More woes for Marange

HARARE - The Supreme Court has ordered Marange Resources (Marange) to pay back legal costs to businessman Lovemore Kurwoti’s Core Mining after losing an appeal it filed more than two years ago.

Marange appealed to the Supreme Court after the High Court stopped arbitration proceedings that were instated by Core Mining in its bid to reclaim shareholding and assets acquired during their joint venture.

However, the Supreme Court, headed by deputy chief Justice Luke Malaba, dismissed the appeal and ordered Marange to pay Core Mining legal costs.

“The appeal is struck off the roll. The appellant shall pay to Core Mining and Mineral Resources (in liquidation) as represented by Mtetwa and Nyambirai Legal Practitioners the costs of this appeal on the legal practitioner-client scale,” the court said.

Core Mining and Zimbabwe Mining Development Corporation, which owns Marange Resources, formed Canadile Miners as a joint venture company to extract diamonds from Marange.

The joint venture deal ended after fraud allegations were raised against Kurotwi over the manner in which the shareholders agreement was signed between the parties.

Kurotwi, who was recently acquitted of the charges, was arrested together with the firms’ ex manager Dominic Mubaiwa.

The State claimed the two defrauded the government of $2 billion after allegations that they entered the joint venture agreement with an undeserving company, Core mining.

However, while the duo was being tried on the fraud allegations, Core Mining took the civil case to arbitration.

The Law Society of Zimbabwe appointed Moses Chinhengo to be the arbitrator, forcing Marange resources through its lawyer Thabani Mpofu to file an urgent chamber application seeking order to stall the arbitration.

Marange appealed to the Supreme Court, contesting the appointment of an arbitrator to deal with the case, however, the court subsequently ruled that the matter cannot be heard on an urgent basis.

Comments (1)

Hapana chisingapere kana diamond ne diesel paChinhoyi zvichave history

Dhewa - 30 July 2016

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