HARARE — RZM Murowa (Private) Limited, which operates Murowa Diamonds Mine in Zvishavane, has been placed under voluntary corporate rescue after its board resolved that the company was financially distressed, triggering legal protection from creditors as it attempts to restructure.
The corporate rescue proceedings took effect on July 7 after the board’s resolution, adopted on July 6 under Section 122(1) of the Insolvency Act, was filed with the Master of the High Court and the Registrar of Companies and Other Business Entities.
The move imposes a statutory moratorium that freezes litigation, asset attachments and debt recovery proceedings against the diamond producer.
Tinashe Rwodzi of Tasima Capital has been appointed corporate rescue practitioner.
The development follows concerns over the mine’s deteriorating financial and operational position, with authorities warning that prolonged instability could damage Zimbabwe’s reputation in the global diamond industry.
Deputy Mines and Mining Development Minister Fred Moyo described the situation as alarming, warning that worsening conditions could create security risks and attract scrutiny from the Kimberley Process Certification Scheme, the international body that regulates the trade in conflict-free diamonds.
“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,” Eng. Moyo said.
“Creditor non-payment is always a bad sign.”
“If villagers and workers begin to trespass on the mine and security then descends on them and chaos ensues, the KPCS will naturally respond.”
The financial difficulties have affected workers, local suppliers and surrounding communities, where Murowa is a major employer. Many employees and small businesses that supply the mine have reportedly gone unpaid.
The corporate rescue comes as RioZim Limited, which owns about 23% of Murowa, faces its own financial challenges.
RioZim shareholders recently approved a US$61 million debt-for-asset restructuring that will transfer the company’s 22.2% stake in Murowa and four diamond mining concessions, including Sese and Shavahuru, to Murowa for US$28.44 million. The remaining US$32.33 million owed to Murowa will be written off.
However, trade creditor Carpafe Investments and employees Stone Karimuuswa and Kudzai Mukondiwa have objected to the transaction, arguing that the 53% debt write-off would significantly weaken Murowa’s financial position and leave it unable to settle approximately US$67 million owed to workers, pension funds and utility providers.
Murowa has a production capacity of about 1.2 million carats annually. After recording a US$28 million loss in mid-2025 because of weak global diamond prices, the mine reported a sharp recovery in early 2026, producing 45,606 carats in the first quarter, a 1,561% increase from the comparable period a year earlier.
