Summary
- ZDAMWU has appealed a High Court ruling dismissing its bid to place RioZim under corporate rescue.
- The union argues RioZim’s liabilities exceed assets, leaving workers unpaid, while the company insists it is pursuing a turnaround.
- The dispute highlights wider allegations of unpaid taxes and pensions as RioZim faces mounting financial strain.
ZIMBABWE’S Diamond and Allied Minerals Workers’ Union (ZDAMWU) has appealed a High Court ruling that dismissed its bid to place miner RioZim Limited under corporate rescue.
The union and two RioZim employees, Precious Mwanza and Owen Kapeta, filed the application in 2025. They alleged unpaid statutory deductions, salary arrears and the non-remittance of pension and medical aid contributions.
The High Court ruled that ZDAMWU lacked legal standing. The judge said the union did not represent RioZim workers for the purposes of corporate rescue proceedings and described the application as an improper interference.
RioZim is listed on the Zimbabwe Stock Exchange and operates in diamonds, gold and coal. The company traces its origins to Rio Tinto’s Southern Rhodesia operations established in 1956.
ZDAMWU disputes the ruling and says it is a registered union for the mining industry. It says membership records show it represents workers employed at RioZim.
In its Supreme Court appeal filed this month, the union argues the High Court failed to consider the substance of the case. It says the judge relied on a technical point while ignoring evidence of financial distress.
ZDAMWU claims RioZim’s liabilities exceed its assets. It says this has left the company unable to meet obligations to employees, who it argues qualify as “affected persons” under Zimbabwe’s Insolvency Act.
RioZim has rejected claims that it is insolvent. The company has said it is pursuing a turnaround and has held talks with potential investors, including discussions in mid-2025 over a possible US$20 million working capital facility.
Worker responses to the dispute have been mixed. In late 2025, at least 30 employees filed affidavits opposing the rescue bid, saying salary payments had resumed under a payment plan.
The appeal also comes amid wider allegations against RioZim, including claims of unpaid taxes, pension contributions and disputed asset disposals. ZDAMWU says it has reported some of the matters to Zimbabwe’s Anti-Corruption Commission.
The legal dispute comes as RioZim faces mounting operational and financial strain, after reporting sharp production declines and deepening losses in 2024.
No hearing date has yet been announced.
