The Pretoria High Court has dismissed phosphates and phosphoric acid producer Foskor’s appeal against chemical manufacturing company Omnia, with costs.
Omnia on Wednesday said that the ongoing legal dispute, which started in 2014, was based on Foskor’s position as the sole producer of phosphoric acid in the region, as Foskor having sole access to the import/export terminal at Richards Bay, which set the domestic phosphoric acid price at a level higher than the international price.
Omnia Fertiliser sourced all of its phosphoric acid from Foskor and the company claims that this practice took place despite a Competition Tribunal order aimed at preventing it.
“The effect of this practice resulted in overcharges by Foskor for the supply of phosphoric acid to Omnia and Omnia has claimed a substantial refund from Foskor for such amounts,” the chemicals company said in a statement.
In October 2015, the High Court offered judgement in favour of Omnia by enforcing the Competition Tribunal order. Subsequently, in March 2016, Foskor lodged an appeal that resulted in the High Court judgement being suspended and Foskor being granted leave to appeal to the full bench of the High Court.
The recent dismissal of Foskor’s appeal by the full bench of the High Court is the third time that Foskor has failed to convince the courts of the merits of its case.
Omnia will now pursue the matter through the courts to ensure that the High Court judgement is upheld and that Foskor’s pricing is in accordance with the judgement.
Foskor could not be reached for comment.