By Redley Mugabe| IN-DEPTH INVESTIGATION|As Zimbabwe remains infamous for a $15Billion mineral cache that was “siphoned” out of the country by foreign diamond mining companies in Chiadzwa, billions more are disappearing from the country’s many gold mines with government watching and not doing anything about it.
A point in question is the collapsing of one of the country’s biggest gold mines Vumbachikwe Mine in Gwanda.
Previously owned by a local mining company Forbes and Thompson Zimbabwe Limited, the mine was sold to Duration Gold a company owned by a known mining mogul, Allan Brent Dolan who has a long history of mining and dumping a string of operations throughout Africa after “taking all the returns from the mines”.
The story of Vumbachikwe Mine is a very sad story as the mine which is amongst the top gold producing mines in Africa is on the verge of closing down within less than ten years of take over by Dolan’s Duration Gold.
For the first time since its mining operations began 112 years ago in 1904, workers have gone for over nine months without being paid their salaries. The mine used to boast of well large looked after properties in and around Gwanda but now the properties are all either falling down due to lack of maintenance or being sold out for way below market values.
A close check on the company, Duration Gold, which now runs the mines shows that the directors do not have a pleasant mining history in Africa where they have taken over several prosperous mines and drained them before eventually closing them down. The company which has operated in Sierra Leone and left unceremoniously is believed to be good at striking shady mining deals with government officials who allow them to take wealth out of the country before eventually dumping the mines.
High ranking sources at Vumbachikwe Mine revealed to ZimEye.com that since the take-over, Duration Gold is indeed living to its reputation and not ploughing gold returns back into the operations of the mine as all the money realised from the gold is taken out of the country.
According to the sources, the company has been enjoying a huge amount of protection from top government officials who are benefiting from the mine’s clandestine gold dealings.
 
Profit boost but financial problems
A classical case is that shows that in January 2015, the country co-ordinating project manager, Ollie Iversen told The Source that the miner was set for a massive increase in bullion output to 14,400 ounces of gold up from the 12,850oz realised in 2014.
But the company in the year was also forced to temporarily suspend operations early this due to non-payment of Zimbabwe Electricity Supply Authority bills and was petitioned by National Mine Workers’ Union of Zimbabwe over outstanding union dues they are supposed to remit every month.
It was also forced to close down for two weeks for failing to abide by an Environmental Management Agency order to line the carry at its dumps and for failing to settle $55,000 in fines.
Obert Mpofu and Saviour Kasukuwere
Duration Gold took over the mine from the seasoned Forbes and Thompson at a time when Obert Mpofu was Minister of mines and during that time Mpofu incidentally took over ownership of over half of the mine’s buildings in Gwanda town which the sources claim could have had something to do with the unregulated operations of Duration Gold at Vumbachikwe.
The mine has also been a challenge in terms of the country’s indigenisation laws dating back to a time when Savior Kasukuwere was the cabinet Minister in charge of Indigenisation.
According to the sources, management at the mine has previously told complaining workers that they have strong protection from top government officials and Kasukuwere is their personal friend so nothing will ever be done to them no matter how bad the mine operates.
President Mugabe recently shocked the world when he said that $15 billion disappeared from the country’s diamond mining operations as the money was syphoned out of the country. A similar set up is apparently brewing at Vumbachikwe mine and will only wait for government to mourn the mine when it eventually closes down the sources say.
ZimEye.com was at the time of writing awaiting an official response from the company, Ministers Saviour Kasukuwere and Obert Mpofu.