By Staff Reporter
HARARE – Zimbabwe Stock Exchange-listed RioZim Limited is accused of defying a High Court order after allegedly selling one of its major assets, Renco Mine in Masvingo, while under corporate rescue proceedings.
The Zimbabwe Diamonds and Allied Minerals Workers Union (ZDAMWU), which represents RioZim employees, filed a corporate rescue application on 28 April 2025, citing financial distress and mismanagement at the company.
On 21 July 2025, RioZim issued a cautionary statement to shareholders and the investing public, revealing that it was finalising negotiations to sell mining and non-core assets. This was despite its legal advisers having issued an adverse opinion against the transactions and an extraordinary general meeting having been held on 1 July 2025 to discuss the matter.
Two days later, on 23 July, ZDAMWU filed for an urgent interdict to stop the asset sales, which the High Court granted on 5 August 2025 under judgment number HH 467/25. RioZim’s request for leave to appeal was dismissed by the High Court, prompting it to approach the Supreme Court, which later granted permission to appeal on 8 October 2025.
However, before the Supreme Court granted that leave, RioZim reportedly sold Renco Mine to Feifan Mining (Private) Limited for US$35 million. Feifan has since taken control of operations at the mine, an act described by ZDAMWU as unlawful and contemptuous of the court order.
At a recent event in Kadoma, RioZim Chief Executive Officer Rajgopal Swami allegedly stated that details of the transaction are “kept secret in India” and would not be disclosed to authorities. Sources close to the matter claim that proceeds from the sale are being managed through a trust account held by a Harare law firm, allegedly to avoid seizure following the garnishment of RioZim’s bank accounts by tax authorities.
The company is also under investigation by the Zimbabwe Anti-Corruption Commission (ZACC) for suspected money laundering and fraud.
ZDAMWU has expressed concern over delays in setting down the corporate rescue application, which was lodged on 7 July 2025, saying the continued inaction represents “a serious miscarriage of justice” that warrants urgent investigation by authorities.
