Hwange coal company ordered to pay US$2.8m in damages

The High Court in Bulawayo has ordered Hwange-based coke processing entity, Hwange Coal Gasification Company to pay close to US$ 2.8 million and more than $600 000 to a Bulawayo logistics company for damages and loss of business.

Hwange Coal Gasification is a joint venture between Hwange Colliery Company and Taiyuan Sanxing of China.

The two entered into a six-year transportation deal with Philcool Investment in October 2017 for the latter to transport 2 000 metric tonnes of coal.

Philcool Investment met its obligations but Hwange Coal Gasification Company cancelled the contract on February 21, 2018.

The contract was supposed to run until October 2023. 

Philcool approached the courts and obtained an order for damages for loss of business for the sum of $608 832 and US$2 734 932 against Hwange Coal Gasification Company under case Number HC660/22 in June this year.

The order was for the coke processor’s property to be auctioned to recover lost revenue.

Hwange Coal Gasification Company obtained an interdict to stop the auctioning of its assets.

Philcool made an urgent chamber application citing Tailyuan Sanxing Company, the Sheriff of the High Court, Gamuchirai Siwadi and Msita Auctioneers Pvt Ltd is listed as 1st, 2nd, 3rd and 4th respondents respectively.

Bulawayo High Court judge Justice Martin Makonese recently ruled that the applicant, Philcool, was entitled to a mandatory interdict compelling the respondent to pay up or have the property auctioned.

“It is ordered that 1st respondent be and is hereby ordered to tender a sum of US$2 734 932 and $608 832 within 24 hours of the granting of the order before the second respondent proceeds in terms of Rule 63 of the High Court Rules 2021.

“Failure to which the 2nd and 3rd respondents are ordered to proceed with sale execution of the High Court order obtained under HC660/22 within 48 hours of granting of this order. The respondents will also pay the cost of the suit,” said Justice Makonese.

Some of the assets that are likely to be auctioned include a coke oven battery processing unit plant with 60 fitted ovens, a screening plant with four conveyer belts, front end loader and three tipper trucks.

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