The matter in which coal mining giant, Hwange Colliery Company Limited (HCCL) is seeking the cancellation of a built operate and transfer (BOT) agreement with a Chinese mining investor will be heard  later this month.

Justice Priscilla Chugumba set down the matter to be heard on the 21st of this month.

HCCL, represented by Advocate Thabani Mpofu, approached the High Court seeking the cancellation of a 2007 BOT agreement entered into with Taiyuan Sanxing Company and Hwange Coal Gasification Company.

The mining giant contends that the Chinese owned company was supposed to plan, design, construct, commission, operate and then transfer a coke oven battery with a design capacity of 3 000 tonnes of coke per year at a cost of US$40 million.

The conclusion of the agreement was subject to a number of specifications, leading to obtaining a national project status from the Ministry of Finance upon the provision of a comprehensive design of the project in accordance with international standards.

HCCL argues that the Chinese company failed to fulfil all the conditions hence the agreement never took off. They want a court order declaring the contract a nullity on that basis.

Additionally, HCCL contends that it supplied the defendant with 190 000 tonnes of coking coal from commencement of the BOT to August 2011 and has not benefited a single cent, therefore being prejudiced of more than US$7,7 million.

In its counter claim, the Chinese firm, through Jonathan Samkange is claiming US$215 million from HCCL, arguing that the coal mining giant is in breach as it failed to produce the agreed 400 000 tonnes of coal every year from 2009.

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