Staff Writer
The Solidarity Mine Workers Union of Zimbabwe (Somwuz) says RioZim Limited’s recovery and internal restructuring plan has begun bearing fruit, as the giant mining firm has made notable progress in clearing salary arrears for both current and former employees.
RioZim, which is implementing a robust turnaround strategy, is showing signs of operational recovery following the reopening of one of its key gold assets, Renco Mine.
Coupled with renewed activity across the company’s other operations, the mining concern appears to have turned a new leaf after years of decline that severely affected workers.
In an interview yesterday, Somwuz vice president Bruce Chabikwa said RioZim’s ongoing revival offers great promise and is already benefiting employees.
“We are seeing progress as Renco has resumed operations. At Cam & Motor, employees are now back at work, and we are informed that start-up preparations are visible — notably, dewatering of the pit has started,” Chabikwa said.
“In terms of salaries, there is a commitment that was presented to employees and copied to us, which has recently been fulfilled, covering even those whose contracts were terminated last year.
“In terms of health, the main medical aid scheme has been back online for some time, which is a good sign,” he added.
Chabikwa said workers remain the biggest beneficiaries of RioZim’s restructuring exercise, given the progress achieved so far.
“Our collective position as Somwuz is that, if maintained, the internal restructuring exercise is the right approach based on the progress observed so far.
“Regarding the Corporate Rescue Programme, we consulted our members, and their stance is that they do not support it. They prefer internal restructuring, and we stand by that position,” he said.
Somwuz currently has the highest number of unionised employees at both Cam & Motor and Dalny Mine.
The revival of RioZim marks the end of a difficult phase characterised by liquidity constraints, power outages, and operational disruptions that had forced the company into a holding pattern.
The timing of Renco Mine’s reopening coincides with one of the most favourable gold market environments in recent years. On global markets, gold prices have traded above US$4,000 per ounce for much of 2025, breaking record highs.
For a company like RioZim, which is rebuilding production capacity, this gold price environment provides critical breathing space — with each additional ounce produced generating more working capital, facilitating debt clearance, and restoring profitability faster.