Mbada Diamonds loses diamond case

Source: Mbada Diamonds loses diamond case | The Financial Gazette June 22, 2017

ZIMBABWE’s High Court yesterday ruled against Mbada Diamonds in a case in which its majority shareholder sought the return of its security officers to Chiadzwa diamond fields.

This was after they were ejected from the claims after government seized the concessions last year.
The Mauritius registered Grandwell Holdings, which holds 50 percent shareholding in Mbada, had appealed to the court seeking permission for security officers to secure ore that had been mined before the claims were taken over by State firm, the Zimbabwe Consolidated Diamond Mining Company (ZCDC).

It also wanted ZCDC to stop extracting gems on claims previously controlled by Mbada Diamonds, although ZCDC argued that it had been granted permission to mine by government.

ZCDC was formed to take over the claims that were previously owned by Mbada Diamonds, Marange Resources, Anjin Investments, Diamond Mining Company (DMC), Jinan, Rera, Kusena and Gye Nyame two years ago.
Government accused the Marange miners of failing to properly account for revenues from the diamond fields.

Harare lawyer, Garikayi Sithole, who represented Zimbabwe Republic Police commissioner general Augustine Chihuri in the case, confirmed the ruling yesterday.
“The High Court has ruled against Grandwell. The High Court has dismissed their case and ZCDC can continue executing operations pending an appeal in the Supreme Court on the case. Grandwell wanted their security to go back to the mine to access their diamond ore and prevent ZCDC from mining,” Sithole told The Financial Gazette.

The ZCDC had approached the High Court seeking the removal of Mbada Diamonds from Chiadzwa.
In summons issued in March 2017, ZCDC said it has a special grant from the Ministry of Mines and Mining Development to do mining operations in the disputed claims.
However, said ZCDC, it has failed to carry out its operations because Mbada Diamonds had continued to occupy part of the claims.

ZCDC also said it had successfully appealed against the interdiction barring its workers from interfering with Mbada’s operations.

This formed the basis of the application for the removal of Mbada Diamonds made in March.
ZCDC also said Mbada had sold its assets.

As such, there was no need for it to continue deploying its security personnel on the site.
However, Mbada filed a response arguing that the issue of a special mining grant which was given by the permanent secretary in the Ministry of Mines and Mining Development, “constituted an element of the unlawful spoliation”.