The Murowa Diamond Mine in Mazvihwa, Zimbabwe, operated by RZM Murowa, has experienced operational disruptions after its electricity supply was cut due to an unpaid bill of USD 4.5 million.
This issue coincides with labour unrest, as around 300 of the mine’s 700 workers have taken strike action over delayed salary payments dating back to October 2024.
Unpaid Power Bills Lead to Shutdown
The state-owned Zimbabwe Electricity Supply Authority (ZESA) disconnected the mine’s power supply on Wednesday, 8 January, bringing operations to a standstill. According to local reports, workers confirmed the disruption, with one stating, “Power was switched off by ZESA yesterday… No one has explained what’s next.”
A source familiar with the situation revealed that the mounting debt to ZESA had reached USD 4.5 million. While there has been no official statement from RZM Murowa, the power cut has raised concerns over the mine’s ability to resolve its financial obligations and resume operations.
Worker Strikes and Delayed Payments
The situation at Murowa has been further complicated by unresolved labour disputes. Workers have reported delayed wages, with some payments from October and November 2024 only partially received in early January 2025. One worker expressed their uncertainty, stating, “Now that power has been cut off, we don’t know if we will get anything else.”
Murowa Diamond Mine: Background and Recent Performance
The Murowa Diamond Mine, which began full-scale production in 2004, has undergone several management transitions. In 2015, RioZim, the parent company of RZM Murowa, took over operations and introduced measures to improve efficiency and increase output.
In the first half of 2024, Murowa produced 216,000 carats, a slight increase compared to the same period in 2023. However, profitability and revenue reportedly declined, reflecting potential difficulties prior to the recent disruptions.
The disruption at Murowa may pose challenges for the jewellery industry, particularly concerning the supply chain of Zimbabwean diamonds. As one of the country’s key diamond producers, Murowa’s operational difficulties could reduce the availability of rough diamonds, potentially affecting suppliers and manufacturers reliant on its output.