By Staff Reporter
The Ministry of Mines and Mining Development has moved to decisively settle the dispute over Mining Lease 21 (ML21), telling the High Court that Freda Rebecca Gold Mine (FRGM) holds full rights to the lease, while Side Electricals (Private) Limited, trading as Botha Mine, has “never acquired” any mining rights within it.
In a notice of filing to the Court Application for a Declaratory Order and Consequential Relief dated 22 April, Mashonaland Central Provincial Mining Director Tendai Kashiri states the Ministry is “not opposed to the application” by FRGM, but is before the court “to submit the correct position of the mining rights in question.”
“However, as the statutory custodians of the administration of mining rights in terms of the Mines and Minerals Act [Chapter 21:05], we hereby submit the correct position of the mining rights in question to assist this Honourable Court in reaching a just decision. 3. Our office clarifies the status of the mining rights and titles in respect of the Applicant and the 1st Respondent as follows:….”
The Ministry lays out a clear distinction between the two parties’ holdings, confirming that Botha Mine’s claims — Botha 1 to 4 — “cover a total area of 31 hectares,” and are separate from FRGM’s lease.
By contrast, FRGM’s Mining Lease 21 is confirmed as significantly larger and legally intact.
“The Applicant is the holder of a mining lease known as Mining Lease 21 measuring 1,586 hectares… The mining lease is current and in good standing,” reads the affidavit.
The Ministry dismissed claims that the lease was reduced, stating there is “no record of the Mining Affairs Board ever proceeding to authorise the decrease” of ML21.
As such, it concludes, “the lease remains legally valid in its full original extent.”Crucially, the affidavit shuts down any argument of overlap.
“We confirm that the 1st Respondent has never acquired mining rights within the boundaries of Mining Lease 21,” the Ministry states, adding that Botha’s claims “are strictly limited” to its registered blocks and “do not include any portion” of the lease.
It further stresses that the two operations exist on “distinct and separate registered mining locations.”
In strong terms, the Ministry warns that any encroachment would be unlawful.
“Any mining activity conducted by the 1st Respondent within the Applicant’s Mining Lease 21 would constitute mining outside their registered boundaries,” it states, adding that such actions “amount to a violation of Section 5 of the Gold Trade Act [Chapter 21:03].”
The court action follows allegations by FRGM that Botha Mine encroached onto about 119 hectares within ML21 and carried out illegal mining operations at Phoenix Prince Mine, including engaging artisanal miners and collecting a share of gold production.
The legal clarification follows serious allegations by FRGM that Botha Mine encroached onto 119 hectares within ML21 and conducted illegal mining at Phoenix Prince Mine.
The activities reportedly involved engaging artisanal miners and collecting 30% gold tributes.
Mutapa Gold Resources estimates that about 271 kilogrammes of gold, valued at approximately US$40 million, was extracted from State-controlled ground, raising potential tax implications.
The Ministry’s position also settles uncertainty for artisanal miners, confirming that only Navid Incorporated is authorised to operate at Phoenix Prince Mine under an existing court order.
