Todal Mining Ltd., a mining and metals company controlled by Eurasian Resources Group (ERG), is on the verge of losing its platinum group metals concessions in Zimbabwe.
The government claims that ERG has failed to make substantial progress with the concessions.
ERG controls the Bokai and Kinonde concessions. The company, which is based in Luxembourg, is linked to Israeli-Kazakh billionaire businessman investor Alexander Antonovich Mashkevich.
According to a Bloomberg Quint, the concessions could be repossessed according to the “use-it/lose-it principle.” The law allows the government to repossess idle mining claims.
Zimbabwe’s Mines Minister Winston Chitando made this known in a letter to Todal dated May 28. In the letter, Chitando wrote: “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 the production stage.” The government has also given ERG the opportunity to submit evidence of any substantial developments with the concessions.
Deputy Mines Minister Polite Kambamura said: “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.”
ERG is a leading diversified natural resources producer. Since its founding in 1994 as Eurasian Natural Resources Corporation, ERG has become one of the world’s leading mining and smelting groups.
In Africa, ERG owns production and development stage assets in the Democratic Republic of Congo, Zambia, Zimbabwe, South Africa, Mozambique and Mali.
Machkevitch serves as chairman of the board at ERG. Benedikt Sobotka is the CEO.
Mashkevich is said to have significant holdings and political ties in Kazakhstan.
