Online Reporter
Fungai Lupande
Mashonaland Central Bureau
THE Ministry of Mines and Mining Development has endorsed Freda Rebecca Gold Mine Limited’s claim to exclusive mining rights over Mining Lease 21, telling the High Court that rival operator Side Electrical (Private) Limited has no legal authority to operate within the concession.
In sworn papers filed by the Provincial Mining Director for Mashonaland Central, the Government states it is not opposing Freda Rebecca’s application for a declaratory order, instead positioning itself as a neutral statutory custodian placing facts before the court.
At the centre of the dispute is Mining Lease 21, a gold concession covering 1 586 hectares.
According to the Ministry, the lease remains valid and intact despite a 2002 General Notice that had proposed reducing its size. This means that the proposed reduction was never approved by the Mining Affairs Board and therefore holds no legal effect.
“The lease remains current and in good standing,” the affidavit states, affirming Freda Rebecca’s full control of the entire area.
In contrast, Side Electrical, trading as Botha Mine, holds four mining certificates, Botha 1 to 4, which together cover just 31 hectares. The Ministry is categorical that these claims are located outside ML21 and have never conferred rights within Freda Rebecca’s lease.
The Ministry was not aware of the existence of any mining right over any portion of ML21 held by Side Electrical, the filing reads.
The clarification deals a major blow to Side Electrical’s position in the ongoing legal battle, particularly amid allegations that the company encroached on ML21 and conducted mining operations at the Phoenix Prince Mine.
Freda Rebecca, which operates under Mutapa Investment Fund, has accused Botha Mine of unlawfully extracting gold from the concession and engaging artisanal miners under tribute arrangements. The company claims up to 271 kilogrammes of gold, valued at approximately US$40 million, may have been taken from the area.
Should it be established that Botha Mine benefited from tribute arrangements yielding the alleged 271 kilogrammes of gold without properly accounting for the proceeds, this could trigger significant tax implications.
Under Zimbabwean law, proceeds from gold sales are subject to Value Added Tax (VAT) and other statutory obligations administered by the Zimbabwe Revenue Authority. Failure to file the requisite representative VAT returns or declare such income could expose the operator to penalties, interest, and possible prosecution for tax evasion.
In addition, any undeclared production would likely raise red flags around compliance with the Gold Trade Act and broader financial reporting requirements, compounding the legal risks already surrounding the disputed mining activities.
While these allegations are yet to be tested in court, the ministry’s position underscores that any such activity within ML21 would be unlawful.
Mining outside registered boundaries constitutes a violation of the Gold Trade Act, exposing offenders to legal consequences.
The case also has implications for artisanal miners operating in the contested zone.
