Mbada Diamonds set for Marange return – report

Mauritius-registered Grandwell Holdings, which owns Mbada Diamonds, is set to return to Marange diamond fields after a successful appeal at the High Court. 
The litigation between Grandwell and Marange Resources commenced after the then Mines minister Walter Chidakwa cancelled operations of all companies that were conducting operations under the special grants in the Marange diamond fields, in February 2016. 
High Court judges recently ruled in favour of Grandwell, which had sought the state-controlled firm to renew the operating licences in line with the special grants agreement entered by the parties. 
“An order was granted compelling the Zimbabwe Consolidated Diamond Company (ZCDC) and Marange Resources to apply for the renewal of the special grants which expired between 2010 and 2013 and ensure that they pay the renewal fees which are supposed to be paid,” company lawyer Thembinkosi Magwaliba was quoted as saying by Zimlive. 
Grandwell had entered into a joint venture and shareholders’ agreement with Marange Resources, a Zimbabwe Mining Development Company (ZMDC) investment vehicle and Mbada Diamonds in 2009. 
The contract also stated that Marange Resources had agreed to pay renewal fees for the special mining grants. 
“In breach of its contractual obligations, the second respondent (Marange Resources) did not pay renewal fees in respect of the special mining grants,” said Grandwell chairperson David Kassel in court papers. 
“It sought instead an exemption from payment of the renewal fees without knowledge or approval of the applicant (Grandwell Holdings) and the third respondent (Mbada Diamonds),” Kassel said. 

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished