The High Court has ruled that Mbada Diamonds is not entitled to mine in Chiadzwa pending the determination of the validity of the special grant.
The same court however maintains the company’s security personnel will be authorised to remain at the concession until the matter is resolved.
According to the ruling, Mbada Diamonds will not be entitled to the rights associated with the special grant until the validity of the mining title is regularised in accordance with the law.
The court has also ruled that dispossession of Mbada Diamonds was unlawful and has ordered that in the interim, security personnel of the diamond firm shall remain at the concession for the purpose of safeguarding company assets.
The first applicant in the matter, Grandwell Holdings’ was seeking a return to the mining concession and the resumption of operations unhindered by government.
The Mauritius registered Grandwell Holdings holds 50 percent of the issued share capital in Mbada Diamonds, while the other 50 percent is owned by Marange Resources.