Online Reporter
Business Reporter
RZM Murowa (Private) Limited, which operates the Murowa Diamonds mine in Zvishavane, has been placed under voluntary corporate rescue following a formal resolution by its board of directors.
The effective date of the corporate rescue proceedings is July 7, 2026, which follows the filing of the board resolution with the Master of the High Court and the Registrar of Companies and Other Business Entities.
The board had adopted the resolution on July 6, 2026, in terms of Section 122 (1) of the Insolvency Act [Chapter 6:07].
It invokes a statutory moratorium under the Insolvency Act, effectively freezing all outstanding third-party litigations, asset attachments and debt executions against the diamond miner.
Mr Tinashe Rwodzi of Tasima Capital was appointed the corporate rescue practitioner.
This comes after the Government had already raised a red flag over the deteriorating operational and financial state of Murowa, warning that the situation has reached a critical breaking point that threatens Zimbabwe’s standing on the global diamond market.
Mines and Mining Development Deputy Minister Engineer Fred Moyo described the environment at the mine as “deeply worrying”, cautioning that the instability could degenerate into protests and place the country’s diamond sector under a negative international spotlight.
Eng Moyo warned that because of the inherent sensitivities surrounding diamond mining, any security escalation or human rights concerns could invite scrutiny from the Kimberley Process Certification Scheme (KPCS) — the global watchdog tasked with ensuring diamonds are ethically sourced and free from violence.
“This is a diamond mine that must not be allowed to deteriorate beyond a certain point, as this can bring in security issues and KPCS issues,” Eng Moyo said.
“Creditor non-payment is always a bad sign.
“If villagers and workers begin to trespass on the mine and security then descends on them and chaos ensues, the KPCS will naturally respond.”
The financial paralysis at the Zvishavane-based mine has hit the local community hardest.
Murowa Diamonds is highly significant as a large-scale community employer.
The majority of Murowa’s workforce comprises residents from surrounding wards, many of whom, alongside local Small and Medium Enterprises (SMEs) supplying the mine, have gone unpaid for a long time.
The crisis at Murowa unfolds against a backdrop of intense legal and corporate battles gripping RioZim Limited, which owns about 23 percent of the diamond miner.
RioZim itself is currently facing the threat of corporate rescue after a shareholder filed an application citing insolvency.
This follows a separate court application filed on similar grounds by the Zimbabwe Diamond and Allied Minerals Workers union (ZDAMWU) and two subsidiary employees last year, which the Supreme Court struck off the roll.
Despite these legal headwinds, RioZim shareholders recently pushed through restructuring transactions during an Extraordinary General Meeting (EGM).
The approved deal will see a massive US$61 million debt-for-asset swap aimed at extinguishing RioZim’s liabilities.
RioZim will transfer its 22,2 percent stake in Murowa, alongside four key diamond mining concessions — including Sese and Shavahuru — to Murowa at a combined value of US$28,44 million.
The remaining US$32,33 million balance owed to Murowa will be completely written off.
While RioZim management argues the move is essential to clean up its balance sheet and restore its going-concern status, creditors are crying foul.
An objection to the transaction was lodged by trade creditor Carpafe Investments and two employees, Messrs Stone Karimuuswa and Kudzai Mukondiwa.
They argue that the 53 percent debt write-off represents a “substantial erosion” of Murowa’s assets.
They contend this structured impairment will leave the diamond miner financially crippled and unable to settle its own US$67 million in outstanding debts owed to workers, pension funds, and utilities.
Murowa has a nameplate capacity of roughly 1.2 million carats annually.
Output has seen severe fluctuations, such as a plunge in 2021 and a massive US$28 million loss in mid-2025 due to global price slumps.
However, it recorded a dramatic 1.561 percent production recovery in early 2026, hitting 45 606 carats in the first quarter.
