Top chefs seize gold mines from small scale miners

In 2010 Shamva was the lowest-cost primary gold producer in Africa.

Staff reporter
SW Radio Africa
17th July 2014

The Daily News reported today that a parliamentary mining committee is touring the country in an effort to understand the impact of gold mining operations on local communities.

While in Shamva they were told by small scale miners that their mines and claims were being taken over by top ZANU PF politicians.

The newspaper quote one of the miners, Headman Kanengoni, who said: “We have senior politicians in the province coming to take over our gold claims, saying they have been given permits to mine by the ministry of mines.”

The miners said they were too frightened to name the politicians.

The Daily News also reported that one of the large mines in Shamva is facing a variety of problems. Shamva Gold Mine, which has been operating since 1893, was bought by Metallon in 2009. It’s is owned by South Africa businessman Mzi Khumalo, employs 900 workers and each year produces 33,000 tonnes of gold.

But Zenzo Nsimbi, one of the companies executives, said the company was struggling to remain viable and was owed $24 million by the Reserve Bank. Because of this it was finding it difficult to pay its workers.

The threat of indigenisation is also affecting the company, which needs new investment that has been stalled because of investor’s fears that their shareholdings will be taken away.



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