Chinese Gold Syndicate Exposed In US$10m Zimbabwe Smuggling Scandal
A Chinese-run mining syndicate is at the centre of a US$10 million (R183 million) gold scandal after declaring less than 4kg to authorities while allegedly smuggling over 120kg onto the black market in under two years.
According to the Herald on 21 October 2025, the scandal has shaken Zimbabwe’s Midlands Province after investigators unearthed a network of undeclared smelting and exports linked to Dubai and China.
A web of companies and hidden smelts
Podhill (Pvt) Ltd, based in Kwekwe’s Silobela gold belt, is accused of disguising large-scale smuggling as legitimate mining. The company is majority-owned by Chinese businessman Mr Zuo Wenzhong through Generous Resources (Pvt) Ltd, which controls 95 percent of Podhill’s shares.
The Herald reported that Podhill declared less than 4kg of gold for 2024. However, internal documents showed that more than 3 000kg of ore was processed monthly, with multiple smelts conducted off the record.
In December 2024 alone, Podhill’s CIP carbon processing line reportedly produced up to 1 500 grammes per batch. Sale notes indicated transactions of around US$16 000 (R293 000) each, mostly handled by a partner identified as Talib.
One insider told investigators:
“Zuo instructed workers to smelt quietly and move shipments without record.”
Millions bypassed official channels
While official sales to Fidelity Printers and Refiners barely reached 300 grammes in December 2024, private ledgers revealed far more. Transaction records between December 2023 and May 2024 showed over 16 000 grammes sold outside official channels. By the end of 2024, more than 34kg had also been siphoned off, pushing undeclared sales above 120kg — valued at US$10 million (R183 million).
Heap leaching operations in mid-2024 reportedly produced at least US$117 000 (R2.1 million) per smelt run. But investigators say none of this was declared to the Reserve Bank of Zimbabwe or tax authorities.
The Herald further noted that flotation amalgam sales, consisting of small but pure gold batches, were sold privately at US$70 (R1 280) per gramme — well above the official rate — to undisclosed foreign buyers.
The network under scrutiny
The scandal has drawn in several figures. Besides Mr Zuo, the report names general manager Mr He Huayang and director Mr Duan Yuanbin as key operatives. They allegedly worked with associates including Mr Mohamad Taleb and Australian businessman Mr Moham Karim to run what insiders described as a “ghost refinery” system.
According to the internal dossier, the group used couriers, cash deals and discreet air cargo to move gold directly from Kwekwe to refiners in Dubai and China.
One mining source told investigators:
“This was a well-oiled operation that exploited loopholes and weak enforcement.”
The Zimbabwe Republic Police Minerals and Border Control Unit has reportedly begun tracing proceeds through Generous Resources, Podhill and Milhub. Financial records, photographs and ledgers are now at the core of the probe.
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