Potential supply-chain risks from sand mining require construction companies’ attention

Sand mining is the process of extracting sand from the earth, typically from rivers, beaches and dunes. According to the UN, sand is one of the most heavily extracted natural resources in the world, second only to water, reflecting its use in construction materials as well as land reclamation and glass manufacturing globally. Contrary to popular belief, sand is not inherently a renewable resource. Despite being able to be replenished naturally, replenishment occurs far more slowly than extraction rates. The UN has estimated that demand for sand has reached an estimated 40-50 billion tonnes each year.

In South Africa, the extraction of sand is particularly relevant due to the country’s infrastructure needs and ongoing development projects, with recent market analyses showing that rapid urbanisation and infrastructure expansion are the primary drivers of South Africa’s high demand for sand and gravel. 

South Africa’s long coastline and extensive river systems mean that sand is widely available, particularly in riverbeds and streams. The ease of accessibility has made river sand especially attractive to small-scale or artisanal miners, as it is generally easier and more cost effective to extract compared to other mineral resources, such as quarried stone and other hard rock materials.  

South Africa’s sand industry is made up of both commercial operators and a large number of small-scale, artisanal and illegal miners. While formal operators extract larger volumes overall, their activities tend to be regulated and usually occur outside active river channels. By contrast, artisanal and illegal miners often extract directly from rivers, particularly in rural areas where monitoring capacity is limited.

Excessive and illegal sand mining can cause the degradation of riverbeds, the destabilising of riverbanks, exacerbating river currents and promoting erosion of riverbanks and increasing riverbank instability. The disruption of natural water flows further serve to undermine water security in a country already characterised by low rainfall and increasing water demands. The problem of illegal sand mining was highlighted by the Parliamentary Portfolio Committee on Mineral and Petroleum Resources earlier this year. It raised concerns about the escalating illegal extraction of natural sand in the Eastern Cape and KwaZulu‑Natal.  

The current situation also needs to be couched with the knowledge that, for many rural households, sand mining can offer immediate income in a constrained economy with few opportunities. Sand is easily accessible, requires minimal capital outlay and for many, is their only means of survival. That said, while communities will gain access to small amounts of cash, long-term impacts on water stability can mean loss of arable farmland, communal land, and access to clean water, thereby weaking the long-term resilience of the communities that depend on those rivers.

South Africa’s artisanal and small-scale mining policy was published in 2022, meaning artisanal mining is now subject to a legal framework with its own permits, defined areas and oversight. Despite this, gaps in enforcement still mean infrastructure businesses should move to address risk-exposures associated with sand mining in South Africa themselves.

Despite steps taken to regulate illegal or small-scale sand mining, the risk of construction companies and developers utilising unsustainably-sourced or unlawfully-procured sand remains real. Clients should audit sand supply chains to ensure they are not indirectly purchasing sand removed unlawfully from rivers. Licensing and environmental compliance of suppliers should be verified too, and long‑term water and infrastructure risks for projects linked to degraded river environments should also be assessed.

Clients should further engage with affected communities and support sustainable, compliant extraction practices to reduce conflict and improve resilience, as well as monitor policy developments and anticipate stricter enforcement as parliamentary oversight continues.

Co-written by Itumeleng Nkosi and Margo-Ann Werner of Pinsent Masons.