RioZim to appeal ruling in assets disposal fight

Published: 38 mins ago

RioZim Limited says it will appeal against an interim relief granted in favour of the Zimbabwe Diamond & Allied Minerals Workers Union (ZDAMWU), which represents some of the company's employees in a dispute over asset disposal.

The workers' union had approached the High Court with an urgent chamber application heard on July 29, 2025, seeking to bar the RioZim board from proceeding with transactions flagged in a cautionary statement published last month.

In the July 21 notice, RioZim disclosed that it was in the final stages of negotiations to dispose of some mining and non-core assets. The company said conclusion of the transactions was imminent and would inject critical funding to address financial and operational difficulties.

On August 5, the court granted an interim order in favour of the workers, pending confirmation or discharge of the provisional ruling. RioZim has since confirmed its intention to appeal.

"The company intends to appeal the said order granted, as the proposed transactions were anticipated to bring much-needed funding into the operations of the company to assist with payment to its employee salaries and creditors and to resuscitate mining operations," RioZim said in a statement.

The diversified resources group is grappling with production declines, operational disruptions, financial losses, undercapitalisation and recurring labour disputes. It argues that halting the asset disposal process has derailed efforts to stabilise operations and relieve the hardships facing both employees and the business.

RioZim noted that negotiations between its major shareholders and potential investors for the purchase of a controlling stake were continuing, with due diligence at an advanced stage. However, all transactions mentioned in the cautionary statement have now been suspended pending the outcome of the appeal.

Chief executive Rajgopal Swami told this publication that RioZim was "at the cusp of a breakthrough" and close to unveiling a secure payment plan, including a substantial down payment, to employees. He said the union's court action had delayed the process.

Mr Swami pledged to maintain transparency and accountability, while urging workers, shareholders and creditors to collaborate for the company's long-term recovery.

"The company's future hinges on unity and a shared commitment to recovery. We must work together towards growth, which will yield results for all," he said.
- The Chronicle

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