SC 54-13 - MIDKWE MINERALS (PVT) LTD v KWEKWE CONSOLIDATED GOLD MINES (PVT) LTD & ORS

MIDKWE MINERALS (PRIVATE) LIMITED             

v

(1) KWEKWE CONSOLIDATED GOLD MINES (PRIVATE) LIMITED (2) CARSLONE ENTERPRISES (PRIVATE) LIMITED (3) DEPUTY SHERIFF, KWEKWE

 

   

SUPREME COURT OF ZIMBABWE

CHIDYAUSIKU CJ, ZIYAMBI JA & MUTEMA AJA

BULAWAYO, SEPTEMBER 2, 2013

C Rungwanda, for the appellant

S Mazibisa with Mr V Matatu, for the respondents

 

ZIYAMBI JA: After hearing submissions by counsel, the Court dismissed the appeal with costs on the higher scale of legal practitioner and client and indicated that the reasons for its judgment would follow.  The following are the reasons.

On 1 February 2006  and in terms of the Mines and Minerals Act [Cap 21:05] the first respondent (“KCGM”) as grantor  and the Reserve Bank of Zimbabwe as tributor  entered into a  standard tribute agreement as well as a rental agreement in respect of Chaka Gold Plant.  The life span of the agreement was three (3) years ending 2009 and renewable for another three (3) years to expire on 2 February 2012.  The agreement was registered with the Mining Commissioner.  The Reserve Bank during the initial term of the agreement mined the tributed claims and operated the Chaka Gold Plant through its subsidiary company Carslone Enterprises (Pvt) Ltd, (“Carslone”) the second respondent herein.  However, following a shift in policy, the Reserve Bank decided to shed all quasi – fiscal operations and the renewal of the tribute agreement was concluded between KCGM and Carslone.

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