Mining row goes to court

THE Africa-wide manager of esteemed multinational mining consultancy Snowden is scheduled to stand trial next month after an unhappy client laid fraud and theft charges following a bill of nearly R188 000 for an “inconclusive one-and-a-half page memorandum”.

TransAsia Minerals CEO Luda Roytblat laid charges against Bill McKechnie, general manager: Africa at Snowden, in March after TransAsia cancelled a contract following alleged delays by Snowden.

The consultants were hired to write a bankable feasibility study for a coal project near Dundee in KwaZulu-Natal.

According to the contract, Snowden would be paid R1.38-million for a bankable feasibility study on an anthracite project, using data and information provided by TransAsia.

Snowden’s contract would include a review of the project’s coal resources and reserves, a mine design, production schedule and financial model. A deposit of 25%, or R393 381, was paid by TransAsia, according to an affidavit by Roytblat.

Snowden committed itself to finalising the work by the end of April, should the information supplied by TransAsia be adequate, McKechnie said in a proposal to Roytblat in February.

According to Roytblat’s affidavit, the scope of work was scaled down in March after the parties agreed Snowden would not do the mine design, and fees were recalculated to R880 099.

After the contract was cancelled on March 18, Snowden refunded R205 546.38, billing TransAsia for R187 834.62. This included R74 760.96 for an overnight site visit by one Snowden consultant, R44 200 for the review of TransAsia’s geological model, R28 050 for a financial model template and administration, and software charges of R17 756.25, the affidavit stated.

“The company finds the retaining of the amount of R187 834.62 astounding,” Roytblat said in her affidavit.

Webber Wentzel partner Igno Gouws, who is acting on behalf of McKechnie, said the matter was sub judice and that his client would not comment “save to state that the charges are without foundation and that this will be demonstrated in court”. The “defamatory and false allegations” would be dispelled in court in evidence, he said.

The trial is due to start on October 21 at the Alexandra Regional Court.