Struggling mining giant RioZim Limited is edging closer to a major financial lifeline, with a US$20 million capital injection and a change in majority ownership now at an advanced stage of negotiation.
By Ryan Chigoche
The development offers a potential turning point for the embattled miner, which has been grappling with a steep decline in gold production and deepening financial distress.
The company confirmed these developments in a statement revealing that discussions with a yet-to-be-named investor are at an advanced stage.
“The directors of RioZim Limited wish to advise its shareholders and the investing public that, further to the cautionary announcement dated March 4, 2025, the major shareholders are now at an advanced stage in negotiating with the potential investor, who will inject an initial amount of US$20,000,000 into the working capital of the company through an appropriate financial instrument while completing a purchase of the majority shares of the company,” the company said.
This announcement comes at a time of mounting pressure on the company from all sides.
Once a leading player in Zimbabwe’s gold sector, RioZim has experienced a dramatic fall from grace, with its gold output plunging by 54% in 2024.
The company produced just 428 kilograms of gold last year — less than half of the 940 kg recorded in 2023 — despite favourable global gold prices that helped competitors expand operations.
The production collapse has intensified RioZim’s financial challenges. Shrinking revenue, rising losses, and stalled operations have pushed the company to the edge, forcing it to suspend work at several key sites.
Even a multi-million-dollar investment in new processing technology at Cam & Motor Mine failed to reverse the downturn.
Meanwhile, aging infrastructure and equipment breakdowns have crippled operations at Renco and Empress Refinery.
The crisis has not gone unnoticed. Labour unions, citing months of unpaid wages and deteriorating conditions, have called for the company to be placed under corporate rescue.
Internally, the company has struggled to find strategic direction, particularly following the 2023 death of Harpal Randhawa, the billionaire investor behind RioZim’s majority shareholder, GEM RioZim.
His passing triggered leadership uncertainty at a time when capital-raising efforts were already facing internal resistance and governance disputes.
Now, with liquidity nearly exhausted and market confidence faltering, RioZim appears to be betting on external capital to avoid collapse.
While the company has not named the investor, sources close to the deal suggest Chinese investment groups are among those involved.
The agreement remains subject to due diligence, regulatory approvals, and finalisation of sale and purchase agreements.
Once concluded, the new investor will also be required to extend a mandatory offer to minority shareholders.
If successful, the transaction could help RioZim stabilise its operations, settle outstanding obligations, and regain a foothold in Zimbabwe’s mining sector. But after years of decline, the stakes are high, and the clock is ticking.
