Chinese Investor Convicted for $875K Gold Theft

A Mutoko court has convicted Chinese investor Zheng Zhangxian for stealing gold ore (image source)

A Mutoko Regional Magistrates Court has convicted Zheng Zhangxian, owner of Reajin Enterprises (Pvt) Ltd, for illegally mining and stealing 5 000 tonnes of gold ore valued at US $875 667.67 from small-scale miner Emmanuel Ndemera at Makaha, ordering major restitution and a fine under Section 113(1)(a) of the Criminal Law (Codification and Reform) Act.

Magistrate T. Mugadza handed down the verdict on 8 September, imposing a US $3 000 fine and directing Reajin Enterprises to pay full restitution. The ruling highlights systematic encroachment on Ndemera’s Koodoo 83 claim since May 2023, when Mines Ministry surveys discovered a 75-meter haulage tunnel extending under his block.

“The tunnel was advancing beneath my claim, night and day,” says Emmanuel Ndemera, wiping tears. “Years of sweat vanished in months.” Samples from the discovered ore dump returned an average grade of 3.5 g/tonne, underpinning the US $876 000 valuation by a court-appointed mission in January 2024.

Records from the Mines Ministry reveal Reajin Enterprises operated via Takura Mining Syndicate in partnership with local businessman Vengai Kurarama, violating the Zimbabwe Investment Development Agency’s requirement that foreign investors register formal companies. Provincial mining director Tendai Kashiri’s September 2023 letter to police described deliberate underground encroachment and unlicensed processing at the Zhangveng Milling Plant.

A parallel Zimbabwe Anti-Corruption Commission (ZACC) probe uncovered that Mines Ministry inspector Antony Singende accepted a US $350 bribe to curtail the investigation. Singende was dismissed in November 2024 and now faces charges at Marondera Magistrates Court.

“Companies must not be above the law,” says ZACC commissioner Tendai Chikohora. “This conviction sends a message that illegal mining and graft will be punished.”

Zimbabwe’s small-scale gold sector contributes nearly 15 percent of annual production, employing over 200 000 miners. The ministry’s 2024 report estimates illicit mining and smuggling cost the country US $300 million in lost revenue. Analysts warn that high-profile theft cases erode trust among legitimate small-scale operators and deter ethical investors.

“This was not an isolated incident,” warns mining consultant Robert Chikowore. “Weak enforcement and syndicate networks enable large-scale pillaging of community assets.”

Villager testimony underscores human-interest dimensions: families forced to abandon homes after blasting triggered by the tunnel caused structural cracks. Local health clinics reported a spike in respiratory ailments linked to dust from Zhangveng plant operations.

Reajin’s legal representative has 14 days to appeal. Meanwhile, Ndemera hopes to reclaim his mine and resume operations. “I just want justice—and to work my claim in peace,” he says.

The case sets a precedent for small-scale miners asserting their rights and highlights the need for robust governance of foreign investment. Observers will watch whether Chitambara’s reforms lead to better oversight or remain on paper.