One South African gold miner unveils a never-before attempted plan to deal with illegal mining at its operations

Get the Full StoryReuters Mike HutchingsSmall-scale mining is a growing issue across Africa. With regulators in Ghana this week making their first moves to shut down artisanal operations part of an emerging campaign against environmental damage.

And in Africa s top gold-producing nation, South Africa, things are getting even more serious. With one of the country s top miners unveiling a never-before attempted strategy to deal with informal and illegal gold mining at its operations.

That s Sibanye Gold. Which said over the weekend it is moving to completely drive out small-scale miners from its South African mines.

Sibanye s management said they are setting a goal to have all illegal miners cleared out by next January. Making the company the first-ever in South Africa to implement such a zero tolerance policy.

This a critical gauntlet being thrown down. With illegal mining being a rampant problem across South Africa s gold sector often carried out by well-organized and well-funded gangs, who rob gold ore from active shafts at big mines.

To get rid of them, Sibanye is dedicating significant resources. With a budget of 200 million rand 15 million set aside by management for programs like rewarding whistleblowers and installing high-tech check points at mine entrances to keep out illegal miners.

The move is potentially a big one economically for Sibanye. The company hasn t released estimates of its specific losses from illegal mining but a recent study from the South African Chamber of Mines pegged losses from stolen gold for the mining sector as a whole at a stunning 1.5 billion.

That suggests a successful campaign could make a huge difference to Sibanye s bottom line. Which in turn could help revitalize operations for the company, and perhaps other South African miners who might follow Sibanye s example.

The move also shows just how desperate South Africa s miners are getting in trying to restore profitability. Watch to see how effective Sibanye s fast-unfolding campaign will be and if this can indeed give a lift to the company, and the wider gold mining sector.

Here s to going clean.NOW WATCH: Animated map of what Earth would look like if all the ice melted

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