Vumbachikwe mine in Gwanda, Matabeleland South has been switched off over an electricity bill estimated at over one million United States dollars, adding more woes to the company.
Sources said electricity supplies were disconnected about a week ago.
Zimbabwe’s power utility company, Zesa Holdings, is targeting debtors including mining companies.
As of May this year, it was reported that
Vumbachikwe was swimming in debt and owing its creditors and workers over US$10 million, Zesa Holdings US$1,5million and the Zimbabwe Revenue Authority US$4.5million.
Sources said the latest development has left workers who have been living at the company compound since the firm shut down in 2022 in the dark.
Indications are that this has also affected the nearby Sabiwa Primary school.
Zanu PF Gwanda Rural District ward 5 Councillor Simbarashe Mlilo confirmed the power crisis at the mine saying this has affected over 5000 people who reside in the area.
"At some point, they (mine) approached Zesa saying the company is not fully operational and they cannot be charged any electricity bills, but they were told that the company has aways been connected and they have to pay," he claimed.
"It’s now more than a week since electricity was disconnected and this has also affected water supplies while the mine shafts are now being flooded since there is no power to drain the underground water."
Mlilo said the company tried to use a generator to pump out water, but without success.
Vumbachikwe Mine spokesperson, Robert Mukondiwa, said no operations have been disrupted when contacted for comment.
"Care and maintenance operations are on-going and unaffected. The ‘minimal’ operations you reference are running smoothly and the mine is in no threat," Mukondiwa said.
On the issue of when the company will resume full operations, Mukondiwa could not shed light.
"As you know, the issue of debt is in limbo because of an application for company rescue, so I cannot respond officially to your questions. I will forward it to legal to see if they can give an official response. So officially there is no response…."
The mine suspended full operations at a time when it was failing to pay workers their outstanding salaries in October 2022, as well as struggling to service its debt to various creditors.
At one point, the wives of mine employees staged a protest at the company, resulting in property damage and a number of workers and their spouses getting arrested.
Since then the mining firm has remained under distress, but many of its workers still reside at the company compound doing other menial jobs elsewhere.
Former workers committee chairperson Gibson Sibanda blamed the management for the dire distress the mine finds itself in.
"I have since left the premises, and I am now doing my own things. I could not have stayed up to now without pay," Sibanda said.
“My colleagues remained in the compound and their children went to the local school. They stay in the compound doing gold panning and other menial jobs elsewhere. It is still not clear when the mine will re-open."