Question

Write a 200-250 word summary of this passage:

The Government’s Position on Illegal Mining

            Laws in South Africa prohibit any one without a license to mine or process gold. However, local authorities lack the manpower needed to properly monitor the thousands of abandoned mine shafts. The South African government is concerned that the large number of “freelance” miners, coupled with a decline in some sectors (e.g. gold) is having a significant negative impact on tax revenues. South Africa’s Chamber of Mines, an industry association, estimates that South Africa loses about 5% of its potential annual mineral production to illegal mining. This lost production is valued at around $2 billion. The government estimated that in 2010, it had lost approximately $500 million in tax revenues and [lost] export revenue due to illegal mining ⁸⁾. These lost funds could have been used to support much-needed social service programs for the country’s poor and unemployed.   

Answer 1

The position of the government with special regard to illegal mining.

Mining or processing gold in the absence of license is not permitted by laws in South Africa.There are thousands of deserted mine shafts in South Africa.One of the problems faced by local authorites in South Africa is paucity of manpower which may be required to efficiently keep track of the deserted mine shafts. In South Africa , there has been increase in the number of 'freelance ' miners . At the same time there has been decline  in some sectors of the South African economy . Mention may be made of the gold sector.The growing number of freelance miners, along with the fall in some sectors of the South African economy , led to the remarkable negative impact in the revenue earned through tax .According to an estimate provided by South Africa's chamber of mines, an industry association,the estimated loss to South Africa to illegal mining is recorded as 5% of the country's annual mineral production. The value of the lost production has been estimated to be around $2 billion . According to an estimate provided by the government of South Africa, the country in the year 2010 has been subjected to a loss in tax revenue of about $ 500 million approximately.South Africa lost export revenue due to illegal mining.This is a huge loss to South Africa as these funds could have been utilised to enhance the welfare of the people of the country through social service programs. This would go a long way to help the poor and unemployed.