Online Reporter
Nelson Gahadza
Zimpapers Business Hub
RioZim Limited says it will appeal an interim relief that was granted in favour of the Zimbabwe Diamond & Allied Minerals Workers Union, which is representing some of its employees, amid a disputed plan to sell selected company assets.
The workers had lodged an urgent chamber application, heard on July 29, 2025, for an interdict seeking interim relief that the board be barred from proceeding with the contemplated transactions and actions contained in the cautionary statement published in the media on July 21, 2025.
According to a caution published on July 21, 2025, the company said it was involved in the final stages of negotiations for 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.
“Such interim relief was granted in favour of the applicants on 5 August 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 is currently facing a severe financial crisis, marked by significant losses, declining production, and mounting debts. The company’s financial situation is so precarious that there are calls from workers for it to be placed under corporate rescue.
The company added that negotiations between major shareholders and 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.
However, according to the latest update, the company said the action taken by the Zimbabwe Diamond & Allied Minerals Workers union has prevented it from taking these much-needed initiatives to restart mining operations and to alleviate the current hardships being faced by the workers, as well as to alleviate the current operational pressures.
“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.
As a result, shareholders and the investing public are advised to exercise caution when dealing in the company’s securities, and further announcements will be made in accordance with regulatory requirements as and when there are material developments.
Online Reporter