Online Reporter
Business Reporter
A SIGNIFICANT financial injection, estimated at US$200 million, is required to revitalise operations at the struggling RioZim Limited, the Zimbabwe Stock Exchange-listed diversified resource firm.
According to High Court papers filed to place the company under corporate rescue, the funds would be allocated to address the firm’s escalating debts, facilitate the repair and maintenance of existing mining equipment, finance the acquisition of new infrastructure and provide essential working capital.
The court filings suggest that while a restructuring of the shareholding structure is likely, the disposal of the company in its current state is deemed imprudent.
A strong emphasis is being placed on supporting initiatives that foster sustainable value for all stakeholders, while also upholding broader social justice principles.
The successful revival of the resource firm is expected to make a substantial contribution to national development and help mitigate the adverse effects of the current operational challenges.
RioZim has interests in mineral assets, including gold, diamonds, coal and nickel.
