SOLKROC LIMITED v. ANGLOGOLD ASHANTI (GHANA) LIMITED
June 20, 2018
HIGH COURT
GHANA
CORAM
- ANGELINA MENSAH-HOMIAH (MRS.) JUSTICE OF THE HIGH COURT
Areas of Law
- Contract Law
- Evidence Law
- Civil Procedure
June 20, 2018
HIGH COURT
GHANA
CORAM
AI Generated Summary
Solkroc Limited sued AngloGold Ashanti (AGA) over the termination of a three-year ore and waste haulage contract (C4033) at AGA’s Obuasi Mine. Solkroc had arranged financing from Standard Chartered Bank to acquire four additional Howo dump trucks, supplied by JA Plant Pool, relying on income from the contract. AGA terminated the contract after about nineteen months due to operational restructuring, giving written notice and subsequently agreeing to extend the termination date. Solkroc sought declaratory relief, expected revenues for the unexpired term, profits, special damages, and interest, arguing unfair breach and reliance-based estoppel. The High Court held that Clause 25.3 allowed termination with notice, quantities were indicative and not guaranteed, AGA expressly disclaimed guaranteeing Solkroc’s financing, and Solkroc acknowledged the termination and extension. Finding no breach, the court denied all reliefs and awarded costs of GHC 5,000 against Solkroc.
JUDGMENT
This suit arose from the termination of a haulage contract which the Defendant Company awarded to the Plaintiff Company sometime in March, 2013. The Plaintiff initiated the action on 26/06/2015 but amended the writ of summons and statement of claim on 10/12/2015. On 05/12/2017, the Plaintiff filed a “Further Amended Writ of Summons and Statement of Claim”. The Defendant however maintained its statement of defence filed on 16/12/2015.
These are the reliefs sought by the Plaintiff:
a) Declaration that the unilateral abrogation of a valid contract (No C4033) dated 11th April, 2013 by the Defendant is an unfair breach of the contract between the Defendant and the Plaintiff as the plaintiff relied on same to change its position to its detriment;
b) Recovery of an amount of GHC 1,961,331 being the value of the 17 months unexpired term of the contract which was wrongfully abrogated by the Defendant;
c) Interest on the sum as mentioned in relief (b) supra from November 2014 till date of final payment;
d) Recovery of an amount of GHC 156,906.48 as expected profit (being 8%) of the total value of the 17 months unexpired term of the contract which was wrongfully abrogated by the Defendant.
e) Interest on the said sum as mentioned in relief (d) supra from November, 2014 till date of final payment;
f) Recovery of an amount of GHC 981,980 as special damages for the breach of contract;
g) Interest on the said sum as mentioned in relief (f) supra from November 2014 till date of final payment;
h) General damages for breach of contract.
i) Cost.
THE PLAINTIFF’S CASE.
Whereas the Plaintiff has described itself as a haulage and plant hire company in the mining industry, the Defendant has been described as a Registered Mining Company; both companies are in Ghana. The crux of the Plaintiff’s case is that per a contract which was entered between the parties herein identified as C4033, the Plaintiff was required to haul three million, two hundred and forty thousand (3,240,000) tonnes of ore from various shafts of the Defendant company in the Obuasi Mines namely: KMS; KRS and SANSU Operations to a point identified as STP ROM Pad within the mines, for a period of three years; which translated to 1,746,000 tonnes of ore annually. Per the contract, the Plaintiff was required to provide 14 twenty- four cubic meter highway dump trucks for the efficient performance of the contract. The Plaintiff averred that relying on this requirement, it procured four additional