Rio Zim sends forex SOS to RBZ governor

Business Reporter
RIOZIM has requested the Reserve Bank of Zimbabwe (RBZ) to allocate it foreign currency to restart and sustain operations at its mines that closed last month after running out of critical imported consumables and spares.

The mining group suspended operations at Dalny Mine on October 19 followed by Cam and Motor and then Renco Mines on October 22, having run out of imported consumables and spares. In a letter dated October 26, 2018, addressed to RBZ Governor Dr John Mangudya seen by this paper, RioZim said it had temporarily ceased operations at the three mines after critical imported consumables ran out of stock recently due to foreign currency shortages.

“Governor, we humbly request for your urgent intervention in the following matters, which will allow us to restart all our operations and sustain operations thereafter. The assistance we seek is for the following: Once-off exception to allow RioZim to retain 100 percent forex for the first delivery of gold after the restart.

“This will help us to catch up on the deficit created over the last nine weeks when we received near zero forex allocation and allow us to restock critical supplies to sustain operations,” said the mining group.

The critical imported consumables and spares that ran out included cyanide, activated carbon, caustic soda, explosives, forged steel balls, spares for the repair of crucial equipment and numerous other items.

RioZim said over the last 30 months, it had only received 14 percent of its money in forex against the Central Bank’s directive of 50 percent directly to its nostro account and 50 percent through application to the monetary authority.

“In the nine weeks preceding the closure of production at the mines we have received almost no foreign exchange,” it said.

The group further pointed out that the disruption of operations at its mines was harmful not only to itself but Zimbabwe at large. RioZim hopes that the matter would be resolved as soon as possible as it continues to engage the monetary authority.