Mining ZimbabweLatest Mining News, Policy and Industry Updates

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.

Diamond mining companies operating in Zimbabwe are mounting a unified and urgent appeal to the government to reform the sector’s fixed 10% royalty rate, which they label as one of the highest and most uncompetitive in the global diamond industry, Mining Zimbabwe can report.

By Rudairo Mapuranga

The push, highlighted in the 2026 State of the Mining Industry Report, comes not from a position of weakness but as a strategic call to secure the long-term viability and growth of a sector crucial to Zimbabwe’s economic ambitions. Producers argue that the rigid fiscal regime is untenable in the face of severe global market pressures, unique local operational challenges, and a government policy agenda that simultaneously seeks to attract investment and maximise state revenue.

The campaign is led by the key players shaping Zimbabwe’s diamond landscape: the state-owned Zimbabwe Consolidated Diamond Company (ZCDC), the Chinese Zimbabwean joint venture Anjin Investments, the Russian giant Alrosa (Zimbabwe) Ltd., and the privately operated RZM Murowa. Together, they represent the consolidated structure instituted after years of sector turmoil, now seeking stability and growth under a reformed fiscal model.

The industry’s plea is set against a backdrop of significant external challenges that have squeezed margins worldwide.

Plummeting rough diamond prices: After a post-pandemic surge, the global market for rough diamonds has corrected sharply. This decline erodes the revenue base upon which Zimbabwe’s fixed 10% royalty is levied, making it a disproportionately heavy burden during downturns.

The rise of lab-grown diamonds: The rapid consumer adoption of lab-grown diamonds, which can sell at an 80% discount to natural stones, has disrupted traditional markets, particularly in key segments like bridal jewellery in the United States and Asia. This competition places downward pressure on the value of all natural diamonds.

Geopolitical complexities: For Zimbabwean diamonds, historical controversies against some entities create additional market access hurdles and reputational barriers, potentially depressing the final selling price.

Local Geology and the High Cost Production Dilemma

Beyond global headwinds, Zimbabwean producers face intrinsic operational challenges that the fixed royalty exacerbates.

The nation’s diamond wealth is bifurcated. The famed Marange alluvial fields, operated by ZCDC and Anjin, are largely depleted of easy-to-mine surface gems. Mining has shifted to deeper, harder conglomerate deposits, which are significantly more expensive to extract. Meanwhile, the higher quality kimberlite pipes at RZM Murowa and those under exploration by Alrosa in Chimanimani offer better value stones but require substantial upfront capital and sophisticated technical expertise.

The core of the producers’ argument is that a one-size-fits-all 10% royalty fails to account for this spectrum. It unfairly penalises operations working with lower value, higher cost ore and stifles investment needed to develop the higher quality kimberlite resources that could boost Zimbabwe’s average dollar per carat yield.

A Policy Paradox: Gold’s Flexibility vs. Diamond’s Rigidity

The diamond producers’ case is bolstered by a glaring policy contradiction within Zimbabwe’s own mining fiscal framework. In its 2026 National Budget, the government demonstrated a clear understanding of progressive, market-sensitive royalty models by introducing a three-tier, price-linked system for gold.

Zimbabwe’s Gold Royalty Structure (2026)

Royalty rate: 3%
Price trigger: Applies when gold prices are between US$0 and US$1,200 per ounce.

Royalty rate: 5%
Price trigger: Applied when prices range between US$1,201 and US$2,500 per ounce.

Royalty rate: 10%
Price trigger: Levied when the gold price exceeds US$2,501 per ounce.

This system, designed to “ensure the mining sector contributes a fair share during periods of commodity price boom,” automatically adjusts the government’s take to market conditions. For the diamond sector, however, no such mechanism exists. The industry question is straightforward: if a smart, responsive model is logical for gold, why is a flat, high rate still imposed on diamonds?

This disparity is not lost on investors. The State of the Mining Industry Report 2026 reportedly reflects deep-seated concerns over fiscal predictability and competitiveness. The warning from Caledonia Mining regarding the impact of the new gold royalties on its profitability in Zimbabwe underscores the tangible effect these policies have on investment calculations and project viability.

Industry Response: Adaptation and Value Addition

Faced with these stacked challenges, diamond producers are not merely lobbying; they are actively adapting their strategies to survive and position for the future.

Embracing exploration: Companies like Alrosa and ZCDC are investing heavily in exploration across Zimbabwe, particularly for new kimberlite pipes, which are essential for the sector’s future beyond the alluvial deposits of Marange.

Pursuing value addition: There is a strong push, aligned with government goals in the National Development Strategy 1 (NDS1), to move beyond exporting rough diamonds. The objective is to develop local cutting and polishing, which can increase a diamond’s value by an estimated 8% or more. While progress has been slow, with less than 1% of stones currently processed locally, this represents a critical long-term strategy to capture more revenue within Zimbabwe and create jobs.

Navigating a tightening regulatory environment: Producers must also contend with an increasingly strict regulatory landscape. The forthcoming Responsible Mining Initiative Part 2 promises severe penalties, including loss of mining titles, for environmental violations, adding another layer of operational cost and compliance necessity.

The unified call from ZCDC, Anjin, Alrosa, and RZM Murowa represents a critical juncture for Zimbabwe’s diamond industry. They are advocating for a shift from a purely revenue extractive relationship to a developmental partnership with the state.

Their proposed solution centres on replacing the fixed royalty with a sliding scale model, similar to the new gold system or models proposed internationally. This would link the government’s take to profitability or price, protecting operators during downturns while ensuring the state captures greater value during booms. Such a reform, they argue, would enhance the sector’s resilience, attract fresh investment for exploration and beneficiation, and ultimately generate greater sustainable revenue for Zimbabwe’s economy than the current system, which risks stifling the goose that lays the golden eggs.

The government’s ambition to grow mining to a multibillion-dollar annual export sector is well known. The diamond producers’ message, as echoed in the 2026 industry report, is that achieving this goal requires a fiscal framework that incentivises growth, recognises sector-specific realities, and aligns Zimbabwe with global best practices. The ball is now in the policymakers’ court to decide whether to heed this call for partnership or maintain a course that the industry warns is unsustainable.

Government is tightening oversight of the mining sector through an ongoing Responsible Mining Audit (RMA) Training Workshop, a move designed to plug compliance gaps exposed in previous audits and send a clear warning to operators who continue to disregard the law, Mining Zimbabwe can report.

By Ryan Chigoche

The workshop comes as the Ministry of Mines and Mining Development, working alongside several Ministries, Departments and Agencies (MDAs), prepares for the third RMA, building on lessons from the 2023 and 2024 exercises, which revealed both progress and persistent weaknesses across the sector.

Last year, inspectors visited 728 mines, up from 424 in 2023, reflecting a major increase in coverage as the government ramped up compliance monitoring. During the same period, fines totalling USD 680,000 were imposed, underscoring the more assertive enforcement approach.

However, despite these positives, a report by ENM Advisory on Gaps in the 2023 to 2024 RMA showed that significant issues relating to responsible mining were left out, highlighting the continued need for stronger oversight.

“This training matters because the country is depending on us to anchor responsible mining. As mining expands and new players enter the sector, our oversight must stay ahead, be technically sound, coordinated, and uncompromising when it comes to protecting national interests, communities, and the environment,” said the Deputy Chief Government Mining Engineer, T Paswavaviri.

To address these persistent gaps identified in the report and promote a unified and more effective approach, he emphasised closer collaboration among all government institutions involved in mining oversight.

“The mining sector touches multiple institutions, Mines, EMA, RDCs, ZIMRA, Labour, and others. If these institutions work in silos, we lose time, duplicate work, and create space for non-compliance. The ‘One Audit, One File’ approach is a game changer. It harmonises operations, standardises what we collect, and maintains one consolidated audit record per operation. This isn’t just procedural, it’s a cultural shift. It says: ‘We work as one government, with one story, one compliance standard, and one shared responsibility,’” Paswavaviri said.

The audit teams are drawn from a broad range of government agencies, including Mines, the Environmental Management Agency (EMA), local authorities, ZIMRA, and the Labour Ministry.

This multi-agency structure reflects the cross-cutting nature of the Responsible Mining Audit (RMA) process and addresses weaknesses identified in previous audits, where fragmented inspections often produced conflicting findings and created loopholes that some operators exploited.

A central aim of the training is to strengthen the technical capacity of inspectors. Participants are being equipped to apply statutory compliance requirements, integrate Environmental, Social, and Governance (ESG) principles, and follow standardised audit procedures.

The workshop also introduces digital tracking systems, uniform reporting templates, and consolidated audit files, all designed to make inspections more consistent, reliable, and defensible.

By harmonising inspections nationwide, these tools help ensure that audits are standardised, predictable, and enforceable under the National Responsible Mining Audit Framework (NRMAF).

The timing of the workshop reinforces the government’s broader push for stricter oversight. President Emmerson Mnangagwa has warned that operators who flout environmental and safety laws risk being removed from the sector, a position echoed by Mines Minister Winston Chitando, who has stressed that repeat offenders will face decisive action.

Despite increased coverage, higher fines, and a more robust enforcement stance, audits continue to reveal significant non-compliance among small-scale and informal miners.

Unlicensed operations, unsafe working conditions, and breaches of environmental and labour standards underline the urgency of building stronger capacity within the inspectorate.

Through the establishment of a national cascade of skills and the enforcement of uniform compliance standards from district to provincial levels, the Ministry aims to make the upcoming 2025 RMA more effective, consistent, and credible.

The initiative combines enforcement with guidance, helping miners formalise their operations safely and sustainably.

The ongoing RMA Training Workshop represents a decisive step toward a mining sector that is more accountable, transparent, and aligned with national expectations, sending a clear signal that non-compliance will no longer be tolerated.

• ZMF Urges President Mnangagwa to Halt Proposed Gold Royalty Hike, Warns of Sector Collapse

The Zimbabwe Miners Federation (ZMF), representing the nation’s small to medium scale miners, has made a direct appeal to President Emmerson Mnangagwa to intervene and lower a proposed steep increase in gold royalties, warning that the policy threatens to cripple the very industry it aims to tax, Mining Zimbabwe can report.

By Rudairo Mapuranga

The urgent plea comes in response to the 2026 National Budget, which proposed hiking the royalty rate to 10 per cent when the gold price exceeds $2,501 per ounce. With gold prices currently trading well above this threshold, the majority of producers would immediately fall under the top rate, a significant jump from the previous structure.

In a formal appeal also addressed to the Minister of Mines and the Minister of Finance, ZMF President Henrietta Rushwaya argued that the hike is “counterproductive” and will “severely constrain gold production,” which includes stalling “new investment in exploration and mine development” and causing “capital flight,” undermining the government’s own revenue goals and economic growth targets.

The royalty change was presented as a measure to ensure the mining sector contributes a “fair share of revenue to the Fiscus during periods of commodity price boom”. The new sliding scale structure is also intended to harmonise rates across different categories of miners.

The proposed scale is as follows:

• 3 per cent royalty for gold prices below $1,200 per ounce.
• 5 per cent royalty for prices between $1,201 and $2,500 per ounce.
• 10 per cent royalty for prices exceeding $2,501 per ounce.

In its detailed appeal, the ZMF contends that a 10 per cent top rate makes Zimbabwe a clear global outlier. The federation provides stark comparisons with regional and international peers to bolster its argument for a competitive cap of 3 per cent.

Regional and International Royalty Comparisons

In Africa:

• Ghana: A leading African producer maintains a 5 per cent royalty on gold.
• Tanzania and Mozambique: Apply royalty rates of 4 per cent and 5 per cent on precious metals, respectively.
• South Africa: Uses a sliding scale from 0.5 per cent to 5 per cent based on profitability.

Global Benchmarks:

Western Australia: The royalty rate for gold is set at 2.5 per cent of the royalty value, with no royalty payable on the first 2,500 ounces produced annually by a project.

Queensland, Australia: Uses a sliding scale between 2.50 per cent and 5.00 per cent for prescribed metals like gold, with the exact rate varying with average metal prices.

New South Wales, Australia: Applies a royalty of 4 per cent of the value of recovered minerals, including gold.

Canada (Ontario and Quebec): Effective royalty rates are highly competitive, often below 5 per cent for profitable mines.

Nevada, USA: Net proceeds royalty rates are typically between 2 per cent and 5 per cent.

The ZMF letter warns that a rate significantly above 5 per cent “positions Zimbabwe as an outlier, rendering it uncompetitive” and will trigger a “catastrophic ripple effect.”

Positioning itself as a committed partner in national development, the ZMF states it is not advocating for a non-contributory sector. Instead, it proposes a “sustainable win-win model” centred on a maximum royalty rate of 5 per cent, aligned with regional and global standards.

The federation has called for further dialogue with the Ministry of Mines and the Treasury, standing ready to provide detailed technical submissions to work towards a fiscal framework that secures both national revenue and the future of Zimbabwean mining. The decision now rests with the government as it balances immediate fiscal needs against the long-term health of its most important export sector.