Zimplats wins land claim

Zimplats wins land claim

Source: Zimplats wins land claim | The Financial Gazette August 31, 2017

high-court-of-zimbabwe

The High Court has ruled in favour of Zimplats.

THE High Court has ruled in favour of the Zimbabwe Platinum Mines Limited (Zimplats) in a land rental claim of a 788-hectare piece of land previously owned by Bonnyview Estates Private Limited.

Bonnyview Estates are the former owners of Bulfield Farm in Chegutu district, on which Zimplats’ operations are based. Zimplats bought the rights to the mining operations from BHP and Hartley Platinum Mines in 2001.

In 1995, Bonnyview Estates allowed BHP to develop its operations on the 788 hectare piece of land, which was part of Bulfield Farm’s total land of 1223 hectares upon payment of a lump sum of $4 million and an agreed monthly rental of $6 000 per month.
Zimplats inherited this lease agreement, which was valid until 2010.
In 2004, the mining firm paid the rentals in advance for a period up to 2010.
However, in 2005, government acquired Bulfield Farm under the land reform programme.

After the lease agreement expired in 2010, Zimplats refused to renew the lease agreement, arguing that it was no longer obligated to pay the rentals since the ownership of the land had changed.

Bonnyview Estate — which was represented by former Commercial Farmers’ Union president, Colin Cloete — approached the court last year seeking to force Zimplats to pay rentals for its continued occupation of the farm.

Zimplats argued that it was now occupying the land under a Special Mining Lease issued by the Ministry of Mines.

The court had asked Bonnyview Estates to file heads of arguments to support its claim by March 31, 2017, but the company failed to do so.

The court allowed Zimplats to file arguments based on the preliminary points raised by the applicant.
The court ruled that the State had acquired the farm and that acquisition had not been reversed or cancelled, and, therefore, Cloete and his company no longer had right over the farm.

“We find that the effect of the acquisition of Bulfield Farm in terms of the former Constitution in 2005 was the alienation of all and any of the applicant’s rights in the farm save the right to claim compensation from the State for any improvements on the farm,” Justice Priscilla Chigumba ruled.
“The rights and interest in the land now vests in the State free of any encumbrances. We find that the applicant, not being the holder of any rights and interest in the land, does not have a direct or a substantial interest, locus standi in judicio, which would entitle him to bring an application of this nature, or to be eligible, at law, for the relief that it is seeking.”

The court added that the point raised by Zimplats had merit as it followed that Bonnyview Estates was not entitled to the substantive relief that it was seeking, because it was no longer a legitimate holder of title or interest in Bulfield Farm.

COMMENTS

WORDPRESS: 0