Published: 09 May 2025

Renco Mine, a subsidiary of Zimbabwe Stock Exchange-listed miner RioZim Limited, is facing a looming power disconnection due to an outstanding US$4.7 million debt owed to the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), according to official documents.

The mine, one of RioZim's key gold operations, risks suspension of electricity supply unless it adheres to a repayment plan outlined in an acknowledgement of debt signed on February 19, 2025.

"We do hereby acknowledge being truly and lawfully indebted to ZETDC in the sum of US$4.7 million, being in respect of electricity bills. We undertake to repay the debt to the company by way of instalments," wrote Cleopas Benza, representing RioZim's Renco Mine.

As per the agreement, the company committed to an initial payment of US$300,000 by March 28, 2025, followed by monthly instalments of US$500,000 due on the 15th of each month until the debt is cleared.

The document includes a stern warning that failure to comply with the payment schedule could result in legal action and financial liability being transferred to future owners should the mine change hands.

"The company reserves the right to demand full payment from the new owner upon transfer of ownership," the agreement states.

This development adds to RioZim's mounting financial woes. The company is burdened by liabilities totaling US$191 million, reflecting years of operational and economic strain.

As of June 30, 2024, RioZim's balance sheet showed a concerning gap, with total liabilities surpassing assets by over US$11 million, highlighting the miner's weakened liquidity position.

RioZim's gold portfolio includes Renco, Cam & Motor, and Dalny mines, while its associate RZM Murowa (Pvt) Ltd handles diamond interests. The company also owns the Empress Nickel Refinery, a critical part of its operations.

The potential power disconnection at Renco Mine threatens to further destabilize operations, signaling wider challenges in Zimbabwe's mining sector where energy access and debt management are becoming increasingly critical for continuity.
- the independent

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