Use it or lose it: Controversial Todal mining company frets over Chitando’s retùrn, investor sits on concession for 8 years
Mine has been idle as the company engage in non-core activities, bleeds the country's resources
Haraŕe- CONTROVESIAL Kazakhstan-based mining company,Eurasian Resorces Group (trading as Todal) is jittery over the return of Mines Minister Winston Chitando who introduced the “use it or lose it policy” ,four years ago.
Under the policy, Chitando propounded that all concenssions which are not being worked (utilized)on are slowly subjected to ‘use it or lose it” policy in pursuit of achieving the USD12 billion mining industry by 2023.
Investigations by Express Mail Zim established that since the time Todal Mining was controvesially awarded the Platinum mining concenssion in Zvishavane (2016) and it has been idle , they have not been working on it and embarking in non-core activities stripping the country of its natural resources including Lithium.
“This deal has always been stinking and it was brokered by former First Lady Grace Mugabe’son Russell Goreraza and his business partner Valantine Garacho.
“The boys (Russell and Valentine) got a windfall of USD2.5 million and imported top of the range vehicles including an Aston Martin, and Rolls Royce,”said our highly placed source.
The land belonged to Anglo-American.
This publication understands that Todal is now jittery and fear that they will lose the concession since the “use it ,or lose it” policy architect is back in the levers of power in the Mines Ministry.
“Todal is uncertain of where its fate lyes.
“Its an open secret that when it comes to achieving the USD 12 billion mining industry by 2023, he leaves no stone unturned to achieve the tarĝet ,” said a senior Ministry of Mines official who preffered anonymity.
Government has been upgrading security and rights for those who are mining their concessions, but industry players said ‘bad apples’ like Todal tarnishes the name of investors forcing government to subject possible investors to more stringent vetting.
The mining sector is a critical foreign currency revenue stream, contributing about 70 percent of the country’s forex earning and the projected growth by 2023 represents a more than four-fold increase from the USD2,7 billion achieved un 2017.
Efforts to get comment from Todal Mining authorities hit a snag at the time of writing Tuesday.
Todal is not a stranger to controversy, in 2018 a British government report implicated the company in allegations of violating basic human rights of thousands of people in the area they mined in Democratic Republic of Congo.
In contrast, other foreign investors in the mining sector, such as Karo Resources and the Great Dyke platinum mining project have been making significant progress towards government’s target.
Chitando is on record saying the industty is aiming for a more than four-fold increase in revenue by 2023, and it appears that Todal may not be part of that success story.
