The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has thrown its weight behind efforts to place the country's mining giant RioZim Limited under corporate rescue to save jobs.
In an affidavit filed at the High Court Commercial Division under case number HCHC282/26, ZDAMWU secretary-general Justice Chinhema said the union supported the application in a bid to safeguard workers’ livelihoods and preserve the company as a going concern.
The matter is between Tendai Rwodzi as applicant and RioZim Limited, the Master of the High Court and the Registrar of Companies as respondents.
“The union, both independently as a creditor and on behalf of its members, has a substantial and legitimate interest in the first respondent’s future, as it seeks to preserve its members’ jobs, which are widely regarded as one of the many economic and social benefits of a successful corporate rescue,” read part of the union's affidavit.
ZDAMWU argued that RioZim’s financial statements and independent auditors’ reports reveal severe financial distress that justifies placing the company under corporate rescue supervision.
The union cited accumulated losses, liquidity challenges and insolvency as evidence of deepening financial instability.
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Court papers state that RioZim incurred a net loss of ZWG739 million in 2025, while current liabilities exceeded current assets by more than ZWG2.9 billion.
Total liabilities reportedly surpassed total assets by over ZWG1.5 billion.
The auditors warned that RioZim’s survival was heavily dependent on securing sufficient funding to sustain operations.
ZDAMWU also highlighted the dramatic collapse in gold production, which reportedly dropped by 80% from 428 kilogrammes to 84 kilogrammes during the year under review.
“This reduction amounts to about seven kilograms of gold per month, which is insufficient to cover operating costs,” the affidavit notes.
The union further argued that RioZim recorded a gross loss of ZWG61 million before operating expenses, indicating that production costs had overtaken revenues.
According to the court papers, the company has been surviving on borrowings instead of income generated from operations.
“There is no injection of fresh capital from shareholders, nor any indication that the Group is operating profitably and sustainably,” ZDAMWU stated.
The union argued that the auditors’ concerns suggest the company may eventually be forced to prepare financial statements on a liquidation basis if conditions continue deteriorating.
Corporate rescue proceedings are designed to rehabilitate financially distressed companies while protecting creditors, employees and stakeholders from immediate liquidation.
The matter is expected to determine whether RioZim can be restructured and stabilised or allowed to face collapse under mounting financial pressures.