RIOZIM plans to sell Renco Mine for US$35 million, with most of the proceeds earmarked for debt repayment and the remainder for working capital as the group seeks to stabilise its finances and support its remaining operations, Mining Zimbabwe can report.
By Ryan Chigoche
The proposed disposal would see RioZim part with its only currently producing mine after failing to secure an investor willing to recapitalise the wider group, while Renco itself requires about US$20 million to get back on its feet, according to a circular to shareholders.
RioZim has not identified the buyer in the circular but said the US$35 million proceeds would be used primarily to reduce its debt burden, with the balance providing working capital for the group.
The sale would significantly reshape RioZim’s operating portfolio. If completed, the company would lose Renco, leaving Cam & Motor and Dalny as its main remaining gold mining operations, alongside its other business interests, including Empress Nickel Refinery and Sengwa Colliery. RioZim’s corporate profile lists Renco, Cam & Motor, Dalny and Empress among its operations.
That makes the working-capital component of the transaction important as RioZim attempts to sustain its remaining operations while advancing the recovery of assets that have been constrained by funding shortages.
Cam & Motor is central to that recovery plan. RioZim has been working to restart the Kadoma gold mine, with management previously indicating that the mine’s dewatering and refurbishment programme was part of efforts to return it to production. Workers at the operation were also told in late 2025 that plans to fully restart the mine were well underway.
Dalny, meanwhile, has remained under care and maintenance as RioZim grapples with the capital required to restore its mining portfolio.
The decision to sell Renco is particularly notable because the mine has only recently returned to production and subsequently delivered a sharp improvement in output under a contract mining arrangement with Chinese contractor FeiFan Mining.
Renco restarted operations in September 2025 under the arrangement, with FeiFan subsequently becoming a key financier of the mine. The operation produced 84kg of gold in the final quarter of 2025, followed by another 92kg in the first quarter of 2026.
The recovery came after a difficult 2025 for RioZim, when group gold production fell 80% to 84kg from 428kg in 2024, while the company recorded a US$29.5 million loss.
Despite the improvement, RioZim says Renco requires about US$20 million to get back on its feet, highlighting the continuing capital requirements of the mine even after its return to production.
The proposed disposal follows RioZim’s unsuccessful attempt to secure an investor for the entire group.
After attracting interest from potential investors, the company shifted towards an asset-by-asset disposal strategy as the funding requirement for a group-wide recapitalisation proved difficult to secure. The strategy was aimed at reducing debt while generating liquidity for the businesses that remain within the group.
RioZim had previously announced plans to dispose of major assets as part of efforts to address its debt burden, including its interest in Murowa Diamonds and other assets.
The latest Renco transaction takes that restructuring a step further by putting a producing gold mine at the centre of the disposal programme.
As at May 31, 2026, RioZim’s net current liabilities stood at US$51 million, according to the latest circular, underscoring the financial pressure behind the asset-sale programme.
For RioZim, the proposed transaction would provide an immediate US$35 million injection, although most of that money would go towards reducing existing debt rather than new investment.
The balance would provide liquidity for the remaining business as the group seeks to maintain operations and advance its recovery plans, particularly at Cam & Motor.
Renco’s sale would therefore leave RioZim with a smaller mining portfolio but potentially a less leveraged balance sheet and additional working capital to support the assets it retains.
The transaction remains subject to the conditions set out in the shareholder circular, with RioZim yet to disclose the identity of the prospective buyer.
