Harare – ZSE-listed miner, RioZim Limited has resumed operations at its three gold mines that it had voluntarily shut down after failing to access foreign currency from bullion sales through the central bank.

This comes after RioZim issued a cautionary announcement last week announcing the closure of three mines due to viability challenges caused by its failure to access foreign currency from the RBZ.

In a notice to shareholders through the ZSE on Friday, RioZim said all its gold operations have resumed following fruitful discussions with the RBZ.

“Further to the Board’s Press Statement published on the 8th of February 2019, RioZim Limited wishes to notify all of its stakeholders that the Company’s gold operations have resumed full production as normal. This development follows the fruitful discussions held with the Reserve Bank of Zimbabwe which facilitated the clearance of all arrear payments thus allowing the Company to resume its normal operations.”

Gold producers in Zimbabwe sell their output to central bank subsidiary Fidelity Printers and Refiners and are supposed to be paid 55 percent of their earnings in U.S. dollars. The remainder is paid via electronic dollars into their bank accounts.

RioZim, which is 95-percent owned by local shareholders, is Zimbabwe’s second biggest gold producer and it had constantly threatened legal action to force the RBZ pay it more dollars for part of its output.

The group is divided into five distinct business units; RioGold, RioBase Metals, RioChrome, RioDiamonds and RioEnergy. RioZim currently operates the Renco Gold mine in the south east of Zimbabwe, the Cam & Motor gold mine in Kadoma, the Marnatha ferrochrome refinery in Kadoma and the Empress Nickel Refinery near the city of Kadoma in Central Zimbabwe.

The group also owns 50 percent of Sengwa Colliery Pty Ltd in Gokwe North, holds a 22 percent interest in Murowa Diamonds Pvt Ltd and is moving into the chrome mining and smelting industry.

Equity Axis News