HARARE - The Law Society of Zimbabwe (LSZ) has appointed an arbitrator to deal with a labour dispute between Core Mining and Mineral Resources and Zimbabwe Mining Development Corporation (ZMDC).

Former High Court judge Moses Chinhengo has been tasked with resolving the dispute between the two companies’ operations. The two firms were once partners in the now defunct diamond mining firm Canadile Miners before the relationship turned sour.

Core Mining lawyer Beatrice Mtetwa in December last year asked the LSZ to appoint an arbitrator to determine the issue.

Mtetwa said the agreement between her client and ZMDC provided that only an arbitrator appointed by the LSZ would preside over such a breach of contract.

“Any dispute or differences which may arise as a result of the interpretation or application of this agreement which cannot be amicably resolved within a period of 30 days shall be referred to arbitration in terms of the Arbitration Act,” reads part of the agreement signed by the two parties.

The matter has however, since spilled into the courts with the State accusing Core Mining director Lovemore Kurotwi and ex-ZMDC boss Dominic Mubaiwa of prejudicing the government of $2 billion.

Charges against the two arose after a failed investment by South African diamond firm-Benn Steinmeitz Group Resources (BSGR).

Kurotwi is accused of misrepresenting to the ministry of Mines and ZMDC that Core Mining was a special purpose vehicle of BSGR, which was supposed to be the guarantor in a joint venture agreement between Core-Mining and State mining agency ZMDC.

It is alleged they later travelled to South Africa after Mubaiwa allegedly prepared an unapproved and uncirculated Memorandum of Agreement between ZMDC’s Marange Resources signed on July 24, 2009 before acquiring Cabinet authority to conduct a due diligence exercise on Core Mining. - Tendai Kamhungira