Gold mine sued over $500 000 water bill

Gold mine sued over $500 000 water bill Gold bars

Daniel Nemukuyu Senior Court Reporter—-
The Zimbabwe National Water Authority (Zinwa) has slapped Metallon Gold Zimbabwe (Pvt) Limited with a $500 000 lawsuit over unpaid water bills accrued at the company’s mine in Shamva. Shamva Gold Mine, as it is popularly known, entered into an agreement with Zinwa for the supply of water for commercial and domestic use. In terms of the agreement, the mining company agreed to pay for the water supplies monthly.

In breach of the agreement, the mining firm failed or neglected to pay for the water resulting in the bill ballooning to $545 419. In the summons filed at the High Court recently, Zinwa stated that Shamva Gold Mine acknowledged the debt two months ago.

“The plaintiff demanded full payment of the outstanding amount together with interest. Upon receipt of the said demand on November 19, 2015, the defendant acknowledged in writing the amount then due and owing by them to them to the plaintiff in respect of the water charges was the sum of $545 419,” read the plaintiff’s declaration.

Zinwa contends that the mining company offered to clear the debt through some weekly instalments of $22 000 from November 16 2015 to January 11 2016. The company also agreed to pay weekly instalments of $32 000 from January 18 2016 until full settlement of the debt.

Shamva Gold Mine did not respond to the summons, prompting Zinwa to file a chamber application for default judgment. The application will be determined today. Zinwa argued that the summons was issued on December 16 last year and the mining company was duly served on December 18.

The company decided not to file an appearance to defend the matter within the permissible time in terms of the rules of the High Court. To that end, Zinwa argued that Shamva Gold Mine was now barred from filing any opposing papers and that a default judgment must be entered.

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