Published: 11 August 2025

The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has reiterated that only a court-supervised corporate rescue can revive RioZim Limited, as the mining company's much-needed US$21 million investment faces delays linked to ongoing legal proceedings.

RioZim, a Zimbabwe Stock Exchange-listed company, has accused the union of creating obstacles to its revival after ZDAMWU and other parties petitioned the High Court in April 2025 to place the company under supervision and initiate corporate rescue measures. This move followed alarming disclosures of a severe liquidity crisis, with RioZim's debts reportedly nearing US$200 million.

In June, RioZim announced securing a working capital facility of up to US$21 million from a private investor, calling it a lifeline intended to stabilise operations and pay workers. However, the company recently blamed the ongoing corporate rescue application for delaying the disbursement of these funds.

ZDAMWU, however, has rejected this claim. Speaking to Mining Zimbabwe, General Secretary Justice Chinhema said:
"ZDAMWU believes that corporate rescue is the only way this big mining asset can be saved from total liquidation and collapse. They are giving statements without any tangible sense in it. They must demonstrate commitment to addressing the root causes of the company's collapse and stop misrepresenting facts to cover up mismanagement and financial abuse."

The union emphasised that it is not opposing recapitalisation but insists on a structured and transparent process. It argues that only a court-appointed corporate rescue practitioner can guarantee credible oversight, protect workers' and creditors' interests, and prevent further financial mismanagement.

Chinhema added, "They must also demonstrate that shareholders are willing to recapitalise the mine and prove that the process is transparent and based on proper due diligence by an independent party." He stressed that these measures aim to safeguard workers, local communities, and the country's economic welfare, ensuring investments genuinely uplift livelihoods and promote national development.

While RioZim claims the corporate rescue proceedings are delaying investor deals, labour groups argue the opposite—that such deals might be a smokescreen to avoid accountability for unpaid debts and salaries.

The Zimbabwe Anti-Corruption Commission (ZACC) is also reportedly investigating RioZim, through its subsidiary RioGold (Private) Limited, over allegations of financial misconduct and outstanding debts. Documents reviewed by Mining Zimbabwe indicate that RioZim owes millions to employees, creditors, and the Zimbabwe Stock Exchange.

This scrutiny has intensified pressure on RioZim's board and management, raising serious questions about governance and financial responsibility at one of Zimbabwe's largest mining houses.

RioZim's dire financial situation was highlighted in its June 2024 financial reports, revealing negative equity of ZWG149.2 million and total liabilities exceeding US$90 million. These include a US$55 million debt owed to its own subsidiary RZM Murowa and a US$30 million contingent liability related to a foreign legal dispute. The company also faces unresolved tax debts and pension arrears, casting doubt on its ability to stabilise without external intervention.

The size of the newly announced US$21 million investment has been questioned, with experts suggesting it may be insufficient to rescue the company without comprehensive oversight.

RioZim has also been involved in legal confrontations with its workforce. In October 2024, the company filed a High Court application against over 1,200 Renco Mine workers, accusing them of an unlawful strike over unpaid wages. Although the court ordered workers to resume duties, RioZim controversially paid only half of the owed salaries for the strike period, prompting renewed disputes with ZDAMWU.

Efforts to secure long-term financing have faltered, with local banks offering only short-term facilities and international investors wary due to Zimbabwe's challenging investment climate.

RioZim's health is critical to Zimbabwe's economy. As a multi-commodity miner active in gold, nickel, copper, coal, and diamonds, the company is pivotal for export revenues, employment, and regional development.

The ongoing standoff underscores the urgent need for transparent, accountable processes to safeguard the future of this strategic national asset.
- Mining Zimbabwe