The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has once again rejected a US$160,000 settlement offer from RioZim Limited, arguing that it fails to address critical issues affecting employees and the long-term viability of the company, Mining Zimbabwe reports.
By Ryan Chigoche
The standoff is the latest development in a prolonged struggle between the union and RioZim, which has been facing financial and operational challenges since 2022.
In April 2025, Zidamwu lodged an application to place the listed mining company under corporate rescue, citing unpaid employee salaries, job insecurity, and the company’s inability to fund major operational projects.
The filing marked a critical escalation in the ongoing dispute between the workforce and management, highlighting concerns over the company’s ability to protect its employees while remaining viable.
RioZim, which operates gold mines at Cam & Motor (open-pit) and Renco (underground), has struggled to secure funding to support operations. A major issue arose in 2019 when the ore at its flagship Cam & Motor Mine shifted from oxide to refractory sulphide, requiring a US$35 million investment that the company could not self-finance. Repeated attempts to secure local and international funding have failed, leaving the company unable to meet obligations to employees and creditors alike.
Adding further complexity, RioZim is in advanced negotiations for a US$20 million capital injection to stabilise operations. However, this potential funding is at risk due to the ongoing corporate rescue proceedings, which have placed certain company assets under judicial management.
Faced with this challenge, through its lawyers Nyahuma Law, RioZim offered the US$160,000 settlement “without prejudice,” on the condition that Zidamwu withdraw all legal cases related to the corporate rescue and consent to the company’s appeal against a High Court ruling restricting its management of assets. The company argued that the union’s legal action had hindered recapitalisation efforts and delayed payments to employees.
“The tender is made on condition that prior to the release of the funds, you make an unequivocal undertaking to withdraw and abandon all its (court) cases relative to the placement of our client under corporate rescue. This includes consenting to the application for leave to appeal the High Court judgment in terms of which our client was interdicted from dealing with its assets,” RioZim said.
Zidamwu, however, maintains that financial compensation alone cannot resolve the underlying issues.
The union is demanding comprehensive guarantees, including full payment of outstanding salaries, protection of jobs, mechanisms to ensure RioZim’s long-term viability, and strengthened corporate governance.
“Resultantly, our client proposes that a consensual corporate rescue strategy is appropriate, with clear perimeters on duration, goals, and a plan after which management can revert to the board.
“This, we trust, gives RioZim the best chance to protect its assets against creditors’ attachment whilst affording scarce resources to be applied toward working capital,” Zidamwu responded through its lawyers, Zinyengere Rupapa.
The union insists that this approach offers RioZim the best chance to survive creditor pressure, safeguard employees, and restore operational stability.
The ongoing standoff underscores the intensity and duration of the battle between RioZim management and Zidamwu. The union has emerged as a key stakeholder, asserting that any corporate rescue process must protect employee interests while providing a credible path for the company’s recovery.
As both parties continue to navigate this challenging period, the future of RioZim and its workforce remains uncertain.
