Makomo Resources, a coal mining firm based in Matabeleland North, has successfully exited the corporate rescue process after settling its obligations to creditors and regaining financial stability.
By Ryan Chigoche
The company was officially removed from corporate rescue on February 27, following a decision by the Master of the High Court to grant its request, four years after being placed under curatorship.
Corporate rescue, also known as business rescue or restructuring, is a legal process designed to assist financially distressed companies in Zimbabwe in restoring solvency and continuing operations. It aims to balance the interests of creditors, shareholders, employees, and other stakeholders while preserving the economic value of the company.
In an official notice, Mr. Bulisa Mbano, the Lead Corporate Rescue Practitioner, confirmed that the restructuring and reorganization of Makomo Resources had been successfully completed, ensuring that the company is no longer in financial distress.
“Notice is hereby given to the pre-corporate rescue creditors and members of Makomo Resources (Private) Limited that the company’s restructuring and reorganization has been successfully completed. Through this process, Makomo Resources settled its obligations to creditors and restructured its financial position, ensuring that it is no longer in financial distress,” he said.
Mr. Mbano also extended gratitude to various stakeholders, acknowledging their support throughout the process. “We extend our sincere gratitude to the board, management, staff, creditors, the Ministry of Mines and Mining Development, Zimbabwe Power Company, Zimbabwe Electricity Transmission and Distribution Company, and all other stakeholders for their unwavering support throughout the corporate rescue process. Under our guidance, the company has regained financial stability, and we are confident that Makomo Resources is now well-positioned for future success. We wish the board and management continued growth and prosperity as they create value for stakeholders and contribute to the nation’s economy.”
At one point, Makomo Resources was one of the leading companies contracted by the Zimbabwe Power Company (ZPC) to supply coal to Units 7 and 8 for electricity generation in the country. The company had also planned to build a 600-megawatt power station in Hwange. Operating southeast of Hwange town, Makomo was established more than a decade ago and quickly became a leading coal producer alongside Hwange Colliery Company.
However, in recent years, the company fell under corporate rescue due to being overwhelmed by creditor demands amounting to millions of US dollars. As of January 31, 2025, Grant Thornton reported that Makomo had outstanding liabilities, including unproven claims amounting to Z$13,530.06 and debts to trade creditors totaling US$3.25 million. Additionally, the company owed approximately US$2 million to product creditors, US$49.09 million and Z$221,649.21 to related party creditors, and US$13.91 million to contingent creditors.
Makomo Resources operates in the Bulawayo Mining District, with its mineral resource located at the Entuba Colliery, about 17 kilometers from Hwange in Matabeleland North. The company’s concession covers 7,000 hectares, allowing it to carry out open-cast mining for the next 30 years at a production rate of one million tonnes per annum, with an additional 100 years of potential underground mining.
As reported by Mining Zimbabwe, in line with shifting market demands, Makomo Resources earlier this year announced plans to transition to underground mining operations to focus on the production of coking coal, which has seen a surge in demand.
This strategic move aims to diversify the company’s product offerings and capitalize on the growing market for coking coal. By venturing into underground mining, Makomo seeks to enhance its operational efficiency and meet the evolving needs of both domestic and international markets.
