THE forfeiture and the subsequent reallocation of a Kwekwe gold mining claim held by Fidelity Printers and Refiners — a gold buying subsidiary of the Reserve Bank of Zimbabwe — was lawful, the High Court has ruled.
The ruling followed the Fidelity’s application for
confirmation of an interim order granted to it in February to repossess the
claim forfeited to the Ministry of Mines and Mining Development last year after
Fidelity failed to pay the laid down annual fees for more than six years.
Fidelity, which had sold the gold mining claim to ex-Herald
editor Caesar Zvayi, was suing the Minister of Mines, the provincial mining
director for Midlands and new beneficiary Mr Jona Nyevera in three similar
cases filed at the High Court in both Harare and Bulawayo.
The cases were consequently consolidated into a single case
and placed before Justice Joseph Mafusire sitting in Harare for determination.
Fidelity’s essential argument was that it received no prior
notice of the intention to declare the claim forfeit and that there had been an
understanding between the Ministry and itself that no statutory mining fees
payment would be necessary. So it came as a shock, to be informed for the first
time that its mine had been forfeited for not honouring statutory obligations
for six years.
But the Ministry, in its submissions, argued that
Fidelity’s argument was flawed because there was no obligation upon the
provincial mining director to issue personal notices to individual miners who
might be in default regarding the renewal of their mining fees.
The obligation is thrust on the miner to have his or her
mine inspected and his or her registration certificates renewed. This is done
annually.
It was on this basis that Justice Mafusire considered that
the actions of the provincial mining director, in forfeiting the rights of
Fidelity in Mirage 3 and subsequently granting a special grant to Nyevera in
respect of that mine, was not in violation of the law.
“In the circumstances the matters in dispute between
Nyevera and Fidelity Printers are decided in favour of Nyevera,” said the judge
discharging the interim order that had been granted to Fidelity on February 17
this year.
The court also confirmed the forfeiture of the mine claim
and upheld the granting of Nyevera the right to Special Grant No 8202.
Further, the court barred Fidelity and its business
partners from removing any gold ore from the mine.
In his ruling, Justice Mafusire found that there was sufficient
scope in the Mines and Minerals Act for any holder of a mining location whose
title was liable to forfeiture to take action to avoid forfeiture.
“Holders of mining locations have the obligation to ensure
that they apply for and obtain inspection certificates within the intervals
specified in the Act,” he said.
“A notice of the declaration of forfeiture that may be
posted onto the notice board outside the office of the mining commissioner is
adequate compliance with the law is as far as rights to a notice in respect of
any intended forfeiture of a mining location are concerned.”
The ministry repossessed Mirage 3 Mine in June last year
after Fidelity failed to pay the statutory fees for more than six years. Herald
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