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High Court okays arbitration in diamond saga

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HIGH Court judge Mary-Zimba Dube has given the green light for the arbitration of an impasse between Marange Resources and Core Mining and Mineral Resources over the now defunct joint venture, Canadile Miners.

HIGH Court judge Mary-Zimba Dube has given the green light for the arbitration of an impasse between Marange Resources and Core Mining and Mineral Resources over the now defunct joint venture, Canadile Miners.

Report by Charles Laiton

Justice Dube ruled that an application by Marange Resources seeking an interim order to stop arbitrator, Justice Moses Chinhengo, from resolving the dispute between the two former partners was not urgent.

Commenting on Marange’s application on Justice Chinhengo’s jurisdiction, Justice Dube said the issue regarding whether the arbitrator has power to rule on whether there is an agreement, between Marange Resources and Core Mining, has a bearing on the issue of Chinhengo’s jurisdiction and should have been taken up with him for his determination.

“The appellant has not exhausted the domestic remedies provided for in the Act. There was an effective remedy available capable of providing effective redress for the applicant’s concerns,” Justice Dube said.

“The arbitrator also has power to order interim measures in terms of Article 17 (1) and (2) (a) of the Act. He also has power to grant interdicts in terms of Article 17 (2) (a). My observation is that the arbitrator can do exactly what the High Court is being asked to do by the applicant,” she said.

The court application came about when Core Mining director Lovemore Kurotwi approached the Law Society of Zimbabwe and requested it to appoint an arbitrator to resolve the diamond-mining dispute.

This was after Kurotwi, who is on trial accused of causing government a $2 billion potential prejudice in investment, lost his diamond partnership with the government over alleged misrepresentations on the capability and capacity of his mining firm.

Kurotwi argued that although he was facing criminal charges at the High Court, his partnership with the government had not been cancelled by a court of law and the agreement which he signed still existed.

Marange Resources, a subsidiary of Zimbabwe Mining Development Corporation, was represented by Advocates Firoz Girach and Thabani Mpofu while Core Mining was represented by Advocate David Ochieng instructed by Beatrice Mtetwa.