RZM Murowa, the company operating the Murowa Diamond Mine near Zvishavane, has been placed under voluntary corporate rescue, triggering legal protection that temporarily shields the miner from creditor action while efforts are made to restore its financial health.
The company’s board passed the corporate rescue resolution on 6 July, with the proceedings taking effect the following day after the required documents were lodged with the Master of the High Court and the Registrar of Companies.
Tinashe Rwodzi of Tasima Capital has been appointed corporate rescue practitioner to oversee the restructuring process.
The rescue proceedings impose a statutory moratorium, preventing creditors from pursuing lawsuits, attaching company assets or enforcing debt repayments while a recovery plan is developed.
The move comes amid mounting concern over the mine’s deteriorating financial position.
Deputy Mines and Mining Development Minister Engineer Fred Moyo recently warned that continued instability at Murowa posed risks not only to the operation itself but also to Zimbabwe’s wider diamond industry.
He cautioned that prolonged financial distress could spark labour unrest and security incidents that might attract scrutiny from the Kimberley Process Certification Scheme (KPCS), the international body responsible for ensuring diamonds are ethically sourced.
“This is a diamond mine that must not be allowed to deteriorate beyond a certain point, as this can bring in security issues and KPCS issues,” Moyo said.
He warned that failure to pay creditors could fuel tensions if workers or nearby villagers resorted to trespassing on the mine, potentially creating security incidents capable of drawing international attention.
The financial strain has also affected surrounding communities. Murowa is one of the largest employers in the Zvishavane area, with many workers and local small businesses that supply the mine reportedly going unpaid for extended periods.
Murowa’s difficulties are closely linked to the broader financial troubles facing RioZim Limited, the Zimbabwe Stock Exchange-listed mining group that owns about 23% of the diamond producer.
RioZim is itself facing a fresh application for corporate rescue after a shareholder alleged the company is insolvent.
The latest legal challenge follows a similar application filed in 2025 by the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) and two employees, which was later struck off the roll by the Supreme Court.
Despite those legal battles, RioZim shareholders recently approved a US$61 million debt restructuring.
Under the arrangement, RioZim will transfer its 22.2% stake in Murowa, together with four diamond concessions, including Sese and Shavahuru, in a deal valued at US$28.44 million, while the remaining US$32.33 million debt will be written off.
RioZim says the restructuring is necessary to restore the group’s financial stability and preserve its status as a going concern.
However, the transaction has been challenged by trade creditor Carpafe Investments and employees Stone Karimuuswa and Kudzai Mukondiwa, who argue that writing off more than half the debt would significantly weaken Murowa’s balance sheet and leave it unable to settle an estimated US$67 million owed to employees, pension funds and utility providers.
The corporate rescue comes despite signs that mining operations had begun to recover.
After posting a US$28 million loss in mid-2025 as global diamond prices weakened, Murowa produced 45,606 carats during the first quarter of 2026 following a switch to in-pit mining targeting higher-grade ore.
The mine has an annual production capacity of about 1.2 million carats, although it remains unclear how the corporate rescue process will affect future operations.
Located in Mazvihwa, about 40 kilometres south of Zvishavane, Murowa began production in 2004 after three diamond-bearing kimberlite pipes were discovered in 1997.
The operation combines open-pit and underground mining and remains one of Zimbabwe’s largest diamond producers.
In 2023, the mine’s former owner, businessman Harpal Randhawa, died alongside his son and four other passengers in a plane crash.
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