NASH Explosives Limited has sued the owners of Munali Nickel mine in Southern Province, Mabisa Resources Limited, in the Lusaka High Court demanding payment of US$189, 443.39 outstanding balance for the supply of explosives.
Nash Explosives Limited wants the court to order Mabiza Resources Limited to pay it damages for breach of contract.
In its statement of claim, Nash Explosive Limited stated that sometime in May 2015, it entered into an agreement with Mabiza Resources limited for the supply of explosives for a period of two years.
Nash Explosives Limited stated that pursuant to the supply agreement, it supplied explosives worth US$189,443.39 to Mabiza Resources limited but it has defaulted on its payment obligations and made several commitments of settling the same without fulfilling its promises.
“The plaintiff shall aver that by a letter dated September 24, 2020, it did demand from the defendant US$189,443,39 (debt) being the outstanding sums together with interest and related costs,” Nash Explosives stated.
Nash Explosives Limited said that Mabiza Resources Limited responded to the demand letter through its lawyers on October 2, 2020 admitting the debt (less disputed amount of US$35) and provided two payment options which was not accepted by the plaintiff as it had been presented before without any commitment.
It stated that the options were of 40 per cent of the full sum claimed paid immediately as a final settlement or 36 months installments of the full sum claimed.
Nash Explosive Limited stated that it proceeded to source huge amounts of stock of the products to secure the contract, which resulted in a loss and other costs due to the premature termination of the said supply agreement without following the due procedures and to date it has failed or neglected to settle the outstanding balance to the plaintiff in full.
The plaintiff wants interest on any sums found due and any other relief the court may deem fit.