Miner resumes operations after reaching terms with the RBZ

Harare – RioZim Limited says it has resumed operations after reaching terms with the Reserve Bank of Zimbabwe (RBZ) over foreign currency allocations.

The ZSE listed firm suspended operations within its three gold subsidiaries namely Cam and Motor in Kadoma, Renco Mine in Masvingo and Dalny Mine in Chegutu citing lack of foreign currency.

In October the miner announced that it has not received its foreign currency earnings since 2016 from the central bank and has sort to take legal action demanding that the RBZ complies with its directives and policies, and also, for compensation for any losses that the Company has suffered as result of the Bank’s non-compliance with its directives from 2016 to date.

Earlier this month the miner in a statement at the Zimbabwe Stock Exchange said the challenges arising from the Company’s inability to access sufficient foreign currency from the Reserve Bank of Zimbabwe (RBZ) to support its operations has gravitated and the Company’s issue and it has directly engaged ministries of Finance and Mines.

In a statement RioZim Spokesperson Wilson Gwatiringa said the Company struck a deal with the RBZ towards the allocation of foreign currency to sustain operations and that the firm has already sent a circular to its workers notifying them about the resumption of operations.

He said latest developments reflects commitment by Government to sustain the mining sector.

“We are grateful to the negotiations that we have done with the central bank and we hope for the better in the near future. It is a development expected to save hundreds of jobs.”

Earlier the miner announced that it is expecting the mines to up their contribution to gold production by 81 percent in the three mines volumes over the next two years to 300kgs, once they manage to re-open after their foreign currency challenges are met by the central bank.

The three mines employee base is about 2600 and the closure impact on the national unemployment levels.

RioZim, is a listed mining company on Zimbabwe Stock Exchange and it is involved in the mining of diamonds, nickel and gold which remain the major revenue generator.

Zimbabwe’s gold production target which reached 30 tonnes by October has been revised upwards to 34 tonnes by year end with revelations that most of the foreign currency being generated by the mineral is being used to fund imports of strategic goods and services such as fuel, electricity, wheat and soya beans.

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