The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU), together with two affected employees, has filed a High Court application to place Zimbabwe Stock Exchange-listed miner RioZim Limited under corporate rescue, as the company faces mounting financial distress, Mining Zimbabwe reports.
By Rudairo Mapuranga
Filed on April 28, 2025, in the High Court of Zimbabwe, the application names RioZim as the first respondent, with the Master of the High Court and the Registrar of Companies cited as second and third respondents, respectively. The move signals an aggressive intervention by workers and their representatives to salvage what they describe as a once-prominent mining house now sinking under the weight of debts, mismanagement, and operational paralysis.
According to court documents seen by Mining Zimbabwe, ZDAMWU, supported by applicants Precious Mwanza and Owen Kapeta, argues that RioZim is financially distressed, unable to pay its debts, and teetering on the brink of insolvency. The applicants say this situation, if left unchecked, would likely lead to the company’s collapse, with devastating consequences for employees, creditors, shareholders, and the communities that depend on its operations.
ZDAMWU’s Secretary-General, Justice Chinhema, in his founding affidavit, laid bare RioZim’s dire situation: the company’s liabilities as of mid-2024 exceeded assets by over ZW$149 million, and current liabilities dwarfed current assets by a staggering ZW$1 billion. RioZim has accumulated debts to suppliers, statutory bodies such as ZIMRA and ZETDC, and workers, including unpaid salaries amounting to millions of US dollars.
In a shocking revelation, RioZim also faces serious allegations of financial misconduct, with the Zimbabwe Revenue Authority (ZIMRA) demanding the company’s asset register after suspicions of tax evasion and pension fund violations surfaced. Electricity has already been cut off at Renco Mine due to unpaid bills exceeding US$4.6 million, further hampering operations.
The application comes amid accusations that RioZim’s majority shareholder support collapsed following the tragic death of the controlling shareholder in a 2023 plane crash, an event that further destabilised an already fragile company.
According to audited financial statements annexed to the application, RioZim’s gold production in the first half of 2024 plunged by over 26%, from 417kg to just 306kg, despite a boom in global gold prices. Most of RioZim’s key assets — Cam and Motor, Dalny, and One-Step (Cricket) mines — have been placed under care and maintenance, while Renco Mine, the last operational gold asset, battles crippling challenges.
The rescue plan proposed by ZDAMWU seeks to appoint two experienced corporate rescue practitioners — senior lawyer Wilson Tatenda Manase and seasoned corporate turnaround specialist Knowledge Hofisi — to oversee a radical restructuring and revival of RioZim. Their tasks would include conducting forensic audits, attracting new capital estimated at US$200 million, reconfiguring operations, settling debts, restoring production, and creating a sustainable business model.
ZDAMWU insists that corporate rescue is the only viable alternative to liquidation, which would spell disaster for hundreds of workers and the mining communities tied to RioZim’s legacy.
Key players involved:
- Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU): Leading the corporate rescue application.
- Justice Chinhema: Secretary-General of ZDAMWU and chief applicant.
- Precious Mwanza and Owen Kapeta: Current and former employees of RioZim supporting the application.
- RioZim Limited: Embattled mining giant facing financial collapse.
- Master of the High Court and Registrar of Companies: Cited as respondents for compliance and procedural oversight.
- Wilson Tatenda Manase and Knowledge Hofisi: Nominated corporate rescue practitioners.
If granted, the court application could mark a pivotal turning point not just for RioZim but also for Zimbabwe’s mining sector, demonstrating the power of worker-led initiatives to save national assets and safeguard livelihoods.
The High Court is expected to hear the matter in due course. Should RioZim fail to oppose the application within 10 days of service, the corporate rescue proceedings will be initiated by default.
