The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has taken its dispute with RioZim to the Supreme Court, appealing a High Court decision that blocked its bid to place the mining company under corporate rescue, Mining Zimbabwe can report.
By Ryan Chigoche
This follows a High Court ruling that ZDAMWU lacked the legal standing to initiate corporate rescue proceedings against the miner, a finding that effectively ended the case without interrogating RioZim’s financial position.
In its appeal, ZDAMWU argues that the court failed to recognise that it is a duly registered trade union representing RioZim employees and therefore qualifies as an “affected person” under the Insolvency Act.
The union further maintains that it is also a creditor of the company, citing unpaid statutory subscriptions allegedly owed on behalf of its members.
The appeal also brings into focus the role of two RioZim employees, Precious Mwanza and Owen Kapeta, who jointly filed the application with the union. According to the appellants, the High Court erred in dismissing the matter despite the employees having direct legal standing as workers allegedly owed outstanding salaries.
Beyond the question of standing, ZDAMWU is also challenging the procedural basis on which RioZim opposed the application. The union argues that the High Court wrongly upheld a board resolution authorising the company’s defence, despite concerns that it did not meet the requirements set out in the Companies and Other Business Entities Act.
At the centre of the appeal is the interpretation of Section 130 of the Insolvency Act. The appellants argue that the provision places a statutory bar on company directors once corporate rescue proceedings are initiated, and that the High Court misdirected itself by allowing RioZim’s directors to continue representing the company despite this restriction.
The appeal follows ZDAMWU’s initial application to place RioZim under corporate rescue, in which the union alleged that the mining company was in serious financial distress.
The applicants claimed that RioZim’s liabilities exceeded its assets and that the death of a major shareholder had left a funding gap, undermining the company’s ability to meet its obligations to workers and other creditors.
ZDAMWU and the two employees are now asking the Supreme Court to set aside the High Court judgment handed down on January 6, 2026, and to grant the corporate rescue order. Alternatively, they want the matter referred back to the High Court for a fresh hearing before a different judge so that the merits of the case can be fully considered.
RioZim, which is listed on the Zimbabwe Stock Exchange and owns key mining assets including Renco Mine and Cam & Motor Mine, has consistently rejected claims that it is financially distressed. The company maintains that it is solvent and has previously described the corporate rescue application as frivolous and an abuse of the court process.
