A protracted mining dispute has intensified over Mining Lease 21, a 1,585-hectare concession held by Freda Rebecca Gold Mine, an asset under the Mutapa Investment Fund’s Mutapa Gold Resources, after authorities accused Side Electrical (Private) Limited — trading as Botha Mine — of operating beyond its legally authorised boundaries.

The conflict has drawn intervention from regulators including the Environmental Management Agency (EMA) and the Mining Inspectorate, both of which have issued suspension and shutdown orders amid allegations of illegal mining activity.

At the centre of the dispute is Botha Mine, whose directors include Themba Hlongwani, and competing claims over the status and extent of rights within Mining Lease 21.

Lease Status Contested

Botha Mine has maintained that Freda Rebecca abandoned Mining Lease 21 in 2001, arguing that the area became open for occupation.

However, official mining records contradict this position.

Documents from the Mining Cadastre System show uninterrupted annual payments and continued registration of the lease. Survey Diagram SG1845/1994 confirms that the concession boundaries have remained unchanged since issuance.

A January 2022 Ministry of Mines invoice further records payment of US$4,041,750 in inspection fees linked to the same lease.

Under the Mines and Minerals Act, abandonment can only occur through formal cancellation by the Mining Affairs Board — a process authorities say has never taken place.

A 2015 High Court judgment frequently cited by Botha Mine (HH 839-15) addressed employee housing disputes rather than mining title ownership.

Ministry Affirms Valid Lease

In a sworn affidavit, Provincial Mining Director Tendai Kashiri stated that Botha Mine never acquired mining rights within Mining Lease 21.

“The 1st Respondent has never acquired mining rights within the boundaries of Mining Lease 21,” Kashiri said, adding that the company’s rights are limited strictly to four registered Botha certificates.

According to the Ministry, Mining Lease 21 remains valid, active and in good standing, covering approximately 1,586 hectares.

Alleged Illegal Mining and US$40 Million Claim

Authorities say Botha Mine’s legally recognised claims cover only 31 hectares, yet inspections allegedly revealed operations extending well beyond those limits.

Government-linked entities estimate that about 271 kilograms of gold, valued at roughly US$40 million, may have been extracted from the disputed area.

The Ministry warned that mining outside registered boundaries violates Section 5 of the Gold Trade Act.

“Any mining activity conducted by the 1st Respondent within the Applicant’s Mining Lease 21 would constitute mining outside their registered boundaries,” the affidavit states.

Encroachment Findings and Court Orders

Survey assessments indicate that Botha Mine’s operations extended onto nearly 160 hectares inside Mining Lease 21, including parts of the Phoenix Prince Mine area.

A 2025 survey note reportedly identified several shafts falling within territory allocated to Freda Rebecca.

Courts have since issued multiple orders restricting activity.

A Bindura Magistrates Court ruling directed Botha Mine to immediately cease all mining operations outside its registered claims and remain within its authorised 31-hectare footprint.

In April 2026, a separate High Court application filed by Botha Mine was dismissed after the applicant failed to appear, reinforcing earlier legal setbacks.

Regulatory Shutdowns

The Environmental Management Agency suspended operations at the Guilder Treasures processing plant following alleged environmental violations, including unlicensed chemical use and land disturbance.

The Mining Inspectorate also halted operations at several sites, citing safety risks and suspected unauthorised mining activities.

Employment Dispute Adds New Dimension

The dispute has also exposed internal tensions within Botha Mine.

A 2025 termination agreement shows the company acknowledged owing former manager Angel Mpofu-Chisvo US$1.2 million in unpaid salaries and benefits, part of which was reportedly settled in gold ore.

Mpofu-Chisvo has since taken up a role as Project Manager at Navid Incorporated — the firm contracted to secure the Phoenix Prince Mine area allegedly encroached upon by Botha Mine.

Dispute Remains Unresolved

With regulatory suspensions in force, overlapping legal claims, and ongoing court proceedings, the future of Mining Lease 21 remains uncertain.

Authorities maintain that Botha Mine operated beyond its lawful mandate, while Freda Rebecca Gold Mine continues to assert full ownership and control of the concession as the matter moves through the courts.