Zimbabwe: Supreme Court Resurrects U.S.$8 Million Chrome Feud in Guruve Dyke

The Supreme Court has granted chrome miner Monochrome (Pvt) Ltd permission to revive its appeal in a long-running multimillion-dollar mining battle, ruling that the company has "bright prospects of success" in its US$8.1 million damages claim against rivals Kehrai Investments and Labenmon Investments.

The judgment, delivered by Justice Chinembiri Bhunu condoned Monochrome's procedural delays and extended time for the company to file its appeal against a High Court ruling that dismissed its US$8,173,188 claim.

"The courts are generally loath to punish litigants for the sins of their lawyers unless such conduct is gross and unpardonable. The ends of justice demand that whenever possible, justice be dispensed on the merits rather than on technicalities," Bhunu said.

In 2018, when Monochrome accused Kehrai and Labenmon of illegally mining alluvial chrome on six of its claims in the Guruve North Dyke Msasa 122 to 127 and sued for damages, representing lost profits.

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Monochrome argued that surveys by the Ministry of Mines confirmed encroachment, supported by a geological expert who presented diagrams, pictures, and stockpile estimates of the extracted chrome.

The defendants denied wrongdoing. Kehrai failed to appear, resulting in a default judgment against it, while Labenmon insisted it mined lawfully under a contract with Kehrai, challenging Monochrome's ownership and the scale of damages claimed.

In 2023, the High Court sided with Labenmon, ruling Monochrome had not proved ownership, the extent of extraction, or the US$8 million loss.

But Bhunu found that the appeal raises weighty issues, especially after Kehrai capitulated by failing to defend ownership of the disputed claims.

"The applicant has sound and reasonable prospects of success on appeal given that the first respondent's ownership of the mining claims has been severely dented by the extant default judgment against it," Bhunu ruled.

"The second respondent is merely riding on the back of the first respondent as the source of its mining rights. That being the case, it is likely to fall with the capitulation of its principal."

The Supreme Court ordered Monochrome to file its appeal within 10 days, paving the way for a full hearing on the merits of the chrome feud.

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