RioZim Limited has removed the cautionary statements it released in June and July stating the consequences of overdue gold payments, arguing that the commitment of the central bank was fruitful.
By Shantel Chisango
In a statement, RioZim informed its shareholders that their efforts to make Reserve Bank Zimbabwe (RBZ) and Fidelity Printers and Refiners (FPR) partly clear their outstanding debts to them were successful, resulting in the company resuming normal production.
“The company would like to advise its valued shareholders that engagements with the RBZ and FPR have been fruitful,” said RioZim in the statement.
The company claimed in a move to clear the debts that RBZ and FPR were making partial payments to minimize the enormous amount of debt and agreed to make future payments on time.
“RBZ and Fidelity have been making part payments to the company with a view to clearing outstanding amounts and have assured the company of timely payments for gold deliveries going forward,” stated RioZim.
RioZim told its shareholders that it was going to take a positive turn for business.
In a statement published June and July of this year, RioZim stated that the Reserve Bank of Zimbabwe (RBZ) owed it US$2.4 million while Fidelity Printers and Refiners (FPR) owed it US$ 65.5 million which resulted in the slacking of the business.
Meanwhile, RioZim announced that payment delays for FPR’s gold deliveries had remained constant while the payments were irregular.
RioZim is incorporated and has subsidiaries such as RioGold, RioBase Metals, RioChrome, RioDiamonds, and RioEnergy, and is listed on the Zimbabwe Stock Exchange.
The Renco Gold mine in southeast Zimbabwe, the Cam & Motor gold mine in Kadoma, the Maranatha ferrochrome refinery in Kadoma and the Empress Nickel Refinery in Central Zimbabwe, near the city of Kadoma, is currently run by RioZim.
The corporation also owns 50 percent of Sengwa Colliery Private Limited in Gokwe Northern.