Up to eight kilogrammes of gold worth over US$600 000 were this week estimated to be vanishing from claims under the control of an alleged politically-connected firm illegally exploiting the metal in Penhalonga, in the latest episode of the plunder of a region grounded by muscle flexing.
This translates to about US$35 million being spirited from the claims annually by a firm linked to political heavyweights.
One kilogramme of gold was valued at US$83 100 in some markets this week.
Gold-rich Penhalonga lies close to the Marange diamond fields in Manicaland.
Marange became a flashpoint of looting and shocking human rights violations from 2006, following huge discoveries that attracted thousands of artisanal miners.
However, a semblance of order returned after former mines minister Walter Chidhakwa moved to kick out private firms from the area in 2016, before setting up the state-controlled Zimbabwe Consolidated Diamonds Company.
But pockets of pillage and theft had, at the time, already emerged in Penhalonga, which today bears the brunt of laxity in the enforcement of policies by state agencies.
In a report released last week, the Centre for Research and Development (CRD) said apart from plunder, smuggling kingpins were taking advantage of legal gaps to siphon Zimbabwe’s gold.
- Villagers take on Chipinge council
- Securocrats, Zanu PF bigwigs in illegal mining
- ‘Politically-connected firm siphoning US$35m from Penhalonga gold claims’
- A breeding ground for another bloodshed
Keep Reading
“On the contrary, (the company) was conducting open cast mining in Mutare River in an area where DTZ and artisanal miners had not mined,” CRD said in its report titled: ‘Is the Government Shielding Criminal Mining Syndicates from Accountability in Penhalonga?’
“Sources close to (a company)’s mining activities told CRD that a minimum of 8kg of gold were produced weekly from their mining operations. CRD interviewed revenue collection authorities in Mutare and discovered that the mining syndicates were not paying taxes.
“The authorities indicated that they could not charge taxes on illegal mining operations. At Fidelity Gold Refinery (FGR) in Mutare, authorities confirmed knowledge of commercial alluvial gold mining operations in Mutare River but were not aware of where the gold was going,” CRD noted.
Zimbabwe banned riverbed mining on August 21, 2024.
But CRD said the policy has not been supported by full proof legal enforcement.
“Residents complained that the mining activities were near their residential areas in violation of Section 31 of the Mines and Minerals Act, and Statutory Instrument (SI) 172 of 1989, which prohibits mining within 450 metres of residential areas,” CRD said.
“The illegal miners were also in violation of S1 268 of 2018, which forbids setting plants without EIAs (environmental impact assessments) and S1 258 of 2018 on control of hazardous substances. “Responding to growing complaints from residents, the Environmental Management Agency (EMA) had earlier on June 12, 2024 ordered one of the illegal mining syndicates (name supplied) to stop all mining operations in Mutare River.
“EMA’s order pointed out that (the firm) was conducting alluvial mining without a valid EIA license from the agency in violation of section 97(2) of EMA Act 20:7 and written consent from the Ministry of Environment, Climate and Wildlife Management in terms of Section 3(1) of SI 104 of 2021.EMA’s stop order did not count as (the company) continued mining in the Mutare River,” CRD noted.
The Zimbabwe Independent reported last week that the protracted plunder of gold in the country’s mineral-rich eastern districts has flourished through back-up from corrupt moles in strategic government agencies acting as spies for “notorious” cartels.
CRD said planned raids to fish out smuggling kingpins had flopped along the decimated Mutare River because they were being tipped off to flee by their moles.
The paper said, acting on supplied information, syndicates moved equipment to hideouts before security agencies raided, only trooping back once signals to return were received.
It is a “cat and mouse game” estimated to have cost the eastern district over US$554 million during a period spanning four years, according to the report.
It queried government’s lack of action and named known ruling Zanu PF activists among those at the heart of self-enrichment schemes.
Zanu PF has denied knowledge of such pillage by its supporters.
Flashpoint for the illegal mining and illicit trade include Redwing in Penhalonga, which became an epicentre after a South African tycoon who held title to the goldfields pulled back in 2020, opening the floodgates for unrestrained corruption.
“The CRD is deeply concerned that recurrent state security operations in Mutare River have been sparing criminal gold mining syndicates from arrest and accountability,” CRD said.
