Rio Zimbabwe unable to pay salaries

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Zimbabwe’s gold miner Rio Zimbabwe has said it is currently incapacitated to pay January salaries after it recently suspended production for the second time in four months allegedly due to the central bank’s failure to pay it in USD dollars for part of its gold deliveries.

The second largest gold miner in Zimbabwe last week stated that production has been suspended indefinitely if there is no progress in negotiations with the authorities.

In a circular to workers, Rio Zim Human Resources Manager Rudo Gonyora said the company is unable to pay salaries on the initial proposed dates.

“We are conscious of the commitment regards January 2019 salaries that was communicated last week, l would like to advise that the company is now unable to meet the same on the promised dates due to current developments on the ground as explained in the press circular of 8 February 2019.

“The original commitment was premised on assumptions which unfortunately did not materialise to reasons beyond our control.

We would however want to reassure employees that there are serious engagements currently taking place at Senior levels to enable the company meet the salary commitments as soon as possible,” she said.

Mrs Gonyora said the company will have a clear picture of possible payment dates by tomorrow.

“We hope to have a clear picture regards definite payment dates by Tuesday the 12th of February and we humbly request that you bear with us in the interim. Any inconvenience caused is sincerely regretted,” she said.

Gold is Zimbabwe’s second largest export by value.

Gold-mining firms are required to sell their output to a subsidiary of the central bank, for which they are paid just over half in dollars and the remainder in bond notes, the widely mistrusted currency printed by the bank.

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