RIOZIM Limited’s subsidiary, Renco Mine, faces a power disconnection threat due to an outstanding debt of US$4,7 million owed to the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) for unpaid electricity bills, official documents show.
RioZim is saddled with hefty liabilities totalling US$191, which have piled up over years of economic strain.
In a signed acknowledgement of debt dated February 19, 2025, RioZim acknowledged the US$4,7 million debt to ZETDC.
“We do hereby acknowledge being truly and lawfully indebted to Zetdc in the sum of US$4,7 million, being in respect of electricity bills. We undertake to repay the debt to the company by way of instalments …,” Cleopas Benza, RioZim Renco Mine’s representative, wrote.
The company pledged to pay US$300 000 by March 28, 2025, followed by instalments of US$500 000 by the 15th of each month until the debt is cleared.
The document also warned that failure to adhere to the payment terms could result in legal action.
“Assumption of risk and liabilities related to this debt shall be passed on to the new owner and successors in title, should I/we fail to adhere to the payment terms contained in this acknowledgement of debt. The company reserves the right to demand full payment from the new owner upon transfer of ownership,” Benza said.
RioZim controls Renco, Cam & Motor and Dalny mines under its gold portfolio, while its associate, RZM Murowa (Pvt) Ltd, and has interests in diamonds.
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The miner also owns the Empress Nickel Refinery.
RioZim has faced growing scrutiny over its financial stability in recent years, with this latest development underscoring the operational pressures in Zimbabwe’s mining sector.
Over the past five years, RioZim’s liquidity has steadily weakened, with total liabilities exceeding its assets by at least US$11 million as of June 30, 2024.
