Published: 2 hours ago

RioZim Limited has announced its intention to appeal an interim relief granted in favor of the Zimbabwe Diamond & Allied Minerals Workers Union (ZDAMWU), which represents some of the company's employees, amid a contentious plan to sell selected company assets.

The workers had filed an urgent chamber application, heard on July 29, 2025, seeking an interdict to bar the board from proceeding with transactions outlined in a cautionary statement published on July 21, 2025. In that statement, RioZim confirmed it was in the final stages of negotiations to dispose of certain mining and non-core assets, describing the completion of the transactions as imminent and crucial to resolving the company's financial and operational challenges.

An interim relief was granted in favor of the union on August 5, 2025, pending confirmation or discharge of the provisional order. RioZim stated that it intends to appeal the order, emphasizing that the proposed transactions were expected to inject much-needed funding into the company to support employee salaries, settle creditors, and revive mining operations.

The company is currently grappling with a severe financial crisis, including declining production, mounting debts, and significant losses, prompting calls from workers for the company to be placed under corporate rescue. Negotiations between major shareholders and potential investors to acquire a majority stake in RioZim remain ongoing, with the due diligence process reported to be at an advanced stage.

RioZim said the union's legal action has prevented it from taking initiatives that could alleviate operational pressures and improve conditions for employees. The company has therefore decided to put all transactions contemplated in the July 21 cautionary statement on hold pending the outcome of the appeal.

"We are committed to finding a swift resolution to this impasse to allow mining and gold production to restart and continue," the company said, urging shareholders and the investing public to exercise caution when dealing in its securities. Further announcements will be made in line with regulatory requirements as material developments occur.
- The Herald

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