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The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has maintained that only a court-supervised corporate rescue can revive RioZim Limited, as the company’s US$21 million investment faces delays linked to ongoing legal processes, Mining Zimbabwe can report.
By Ryan Chigoche
This comes as RioZim has accused the union of creating “hurdles” to its revival, after ZDAMWU and other applicants petitioned the High Court in April 2025 to place the ZSE-listed company under supervision and initiate corporate rescue proceedings.
The union’s move followed revelations of a dire liquidity crisis, with the company reportedly carrying debts nearing US$200 million.
In June, the company announced that it had secured a working capital facility of up to US$21 million from a private investor, which it described as a lifeline to stabilise operations and pay workers.
However, recently the company blamed the ongoing corporate rescue application for delaying this critical investment.
But ZDAMWU sees the situation differently. Responding to Mining Zimbabwe, General Secretary Justice Chinhema said:
“ZDAMWU believes that corporate rescue is the only way this big mining asset can be saved from total liquidation and collapse. They are giving statements without any tangible sense in it. They must demonstrate commitment to addressing the root causes of the company’s collapse and stop misrepresenting facts to cover up mismanagement and financial abuse.”
ZDAMWU argues that it is not standing in the way of recapitalisation but rather seeking a structured, transparent process. The union believes only a court-supervised corporate rescue practitioner can ensure credible oversight, safeguard the interests of workers and creditors, and prevent further mismanagement.
“They must also demonstrate that the shareholders are willing to recapitalise the mine, and show workers that the process being mentioned is transparent and that proper due diligence has been done by an independent person,” Chinhema added.
“All these processes are aimed at safeguarding the interests of our members, communities where RioZim has been operating from, and our country at large. All investments must demonstrate that they are uplifting the standard of living of the workers, the community, and the development of the country.”
While RioZim insists that the company’s planned sale or investor deal is being delayed by the corporate rescue process, unions argue the opposite: that the deal could be used as a smokescreen to dodge accountability for unpaid debts and salaries.
It’s not just labour groups raising red flags. The Zimbabwe Anti-Corruption Commission (ZACC) is reportedly currently investigating RioZim, through its subsidiary RioGold (Private) Limited, over allegations of financial misconduct and unpaid debts. A dossier of annexures seen by Mining Zimbabwe indicates that the company owes millions to stakeholders, including employees, private creditors, and the Zimbabwe Stock Exchange (ZSE).
The disclosures have intensified pressure on RioZim’s board and management, raising questions about corporate governance and financial accountability at one of Zimbabwe’s most prominent mining houses.
RioZim’s precarious state was underscored by its June 2024 financials, which revealed negative equity of ZWG149.2 million and total liabilities exceeding US$90 million. These include a US$55 million debt to its own subsidiary, RZM Murowa, and a US$30 million contingent liability tied to a foreign legal dispute. The company is also grappling with unresolved tax obligations and pension arrears, painting a grim picture of its financial health.
These figures have raised doubts over whether the US$21 million investment announced in June would be sufficient to stabilise the company without external oversight.
In previous legal battles with employees, RioZim has adopted a confrontational approach. In October 2024, the company filed a High Court application against over 1,200 Renco Mine workers, accusing them of participating in an unlawful industrial strike to demand overdue wages. While the court ordered workers to return, RioZim controversially chose to pay only 50% of salaries for the strike period, triggering another standoff with ZDAMWU, which accused the company of violating court directives.
Attempts to secure long-term financing have largely failed. While local banks have only offered short-term capital, international financiers remain wary due to Zimbabwe’s high-risk investment climate.
The health of RioZim is crucial to Zimbabwe’s economy. As a multi-commodity miner involved in gold, nickel, copper, coal, and diamonds, the company’s operations have national significance—not only for export earnings but also for employment and regional development.
