HERALD

Botha Mine dispute comes under fresh scrutiny

Court Reporter

THE ownership and management of gold-rich Botha Mine in Bindura have come under renewed scrutiny following a High Court application by a shareholder seeking to challenge company transactions and clarify the control of the mining operation.

The dispute has also revived questions about the future of mining claims initially associated with efforts to create economic opportunities for women and youths in the area.

Mr Tendai Chinyani, a shareholder in Side Electrical (Private) Limited, which trades as Botha Mine, has approached the High Court seeking relief against former executive chairman Temba Kingsley Hlongwani and other company officials over alleged irregularities in the management of the business.

According to Chinyani’s founding affidavit, Botha Mine struggled to attract sufficient investment around 2015, prompting shareholders to seek financial assistance to improve production and profitability.

He alleges that subsequent investment arrangements resulted in substantial changes to the company’s shareholding, with entities associated with Hlongwani, including Jiwe Gold (Private) Limited and Sendoyi Trust, receiving a combined 1 110 of the 2 000 issued shares.

The allegations are yet to be determined by the court. Mr Chinyani is also challenging a gold-processing agreement involving Ouro Tanque (Private) Limited, which he alleges resulted in more than US$3 million being taken from the mine’s gold-processing activities.

The agreement, reportedly signed in April 2022, provided for Ouro Tanque to receive 30 percent of profits after processing costs.

However, Mr Chinyani alleges that the arrangement was implemented differently, with the company receiving approximately 33 percent of total revenue without deducting expenses.

He is seeking cancellation of the agreement and an order preventing its further implementation. The court will determine the issues raised in the application.

The dispute has drawn attention to the history of the mining claims and their links to community empowerment initiatives in Bindura.

Documents previously seen by this publication indicate that Kitsiyatota was registered as mining claim number 41158BM, covering 31 hectares, before the area was divided into four gold blocks operating under Side Electrical.

Women and youths in Bindura have previously campaigned for greater access to mining opportunities, arguing that the claims should contribute to local livelihoods and economic empowerment.

In June this year, following the death of liberation heroine Cde Concillia Gonzo, who had championed their cause, women and youths renewed calls for their interests to be protected.

The dispute has also attracted the attention of the Zimbabwe Empowered Youths United in Major Economic Sectors Acceleration (ZEYUMESA).

In a letter dated February 27, 2025, the organisation’s chairperson, Tariro Chidavaenzi, raised concerns with the Provincial Mining Director and the Permanent Secretary in the Ministry of Mines and Mining Development over the demarcation of Side Electrical’s Botha 1, 2, 3 and 4 claims.

The correspondence also raised issues surrounding mining activities and financial dealings that the organisation said required clarification.

Meanwhile, Side Electrical announced in a public notice dated October 21, 2026, that Hlongwani’s tenure as managing director had ended with effect from October 20, following a shareholders’ meeting.

The company said he was no longer authorised to represent it or enter into commitments in that capacity, adding that mining operations and contractual obligations would continue under established management structures.

The latest developments have renewed calls for transparency over the mine’s ownership, management and operations.

However, the shareholder dispute does not, on its own, establish that the claims legally belong to the community. Their ownership and the rights of the various parties must be determined through the relevant mining records, company documents and legal processes.