High Court judge Justice Benjamin Chikowero has dismissed an application by Mining Promotion Corporation (MPC), a leading exploration company to rescind a previous court order reinstating Finer Diamonds (Private) Limited’s mining claims.
The dispute arose from the forfeiture of Finer Diamonds’ mining claims by the Mining Commissioner-Masvingo, which were subsequently offered to MPC. MPC accepted the offer and was granted special mining rights.
Finer Diamonds challenged the forfeiture decision through a review application, which was successful. The court ordered the reinstatement of Finer Diamonds’ mining claims. MPC, which had not been a party to the review proceedings, subsequently filed the rescission application.
In his judgment, Justice Chikowero dismissed MPC’s application, citing several reasons.
The judge, firstly, noted that the special mining rights granted to MPC had expired before the rescission application was filed, rendering the matter moot.
Secondly, the judge ruled that MPC had no legal interest to protect since the special mining rights were no longer valid. The judge further criticised MPC for forum shopping, attempting to reopen a matter that had already been settled through the review proceedings.
The court ordered MPC to pay Finer Diamonds’ legal costs on an attorney and client scale. This decision represents a significant victory for Finer Diamonds in its ongoing legal battle to retain its mining claims.
“This forum shopping must be stopped in its tracks. Even if this Court rescinds the order of 15 January 2020 that decision will be a high sounding nothing. It will not put the applicant in a better position that he now is in. The special grants have expired,” the judge ruled.
“This is an application which should never have been filed the moment the special grants expired. The first respondent has been put out of pocket unnecessarily in having to defend this application and is therefore entitled to costs on an attorney and client scale.”
MPC is one of the key players in the recently approved partnership to prospect and explore for lithium and pegmatite minerals in Goromonzi, Mashonaland East Province.
As part of this joint venture, MPC holds a 30% shareholding in the special purpose vehicle, MPC JV, while Prospect Brooke Resources holds 70%.
MPC is not required to make any financial contributions during the exploration stage, as Prospect Brooke Resources is mandated to cover the entire amount needed.
