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South African firm sues Marange Resources for R2 million

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A SOUTH African-registered company, Boltgas Industrial and Mining Supplies, has approached a local court seeking to recover almost R2 million from the government-owned diamond mining firm, Marange Resources, for various consignments of mining goods.

A SOUTH African-registered company, Boltgas Industrial and Mining Supplies, has approached a local court seeking to recover almost R2 million from the government-owned diamond mining firm, Marange Resources, for various consignments of mining goods.

BY CHARLES LAITON

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The South African company filed summons at the High Court against Marange Resources last Tuesday under case number HC3540/16 and the latter responded yesterday by filing a request for further particulars.

In its declaration, attached to the summons, Boltgas claims sometime between January 2012 to January 2015, it sold on credit and advanced to Marange Resources various consignments of mining goods and supplies to the tune of R1 999 123,94.

The company said in terms of the parties’ credit sale agreement, the gem mining firm ought to have paid it within 30 days of receipt of each consignment, but Marange Resources had failed to do so, thereby, inviting a lawsuit.

In response to the claim, Marange Resources expressed ignorance of the debt, challenging the South African firm to prove it supplied the said mining goods and supplies.

In its request for further particulars, Marange Resources said in order for it to plead to the claim, Boltgas Industrial should provide a copy of the agreement if it was in writing and state where such an agreement was entered into.

Marange Resources further asked Boltgas: “What was actually purchased by the defendant (Marange)? Who signed the agreement on behalf of the defendant and in what capacity?

“Is there anything to show that the defendant has indeed received the consignments? If yes, proof of purchase and delivery, is required.”

The gem mining firm further said Boltgas should also provide the dates on which the consignments were delivered and clarify how the claimed amount had been arrived at and produce invoices of a breakdown of the claimed amount.

Meanwhile, Boltgas Industrial attached to the summons a letter written by its group chief executive officer, Mathew Sibanda, addressed to the Marange chief executive officer dated January 13, 2016 in which he said: “As you are aware, this matter has reached uncontrollable levels and we would be left with no other option, but to seek legal recourse.

“The above debt is for goods supplied to Marange Resources, which you received and consumed between 2012 and 2015. Be assured that we have made every reasonable effort to resolve this matter amicably.

“As a business, we value our relationship with your company and we have been supplying Marange Resources with goods on a cash purchase basis despite this long-outstanding debt. We also believe that we have given you ample time to respond to and/or to remedy the situation…” The matter is now pending in court.