Mining ZimbabweLatest Mining News, Policy and Industry Updates

RioZim Limited, once a stalwart of Zimbabwe’s mining sector, has reported a severely deteriorating financial position, with its net loss widening by a striking 81% during the first half of 2025, Mining Zimbabwe can report.

By Rudairo Mapuranga

The company’s interim financial results depict an operation in profound distress, unable to capitalise on a period of historically high gold prices due to crippling production declines and systemic operational failures. Despite a recent capital injection and a comprehensive management restructuring, the company is grappling with material uncertainty regarding its ability to continue as a going concern. This precarious position is underscored by a severe liquidity crisis, where current liabilities exceed current assets by a substantial ZWG 2.9 billion, and total equity has plunged to a deficit of ZWG 1.20 billion.

The company’s financial performance shows a deeply troubling trajectory. RioZim’s net loss expanded to ZWG 300.6 million for the six months ended June 2025, a significant increase from the ZWG 165.7 million loss recorded in the same period of 2024. This alarming deterioration was accompanied by a catastrophic collapse in revenue, which fell by 92% to a mere ZWG 21.6 million, down from ZWG 282.5 million in the prior comparative period. This financial erosion per share accelerated, with basic and diluted loss per share rising to 241.00 cents, compared to 135.59 cents in the first half of 2024. The independent auditor’s review report explicitly highlights a “Material Uncertainty Related to Going Concern,” pointing to the net liability position and recurring losses as conditions that cast significant doubt on the group’s future.

The root of this financial calamity lies in a comprehensive operational breakdown across RioZim’s mining portfolio. The company’s gold production had already fallen by 27% to 306 kg during the first half of 2024, and this downward trend persisted into 2025. The flagship Cam & Motor Mine experienced a 42% production decline to 130 kg, plagued by ore supply challenges and delayed pit development. Renco Mine saw a 9% production drop to 176 kg, while Dalny Mine remained entirely on care and maintenance. This operational performance stands in stark contrast to competitors like Padenga and Caledonia, which managed to thrive under similar national conditions, producing 1,351 kg and 1,072.2 kg of gold, respectively. The company’s inability to benefit from a favourable gold price environment, with the average price strengthening from US$2,165 per ounce in 2024 to US$3,075 per ounce in 2025, underscores the depth of its operational crisis.

The challenges extended beyond its gold operations. RioZim’s associate, RZM Private Limited, which operates the Murowa Diamonds project, experienced a dramatic swing from profit to loss. The associate reported a share of loss of ZWG 28.0 million for RioZim, a stark reversal from the share of profit of ZWG 5.6 million in the prior period. This downturn was driven primarily by continued pressure from depressed international diamond prices, which severely impacted both profitability and cash flows. In response, operational activity at Murowa remained subdued as the mine concentrated on cost containment and optimisation, though it has commenced a strategic shift to in-pit mining aimed at improving the grade of ore processed.

In the face of this multifaceted crisis, RioZim’s chairman, Caleb Dengu, identified “persistent undercapitalisation over the past three years” as the fundamental cause of the company’s inability to sustain production and invest in essential infrastructure. This long-term financing constraint prevented necessary maintenance and modernisation, with a key inflection point occurring in 2019 when ore at Cam & Motor Mine shifted from oxide to refractory sulphide, necessitating a substantial US$35 million capital investment for processing infrastructure that the company could not self-finance.

The company has initiated a vigorous response to these challenges. A comprehensive restructuring exercise included the appointment of an entirely new board in July 2025. This leadership change has already yielded tangible results, most notably the successful reopening of Renco Mine, which has safeguarded the jobs of more than 1,000 workers. Furthermore, the company progressed to advanced negotiations with a strategic investor, a transaction that was successfully concluded after the reporting period, resulting in the injection of much-needed funding. Efforts to fully restore operations at the critical Cam & Motor Mine are also well underway, with full-scale production anticipated before the end of 2025.

However, RioZim’s path to recovery remains fraught with legal and operational hurdles. A stakeholder has applied to the courts for the group to be placed under corporate rescue proceedings, creating significant uncertainty. The Zimbabwe Diamond and Allied Minerals Workers Union further complicated matters by rejecting a US$160,000 settlement offer from RioZim to withdraw its corporate rescue application, with the union maintaining that corporate rescue is the only viable mechanism to save the company from total collapse. This stands in stark contrast to the company’s historical performance, when it once produced over 2,000 kilograms of gold annually as Zimbabwe’s third-largest gold producer—representing a catastrophic decline of approximately 85% in production volume over an eight-year period.

RioZim now stands at a critical juncture, balancing between potential recovery and corporate collapse. The 81% widening of losses to ZWG 300.6 million during the first half of 2025 represents the culmination of years of operational decline and systemic underinvestment. While the recent capital injection and board restructuring offer a vital lifeline, the company’s deeply negative equity and ongoing corporate rescue proceedings create substantial headwinds to recovery. The success of RioZim’s turnaround strategy hinges entirely on the successful ramp-up of production at both Renco and Cam & Motor mines, the stabilisation of its financial position through strategic funding, and the favourable resolution of its legal challenges. With gold prices projected to remain at elevated levels, RioZim has a narrow window of opportunity to align its restored operational capabilities with favourable market conditions, but the path to sustainable recovery remains fraught with uncertainty.

Ventilation may often happen out of sight, deep underground, but at the recent Mine Ventilation Society of Zimbabwe (MVSZ) Annual Conference and Symposium, it was clear that airflow is now front and centre in discussions about mining safety, efficiency, and sustainability, Mining Zimbabwe can report.

By Ryan Chigoche

The gathering attracted a full representation of the mining sector, bringing together mining operators, local, regional, and international suppliers, regulatory authorities, representatives from the inspectorate, and training institutions.

The diversity of attendees underscored the wide-ranging importance of ventilation across all facets of mining operations.

Ventilation: The Bloodline of Mining Operations

Dr. T. Chikande, President of the MVSZ, described ventilation as the “bloodline” of mining. Delegates highlighted the growing challenges that make ventilation a strategic priority: increasing mining depths, complex geological conditions, higher fire load indices, and greater mechanisation. All these factors, Dr. Chikande said, have a direct impact on risk management and operational efficiency.

Regulatory Reform and Emerging Risks

A major takeaway from the conference was the need to review Zimbabwe’s mining ventilation regulations. Current regulations were primarily designed for conventional mines, yet mechanised operations have introduced new risks, including exposure to diesel particulate matter, recently classified as carcinogenic. Updating regulations to reflect these changes is critical, delegates agreed, to protect miners and ensure compliance with best practices.

Collaboration Across Stakeholders

Another key highlight was the importance of collaboration. Dr. Chikande emphasised the need for ventilation professionals to work closely with suppliers, training institutions, and peers within the ventilation fraternity to harmonise standards, particularly on occupational hygiene exposure. “Collaboration is essential if we are to manage risks effectively,” he said.

Elevating Ventilation Professionals

The conference also stressed the need to elevate ventilation professionals into decision-making roles. “Instead of remaining confined to operational roles underground, ventilation experts must have representation in boardrooms,” Dr. Chikande said. He explained that their involvement is vital for risk management, operational efficiency, and managing ESG (Environmental, Social, and Governance) considerations.

Support for Artisanal Miners

The symposium did not overlook the artisanal mining sector, which faces significant safety challenges. Many small-scale miners operate without ventilation planning and often neglect personal protective equipment. Dr. Chikande noted that occupational hazards in this sector, including pneumoconiosis and noise-induced hearing loss, may only appear years later. He called on professionals to extend their expertise to artisanal miners and encouraged suppliers to develop cost-effective, scalable solutions suitable for smaller operations.

As the MVSZ moves forward, the priorities are clear: strengthen ventilation practices, update regulations to reflect modern risks, foster collaboration, elevate professionals to strategic roles, and extend support to artisanal miners.

For Zimbabwe’s mining sector, the message from the conference was unmistakable — ventilation, safety, and expertise must underpin every operation, from the deepest shafts to the boardroom.

Zimbabwe’s mining sector, rich in platinum, gold, lithium, and diamonds, is a cornerstone of the country’s economy. Yet, despite policies designed to promote local industry, the sector remains heavily dependent on South African imports, highlighting a one-sided trade relationship that limits domestic industrial growth.

By Ryan Chigoche

As of 2023, Zimbabwe’s mining sector continues to rely heavily on South Africa. Approximately US$2.1 billion of the US$5.4 billion mining sector revenue is spent on imported machinery, equipment, and services required for mining operations, mainly from South Africa, according to the Zimbabwe Embassy.

This is further supported by an Afreximbank report, which highlighted that 80% of Zimbabwe’s intra-African mining-related imports, totalling US$4.7 billion, originate from South Africa. This includes critical mining goods such as machinery and mechanical appliances (12.5%), mineral fuels and oils (11.6%), and fertilisers used in certain mining processes (5.65%).

However, the worrying thing is that local manufacturing contributes only about 15%, highlighting a significant gap between the sector’s capacity and reliance on South African imports.

This persistent dependence underscores the urgent need to prioritise local procurement, strengthen domestic mining equipment manufacturing, and reduce reliance on South African suppliers, ensuring more value from Zimbabwe’s minerals remains in the country.

South African Suppliers and Local Engagement

Despite earning substantial revenue from Zimbabwe, many South African suppliers provide minimal support to local enterprises, whether through partnerships, joint ventures, or skills transfer. This transactional approach allows foreign companies to profit while Zimbabwean businesses and communities see limited benefit.

In contrast, South Africa enforces a strong local content strategy, requiring at least 70% of mining goods and 80% of services to be sourced locally. The policy also prioritises historically disadvantaged, women-owned, and youth-owned businesses, fostering domestic industries, reducing trade deficits, and growing the local tax base. Zimbabwe could emulate this model to ensure its minerals benefit the country first.

Zimbabwe Local Content Strategy: Progress and Gaps

Zimbabwe approved its Local Content Strategy (LCS) in 2019 with ambitious targets: increasing local content levels from 25% to 80%, boosting manufacturing capacity utilisation from 45% to 75%, and growing manufactured exports by 5% annually by 2023.

But as of 2025, these targets have not been fully achieved. Only 15% of the mining sector’s requirements are currently met by local manufacturers, with over US$2.1 billion of sector revenues spent on imports.

According to the Chamber of Mines Zimbabwe (CoMZ), the mining sector is running at 81–84% capacity utilisation and is projected to hit 90% in 2025, evidence of strong growth.

Meanwhile, the Confederation of Zimbabwe Industries (CZI) reports that manufacturing capacity utilisation sits at just 56.2%, far below the mining industry’s pace.

This widening gap highlights the urgent need to capacitate local industry through financing, retooling, and preferential procurement so that it can supply a growing mining sector and keep more value within Zimbabwe.

Proof That Zimbabwe Can Deliver

A clear example of the capability of Zimbabwe’s local mining industry comes from Mimosa Mining Company’s US$75 million Tailings Storage Facility (TSF-4) project.

According to Mimosa’s General Manager, all contractors involved in the project were local, with the construction managed entirely by Zimbabwean firms. While the design was done by a South African engineering firm (SRK), the project costs largely reflect local expenditures, with only a few exceptions for imported materials such as pipes.

This demonstrates that, with proper planning and procurement support, Zimbabwean contractors and service providers can successfully handle large-scale mining projects.

It also underscores why full implementation of the Local Content Strategy, together with financial and technical support for local suppliers, is essential to replicate such successes across the industry.

Notably, Platinum Group Metals (PGM) miners such as Zimplats and Mimosa have long championed Local Enterprise Development (LED) and Supplier Support programs, investing heavily in nurturing small and medium-sized enterprises (SMEs) that supply critical goods and services.

These efforts have reduced reliance on imports, cut costs, and generated thousands of jobs, with Zimplats alone investing nearly US$460 million into local businesses and creating over 2,600 positions since launching its LED initiative.

Building a Stronger Local Industry

To fully leverage Zimbabwe’s mining potential, it is essential to prioritise local enterprises through a combination of strategic initiatives.

First, preferential local procurement should be enforced, ensuring that government contracts and industry tenders favour Zimbabwean suppliers wherever possible. Second, targeted capacity building and funding is critical to equip local firms with the technical expertise, machinery, and financial resources needed to meet the standards of the mining industry.

Finally, fostering industrial partnerships with foreign suppliers can facilitate technology transfer, skills development, and collaboration, enabling domestic businesses to scale up and consistently deliver high-quality products and services. By implementing these measures, Zimbabwe can retain more value within the country, create jobs, and strengthen its industrial base.

Zimbabwe has the strategy, the capacity, and proven examples like the Mimosa TSF-4 project to deliver large-scale mining projects locally. Yet, implementation lags behind, leaving the sector heavily dependent on South African imports. Accelerating the Local Content Strategy and prioritising domestic manufacturing are crucial to making mining a true engine of industrialisation, employment, and sustainable economic growth.