Harare: Production at the Murowa diamond mine, in Zimbabwe, has reportedly been suspended, as owners RioZim struggle to pay workers and creditors.
The situation is “deeply worrying”, according to Fred Moyo, the country’s deputy minister of mines and mining development engineer, as quoted by news reports.
RioZim, which has managed the mine since 2015, is facing the possibility of corporate rescue, The Herald says, following an application by one of its shareholders, citing insolvency.
The mine faces the same slump in global as every other producer, but it also faces widespread claims of chronic financial mismanagement. It faces severe liquidity issues, with liabilities far exceeding assets.
Last January the mine had its power supply cut after failing to pay a USD 4.5m bill, and hundreds of workers have been laid off. Other diamond producers are also facing severe financial challenges.
Owners of Ekati, in Canada’s Northwest Territories filed for insolvency protection earlier this month, after agreeing almost $130 million in federal loans.
The Ekapa mine, in South Africa, is up for sale after a mudslide in February that killed five workers and caused severe damage to the mine.
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Heartiest congratulations to Team GJC on acquiring our own office. This marks a new milestone for the team. Wishing you greater success and many more achievements ahead 💐💐
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Congratulations to Team GJC on the inauguration of the new office. Best wishes from Team Heera Zhaveraat.
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https://heerazhaveraat.com/gjc-inaugurates-new-office-welcomes-economic-measures-and-presents-structured-roadmap/
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