After years of falling production, persistent strikes, and mounting losses, RioZim has confirmed that it is selling its mines to a new investor, Mining Zimbabwe reports.
By Ryan Chigoche
Once a major gold producer in Zimbabwe, the company has struggled with underinvestment, frequent equipment failures, and an unfavorable foreign currency regime that has squeezed operations.
These challenges have led to a steady decline in output, making it increasingly difficult for the company to sustain its operations.
In a statement on Thursday, RioZim announced that it is in the final stages of negotiations with a potential lender to address its financial and operational difficulties.
“The conclusion of the negotiations is imminent, which will resolve the company’s challenges,” the company said.
Alongside this, major shareholders have been in talks with several potential buyers and are now finalizing a deal with an investor set to acquire a majority stake in the company.
The transaction is still subject to due diligence, regulatory approvals, and the signing of sale and purchase agreements. Once completed, the new investor will be required to make a mandatory offer to minority shareholders.
RioZim’s production figures reflect the extent of its struggles. Gold output dropped by 27% in the first half of 2024, continuing a downward trend that has plagued the company for years.
Its flagship Renco Mine has been hampered by low ore grades, frequent breakdowns, and labor unrest. Meanwhile, in Kadoma, Cam & Motor Mine and Empress Refinery have remained in extended care and maintenance, despite a US$17 million investment in a BIOX plant that was intended to boost production by 50%. Instead, Cam & Motor’s gold output fell by 42% to just 130kg in the first half of last year.
Beyond gold, RioZim has interests in Murowa Diamonds and a 50% stake in the Sengwa coal project in Gokwe. However, these assets have not been enough to turn the company’s fortunes around.
With RioZim now on the verge of a change in ownership, the focus will shift to the new investor’s plans.
The key question is whether they will bring the capital and expertise needed to revive the company’s operations and restore its position as a major player in Zimbabwe’s gold mining industry.
