Storm over Zimbabwe gold mine on Frankfurt bourse

A RECENT newspaper story over the industrial dispute at Ayrshire gold mine in Zimbabwe caused a huge storm on the Frankfurt bourse after Pan African Mine (PAM) suffered a sell-off as investors pressed the panic button. Apparently, the Frankfurt Stock Exchange-listed PAM shares, the same name as South Africa's Pan African Gold, named in the report as the major shareholder in Ayrshire Gold Mine.

Reports last month suggested that South Africa's PAM was laying off 600 employees at Ayrshire Gold Mine, sparking the fears in Frankfurt. The report, which cited a memo with the PAM letterhead, said that the gold mine could no longer sustain salaries for its employees, and that creditors had not yet been paid for gold deliveries remitted to the Reserve Bank of Zimbabwe.

However, a Frankfurt Stock Exchange listed company bearing the same name as PAM, said it was not the owner of the gold mine. This was after the company's share price decreased after less diligent shareholders penalised the company for the mistaken identity.

Latest reports on Ayrshire indicates that over the past few weeks, the situation at the gold mine had reached crisis levels, with several of the employees at the mine being arrested following a demonstration that was staged in protest against forced holidays.

Sources who were at the scene said riot police had to be called in after angry workers overturned a vehicle belonging to a member of the Ayrshire board.

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