Marange Resources face $178k lawsuit

Mashudu Netsianda Senior Court Reporter
A BULAWAYO transport company has dragged diamonds firm Marange Resources to court for failing to settle a debt amounting to more than $178, 000. Marange allegedly hired low-bed semi-trailers to transport mining machinery and equipment over a period of two years.

According to court papers filed at the Bulawayo High Court this week, Marange Resources (Pvt) Ltd was cited as the defendant while Ferreira Construction and Transporter (Pvt) Ltd is the plaintiff in the matter.

Ferreira Construction and Transporter through its lawyers Chigariro Phiri and Partners said between January 2012 and November 2013, Marange hired its low-bed semi-trailers to move its equipment at Marange diamonds fields and was supposed to pay $2, 800 per day for the services.

The Bulawayo company is demanding $178,055 from Marange Resources with an interest rate of five percent per annum calculated from June 30, 2014 to the date of full payment.

“During the period of 2012 to November 2013, the defendant contracted the service of plaintiff by hiring low-beds at its diamond fields in Marange at an agreed rate of $2,800 per day. The plaintiff raised invoices in respect of the services and defendant was obliged to settle the money within 30 days of presentation for payment,” said the motor company’s lawyers.

For the past three years, Marange Resources, which is wholly-owned by the government through the Zimbabwe Mining Development Corporation, was said to have made inconsistent payments resulting in the debt accumulating.

Ferreira Construction and Transporter said the diamond mining company only managed to pay $25,000 over the last two years and has despite numerous demands failed to settle the outstanding amount.

“The defendant made various partial payments to settle the bill but however, still remains indebted to the plaintiff. Last year, defendant only made two payments of $20,000 while in 2015 Marange Resources only made payment of $5,000 leaving the balance of $178,055 outstanding to date,” said the plaintiff’s lawyers in their summons.

“Wherefore plaintiff prays for an order of payment of capital debt of $178,055 being payment in respect of hiring of a low-bed at the defendant’s specific instance. Plaintiff claims 10 percent collection commission in accordance with the Law Society of Zimbabwe by-laws and the cost of suit at attorney-client scale.”

Marange Resources has not yet filed a notice of entry of appearance to defend the summons.

Last year, the diamond firm failed to pay its workers for a month, attributing the delay to the seizure of its funds following an auction in Antwerp, Belgium.