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Zimplats Ruling Reinforces Legal Certainty as Mining Sector Tax Disputes with ZIMRA Persist

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Zimplats Ruling Reinforces Legal Certainty as Mining Sector Tax Disputes with ZIMRA Persist

A recent High Court ruling in favour of Zimbabwe Platinum Mines (Zimplats) has reinforced the role of Zimbabwe’s courts in defining the limits of mining taxation, even as disputes between miners and the Zimbabwe Revenue Authority (ZIMRA) continue to surface across the sector, Mining Zimbabwe reports.

By Ryan Chigoche

This follows a recent High Court ruling that the country’s number one platinum group metals (PGM) producer, Zimplats, is not liable for US$7.1 million in mining royalties on matte and concentrate exported between June 2018 and December 2021.

At the centre of the dispute was whether the Finance Act, as it stood before amendments that took effect on January 1, 2022, allowed ZIMRA to levy royalties on intermediate or mineral-bearing products.

The High Court found that royalty rates during that period applied only to “minerals,” not to matte or concentrate. With no legally fixed rate, no lawful obligation could arise. ZIMRA’s assessed shortfalls and penalties were effectively set aside.

The ruling goes beyond immediate financial relief. By applying the law strictly as it stood, the court reaffirmed a core principle: taxes and royalties must be grounded in clear statutory authority.

This mirrors earlier decisions, such as the Supreme Court’s ruling in favour of ZIMASCO, which blocked a US$7 million ZIMRA claim on chrome concentrates and ferrochrome produced before 2022. The court held that mineral-bearing products without prescribed rates cannot attract royalties.

Taken together, these rulings have boosted investor confidence. They show that Zimbabwe’s courts can resolve complex fiscal disputes predictably. In a sector long challenged by policy uncertainty, the judgments signal that legal clarity can exist alongside administrative oversight.

Yet, outcomes are not uniform. Afrochine Smelting, another ferrochrome producer, lost a High Court challenge after ZIMRA’s assessment was upheld. These contrasting results highlight that product classification and transaction specifics remain crucial.

Even with court clarity on historical royalties, taxation challenges persist. Industry bodies warn that uncertainty remains, especially in platinum group metals (PGMs) and lithium.

The Chamber of Mines of Zimbabwe reports that PGM producers face ongoing export tax demands on concentrates and matte.

This comes despite an agreed phased beneficiation roadmap. Investments in domestic smelting have created excess capacity, allowing toll treatment of third-party material from mid-2025.

All PGM concentrates are expected to be processed locally by 2026.

Lithium producers are also raising concerns.

They say ZIMRA is levying royalties based on lithium carbonate prices while collecting beneficiation tax on concentrates.

Since VAT already recognises that spodumene, petalite, and lepidolite are exported, the dual tax amounts to double taxation.

Producers are calling for royalties to be based on actual concentrates or for the beneficiation tax to be removed when lithium carbonate pricing is applied.

Viewed together, the Zimplats ruling, earlier court decisions, and ongoing industry submissions reveal a structural challenge.

While courts have curbed retrospective claims, disputes over export taxes, beneficiation levies, and royalty valuation persist.

Without a clarified and consistently applied fiscal framework, friction between miners and ZIMRA is likely to continue.

For a sector expected to anchor Zimbabwe’s long-term economic growth, the message is clear: predictable taxation and legal certainty are now as critical to investment as the country’s mineral endowment itself.

Premier Dilution Continues as Canmax Converts Interest Into Shares

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Premier Dilution Continues as Canmax Converts Interest Into Shares

Premier African Minerals Limited has issued a further 591 million new shares after its strategic partner, Canmax Technologies Co., Ltd, elected to convert accrued interest into equity under the Zulu Lithium and Tantalum Project offtake and prepayment arrangements, Mining Zimbabwe can report.

By Rudairo Mapuranga

The conversion, announced this week, relates to £177,329 (approximately US$242,949) in accrued interest owed to Canmax under the Restated and Amended Offtake and Prepayment Agreement. The amount has been settled through the issuance of new ordinary shares at an issue price of 0.03 pence per share, consistent with Premier’s most recent fundraising.

The interest conversion forms part of the addendum to the offtake and prepayment agreement announced in December 2024, which allows Canmax to convert outstanding interest into equity rather than receive cash repayment. Premier stated that the newly issued shares will rank pari passu with existing ordinary shares and are expected to be admitted to trading on AIM around 11 February 2026. Following the issuance, Premier’s total number of ordinary shares in issue has risen to approximately 13.9 billion, continuing a sharp expansion of the company’s share capital over the past two years.

The Canmax arrangement dates back to August 2023, when Premier secured a prepayment facility linked to a long-term offtake agreement for spodumene concentrate from the Zulu Lithium Project. The facility was intended to accelerate Zulu’s transition into production. However, ongoing operational challenges at the processing plant, including lower-than-expected recoveries and repeated optimisation efforts, have delayed meaningful cash flow from Zulu. As a result, Premier has increasingly relied on equity-based solutions to manage liabilities tied to the project.

Since late 2024, Premier has repeatedly amended the Canmax agreement to extend long-stop dates, allowed accrued interest to capitalise rather than be settled in cash, raised equity at progressively lower issue prices, and used shares to settle suppliers, contractors, and former directors. The interest conversion announced this week follows a £1 million equity raise in January 2026, also priced at 0.03 pence per share, which itself involved the issuance of more than 3.8 billion new shares.

Premier’s issued share capital has expanded rapidly as funding pressures persist. At the time of the original Canmax agreement in 2023, the company had a substantially smaller share base. Today, with nearly 14 billion shares in issue, each new equity settlement further dilutes existing shareholders. While Premier has consistently described these arrangements as necessary to preserve cash and maintain operational continuity at Zulu, the cumulative impact has been a material reduction in shareholder value on a per-share basis.

For Canmax, the conversion of interest into equity strengthens its position within Premier while avoiding near-term repayment risk. For Premier, the move reduces immediate cash obligations but reinforces the company’s dependence on equity issuance to manage project financing. The company maintains that Zulu’s fundamentals remain intact and that recent funding will support the installation of a new flotation plant aimed at improving recoveries and throughput. Whether this translates into sustained production—and a shift away from dilution-driven funding—remains a key question for investors.

Premier has not indicated that the Canmax conversion is the final equity settlement under the agreement. With long-stop dates extended into mid-2026 and interest continuing to accrue, further conversions remain a possibility if operational cash flow does not materialise. For shareholders, the latest announcement serves as another reminder that Zulu’s development has come at a high equity cost—and that execution at the project level will be critical in determining whether dilution slows or continues.

Gold buying prices in Zimbabwe per gram/ ounce, 5 February 2026

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Gold buying prices in Zimbabwe per gram/ ounce, 5 February 2026

Gold buying prices in Zimbabwe per gram/ ounce, 5 February 2026, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice ($/g)Price ($/oz)
SG 90% and above149.014,634.73
SG 85% and above but below 90%147.444,585.90
SG 80% and above but below 85%145.864,536.76
SG 75% and above but below 80%144.284,487.61
Sample 5g and above but below 10g141.924,414.21
Fire Assay CASH149.804,659.30

 

Note: The Fire Assay cash price applies to gold above 100g, with no sample deduction.

A sample of not more than 10g is deducted for the Fire Assay Transfer price.

Karo Platinum to Build First-of-Its-Kind TSF with Advanced Safety in Zimbabwe’s PGM Sector

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Karo Platinum to Build First-of-Its-Kind TSF with Advanced Safety in Zimbabwe’s PGM Sector

Karo Platinum, Zimbabwe’s most promising platinum group metals (PGM) Tier 1 asset, is set to construct a tailings storage facility (TSF) that will feature advanced safety and stability measures as the company leverages its open-pit mining operations, Mining Zimbabwe reports.

By Kelvin Sungiso

A tailings storage facility is a critical component of modern mining operations, providing a controlled and secure system for storing waste material generated during mineral processing.

When properly designed and managed, a TSF reduces the risk of dam failures, water contamination, and dust emissions, while protecting workers, surrounding communities, and the environment.

It also plays a central role in regulatory compliance, operational continuity, and responsible mine closure.

At Karo Platinum, the TSF has been designed to leverage the project’s open-pit mining model, which generates significant volumes of waste rock.

The facility will be located approximately one kilometre from the main project site and will use waste rock from mining operations as a core structural component.

In an interview with Mining Zimbabwe, Karo Platinum Plant Manager Qhubekani Moyo said the TSF will have a high safety factor, something that is yet to be seen in the sector.

“We are building a tailings dam that is a first of its kind in the PGM sector in Zimbabwe. We’re taking advantage of the fact that we’re doing opencast mining and we’re generating a lot of waste rock from the opencast mining.

“The advantage of that tailings dam is that the safety factor on that tailings dam is very high. None of the tailings dam failures that have been recorded in the world so far involve that kind of tailings dam design,” Moyo said.

Unlocking the full potential of Karo Platinum will require a US$543 million investment to move the Tier 1 PGM asset into production, with the TSF expected to consume a significant portion of this capital.

The high capital expenditure is largely driven by the distance required to transport waste rock from the open-pit mine to the tailings dam site.

TSF to Combine Structural Stability with Operational Efficiency

The tailings storage facility will be constructed as a waste-banded tailings dam with an operational life of ten years. Development will be carried out in three distinct phases, referred to as raises, progressing from raise one to raise three over the life of the facility.

While the initial capital outlay is substantial, operating costs are expected to be significantly lower than those of conventional self-raised tailings dams.

Once the bund walls are in place, waste rock will be directly deposited into the facility, reducing ongoing operational costs by limiting the number of operators required and minimising construction material inputs.

The construction timeline for the TSF has been aligned with the commissioning of the processing plant. Raise one is scheduled for completion by the time the plant is commissioned.

Raise two will follow in the second year of operation, while raise three will be constructed in year three.

From that point, raise three will provide sufficient capacity to support operations for the remainder of the TSF’s ten-year lifespan.

Tharisa’s Karo Platinum Project, expected to commence production by 2027, is poised to secure the future of Zimbabwe’s platinum group metals (PGM) production amid growing calls for succession planning in the sector.

The project’s first phase is projected to produce 226,000 (6E) ounces annually, boosting national PGM output by 20 per cent and contributing nearly 2 per cent to Zimbabwe’s GDP, underscoring its strategic importance to the country.

Situated on the Great Dyke near Mhondoro-Ngezi in Mashonaland West, Karo Platinum is emerging as the most advanced new platinum development in the country.

Designed at scale and backed by significant capital investment, the project is increasingly seen as the natural successor required to ensure continuity in Zimbabwe’s platinum sector.

“We Please Ourselves”: Mnangagwa Stakes Zimbabwe’s Claim Between East and West

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“We Please Ourselves”: Mnangagwa Stakes Zimbabwe’s Claim Between East and West

President Emmerson Mnangagwa has defended Zimbabwe’s pragmatic foreign policy, saying the country will engage with global partners based solely on what best serves its national interests, rather than aligning with Western powers or the East.

By Ryan Chigoche

The remarks come as Zimbabwe deepens economic ties with a range of partners, including China, Russia, and Middle Eastern investors, while simultaneously calling for the normalisation of relations with Western countries amid ongoing sanctions-related constraints.

Like other African mining hubs, Zimbabwe has seen a surge of Chinese investment driven by the lithium boom and the green energy transition.

According to the Zimbabwe Investment and Development Agency (ZIDA), in 2024, Chinese firms secured 441 licences with projected inflows of over US$2.7 billion—more than 60 per cent of all foreign approvals—while U.S. investors accounted for just US$182 million, highlighting how China’s footprint now dwarfs that of the U.S., especially in mining.

This stark contrast in foreign investment flows set the context for questions at the World Governments Summit in Dubai, where Mnangagwa was asked whether Zimbabwe and other African countries were receiving better deals from Chinese investment compared to their historical engagement with Western nations.

In response, he rejected the framing of global engagement as a choice between competing power blocs, instead emphasising sovereignty and results-driven partnerships.

“You have to understand that Zimbabwe is a sovereign state,” Mnangagwa said. “We move on the basis that gives us the best results from our resources. Whether it is in relation with the West or the East, what is primarily important is what we ourselves, as an organisation, are satisfied with.”

He added that Zimbabwe’s policy is guided by self-interest rather than external approval. “We don’t need to please the West or please the East. We please ourselves,” he said.

The growing presence of Chinese firms in Zimbabwe reflects a broader African trend, particularly in critical minerals such as lithium, graphite, cobalt, and rare earth elements.

Over the past two decades, China has moved deliberately to secure supply chains that support battery manufacturing, electric vehicles, and renewable energy technologies, establishing a strong footprint in mining, infrastructure, and energy.

By comparison, the United States and its allies are only recently ramping up engagement through new financing tools and partnerships, while Western governments have generally taken a more cautious approach, citing governance and human rights concerns.

Mnangagwa’s comments reflect Harare’s broader foreign policy doctrine of “friend to all, enemy to none,” which prioritises economic development, resource beneficiation, and investment inflows over geopolitical alignment.

As competition for Africa’s resources intensifies, Zimbabwe is positioning itself as an assertive actor, negotiating on its own terms and leveraging its mineral wealth and strategic location to secure partnerships that deliver tangible national benefits.

His Excellency Hakainde Hichilema, President of the Republic of Zambia to deliver keynote at Mining Indaba 2026 as Zambia’s mining sector surges

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His Excellency Hakainde Hichilema, President of the Republic of Zambia to deliver keynote at Mining Indaba 2026 as Zambia’s mining sector surges

Investing in African Mining Indaba confirms that His Excellency Hakainde Hichilema, President of the Republic of Zambia, will deliver the Keynote Address in the Opening Ceremony at Investing in African Mining Indaba 2026, scheduled to take place from 9-12 February 2026 in Cape Town, South Africa.

His Excellency President Hakainde Hichilema’s attendance underscores Zambia’s renewed positioning at the centre of Africa’s evolving mining and investment landscape.

President Hichilema’s participation comes at a pivotal moment for Zambia’s mining sector, as the country advances a reform agenda focused on building strong foundations through regulatory certainty, transparency, enhanced institutions, and the deployment of game-changing mining technologies to unlock long-term growth. Recent years have seen Zambia prioritise digital licensing systems, improved geological data management, and modernised regulatory frameworks designed to reduce friction for investors while strengthening state oversight.

These reforms are increasingly reflected in global investor sentiment, signalling growing confidence in the country’s policy environment, governance standards, and commitment to predictable, rules-based engagement with industry.

At Mining Indaba 2026, President Hichilema is expected to outline Zambia’s vision for scaling copper and critical mineral production through technology-led efficiencies, responsible investment, and deeper alignment between government strategy and private capital, placing particular emphasis on how innovation – from data-driven exploration to cleaner processing technologies – is reshaping Zambia’s competitiveness at a time of intensified global demand for energy transition minerals.

Mining Indaba provides a platform for direct dialogue between African governments and the global mining and investment community. President Hichilema’s participation reinforces Zambia’s intent to engage openly with investors, partners, and multilateral institutions on the practical steps required to deliver sustainable growth, value addition, and long-term resilience in the mining sector.

About Investing in African Mining Indaba

Investing in African Mining Indaba is Africa’s largest mining investment conference, convening governments, mining companies, investors, and financiers from across the global mining value chain. The annual event provides a platform for policy dialogue, deal facilitation, and investment promotion to support responsible and sustainable mining across Africa.

Zimbabwe’s Lithium Strategy Yields Results as Sales Volumes Surge 33% Against Target

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The government strategy to position Zimbabwe as a key player in the global battery minerals market, which saw the Minerals Marketing Corporation of Zimbabwe (MMCZ) report significant overperformance in lithium sales for the 2025 financial year, is demonstrating tangible success, Mining Zimbabwe can report.

By Rudairo Mapuranga

Driven by a pragmatic policy focused on in-country beneficiation and major investments from key producers, lithium sales reached 1,522,893.93 metric tonnes, generating US$571.6 million and outperforming volume and revenue targets by 33% and 10%, respectively. This performance underscores the initial returns of a national plan to move beyond exporting raw ore.

In a significant clarification of this push for mineral beneficiation, Finance Minister Professor Mthuli Ncube outlined the government’s collaborative vision. “We don’t expect every lithium investor to build a refinery, but we can have one refinery to cater for everyone in the sector,” Ncube stated, drawing a parallel to the shared base metal refinery model used in the platinum industry. This approach is designed to overcome the high capital barriers of building processing plants, making value addition feasible for multiple miners.

The cornerstone of this model is already taking shape. At the Arcadia Mine, Chinese battery materials giant Zhejiang Huayou Cobalt is nearing completion of a US$400 million lithium sulphate plant—the first of its kind in Africa. This facility, set to produce over 60,000 metric tonnes of battery-grade lithium sulphate annually from early 2026, is the practical embodiment of the government’s “one refinery” vision and a direct response to policy measures.

The government’s framework uses both incentives and mandates to drive this change. The 2026 Budget introduced a 10% export tax on unbeneficiated lithium, which drops to 0% on fully processed material, creating a strong financial incentive for local processing. This policy paves the way for a complete ban on lithium concentrate exports starting in January 2027, a move designed to anchor the value chain domestically.

On the ground, the impact of these large-scale investments extends beyond sales figures. In Kamativi, the revival of the old tin mine by Kamativi Mining Company has brought grid electricity and reliable water back to a community that had been without them for years, sparking new local businesses. At Arcadia, the construction of the massive concentrator and sulphate plant has created employment for thousands, while the company is also financing the tarring of over 20 kilometres of public road in Goromonzi, upgrading infrastructure for the entire district.

However, the sector navigates a complex landscape. A global slump in lithium prices has strained finances across the industry, highlighting its vulnerability to market volatility. Furthermore, significant challenges persist, particularly chronic power shortages that threaten the viability of energy-intensive processing plants and have forced some companies to build their own off-grid power solutions.

The sales data confirms the strategy’s early momentum. With the Arcadia sulphate plant as a critical test case, the government’s model of shared beneficiation infrastructure aims to ensure Zimbabwe captures more value from its lithium resources, transforming raw potential into sustained industrial and community development.

Gold buying prices in Zimbabwe per gram/ ounce, 4 February 2026

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Gold buying prices in Zimbabwe per gram/ ounce, 4 February 2026

Gold buying prices in Zimbabwe per gram/ ounce, 4 February 2026, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice ($/g)Price ($/oz)
SG 90% and above149.514,649.27
SG 85% and above but below 90%147.924,599.82
SG 80% and above but below 85%146.344,550.68
SG 75% and above but below 80%144.764,501.54
Sample 5g and above but below 10g142.394,427.83
Fire Assay CASH150.304,673.84

 

Note: The Fire Assay cash price applies to gold above 100g, with no sample deduction.

A sample of not more than 10g is deducted for the Fire Assay Transfer price.

High Court Orders Restoration of Possession at Vubachikwe Mine

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High Court Orders Restoration of Possession at Vubachikwe Mine

The High Court in Bulawayo has granted an order for the restoration of possession at Vubachikwe Gold Mine to its registered leaseholder, following an urgent chamber application, Mining Zimbabwe can report.

By Rudairo Mapuranga

In a hearing before Honourable Justice Ndhlovu on Monday, 2 February 2026, the court ordered that Mining Lease 16, which incorporates Vubachikwe Mine in Gwanda, be restored to Forbes & Thompson (Bulawayo) (Private) Limited.

The order, issued by consent, directs respondents Moses Langa, Aldonia Gondo, Madodana Sibanda, Taison Mutengeni, Takeson Moyo, and Alot Ndlovu to vacate the mining location. The Minister of Mines and Mining Development was listed as the seventh respondent in the court papers. The Sheriff of the High Court, with the assistance of the Zimbabwe Republic Police, was authorised to implement the order if necessary.

The court granted a spoliation order, a legal remedy used to restore possession to a party that has been dispossessed without due legal process. The matter was resolved through the established judicial system, demonstrating the availability of legal channels for resolving commercial disputes in the mining sector.

Vubachikwe Mine is an established underground gold operation in the Gwanda Greenstone Belt. It is held under Mining Lease 16 by Forbes & Thompson, a subsidiary of Duration Gold Zimbabwe.

The court’s ruling affirms the principle that commercial disputes within the mining sector are subject to and resolved by Zimbabwe’s legal system.

Zimbabwe’s Chrome Strategy Pays Off as Ferro-Alloy Volumes Leap 19%

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Zimbabwe’s Chrome Strategy Pays Off as Ferro-Alloy Volumes Leap 19%

The government’s strategic push to transform Zimbabwe into a regional ferrochrome hub is yielding concrete results, with the Minerals Marketing Corporation of Zimbabwe (MMCZ) reporting a striking divergence in the performance of the chrome sector for the 2025 financial year. With sales of high-value ferro-alloys surging ahead while exports of raw chrome ore stagnated, the data underscores a pivotal shift as the nation successfully moves up the value chain to capture more revenue from its mineral wealth, Mining Zimbabwe can report.

By Rudairo Mapuranga

For the 2025 financial year, MMCZ sold 433,293 metric tonnes of ferro-alloys, including ferrochrome and ferrosilicon, valued at US$372 million. This represents a substantial 19% increase in volume and an 11% increase in value from the previous year. In contrast, the trade in raw chrome ore concentrates told a different story. MMCZ sold 886,752 metric tonnes of concentrates, generating US$150 million. While export volume increased marginally by less than 1%, the revenue generated fell by 12% year-on-year due to lower global prices.

This impressive growth in ferro-alloy sales is the direct outcome of a deliberate and accelerating government policy. Strategic interventions include linking new chrome mining rights to commitments for building or expanding local smelting capacity, a move designed to incentivise processing plants over mere mining. Furthermore, authorities are actively consulting on implementing a total ban on the export of raw chrome ore, aiming to close policy loopholes and ensure all ore is beneficiated domestically. This framework is already attracting scale, with projects like the Palm River initiative planned to reach a massive capacity of 1 million tonnes of ferrochrome per year.

The strategy’s timing is advantageous, coinciding with a significant realignment in the global ferrochrome market. South Africa, the traditional powerhouse, faces severe production cuts due to high electricity costs and market pressures, with 2025 output potentially halving from 2024 levels. This has created a substantial supply gap, presenting Zimbabwe with a critical window to position itself as a primary alternative source of ferrochrome for key consumers in Asia, Europe, and the Americas.

Despite the positive trajectory, the sector must navigate persistent challenges to capitalise on this opportunity fully. Unstable and costly electricity supply remains a major constraint for energy-intensive smelting operations. Additionally, infrastructure and logistical bottlenecks can hamper the efficient movement of volumes to ports.

The data confirms Zimbabwe’s chrome strategy is on the right track. By prioritising ferrochrome production, the nation not only earns more from its vast chrome reserves but also creates more jobs, stimulates industrial development, and reduces vulnerability to volatile raw ore prices. With global demand steady and a major competitor retreating, Zimbabwe’s focused policy mix could solidify its role as a growing force in the global ferrochrome market.

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