The ManicaPost
Cletus Mushanawani
News Editor
GOLD mine concern, Redwing Mine, is under the spotlight for failing to remit taxes to Government as well as turning a blind eye to the free for all situation obtaining at their concession in Penhalonga.
Rampant illegal gold mining and processing have taken centre stage at the mine, where thousands of artisanal miners have set up bases, while more than 300 hammer mills now cover the length and breadth of Penhalonga.
A number of cyanidation sites have been set up in the area to process gold, with the majority of it allegedly finding its way to the black market.
While addressing thousands of people who converged at Beaulieu Primary School to celebrate Mutasa South legislator, Cde Misheck Mugadza’s victory during the March 26 by-elections, President Mnangagwa said modalities are being put in place to reclaim the mine from South Africa business magnate, Mr Mzee Khumalo’s Metallon Corporation Group.
Metallon Group owns Redwing Mine through its subsidiary, King’s Daughter Mining Company.
“I have heard that a free for all situation is obtaining at Redwing Mine and this is now a contagious issue. Mr Mzee Khumalo, a South African, bought many gold mines in the country, but he is not fully utilising them. As Government, we are now buying back most of the mines he had bought.
“As for Redwing Mine, Mr Khumalo has pegged exorbitant prices for its purchase, but we are in the process of engaging him over the issue.
“ We have since discovered that he has not been paying taxes, levies and royalties to Government. The locals are not benefitting from the mining activities there, so we want to acquire the mine and empower our local youths,” said President Mnangagwa.
He added: “We also heard that there is massive environmental degradation at and around the mine.
“The mine also has salary arrears. The salary arrears, land reclamation charges and 20 years of defaulted taxes will be deducted from his asking price.
“If we realise that there are still outstanding payments to be made to him, we will evoke the use it or lose it statutes. We will evoke the provisions of the law to determine whether you are using the mine or not and if not, you will lose the mine,”said the President.
Last month, the Supreme Court removed Redwing Mining Company from corporate rescue proceedings citing legal technicalities.
The court dismissed the locus standi of the Associated Mine Workers Union of Zimbabwe (AMWUZ) which applied for the corporate rescue while the notice of intention, also known as the standard notice to place the company under the reconstruction process, was not properly issued.
Redwing is one of the gold mines owned by Metallon, alongside How Mine near Bulawayo and Mazowe Gold Mine in Mashonaland Central.
With levels of disorganised mining reaching alarming levels, the Centre for National Resources Governance (CNRG) recently filed a petition to Parliament demanding to know if the Environment Management Agency (EMA) was monitoring the mine’s environmental compliance.
The petition was deemed admissible and was referred to the Portfolio Committee on Mines and Mining Development.
The committee recently toured the mine on a fact finding mission.
The area has become a death trap as no efforts are being made to fill up the disused shafts. There are also no danger warning signs on the abandoned mines.
Corporate rescue manager, Mr Knowledge Hofisi had already come up with a rescue plan which entailed settling liabilities, reconstructing the balance sheet and resumption of underground mining.
In a recent interview with the media, Mr Hofisi said the company needs US$6 million to restart production.
