Online Reporter
Business Reporter
RIOZIM, one of Zimbabwe’s largest mining companies, says a successful turnaround is “definitely possible” despite facing significant financial challenges. The company has reaffirmed that restoring confidence among its key stakeholders remains its top priority.
The health of RioZim is critical, given the strategic importance of mining as Zimbabwe’s largest source of export earnings.
The company operates across several key sectors, including gold, nickel, copper, coal and diamonds, making it a major player in the country’s resource economy.
Zimbabwe’s mining sector is projected to grow by over seven percent in 2025, driven by strong performances in gold and coal production. This growth is expected to boost revenue to US$6,2 billion, up from US$5,9 billion in 2024.
RioZim has called on the Zimbabwe Diamond and Allied Workers Union (ZDAMWU) to cease what it describes as “hurdles” to its revival. The company argues that the union’s recent court application to place it under corporate rescue is obstructing recapitalisation efforts and delaying a crucial payment plan for employees.
In an interview with this publication, RioZim Chief Executive Officer Mr Rajgopal Swami said the diversified resource firm was “at the cusp of a breakthrough,” just days away from presenting a “secure payment plan along with a substantial down payment” to its employees. However, this has been delayed by the union’s urgent court application, which seeks to halt the company’s internal and regulatory processes required to obtain necessary approvals.
Mr Swami acknowledged stakeholder concerns and committed to addressing them through transparency, accountability and consistent engagement.
He emphasised that the company’s future depends on unity and a shared commitment to long-term recovery, urging all stakeholders — including workers, shareholders and creditors — to collaborate in rebuilding the company for mutual benefit.
“We are actively implementing a long-term recovery strategy, including the pursuit of funding initiatives and operational restructuring. These efforts aim to stabilise operations, meet employee obligations and ensure the sustainability of the business.
Our people are the foundation of RioZim’s resilience. We remain unwavering in our commitment to protecting jobs, fulfilling our obligations, and securing a stable future for our workforce and their families.
“We ask our employees to stand strong and united as we work through this recovery journey together. We urge all employees to remain focused and not be distracted by misinformation or unrealistic promises,” said Mr Swami.
The multi-commodity firm is grappling with severe financial and operational challenges that have hindered its growth since 2022.
Despite operating two gold mines — Cam and Motor (open-pit) and Renco (underground)—which have benefited from strong international gold prices, the company has faced several constraints, including limited access to local financing.
A major challenge emerged in 2019 when a geological shift at the flagship Cam & Motor Mine changed the ore from oxide to refractory sulphide. This required a significant US$35 million capital investment in new infrastructure, which the company struggled to finance.
Efforts to secure long-term funding, both locally and internationally, have met with limited success. Local lenders offered only short-term loans, while international funders were deterred by perceived country risk and a lack of understanding of Zimbabwe’s investment environment — even when funding was secured against gold exports through an agreement with Fidelity Gold Refineries.
The reliance on short-term financing for a capital-intensive programme has disrupted RioZim’s working capital cycle and diverted attention from critical ancillary infrastructure.
Although new BIOX and flotation plants were commissioned in April 2022, a lack of funds prevented essential upgrades to infrastructure such as crushers, mills, tanks, pumps and piping. This imbalance has led to inconsistent ore feed, reduced productivity, accelerated equipment wear and increased maintenance needs.
Persistent funding constraints have also hampered mine development, exploration and efforts to expand the resource base and mine life — ultimately resulting in declining ore grades and recovery rates.
In response, RioZim has launched a capital-raising initiative to recapitalise the business and stabilise production. The company is actively engaging potential investors interested in gold loan facilities (prepayments), asset sales, or equity investments.
RioZim is also strengthening internal controls, improving stakeholder communication, and providing regular updates on operational progress and financial recovery plans. These efforts aim to rebuild trust and reaffirm the company’s commitment to long-term sustainability.
Mr Swami highlighted the importance of protecting the company’s 1,764 employees across Renco Mine, Cam & Motor, support services, and other projects. The workforce supports an estimated 8 000 dependents, underscoring the socio-economic significance of RioZim’s operations.
He added that any asset divestment would ensure employees are retained under the same terms and conditions by new owners, with continuity of service.
“Our commitment goes beyond the settlement of outstanding dues. At the core of our business plan is the preservation of jobs and the creation of sustainable employment opportunities that empower the communities surrounding our operations,” said Mr Swami.
