adminMichael Magoronga Midlands Correspondent
Zibagwe Rural District Council (RDC) has sued Jena Mine and Africa Chrome Fields (ACF) Mine over a combined $800 000 that the mining companies owes it.
Speaking during a recent full council meeting, Zibagwe RDC chief executive Mr Farayi Machaya said the rural authority has been left with no option but to drag the two mining firms to court over the non-remittance of their dues. Mr Machaya, however, said they were discussing an out-of-court settlement with Jena Mine.
“Allow me to brief you on two of our biggest debtors, Jena Mine and ACF Mine. While we have engaged the former over their $517 000 debt and we await their proposal for the settlement of the debt, ACF Mine, which owes us $297 625 on the other hand is reluctant to co-operate. As a result, council had no option but to proceed with litigation,” he said.
Mr Machaya said the ACF management had indicated that rates that we are too high and they were prepared to pay up once they have been reviewed downwards.
The two companies lead a host of other mining companies that owe council more than $10 million, and council have devised ways of recovering the money.
According to Mr Machaya, they have since upped their game in engaging miners and updating their database.
“We are continuously engaging miners to recover what they owe us. We are also capturing those that are not in our database. We are offering 50 percent discounts on outstanding debts,” he said.
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