Diamond Fields International has instituted an action for damages in the High Court of South Africa in Cape Town against its former joint venture partner, Trans Hex Group, in respect of Trans Hex’s unilateral decision to suspend mining operations on July 1, 2002, at Diamond Fields’ Marshall Fork deposit.
The claim for damages arises primarily out of:
(1) the repudiation by Trans Hex of the joint venture agreement entered into between Diamond Fields and Trans Hex on March 5, 2001; and
(2) Trans Hex’s breach of its obligation regarding Diamond Fields’ option to purchase the mining vessel MV Namakwa.
Diamond Fields is claiming damages of approximately $19.5-million (U.S.) pursuant to its claim against Trans Hex.
