Daniel Nemukuyu Senior Court Reporter
Zimbabwe National Water Authority (Zinwa) has withdrawn its $500 000 claim against Metallon Gold Zimbabwe (Private) Limited after the two parties reached an out of court settlement.
Zinwa slapped Metallon Gold with a lawsuit over unpaid water bills accrued at the company’s mine in Shamva.
Shamva Mine, as it is popularly known, entered an agreement with Zinwa for the supply of water for commercial and domestic purposes.
In terms of the agreement, the mining company agreed to pay for the water supplies monthly.
Metallon Gold failed or neglected to pay for the water within the greed time-frames resulting in the bill ballooning to $545 419.
Last Friday, Zinwa’s lawyers Chirenje Legal Practitioners filed a notice of withdrawal of the claim at the High Court.
“Take notice that the plaintiff hereby withdraws its summons and declaration and the chamber application for default judgment filed under case number HC12374/15 with no order as to costs,” read the notice.
Metallon Gold corporate affairs executive Ambassador Zenzo Nsimbi told The Herald that the parties had settled the matter.
“Metallon Gold Zimbabwe and Zimbabwe National Water Authority reached an amicable agreement on the issue that was put before the courts. The issue has since been regularised and both parties have reverted to the previously agreed position,” said Ambassador Nsimbi.
When the mining company failed to pay the debt, the parties agreed on a payment plan. The company later breached the said agreement resulting in the matter spilling into the High Court with Zinwa issuing out summons for $545 419.
Metallon did not oppose the claim prompting Zinwa to file a chamber application for default judgment. Both the summons and the chamber application were last week withdrawn following the settlement of the matter.