RioZim Suspends Planned Transactions After Court R...

RioZim Suspends Planned Transactions After Court Ruling

By Nyashadzashe Ndoro - Chief Reporter

Zimbabwe Stock Exchange-listed resources group RioZim Limited has announced the suspension of proposed transactions meant to raise critical funding for its operations after the Zimbabwe Diamond and Allied Minerals Workers Union successfully obtained a court order halting the initiatives.

The union, representing some of the company’s employees, filed an urgent chamber application on 29 July 2025 seeking to bar the RioZim board from proceeding with the transactions outlined in a cautionary statement published on 21 July. The High Court granted interim relief in favour of the applicants on 5 August, pending confirmation or discharge of the provisional order.

In a cautionary statement, RioZim said it intends to appeal the ruling. The company explained that the planned transactions were expected to inject much-needed capital to pay employee salaries, settle creditor obligations, and resuscitate mining operations.

“The action taken by the Zimbabwe Diamond and Allied Minerals Workers Union has prevented the Company from taking these much-needed initiatives to restart and continue mining operations, and to alleviate the current hardships being faced by the workers,” the board stated.

The company has now decided to put on hold all transactions mentioned in the earlier cautionary notice, pending the outcome of the appeal.

RioZim stressed its commitment to finding a “quick resolution” to the impasse so that mining and gold production activities can resume.

The board also urged shareholders and the investing public to exercise caution when dealing in the company’s securities until further updates are provided.