The Zimbabwe Diamond and Allied Mineral Workers Union (ZDAMWU) has accused RioZim Limited of contempt of court, alleging that the mining giant sold off key assets while a corporate rescue application filed by its workers is still before the courts.
In a statement, ZDAMWU General Secretary Justice Chinhema said RioZim was “undermining legal processes” by disposing of mines and equipment despite being under corporate rescue proceedings.
“On April 28, ZDAMWU, representing RioZim employees, applied for corporate rescue. Yet, on July 21, RioZim issued a cautionary statement to shareholders indicating it was finalising the sale of mining and non-core assets,” Chinhema said.
He said the company’s own legal advisors had given an adverse opinion on the transactions, and an extraordinary general meeting was held on July 1. ZDAMWU later applied for a temporary interdict, which the High Court granted on August 5, 2025, under judgment HH 467/25.
Despite the ruling, Chinhema said RioZim went ahead and sold Renco Mine in Masvingo to Feifan Mining (Private) Limited for US$35 million—before the Supreme Court granted leave to appeal on October 8. Feifan has since taken control of the mine’s operations.
At a recent event in Kadoma, RioZim CEO Rajgopal Swami allegedly stated that the deal with Feifan was “kept secret in India” and would not be disclosed to Zimbabwean authorities. Chinhema also claimed that proceeds from the sale were being channelled through a Harare-based law firm’s trust account “to avoid garnishment by tax authorities.”
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He added that RioZim is now under investigation by the Zimbabwe Anti-Corruption Commission (ZACC) for alleged money laundering and fraud.
Chinhema blasted the unexplained delay in hearing the corporate rescue application, filed on July 7, describing it as a “grave miscarriage of justice.”
Meanwhile, Swami has accused workers of “creating hurdles” that delay RioZim’s turnaround efforts, saying the corporate rescue bid was slowing down recapitalisation and settlement of salary arrears.
ZDAMWU recently rejected a US$160,000 settlement offer from RioZim, calling it inadequate and lacking guarantees for both employee welfare and the company’s long-term viability.
The union insists that corporate rescue remains the only realistic path to save the financially distressed mining group, which has also failed to remit workers’ subscriptions to the union.
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