Government’s Claim to Curb Mineral Leakages Contradicted as Frozen Accounts Unleashed

In a startling revelation that raises questions about the sincerity of the government’s efforts to combat mineral leakages in Zimbabwe, the authorities have unfrozen the bank accounts of individuals implicated in the GoldMafia investigation. The GoldMafia investigation provided irrefutable evidence, including documented records and live video footage, of rampant smuggling and attempts to obfuscate illegal mining operations within the country.

The government’s contradictory stance was unveiled in a report that emphasized its commitment to implementing measures to curb mineral leakages, which have been draining the nation of substantial foreign currency inflows. Mines and Mining Development Minister Zhemu Soda asserted that the most significant leakages occur in the gold sub-sector, as well as other precious and semi-precious stones, through smuggling and diversion to the informal market.

It is estimated that these leakages cost Zimbabwe billions of United States dollars annually, a staggering economic loss that the nation can ill afford. Particularly alarming are recent reports of smuggling in the gold and lithium sub-sectors, with minerals being illicitly transported to countries like South Africa, Dubai, and China.

Furthermore, there have been reports of semi-precious stones, such as amethyst, aquamarine, and garnet, being illegally extracted by villagers in parts of the country like Hurungwe and Karoi in Mashonaland West Province. These valuable minerals are then sold to unscrupulous dealers who smuggle and export them in raw form, depriving Zimbabwe of potential revenues.

At the 2023 Mid-Term Performance Review and 2024 Strategic Planning Workshop held by the Ministry of Mines and Mining Development, Minister Zhemu Soda vowed that the government would continue to take measures to combat mineral leakages. He emphasized the need to capacitate the metallurgy laboratory and enhance gold mobilization exercises to boost gold deliveries to Fidelity Gold Refiners.

Additionally, Minister Soda pledged that the ministry, together with the MMCZ (Minerals Marketing Corporation of Zimbabwe) and other relevant government departments, would conduct a concerted effort to curb mineral leakages. Minerals constitute over half of Zimbabwe’s export revenue, with gold and platinum alone accounting for half of the total annual export earnings.

Last year, Zimbabwe produced 35.3 tonnes of gold, and this year, stakeholders aim to achieve 40 tonnes. The mining sector plays a crucial role in achieving the goals of Vision 2030, positioning Zimbabwe as an upper-middle-income economy.

To further develop the mining sector, Minister Soda announced plans to create curricula focused on critical minerals and precious stones like gemstones. This initiative aims to cultivate the necessary skills for mineral development, especially in light of the discoveries of lithium, gas, and oil resources within the country.

Moreover, the ministry intends to engage with global bodies to enhance governance within the mining sector, thus improving transparency and accountability.

While the government appears determined to address mineral leakages, the decision to unfreeze the bank accounts of individuals implicated in the GoldMafia investigation casts doubt on the sincerity of these efforts. The contradiction raises concerns about whether Zimbabwe can effectively combat the illicit trade in precious minerals that is depriving the nation of substantial revenues.- Agencies/State Media