Online Reporter
Nelson Gahadza
Zimpapers Business Hub
RioZim Limited, one of the country’s biggest gold miners, says it will appeal an interim relief granted in favour of the Zimbabwe Diamond & Allied Minerals Workers Union, which is representing some of the company’s employees in a dispute over asset disposal.
The employees had lodged an urgent chamber application, heard on July 29, 2025, for an interdict seeking interim relief for the board to be barred from proceeding with planned transactions and actions contained in the cautionary statement published in a newspaper published last month.
According to a caution published on July 21, 2025, the company said it was involved in the final stages of negotiations of transactions that involve the disposal of some of the company’s mining and non-core assets.
The group said the conclusion of the negotiations was imminent, which would resolve the company’s financial and operational challenges.
RioZim is facing significant challenges, including production declines, financial losses and operational disruptions.
These issues stem from a combination of factors, among them operational failures, undercapitalisation and labour disputes.
The company added that negotiations between the major shareholders and other potential investors for a purchase of the majority shares of the company were still ongoing, with the due diligence process continuing at an advanced level.
“Such interim relief was granted in favour of the applicants on August 5, 2025, pending confirmation or discharge of the provisional order.
“The company intends to appeal the said order granted, as the proposed transactions were anticipated to bring much-needed funding into the operations of the company to assist with payment to its employee salaries and creditors and to resuscitate mining operations,” reads part of the statement.
RioZim said the action taken by the Zimbabwe Diamond & Allied Minerals Workers Union had prevented it from pursuing these much-needed initiatives to restart mining operations and alleviate the hardships being faced by the workers and the company.
“The company at this stage has taken a decision to put on hold all transactions contemplated in the cautionary statement referred to above, pending the outcome of the appeal,” reads part of the statement.
The company noted that it is committed to finding a quick resolution to this impasse, such that mining and gold production can restart and continue.
In a recent interview with this publication, RioZim chief executive Mr Rajgopal Swami said that 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.
This is now being delayed by the union’s move to file an urgent court application trying to stop the company from following the necessary internal and regulatory processes to seek the necessary approvals and authorisations.
Mr Swami acknowledged stakeholder concerns, committing to address them through transparency, accountability and consistent engagement.
He emphasised that the company’s future hinges on unity and a shared commitment to long-term recovery, urging all stakeholders, including workers, shareholders and creditors, to collaborate towards recovery and growth of the company, which would yield results for all.
Online Reporter