A CHINESE tile manufacturer has approached the High Court seeking an order stopping Quarry Products Distribution from carrying out granite mining operations on two of its mining claims in Mashonaland West province.
Sunny Yifeng Tiles Zimbabwe also sought the cancellation of an agreement of sale it entered into with Quarry Products Distribution following a payment dispute.
According to court documents, the litigation between the parties concerns granite mining at two locations in Mashonaland West province, sitting on 40 hectares of land.
In April this year, the Chinese entity approached the High Court seeking two substantive remedies against the respondent.
It was seeking that a tribute agreement between the parties be declared null and void, as well as an interdict to stop the respondent from carrying out mining operations on the two mining claims in question.
The matter was before High Court judge Justice Joseph Mafusire and Quarry Products Distributors opposed the application.
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Justice Mafusire, after hearing the arguments, granted the order sought by the Chinese entity.
The judge ordered Quarry Products Distribution to stop all mining operations on the two mining locations situated at Stonehurst Farm in Mashonaland West province.
“I have no hesitation in declaring the purported tribute agreement upon which the respondent based its continued occupation of the applicant’s mines invalid for want of compliance with the law,” Justice Mafusire ruled.
“Tribute agreements are tightly controlled by statute, primarily Part XVIII of the Act which governs the approval process. After such approval, it is then mandatory for the board to endorse the approval on the agreement and inform the owner or occupier of the land concerned.
“None of that had happened when the applicant decided to withdraw from the tribute agreement in question. Until approval as prescribed by law is completed, no rights or obligations derive from a tribute agreement.”
According to the background of the case, the Chinese tile manufacturer was the registered holder of the two granite claims.
In October 2022, it sold the claims, mining equipment, machinery, vehicles and buildings to Quarry Products Distribution in terms of a written agreement.
The agreement specified the purchase price and payment terms. In November 2022, the parties signed a tribute agreement in terms of which the Chinese entity granted Quarry Products Distribution the right to work on the mines for the next three years, with rights of renewal and in return, the respondent would pay royalties.
The Chinese company then applied to the provincial mining director (PMD) for Mashonaland West to have the tribute agreement approved.
At the time, the respondent had moved on site.
A payment dispute arose between the parties.
In May 2023, the Chinese company cancelled the agreement of sale and thereafter, filed a court application seeking confirmation of the cancellation and eviction of the respondent from the mining claims.
It also filed an urgent chamber application to bar the respondent from conducting mining operations at the locations. However, the matter was deemed not urgent and it was removed from the roll.
In December 2023, the Chinese company again wrote to the PMD advising of its intention to cancel the tribute agreement citing irreconcilable differences between the parties.
The PMD responded advising that withdrawal from a tribute agreement had to be with the consent of both parties after a 21-day notice.
The respondent continued to be on the ground mining.
The Chinese tile company then caused the arrest of certain Quarry Products Distribution company principal officers for illegal mining operations.