bring us food and the ladies who come down to give us sex prefer if we pay in gold, but if you have cash then that is fine too.”

He said a 10m detonator cord cost a R1,000, while explosive gel cost R1,500. 

“It’s very expensive, but if we get lucky then we make lots of money, so it is OK.

“Every week we have to pay security guards. We work in operational mines. We pay them a lot, sometimes R10,000 a week not to tell the mine bosses where we are.

“If we come down a mine, with real mineworkers, we pay R20,000. My brother works in Carletonville. There it is more, but that’s because there is more gold underground.

“If we come down a ventilation shaft we pay our security R10,000 a shift. The people who lower us down with the ropes we pay R2,000. That does not include the money we pay the gang bosses to allow us to come back up.

“Everywhere you have to pay, but it is worth it because there is lots of gold here. I sometimes make R50,000 a month and that is after I have paid everyone I need to.”

An East Rand illegal miner said he could sometimes make R40,000 a month.

“Things are expensive this side, especially food and drinks. Coke is very expensive. A two litre will cost R700. If we get really lucky and find a big gold seam then we buy luxuries like KFC. But we can only afford that if we are really lucky. A [KFC] fiver costs nearly R2,000. It is crazy, but if we get rich then why not.

“To come into and out of the mines is expensive, but everyone who comes down here can afford it. We pay in gold when we don’t have money. We pay when we want anything. When we come out we make sure we have paid the guards otherwise they will make sure that we are robbed.

“We pay them sometimes R10,000.” 

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