DRC mining firm CDMC prevails over local rival SMB in Tanzania court case

Dar es Salaam. Congolese mining firm Cooperative Des Artisanaux Minieres Du Congo (CDMC) has prevailed in a case filed by a rival Congolese miner at the Commercial Division of the High Court of Tanzania.

Mr Justice B.K. Phillip on July 11, 2019 ruled in favour of CDMC when he struck off with costs Commercial Case Number 62 of 2018 lodged by Ben Mwangachuchu T/A Societe Miniere De Busunzu Sari (SMB).

The two companies had been at loggerheads over tantalum mining sites in the Democratic Republic of Congo (DRC), and SMB went to court in Tanzania, seeking to block CDMC from exporting a consignment of the mineral through Dar es Salaam Port. SMB also sought over $11 million in compensation.

Tantalum is a shiny, silvery metal, which is soft when is pure. The mineral is used in the electronics industry for capacitors and high power resistors. It is also used to make alloys to increase strength, ductility and corrosion resistance. The metal is used in dental and surgical instruments and implants, as it causes no immune response.

Documents seen by The Citizen show that CDMC won several cases in the DRC against SMB in tantalum mining disputes.

After winning the cases, and having been cleared by all the relevant DRC state agencies, complete with a letter from the country’s Justice ministry which was addressed to its counterpart in Tanzania, CDMC began shipping the mineral overseas via Dar es Salaam Port.

But SMB filed a case at the Commercial Division of the High Court of Tanzania in an attempt to block the export of seven containers laden with tantalum through Tanzania’s biggest and busiest port. SMB claimed that CDMC and its associates unlawfully transported the containers to Tanzania.

At the Commercial Division of the High of Tanzania, CDMC was represented by Advocate Jimmy Mrosso of Lexicon Attorneys (Tax & Corporate) law firm. while the plaintiff was represented by Advocate Abdallah Matumla and later by Breakthrough Attorneys.

SMB argued that the tantalum in question had been sourced from its (SMB’s) site in North Kivu Province in the DRC. The plaintiff asked the court to compel CDMC and three fellow respondents to pay the firm the principal sum of $11.044 million (Sh23.3 billion) as compensation for the alleged resultant loss.

SMB also sought a court injunction to prevent CDMC from moving the disputed consignment from Tanzania International Container Terminal Services (TICTS) premises in Dar es Salaam and tantalum from the DRC until the matter before the court was fully determined.

But in his ruling, Mr Justice Phillip dismissed the case and ordered the plaintiff to pay the attendant costs.

“…it is my considered view that this matter is criminal in nature as it involves claims pertaining to smuggling of minerals and disobedience of the orders from the Attorney General…is this court vested with powers to deal with issues involving disobedience of orders of the Attorney General? It is my settled opinion that the answer to this question is No…therefore, I strike off this case with costs,” said Mr Justice Phillip.

He said the plaintiff erred in initiating a case at a court that has powers to deal only with civil cases of commercial significance.

“From the foregoing, it is the finding of this court that the plaint is not in compliant to the provisions of Order VII rule 1 (f) of the Civil Procedure Code. The first criterion for a case to be entertained by this court is that, it has to be a civil case,” Mr Justice Phillip further noted.