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Sanctions also contributed towards the opaque nature of transactions in the trade of Marange diamonds

Senior Court Reporter
THE Supreme Court has reserved judgment in Marange Resources (Private) Limited’s appeal to quash arbitration proceedings to determine the propriety of the termination of a joint venture agreement between the local mining company and Core Mining and Minerals.

Marange Resources and Core Mining formed a joint venture company called Canadile Miners to mine diamonds in Chiadzwa.
The joint venture was terminated on allegations that Core Mining, led by Mr Lovemore Kurotwi, misrepresented that it had capital to exploit diamonds when it in fact had no money.

Mr Kurotwi, as director of Core Mining, which is now under liquidation, pushed for arbitration claiming dividends from Marange Resources. Marange Resources reportedly took over equipment bought by Core Mining and continued operations in Chiadzwa.
He is also challenging termination of the joint venture.

The Law Society of Zimbabwe appointed retired judge Justice Moses Chinhengo as arbitrator but Marange Resources is challenging the arbitration process.

Marange Resources on May 10 last year obtained a High Court order to stop the arbitration.
A month later, Justice Mary Dube reversed the order, prompting Marange Resources to file the Supreme Court appeal.

Yesterday, Deputy Chief Justice Luke Malaba – sitting with Justices Antonia Guvava and Ben Hlatshwayo – reserved judgment after hearing arguments from the parties.

Advocate Thabani Mpofu, instructed by Mr Itai Ndudzo, represented Marange Resources; while Adv Lewis Uriri and Mrs Beatrice Mtetwa acted for Core Mining.

Adv Mpofu argued that Core Mining was under liquidation and under the circumstances Mr Kurotwi, who instituted the proceedings, was no longer recognised at law as a director and shareholder.

On that basis, Adv Mpofu said, the appeal must be granted and arbitration must be quashed.
Adv Mpofu argued that the liquidator should have instituted the arbitration and other court proceedings on behalf of the company. The arbitration proceedings, he said, were instituted against the law.

Adv Mpofu also argued that the judge erred at law when she dismissed the urgent chamber application.
He also argued that the matter, was instead, urgent and that the judge wrongly dismissed it.

However, Adv Uriri argued that Justice Dube correctly ruled that the matter was not urgent considering that Marange Resources failed to take action against the proceedings when need arose and they deliberately challenged arbitration at the eleventh hour.