Workers seize assets of Zimbabwean mine

Workers have seized the assets of a gold mine near Mberengwa in southwestern Zimbabwe.

At presstime about 300 workers had taken control of Procter Metals stamp mill in response to alleged provocation by the Zimbabwean government led by President Robert Mugabe. Procter was the only mine to be seized.

The Associated Mineworkers Union told the Zimbabwe Standard, an independent newspaper, that the government wanted to take advantage of the problems in the gold sector to “drive out foreigners,” or non-black entrepreneurs.

The Chamber of Mines in Zimbabwe said it had heard no official reports.

The Standard reported that Mugabe, during his February election campaign, had claimed gold producers were deliberately closing down in an effort to overthrow his beleaguered government through worker revolt.

Last month, Falcon Gold announced it would close three of its mines and lay off 300 employees in Zimbabwe. The company claimed its profit had been cut by Zimbabwe’s fixed foreign exchange rate and had no money left to find new reserves.

Mine closures by global gold producers such as Australia’s Aurion Gold and Toronto-based First Quantum Minerals have reduced by one-third the output of Zimbabwe’s second-biggest export earner. Gold production in the country fell 35% in just two years, to 18 tons in 2001 from 27.7 tons in 1999.

The chamber said no more mine seizures were planned.