Mining firm sued over US$189, 000

AN explosive supplying company based in Kalulushi has sued Mabiza Resources Limited (MRL) demanding more than US$189, 000 outstanding balance arising from the supply of explosives.

Nash Explosives Limited has asked the Lusaka High Court to order MRL, which is a mining firm, to pay damages for breach of contract.

The firm is also demanding interest on any sums found due pursuant to section

4 of the Law Reform (Miscellaneous Provisions

Act, Chapter 74 of the Laws of Zambia).

In a statement of claim, Nash Explosives Limited stated that MRL, a subsidiary of Consolidated Nickel Mines Plc (CNM) was its customer.

Nash Explosives stated that in May 2015, it entered into a verbal agreement which was finally reduced in writing in a letter of appointment as supplier dated September 10, 2019.

The agreement was for the supply of explosives to MRL for two years.

Pursuant to the foregoing supply agreement, the plaintiff did supply the products to the total invoiced sum of US$189, 443.39.

Nash Explosives stated that it would show that the defendant defaulted payment obligations for the products and made several commitments of settling the same without adhering to it.

According to the claim,

MRL responded to the demand letter and admitted the debt (less a disputed amount of US$35. 00).

The firm provided two payment options which were not accepted to the plaintiff on grounds that they were presented without any commitment.

The options were of 40 percent of the full sum claimed, paid immediately as a final settlement or 36 months instalments of the full sum claimed.

Nash Explosives Limited stated that it proceeded to source huge amounts of stock of the products to secure the contract.

This resulted in a loss and other costs due to the premature termination of the supply agreement without following the due procedures.