Troubled Zimbabwe Stock Exchange-listed mining company RioZim has been forced to halt the planned sale of its gold mines after the High Court granted interim relief to unions opposing the transaction, Mining Zimbabwe can report.
By Ryan Chigoche
RioZim, which operates several struggling gold mines, is now appealing the court decision.
The company had been in advanced talks with prospective investors to secure US$21 million in working capital in exchange for a majority stake.
However, the Zimbabwe Diamond and Allied Workers Union (ZDAMWU), together with other interested parties, approached the courts, arguing that only a court-supervised corporate rescue process could revive RioZim while protecting workers’ interests.
Faced with this legal challenge, RioZim announced that it has frozen the transaction pending the outcome of the appeal.
“The action taken by the Zimbabwe Diamond and Allied Workers Union has prevented the company from taking these much-needed initiatives to restart mining operations and alleviate the current hardships being faced by the workers, as well as to ease operational pressures. The company has, at this stage, taken a decision to put on hold all transactions contemplated in the cautionary statement referred to above, pending the outcome of the appeal.”
In a recent interview with Mining Zimbabwe, ZDAMWU stressed that it is not blocking recapitalisation efforts but instead pushing for a structured and transparent process.
The union maintains that only a court-appointed corporate rescue practitioner can provide credible oversight, safeguard workers and creditors, and prevent further mismanagement.
RioZim’s troubles have deepened in recent years. In 2024, the miner’s gold output plunged by 54%, leaving it unable to capitalise on record-high global bullion prices.
