Zimbabwe arrests 25,000 people for illegal mining

HARARE, Jan 17 (Reuters) Zimbabwe's police have arrested thousands of gold panners in a crackdown on illegal mining activities the government says have fuelled rampant smuggling of precious minerals to neighbouring contries.

Home Affairs Minister Kembo Mohadi told journalists today the blitz, launched two months ago, had so far seen 24,890 people nabbed over the illegal mining of gold, diamonds and emeralds among other minerals.

The police had also moved to block a human rush to Marange district in eastern Zimbabwe, in search of diamonds, and recovered 7,868 pieces of the precious stone, as well as 3.5 kg of gold and 552,000 kg of gold ore.

''Zimbabwe's economy has been bleeding for quite a number of years. We take note that some of our people have also contributed to these economic woes by smuggling our precious minerals to enrich themselves,'' Mohadi said.

The government attributes declining mine output -- production fell 14.4 per cent in 2006 -- partly to smuggling, but the chamber of mines blames rising costs linked to galloping inflation, and an unrealistic exchange rate.

Zimbabwe's dollar is officially pegged at 250 against the greenback, but trades 10 times weaker on a thriving black market fuelled by chronic shortages of foreign currency.

The collapse of commercial agriculture -- once the country's largest employer -- and Zimbabwe's worsening economic crisis have forced thousands of desperate youths into gold panning.

However, the illegal mining activities have presented a growing problem to the environment, and the illegal panners have not spared claims held by foreign mining firms.

Mohadi said gold deliveries to the central Reserve Bank of Zimbabwe, which offers producers half the black market price for gold, had increased following the launch of the police blitz.

The official gold purchase price is Z,000 per gram, but miners complain that this is make it viabile.

REUTERS MS RAI2115