In a significant ruling, the High Court of Zimbabwe has dismissed an application by the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) and two of its members to place Riozim Limited under corporate rescue. Justice Mandaza’s judgment vindicated the company’s stance that it is not in financial distress, a position it has consistently maintained.
The applicants had argued that Riozim was financially distressed and that corporate rescue proceedings would be beneficial to preserve shareholder value and jobs. However, the court found that the applicants failed to provide sufficient evidence of Riozim’s financial distress and that the company’s board resolution opposing the application was valid. The court also dismissed the applicants’ points in limine, including the alleged invalidity of Riozim’s board resolution and the principle of approbation and reprobation, as without merit.
The judgment is a welcome development for Riozim, which has been working to stabilize its operations. Speaking recently, mine general manager Blessing Katiyo reiterated the company’s sound financial position, citing a steady rise in production and timely payment of salaries. “Ever since the resumption of operations in September, we have been working hard to ensure that the mine is stabilized. This goal is surely being achieved… The workers and management are all keen to improve on production, having received our full salaries since July 2025,” Katiyo said.
The court’s ruling aligns with the sentiments of over 450 Riozim workers who lodged affidavits opposing the corporate rescue application, asserting that the company has demonstrated a commitment to paying salaries since July this year. The workers claimed that the rescue application had caused irreparable prejudice, delaying the signing of a settlement agreement with the company.
Riozim’s victory in the High Court marks a significant milestone for the company, demonstrating its financial stability and commitment to its workers. With the court’s backing, the company can now focus on its operations and continue to improve production, securing a bright future for Renco Mine and its stakeholders.
