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Mining industry

How Mine Wins $675,000 Damages from Securico over Lost Gold Bullion

Strategic Insights

— 1 min read

BULAWAYO Mining Company (Pvt) Ltd, trading as How Mine, has emerged victorious in its lawsuit against DDNS Security Operations (Pvt) Ltd, trading as Securico, after a court ruling held Securico liable for the loss of 11.95kg of gold bullion during transit. The court found that Securico failed to provide adequate security arrangements, leading to the loss of the consignment. The robbery occurred on October 4, 2022, 11km from How Mine along Old Tuli Road. Securico's convoy was ambushed by armed robbers, and the gold was never recovered. The court rejected Securico's defense that the robbery was an act of superior force (vis major) that would exempt the company from liability.

Key Takeaways:

  • Securico, as a public carrier, was held liable for the safe delivery of the gold bullion.
  • The court found that Securico failed to discharge the onus of proving the defense of vis major, rejecting the company's argument that the robbery was an act of superior force.
  • Securico's security arrangements were deemed inadequate, with unarmored vehicles used in a high-risk operation contributing to the loss.
  • The court questioned why Securico's lead vehicle fled the scene without returning or alerting authorities.
  • How Mine's employees may have leaked information about the bullion run, compromising security, but the court dismissed this claim as speculative.
  • Securico failed to prove the amount of unpaid invoices was payable exclusively in US dollars, resulting in the counter-claim being dismissed.

Statistics:

  • 11.95kg of gold bullion was lost during transit.
  • The loss occurred on October 4, 2022.
  • $675,000 is the damage award granted to How Mine.
  • 5 percent annual interest will be applied to the damage award from October 4, 2022.
  • Securico must cover How Mine's legal costs.

Sources:

  • The Herald (The Zimbabwe Daily Newspaper), citing "How Mine wins gold bullion case against Securico" by Tendai Mutsaka.
  • Zimbabwean judicial system records of the case, citing "BULAWAYO Mining Company (Pvt) Ltd v DDNS Security Operations (Pvt) Ltd" high court case number.

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