RioZim requires $20m to resume operations

LIVINGSTONE MARUFU

Zimbabwe Stock Exchange (ZSE) listed miner, RioZim Limited, requires close to $20 million in foreign currency for the importation of critical consumables and spare parts to enable it to resume production at three of its gold mines.

The development comes at a time when the country’s gold sub-sector sector is grappling with forex shortages and has assigned representative body, Chamber of Mines of Zimbabwe to discuss with the Reserve Bank of Zimbabwe the possibility of selling their yellow metal away from Fidelity Printers and Refinery. For RioZim, the foreign currency shortages have resulted in a temporary production halt at its hold operations in Kadoma (Cam and Motor), Renco Mine in Masvingo and Dalny Mine in Chegutu. RioZim CEO Beki Nkomo told Business Times that the company, together with whole sector, was at advanced negotiations with the central bank.

“We require close to $20 million of foreign currency to procure consumables and critical raw materials for our operations. That kind of forex is mainly needed for three of our mines Cam and Motor in Kadoma, Renco Mine in Masvingo and Dalny Mine in Chegutu. Other mines can still benefit from that amount,” said Nkomo.

RioZim recently wrote a letter to RBZ governor John Mangudya which called for immediate attention to the foreign currency situation. Through their board chair Lovemore Chihota, RioZim said it received only 14 percent of its gold delivery proceeds in the last 30 months. Nkomo said RBZ has assured the group of forex allocations in the near future.

“We are in candid talks with the Reserve Bank on how best we can move forward in terms of operations. The bank has been responding in a positive manner. We expect RBZ to fast-track these engagements into action as we want to go back to work.

RioZim has potential to reach above four tonnes   per year if given enough forex allocations

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