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Chinese miner ordered to pay ex-workers $400,000 in Zimbabwe

by Staff reporter
21 Oct 2018 at 09:49hrs | Views
Chinese diamond miner, Anjin, has been ordered to pay its former employees over $400 000 as compensation after they lost their jobs following a government directive to close the mine.

Anjin, which has a partnership with the Zimbabwe Defence Forces, was forced to stop mining the precious mineral in Marange in February 2016 after the government ordered the diamond mining companies to form one entity.

The Chinese resisted the merger to form the Zimbabwe Consolidated Diamond Company and terminated contracts of its 127 employees.

High Court judge Justice Amie Tsanga on October 10 ordered Anjin to compensate the former employees four months after the Chinese firm lost a Constitutional Court (ConCourt) bid seeking to overturn the government's move to take over all diamond mining operations in Marange.

Anjin was ordered to pay "$407 422, interest of 5% per annum and cost of the suit."

According to the court papers, the 127 ex-Anjin Investments (Pvt) Ltd ex-employees were owed the cash for their terminal benefits.

The former employees had initially filed an urgent application seeking to compel their employer to fulfil the terms of the mutual termination agreement, arguing the mine was no longer going to resume operations since its High Court application had been dismissed.

In their application, the employees had argued that the urgent chamber application by Anjin was finalised in March 2016 and there were no longer prospects of the mine resuming operations.

However, Anjin opposed the application arguing that the abrupt cessation of its operations had resulted in it not being able to continue its mining operations or earn any income so as to enable it to pay compensation.

Anjin then filed the ConCourt application claiming its right to fair administrative conduct and due process as guaranteed in section 68 (1) of the constitution and right to freedom of association had been violated.

The application was dismissed and the matter was referred back to the High Court for determination.

Source - the standard

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