In a significant turnaround for Zimbabwe Stock Exchange-listed mining house RioZim Limited, its diamond associate, RZM Murowa, recorded a sharp production increase in the first quarter of 2026, with output rising to 45,606 carats from 2,745 carats in the same period last year,Mining Zimbabwe can report.
By Ryan Chigoche
The production surge marks a dramatic reversal for Murowa, which had been one of RioZim’s most troubled assets. The Q1 2026 breakthrough follows a strategic pivot: after an extensive exploration programme, the mine commenced in-pit mining activities specifically targeting higher-grade ore to counter adverse market conditions and improve operational efficiency.
This comes as the group’s gold operations also surged in the same quarter, with Renco Mine gold output rising to 92 kilograms from just 6 kilograms in Q1 2025, while Cam & Motor resumed production in May following the completion of pit dewatering—driving a broader group recovery.
The production surge marks a dramatic reversal for Murowa, which had been one of RioZim’s most troubled assets.
In 2024, the mine’s plant throughput collapsed by 47%, primarily due to the entire heavy mobile equipment fleet passing its economic life, leading to persistent breakdowns. Carat production fell 13% to 359,000 carats, down from 414,000 the previous year, forcing management to decommission all heavy equipment and rely on hired machinery.
The operational crisis translated into a significant financial loss for RioZim’s associate. RioZim’s full-year 2025 abridged report confirmed a “challenging year” for Murowa, with diamond production declining by 58%.
Diamond Market Headwinds and Recovery Signs
The production gains come against a mixed global diamond market backdrop. International diamond prices fell by 9.7% in Q4 2025 year-on-year, pressured by US trade tariffs on India a key processing hub and geopolitical instability in the Middle East. India imports around 70% of its diamonds from the UAE and Israel, creating supply chain vulnerabilities.
However, industry experts at Kept predict a potential recovery in 2026, driven by contracting output from leading players, depleting deposits, and renewed marketing campaigns for natural stones.
Russian giant Alrosa also forecasts price stabilisation, noting that demand for larger stones (over 5 carats) rose 4-6% in March 2026, while US retailer Signet Jewelers reported revenue growth of 1.6%.
RioZim’s Broader Restructuring
The production uptick comes as RioZim navigates a perilous financial position. Auditors Forvis Mazars have raised “material uncertainty” over the company’s ability to continue as a going concern, with current liabilities exceeding current assets by approximately ZiG2.93 billion. The group is pursuing a restructuring plan that includes disposing of its 22.2% stake in Murowa Diamonds and other assets to settle a US$60.8 million debt though the plan faces legal challenges from a shareholder seeking corporate rescue proceedings.
For now, Murowa’s Q1 performance, together with the stellar recovery at Renco and the resumption of operations at Cam & Motor in May offers a glimmer of hope, proving that even amid corporate turmoil and a volatile market, operational focus on grade improvement can deliver striking results.
