By Staff Writer
HARARE — RIOZIM Limited has successfully reopened Renco Mine following a landmark capital-raising exercise that provided the much-needed funding to restart and stabilise operations, settle creditor obligations, and ensure consistent payment of employee salaries.
The reopening of the mine in September represents a pivotal step in RioZim’s broader recovery and restructuring plan.
Between mid-September and October, Renco Mine produced approximately 20 kilograms of gold, signaling a strong return to productivity. The restart has also safeguarded over 1,200 jobs, ensuring continued livelihoods for families and communities that depend on the mine.
This milestone, combined with resumed activity across RioZim’s other operations, underscores the company’s transition from a survival phase to one of strategic recovery and growth, with profitability prospects strengthened by sustained high gold prices.
“This milestone was achieved through the dedication of our employees, the commitment of our management team, and the support of our creditors and financiers,” said RioZim CEO Mr. Rajgopal Swami said on Thursday.
“Not only have we resumed gold production, but we have also concluded payment plans with all major creditors and established mechanisms to clear arrears owed to smaller creditors. The company’s financial restructuring places us on a stronger footing for future stability and growth,” he said.
The company’s turnaround strategy has included board and management strengthening, with the recent appointment of additional directors and the elevation of Mr. Caleb Dengu as Chairman. Operational gains have been further supported by a favourable international gold market, with prices exceeding US$4,000 per ounce.
Mr. Swami also clarified the company’s legal position following recent public commentary:
“Legal advice obtained by the company confirms that RioZim is not under corporate rescue. The mere filing of an application does not place a company under rescue — the matter must first be heard and determined by the courts,” he said
Recent media reports suggested that RioZim had been placed under corporate rescue following an interdict application by the Zimbabwe Diamond and Allied Minerals Workers’ Union (ZDAMWU).
“That interpretation is incorrect. The High Court’s decision is currently under appeal before the Supreme Court, and the matter is yet to be determined,” Swami said
It is important to note that ZDAMWU represents approximately 12% of RioZim’s total workforce, while the vast majority of employees are not aligned with the union’s corporate rescue initiative. The company acknowledges and values its employees’ confidence and continued dedication throughout this period.
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