Home Latest News Allegations of Corruption and Disputes Over Mining Rights Roil Mpika District

Allegations of Corruption and Disputes Over Mining Rights Roil Mpika District

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By Linda Soko Tembo & Nelly Mukololo

Numerous irregularities have beset the operations of the Kanyelele gold mine, situated in Mpika district within Muchinga Province, northern Zambia, resulting in the arrest of six indunas representing two chiefdoms opposed to the mine.

They were arrested after Chiefs Chikwanda and Luchembe dispatched them to the mine to monitor the situation following a significant rumour that Unicorn Logistics Zambia Limited, a company granted an exploration mining license by the Ministry of Mines and Minerals Development, was extracting soil from the mine and processing it outside the designated mining area.

The mine is abundant in gold, yet the community has not reaped the rewards of its excavation.

Despite the government’s determined efforts to cease illicit mining within the mine’s territory, conflicts have arisen with Unicorn, a company granted an exploration mining license by the Ministry of Mines without the chiefs’ consent.

Police confirm arrests

Deputy Police Public Relations Officer Danny Mwale confirmed that on Friday, February 23, 2024, at 23:00hrs, officers at TAZARA Mpika Division were dispatched to the Kanyelele gold mine area following reports of suspects attacking and damaging two motor vehicles belonging to Unicorn.

Mwale stated that upon reaching the location, officers conducted a thorough inspection of the suspects’ shelters and successfully arrested 24 suspects, comprising 20 males and four females, who were then brought to Mpika and detained.

He further confirmed that six indunas were also arrested but were subsequently released after receiving severe warnings, as the complainant withdrew the charges against them for allegedly inciting and proposing violence, which resulted in the malicious damage of two Unicorn vehicles and the blockade of the gravel road leading from the excavator mining area to the Mpika/Kasama main road.

“For the other 18 suspects, (the) matter was reduced to conduct likely to breach the peace and they all paid admission of guilty and receipts issued accordingly,” he added.

Makeshift homes for illegal miners who have established a camp in the area.
Tight security at the mine

During a visit to the mine by a MakanDay reporter, it was observed that Unicorn had protected the area with fully armed police officers, while the “Sunday Special Security Company” conducted patrols to prevent local residents from engaging in unauthorized mining activities. This situation has forced illegal miners to resort to nighttime operations, putting themselves at considerable risk.

A leader of one of the cooperatives registered in Mpika district, consisting of 31 members who preferred to remain anonymous, outlined their adherence to the government’s stipulated procedure for those interested in mining at the Kanyelele gold site after being displaced from the mine the previous year. Despite their compliance, mining activities have yet to commence.

“It appears there is a lack of agreement between them. With approximately 40 cooperatives registered in Mpika, we are all awaiting consent letters from the chiefs. We aim to comply with the law and proceed with mining operations accordingly,” he added.

He noted that no cooperative is collaborating with Unicorn, and only illegal miners operate in the area without supervision.

“The government’s failure to regulate the situation at the gold mine has left it vulnerable to potential risks,” they emphasised.

Interviews with some illegal miners revealed their frustrations with Unicorn’s presence, alleging the company lacks a mining license and consent letter from the chief, relying solely on an exploration license that doesn’t permit current mining activities using heavy earth-moving equipment.

The illegal miners expressed dismay over police brutality towards them while protecting the investor, alleging corruption among officers who purportedly accept bribes from illegal miners, allowing them to operate at night after paying a non-refundable fee of K1,000.

Sikombe Abraham, one of the illegal miners, recounted an incident on February 26, 2024, where they were subjected to physical assault, robbery of gold nuggets, money, phones, and other belongings by police officers, describing the officers’ behaviour as inappropriate.

Some of the individuals engaged in “illegal mining,” searching for gold.
No response from the Ministry of Mines and mine company

Efforts to reach out to the Ministry of Mines and Unicorn have proven futile, as they have not responded to our press inquiries.

However, on November 21, 2023, a coordinate operation involving the Department of Immigration, and the Drug Enforcement Commission in Muchinga Province was conducted in the Kanyelele area. The operation aimed to halt all ongoing illegal mining activities in the region and arrested any illegal immigrants involved.

Mpika District Commissioner David Siame confirmed that Unicorn had been granted an exploration license the Ministry of Mines and was engaged in exploration activities at the Kanyelele gold mine. He also acknowledged the ongoing presence of illegal mining operations in the area.

“I can confirm that Unicorn is the company authorized with the exploration license, and the area is now under protection by Tazara police,” Siame said.

Additionally, he informed MakanDay of the emergence of a new gold mine within the district, specifically in Kapamba Ward, with reports of illicit activities. He said the police were mobilising to intervene and halt these “unlawful operations”.

When questioned about the lack of formal acknowledgment from local chiefs regarding Unicorn’s presence, Siame refrained from commenting, citing his inability to do so. He emphasised that conflicts between chiefs and investors were not unique to Mpika but were widespread across various parts of the country.

Siame noted the presence of a cooperative at the mine called “Mutamba Cooperative,” which operates alongside Unicorn. However, he admitted to being unaware of the full extent of their collaboration.

In response to concerns about miners’ rights being violated, Siame confirmed reaching out to the Human Rights Commission to provide assistance and support to these affected individuals on the ground. 

The chiefs speak out

Chilufya Mulenga, a representative of Chief Chikwanda’s administration (Chief’s Retainer) in one of the chiefdoms Kanyelele mine is situated, informed MakanDay that the chiefs have not granted consent for Unicorn to begin exploration operations.

He clarified that discussions between the chiefs and Unicorn are ongoing, highlighting concerns about the apparent lack of transparency and honesty in Unicorn’s engagement with the community.

“Unicorn and the chiefs have not agreed on anything, as Unicorn appears illusive, failing to uphold truthfulness in their actions and statements,” Mulenga remarked.

Rumours circulating among the locals suggest a deeper entanglement, alleging top politician’s involvement through undisclosed shares in the mine, which might explain Unicorn’s disregard for the authority of the two Chiefs,” he added.

Chilufya informed MakanDay that a meeting between the chiefs and the investor Unicorn was scheduled for March 2, 2024. However, just before the meeting could take place, Unicorn complicated matters by arresting six of the indunas, three from Chief Chikwanda’s domain and three from Chief Luchembe’s.

“The Bemba chiefs in Muchinga Province were instructed by Mwine Lubemba, Paramount Chief Chitimukulu Henry Kanyanta Manga Sosala II, to collaborate. These include Chief Chikwanda, Chief Luchembe, Chief Mukwikile, Chief Mpepo, and Senior Chief Nkula.

It is for this reason that Chief Chikwanda and Chief Luchembe sent six indunas to the mine, who ended up being arrested by the police on instructions from Unicorn and detained them for two nights.

Chilufya said the arrest of the indunas has heightened tension between the chiefs and Unicorn.

Unicorn’s directors include two Indians – Ammuthan L. George and Arvind Kumar Mittal, along with Dharmesh Patel, a Zambian national of Indian origin, and Atul Mittal, a Tanzanian national. Patel, Atul Mittal, and Kumar Mittal also serve as beneficial owners.

MMPG Limited, with its principal address at 6th Floor, Nexteracom Building, Ebene Mauritius, is listed as a shareholder. Its status as an international company is apparent, given the absence of additional details in the PACRA records.

During MakanDay’s visit to the mine, fully armed police officers were observed manning the area, along with security officers from the Sunday Special company. Additionally, three heavy machines belonging to Unicorn company were present at the mining site, indicating ongoing mining activities.

Additional reporting by Nelly Mukololo, a journalist based in Mpika


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