Sperrgebiet Diamond Mining is back in court, accusing Namdeb Diamond Corporation of recovering diamonds from the Elizabeth Bay mine after putting it under care and maintenance.
The company claimed that Namdeb failed to undertake care and maintenance operations when it ceased operations at the Elizabeth Bay Mine in 2018.
For all this, Sperrgebiet Mining wants Namdeb to pay N$43.1 million in damages and N$32.5 million from the sale of the recovered diamonds.
The company appeared in court on August 29, seeking leave to amend some paragraphs in its particulars of claim.
High Court judge Boas Usiku dismissed the application.
Namdeb ceased operations at the Elizabeth Bay Mine in September 2018 and announced plans to sell it.
In September 2019, Namdeb said the Sperrgebiet Diamond Mining and Lewcor Group of companies had acquired the mine and its associated marine assets as a going concern.
Sperrgebiet Mining explained that in 2018, it participated in bidding to purchase Elizabeth Bay Mine.
The company further said it submitted a final, binding, and fully financed offer for the sale assets on or before 20 July 2018, premised on an assumed valuation as of 30 September 2018.
The court documents said Namdeb had materially indicated to Sperrgebiet Mining that the sale assets had been shut down and all prospecting, mining, and processing operations ceased in or around October 2018.
According to Sperrgebiet Mining, Namdeb continued to recover diamonds from the tailings between October 2018 and January 2019.
The X-ray tailings, considered high-grade materials still containing diamonds, were stockpiled within the central processing plant area under high-security surveillance.
The X-ray separation machine identifies and separates the diamonds from other materials.
Sperrgebiet Mining claimed that the Virtual Data Room reflected this production information in and around February 2019.
Sperrgebiet Mining said Namdeb recovered 13,715 carats from an estimated 2,667 tons valued at N$32.5 million.
The company also claimed that Namdeb failed to undertake care and maintenance operations when operations ceased at the Elizabeth Bay Mine.
In this regard, Sperrgebiet Mining wants Namdeb to pay N$43.1 million in damages and N$32.5 million from the sale of the recovered diamonds.
High Court Judge Boas Usiku said there was ambiguity about whether Sperrgebiet Mining relied on breach or misrepresentation for its claim.
Usiku said the ambiguity prejudices Sperrgibiet Mining in determining the case they must meet.
The judge said Sperrgebiet Mining failed to disclose the nature and grounds of the fraud-based claim, rendering the particulars of the claim insufficient to sustain a cause of action against the defendants.
The judge upheld Namdeb’s grounds of objection and dismissed the application for leave to amend.
The matter was postponed to 18 September for case planning.
