The government of Zimbabwe has warned Todal Mining Ltd., a venture controlled by Eurasian Resources Group of a possible seize of its platinum mining concessions.
The country’s mines Minister Winston Chitando made the announcement in a letter and said the sieze is a result of no progress has been made in developing them. The Bokai and Kinonde concessions may be taken over under the “use-it/lose-it principle” which allows the state to repossess idle mining claims.
“I note with concern that over the last few years there have been several changes to the work program to make this project progress to production stage,” Chitando said in the letter.
Platinum mining potential
Zimbabwe, which has the world’s third-biggest platinum group metal reserves, has struggled to develop its mining potential with investors from Russia, Cyprus, Nigeria and Kazakhstan yet to bring projects into production.
The Todal assets were taken from Anglo American Platinum Ltd., which does operate a mine in Zimbabwe, more than a decade ago and handed to Central African Mining & Exploration Co. That company was bought by Eurasian Natural Resources Co., which later became Eurasian Resources Group. Central African Mining lent the Zimbabwean government $100 million at the time.
“This is due process in the spirit of administrative justice. We will give the asset holder a chance to respond through the mining affairs board. If there are any developments that they have made on it which we are not aware of they will make those submissions and a final decision will be made after all due process has been done,” said Polite Kambamura, Zimbabwe’s deputy mines minister.
