Mining ZimbabweLatest Mining News, Policy and Industry Updates

In a swift cabinet reshuffle, President Emmerson Mnangagwa has appointed Eng Polite Kambamura as the new Minister of Mines and Mining Development, effective immediately, Mining Zimbabwe, can report.

By Rudairo Mapuranga

The appointment, announced by the Chief Secretary to the President and Cabinet, Dr M. Rushwaya, on December 8, 2025, elevates Kambamura from his previous role as Deputy Minister of the same portfolio.

This move follows recent reports and a formal press statement confirming the departure of former Minister Winston Chitando.

Eng Polite Kambamura is not a newcomer to the ministry or to politics. His profile indicates a career built on relevant technical and political experience:

Professional Background: He holds a Bachelor of Science degree in Mining Engineering from the University of Zimbabwe (2002) and recently graduated with a Master of Science in Natural Resources Management and Environmental Sustainability with distinction from Bindura University. Before entering politics, he worked as an engineer at mines in Zimbabwe and South Africa.

Political Career: Kambamura has been a Member of Parliament for Sanyati Constituency since August 2018 and has served as the Deputy Minister of Mines and Mining Development since September 2018. His tenure as deputy spanned the leadership of two ministers: Winston Chitando and Soda Zhemu.

The appointment signals a significant shift at the helm of one of Zimbabwe’s most critical economic ministries.

Outgoing Minister: Winston Chitando, who served as Minister on two separate occasions (2018–2023 and again from April 2024), was a prominent figure in promoting Zimbabwe’s mining sector globally. Just weeks ago, he was actively marketing the country’s mining potential at international forums.

A Ministry in Focus: The Ministry of Mines and Mining Development oversees a sector that is central to Zimbabwe’s economy. Recent government efforts have focused on banning raw lithium exports to encourage local processing, attracting over $1 billion in related investments, and launching major industrial projects like the Palm River Energy Metallurgical Special Economic Zone. The ministry also recently gained a second Deputy Minister, Caleb Makwiranzou, tasked with overseeing oil, gas, and strategic minerals.

Kambamura’s immediate promotion from within the ministry suggests a desire for policy continuity. His first-hand experience with ongoing reforms and key projects likely played a role in his selection. The new minister steps in at a time when Zimbabwe is pushing to:

• Increase gold production to a target of 40 tonnes in 2025.
• Advance its platinum and lithium sectors with major new mining and processing facilities.
• Ensure mining activities translate into direct benefits for local communities through regulatory reforms.

The swift nature of this appointment aims to ensure stability and uninterrupted progress in the strategically vital mining sector.

Official Statement Released

The appointment was made official through a press statement dated December 8, 2025, signed by the Chief Secretary to the President and Cabinet, Dr M. Rushwaya, in accordance with the Constitution of Zimbabwe.

In a significant shift following intense industry pressure, Zimbabwe’s Finance Minister, Professor Mthuli Ncube, has indicated the government is open to revising its recently proposed hike in gold royalties, Mining Zimbabwe can report.

By Rudairo Mapuranga

The move comes after the controversial budget measure triggered strong opposition from miners who warned it would cripple profits and investment in the critical sector.

Speaking at a post-budget meeting with business leaders in Harare, Ncube stated, “We have agreed on the issue of (gold) royalties, so you will see some tweaking there.” This comment marks the first official acknowledgement that the government may amend the proposal, which would see the top royalty rate double to 10 per cent for gold prices exceeding $2,501 per ounce.

The potential for revision follows weeks of heated debate. In his 2026 National Budget presentation on November 27, Minister Ncube announced a new, harmonised sliding-scale royalty structure for all gold producers.

The new structure: A royalty rate of 3 per cent when the gold price is below $1,200 per ounce, 5 per cent for prices between $1,201 and $2,500 per ounce, and a new top tier of 10 per cent for any price above $2,501 per ounce.

The government’s rationale: Ncube argued the change was necessary “to ensure the mining sector contributes a fair share of revenue to the Fiscus during periods of commodity price boom.” With gold trading persistently above $4,000 per ounce, well into the proposed 10 per cent bracket, the government aimed to capture more revenue from the windfall.

The announcement was met with immediate and forceful pushback from across the gold mining industry, from large-scale operators to small-scale miners.

Warnings from Major Producers

Caledonia Mining Corporation, a top producer, publicly stated the change would “result in a lower level of profitability and cash generation” at its Blanket Mine and forced a reassessment of its $484 million Bilboes project.

Analysts warned the hike could negatively impact investment flows at a time when Zimbabwe is seeking to grow the sector.

Alarms from Small-Scale Miners

The Zimbabwe Miners Federation (ZMF), representing artisanal and small-scale miners who contribute about 65 per cent of national output, urgently appealed to the government.

The ZMF argued the 10 per cent rate would deter new investment in exploration and development and sharply increase gold smuggling as miners seek better returns in neighbouring countries with lower taxes.

A Sense of Unfairness

A deeper analysis highlighted a core grievance: the new tiered system was seen as penalising the sector’s most compliant players. Large-scale miners, who already bear the full brunt of corporate taxes and other levies, would face the doubled royalty. In contrast, the artisanal sector, which is harder to tax and associated with significant leakage, largely operates under a separate, lower royalty framework. This created a perception of punishing formal, transparent operations while failing to address broader revenue losses from illicit flows.

What “Tweaking” Could Mean

Minister Ncube’s vague promise of “tweaking” leaves room for speculation on the final policy. Industry stakeholders are now watching closely for the government’s next move, which could take several forms:

Adjusting the price threshold: Raising the $2,501 per ounce trigger for the 10 per cent rate to a higher level.

Modifying the top rate: Reducing the proposed top royalty rate from 10 per cent to a more palatable figure for the industry.

Introducing offsets: Coupling the royalty change with other incentives to support mine development and expansion projects.

The gold royalty debate occurred alongside other significant mining tax reforms in the 2026 budget, including:

Changes to how capital expenditures are deducted for tax purposes.

New export taxes on unprocessed lithium, chrome and other minerals to encourage local beneficiation.

A landmark liberalisation of domestic gold ownership, allowing citizens to legally buy, hold, and trade certified gold bars, a move analysts believe could drastically reduce smuggling by bringing informal gold into the regulated economy.

While Minister Ncube’s statement has cooled immediate tensions, the gold sector remains in a holding pattern. The minister’s words suggest a compromise is being formulated, but its details will determine whether Zimbabwe can balance its urgent fiscal needs with the imperative to maintain a viable and attractive investment climate for its most important export industry.

All eyes will now be on the Treasury and Parliament as the budget moves through the approval process, with the industry hoping the promised “tweaking” will result in a sustainable and competitive royalty regime.

The Young Miners Foundation (YMF) will host its 15th Anniversary Awards Dinner on December 19 in Bulawayo, an event aimed at recognising young leadership and excellence within Zimbabwe’s mining sector, Mining Zimbabwe can report.

By Rudairo Mapuranga

The awards ceremony, scheduled for Three Daughters Jazz Restaurant in Parklands at 6 p.m., will bring together industry leaders, young professionals, and stakeholders from across the mining value chain. The Foundation will present several honours, including the Young Miners Media Award, which recognises outstanding reporting, analysis and advocacy for responsible and youth-driven mining development.

YMF Chief Executive Officer Payne Farai Kupfuwa said the awards underscore the organisation’s commitment to building a competent next generation of mining professionals.

“Our goal is to celebrate the young people whose innovation, discipline and resilience are helping shape Zimbabwe’s mining future,” Kupfuwa said in a statement. “The individuals we are recognising have shown exceptional commitment to the Young Miners Foundation’s vision of empowering youth and contributing meaningfully to the country’s economic trajectory.”

Kupfuwa added that the ceremony is designed not only to acknowledge achievement, but also to strengthen industry networks and inspire higher standards of professionalism.

“As we mark 15 years, this event is both a celebration and a moment of reflection,” he said. “It reinforces our belief that sustainable growth in the mining sector must include young voices and young leaders. Their work continues to dovetail with national goals for value addition, growth and global competitiveness.”

The evening will feature networking sessions, presentations and entertainment. YMF said the annual awards have become one of its key platforms for showcasing youth talent and promoting best practices across Zimbabwe’s mining industry.

…As NRMAF Pilot Signals Sunset for Irresponsible Miners

The National Responsible Mining Audit Framework, which will soon be piloted, is expected to trigger regulation that enforces responsible mining practices — a message to current and potential investors that Zimbabwe is only open for responsible business, Mining Zimbabwe can report.

By Ryan Chigoche

While mining remains a cornerstone of Zimbabwe’s economy, local communities continue to bear the cost. From deforestation and river pollution to desecrated graves, the environmental and social toll is severe, yet communities often receive little more than dust as a benefit from the activity. Weak ESG compliance across the sector underscores the urgent need for stronger oversight and responsible practices.

In response, the Ministry of Mines is set to pilot the NRMAF, designed to address regulatory gaps and institutionalise responsible mining. According to Edwell Maposa of ENM Advisory Group, the government’s technical partner on the project, the framework will demonstrate that Zimbabwe is open for business, but in a sustainable and ethical way.

“The pilot represents a fundamental commitment to sustainable and ethical practices across the national mining sector,” Maposa said. Successful validation will trigger regulatory amendments for full national rollout and the commissioning of a national data management portal, signalling to the world that Zimbabwe is open for responsible business.”

This initiative reinforces warnings previously issued by senior leadership. At this year’s Mine Entra, Vice President Constantino Chiwenga stressed that while Zimbabwe welcomes investment, it does not tolerate indiscriminate extraction, particularly by operators who ignore environmental and social obligations. President Emmerson Mnangagwa echoed this in his State of the Nation Address, pledging decisive action against irresponsible miners and committing to protecting communities and the environment.

The government’s message is clear and uncompromising: non-compliance will no longer be tolerated.

The NRMAF pilot signals a renewed, serious stance on responsible mining, making it evident that operators must meet statutory and ESG obligations if they wish to continue working in Zimbabwe. Miners who fail to comply risk regulatory sanctions, fines, or even removal from the sector, underscoring that responsible, sustainable operations are now mandatory.

By unifying statutory compliance and ESG performance checks and consolidating technical and social audits through the pilot data system, the NRMAF aims to deliver verifiable accountability.

Beyond regulatory enforcement, it lays the foundation for a national system to track compliance and progress across the sector, ensuring that Zimbabwe’s mining not only drives the economy but also benefits its people and protects its natural heritage.

As the pilot progresses, all eyes will be on how effectively Zimbabwe enforces responsible mining. The outcome will not only define the sector’s future but also signal to investors and communities alike whether Zimbabwe can balance economic growth with environmental stewardship and social responsibility.

Zimbabwe’s mining sector stands at a fiscal crossroads, with the recent and proposed increases in mineral royalty rates, designed to capture greater state revenue during commodity booms, triggering profound concern across the industry, Mining Zimbabwe can report.

By Rudairo Mapuranga

This analysis examines the growing consensus from miners’ federations, industry chambers, and international benchmarks that suggests Zimbabwe’s current trajectory may be counterproductive. By positioning itself as a high-royalty jurisdiction, with a top gold royalty rate of 10% and similarly elevated rates for other minerals, the nation risks eroding its competitiveness, encouraging capital flight and illicit trade, and ultimately stifling the long-term growth of the very sector it seeks to benefit from. Compounding this is a foreign currency retention policy that, due to a significant and persistent disparity between the official and black-market exchange rates, acts as a substantial implicit tax, further squeezing miner profitability and adding a critical layer of fiscal complexity.

Beyond explicit royalty hikes, miners face a significant fiscal burden embedded in Zimbabwe’s foreign currency regulations. Contrary to some perceptions, the current policy allows miners to retain a substantial 70% of their export earnings as foreign currency (typically USD). The remaining 30% is converted into the local currency, the Zimbabwe Gold (ZiG), at the official exchange rate.

The critical, profit-eroding issue lies in the persistent and wide gap between the official bank rate and the prevailing black-market rate. As of current market conditions, the official rate is around ZiG 25 to one US dollar, while the parallel market trades at approximately ZiG 32 to the dollar.

Economic Mechanism of the Implicit Tax:

This disparity creates a tangible cost for miners, particularly when funding local operations. While they retain valuable USD for critical imported goods like specialized equipment and parts, a portion of their revenue is converted at an uncompetitive rate. The real burden manifests when miners need to cover local expenses—salaries, local supplier payments, power bills, and domestic services. These local costs are often effectively priced at or influenced by the black-market rate. Therefore, the 30% of revenue converted at the lower official rate loses significant purchasing power for domestic needs.

$700,000 (70%) is retained as valuable USD for imports and certain obligations.

$300,000 (30%) is converted at the official rate of ZiG 25:1, yielding ZiG 7.5 million.

However, if the local economy operates on a benchmark closer to the black-market rate of ZiG 32:1, the purchasing power of that ZiG 7.5 million is equivalent to only $234,375 (7.5 million / 32), not the $300,000 it nominally represents.

This creates an implicit loss of $65,625 on that converted portion, functioning as a hidden cost on exports.

This policy mechanism functions as a substantial implicit operational tax. It erodes the local currency value of a significant portion of revenue, complicates financial planning, and reduces the effective funds available for local wages and procurement. It creates a powerful structural disadvantage for formal miners, as those who might sell foreign currency illegally on the parallel market could avoid this loss, thereby undermining the formal financial system the policy aims to support.

The most immediate and vocal concern stems from the gold sector, following proposals in the 2026 National Budget to implement a sliding-scale royalty that peaks at 10% when the gold price exceeds $2,501 per ounce. With gold prices persistently well above this threshold, this top tier is a present-day reality for producers.

In a formal appeal to the government, the Zimbabwe Chamber of Mines has articulated the industry’s position with clarity. The Chamber warns that moving Zimbabwe’s gold royalty to a 10% maximum places it at a significant disadvantage within the region and the continent. Their research indicates that a disproportionate increase above regional averages directly fuels “side marketing” and smuggling, as miners seek better returns in neighbouring countries with more favourable fiscal terms.

The Chamber’s appeal stresses that the majority of Zimbabwe’s gold producers are small to medium-scale operations, highly sensitive to cost increases. The proposed structure threatens the viability of ongoing expansion projects and could lead to a reduction in formal deliveries to the state gold buyer, Fidelity Gold Refinery (FGR). Instead, the Chamber advocates for a maximum royalty cap of 6%, aligning more closely with international averages to ensure stability and maximise the sector’s total contribution.

The industry’s plea for competitiveness is grounded in hard data. A global overview of mining taxation reveals that most investment-friendly jurisdictions carefully balance revenue generation with attractiveness.

Australia, a mining giant, maintains gold royalty rates between 2.5% and 7.5% across its states.

Canada sees rates vary provincially from 1% to 5%.

In South Africa, a regional benchmark, gold royalties operate on a sliding scale from 0.5% to a maximum of 5%, calculated based on profitability.

Other key African gold producers like Ghana and Tanzania cap their rates at 5% and 4%, respectively.

Zimbabwe’s proposed 10% rate places it in a starkly different category, alongside Mali, which also enforces a 10% royalty. Uganda has taken the opposite approach; President Yoweri Museveni recently ordered the removal of gold royalties entirely to combat smuggling, a warning that directly mirrors the concerns raised by Zimbabwean industry bodies.

Beyond Gold: A Broader Pattern of Risk for Key Minerals

The debate over gold royalties and forex policy is symptomatic of a broader fiscal environment that investors view as challenging for other critical minerals.

Platinum Group Metals (PGMs) and Lithium

The PGM sector, centred on the vast resource of the Great Dyke, requires colossal, long-term investments. Projects like the $380 million Karo Platinum mine underscore the capital intensity involved. For such ventures, fiscal policy stability and predictable forex access are fundamental. The gold royalty precedent and exchange rate complexities create uncertainty for PGM investors, who fear similar “revenue mechanism” adjustments could be applied to their sector, deterring investment or inflating the cost of capital.

Lithium is at the heart of the global green energy transition, and Zimbabwe holds some of Africa’s largest reserves. In a hyper-competitive global race for critical minerals investment, nations like Canada are introducing resource tax incentives. If Zimbabwe’s general royalty framework is perceived as disproportionately high, and its forex policies as a hidden cost, it risks losing ground in this strategic arena. The implicit tax from currency conversion directly reduces the post-tax return on investment.

Diamonds: A Legacy of High Costs

The diamond sector already operates under a high royalty burden. Zimbabwe’s 10% diamond royalty stands well above rates in major producer countries like Botswana (3%) and applies to a production base that yields a far lower average value per carat. This structure has long been cited as a constraint on the sector’s growth and its ability to attract the investment needed for deeper, more gem-rich kimberlite exploration.

The Economic Consequences: Undermining the Very Goals of Growth

The collective warnings from industry groups point to several potential macroeconomic consequences that could undermine the government’s revenue and development goals.

1. Capital Flight and Deterred Investment: Mining is a capital-intensive industry with global investment options. An uncompetitive and unpredictable fiscal regime, combining high royalties with costly forex distortions, leads to stalled exploration and mine development.

2. Growth of Illicit Financial Flows and Smuggling: This is the most consistently cited direct risk. High explicit and implicit costs incentivise smuggling. When the incentive to sell through formal channels evaporates due to a combination of high royalties and unfavourable forex conversion, the government loses on all fronts.

3. Erosion of the Formal Tax Base: A shrinking formal sector means a shrinking base for not just royalties, but also corporate income tax, PAYE, and VAT. The government may ironically collect less total revenue from the sector due to a shrinking formal base.

4. Weakened Contribution to National Development: Constraining the sector’s growth through a high-cost fiscal environment limits the broader prosperity dividend of jobs, supplier networks, and community investments.

Zimbabwe faces a legitimate need to derive fair value from its non-renewable mineral resources. However, evidence suggests that maximising long-term revenue requires a focus on growing the overall size and value of the formal mining sector.

A sustainable path forward would involve a holistic review of the mining fiscal framework, engaging in genuine social dialogue with industry stakeholders to design a system that is:

Competitive and Transparent: Aligning royalty rates with regional and global peers and moving towards a single, market-reflective exchange rate to eliminate hidden forex taxes.

Stable and Predictable: Providing the long-term certainty required for large-scale project financing.

Incentivising Formalisation: Creating a clear and compelling economic advantage for selling minerals through official, traceable channels.

Progressively Structured: Implementing sensible, transparent sliding scales for royalties that share windfall profits without making operations unviable.

The combined burden of high royalties and the implicit tax of forex conversion creates a pincer movement on profitability. For a nation whose economic aspirations are deeply tied to its mineral wealth, this is not just a tax policy debate; it is a strategic decision of paramount importance.

The Ministry of Mines and Mining Development has taken a major step toward establishing a National Responsible Mining Audit Framework (NRMAF), with the pilot version now completed and set to be tested in the upcoming Responsible Mining Audit (RMA), Mining Zimbabwe can report.

By Ryan Chigoche

The move signals a decisive shift from the previous era of fragmented oversight and widespread non-compliance, as the government sharpens its tools to enforce accountability across the mining sector.

The new framework is a direct response to weaknesses exposed in the 2025 Responsible Mining Audit Gap Analysis, which highlighted critical challenges such as inconsistent audit methodologies, limited scope, poor quality reporting, and severe interagency fragmentation.

Despite progress during the 2023 and 2024 audits, compliance remained uneven, particularly among small-scale and informal operators. This context created an urgent need for a unified, high-standard national audit system, leading to the development of the pilot NRMAF.

“The mining sector is a strategic national asset. To ensure its sustainability and equitable distribution of benefits, the nation requires a mechanism to verify responsible resource extraction at a high, all-inclusive standard rooted in national law. The previous audit system suffered from inconsistent methodology, poor report quality, and severe interagency fragmentation. This NRMAF directly addresses these historical deficiencies,” said Edwell Maposa of ENM Advisory Group, the consultants leading the development of the framework.

Developed as an 18-month structured pilot, the NRMAF sets a unified, mandatory standard for evaluating statutory compliance, technical performance, worker welfare, and Environmental, Social, and Governance (ESG) obligations across all mining operations.

The pilot represents a major upgrade from the audit approaches used in 2023 and 2024, creating a more robust and holistic model of oversight.

A central feature of the pilot is the “One Audit, One File” methodology. This approach creates a single, comprehensive audit record for each mining operation, eliminating duplication, conflicting findings, and information silos across government institutions.

To enable this system, the pilot introduces a Pilot Data Collection System (DCS), a template-based, centralised data gathering tool that unifies inputs from Mines, EMA, NSSA, ZIMRA, rural district councils and the Labour Ministry. This forms the foundational dataset required for the future National Digital Mining Portal (NDMP).

The framework integrates mandatory national laws, including the Mines and Minerals Act, Environmental Management Act, Factories and Works Act, and NSSA Act, with leading international ESG best practices. It is anchored on three core principles: integrity, statutory adherence, and transparency.

The initiative builds on insights from earlier Responsible Mining Audits. In 2023, the audit system was introduced at a national scale for the first time. By 2024, capacity and coverage had expanded substantially. Last year, inspectors visited 728 mining sites, up from 424 in 2023, issuing fines totalling USD 680,000. While this reflected stronger enforcement, it also revealed persistent gaps, particularly where institutions conducted inspections independently.

It is these inefficiencies that the NRMAF seeks to eliminate.

Deputy Chief Government Mining Engineer E Paskwavaviri, addressing the auditors from various State MDAs, explained that mining oversight spans multiple government institutions, and when they operate separately, it leads to duplication, delays, and loopholes that undermine compliance.

He said the pilot framework is designed to bring these agencies into one coordinated system with standardised processes and a single audit record for each mining operation. According to him, this shift represents more than an administrative adjustment, it marks a broader cultural move toward unified oversight and a shared national compliance standard.

Therefore, it is the government’s expectation that the NRMAF eliminates inconsistencies that previously allowed some operators to exploit overlapping or unclear regulatory touchpoints.

Key objectives of the NRMAF pilot include enforcing statutory compliance, establishing the “One Audit, One File” data foundation to support digitalisation, integrating ESG performance assessments, and enhancing accountability through standardised, verifiable disclosure of audit findings and corrective action plans.

If it passes, the framework will position Zimbabwe as a pioneer in structured, principle-based mining oversight, demonstrating a commitment to a mining sector that operates responsibly, sustainably, and transparently, and sending a strong warning that non-compliance will no longer be tolerated.