In a major policy shift, Zimbabwe has moved to reserve the country’s small-scale gold mining sector exclusively for local players after the Government announced an immediate ban on foreign participation in the segment, in what authorities describe as a move aimed at strengthening citizen empowerment, improving accountability, and formalising mining operations, Mining Zimbabwe can report.
By Ryan Chigoche
The new policy, announced by the Minister of Mines and Mining Development, Polite Kambamura, comes amid growing concern over unsustainable mining practices, escalating disputes involving foreign operators, and increasing pressure for Zimbabweans to derive greater benefit from the country’s mineral wealth.
According to the government, some foreign-linked operations within the small-scale mining sector have been associated with environmental degradation, weak regulatory compliance, and recurring conflicts involving local miners, farming communities, and surrounding residents.
Authorities have also expressed concern over the growing use of proxy ownership structures and partnership arrangements that effectively allow foreign interests to control activities reserved for local participants.
Against this backdrop, Kambamura announced that the new policy takes immediate effect and outlined the criteria that will now define Zimbabwe’s small and medium-scale gold mining sector.
“With immediate effect, the small-scale gold mining sector in Zimbabwe is reserved exclusively for Zimbabwean citizens and Zimbabwean citizen-wholly-owned entities,” said Kambamura.
“For purposes of this policy, no foreign individual, foreign-controlled company, or foreign beneficial owner shall be permitted to acquire, hold, or control any mining title classified under the small-scale gold mining category, participate directly or indirectly in the operation or management of small-scale gold mining activities, or enter into any arrangement intended to confer economic or operational control over small-scale gold mining activities reserved for Zimbabwean citizens,” Kambamura said.
Kambamura added that nominee arrangements, proxy ownership structures, undisclosed beneficial ownership arrangements, and any other mechanisms designed to circumvent the policy would be deemed unlawful and subject to cancellation and enforcement action in accordance with Zimbabwean law.
The Classification of Small-Scale Gold Mining Sector Reserved for Locals
Under the new framework, only Zimbabwean citizens and wholly Zimbabwean-owned entities will be permitted to own or operate small-scale gold mining ventures.
Government has classified small and medium-scale gold mining operations as projects producing up to 20 kilograms of gold per month and/or involving capital investment of up to US$15 million. Operations exceeding either threshold will instead fall under the large-scale mining framework, where foreign participation will continue to be allowed.
The move effectively creates a clearer distinction between the indigenous small-scale mining space and larger capital-intensive operations targeted at international investors.
Existing Operators Given Until 2027 to Regularise
In line with the new policy direction, Government has ordered all existing operators within the sector to regularise and re-register their mining titles with the Ministry of Mines and Mining Development before January 1, 2027.
The re-registration exercise will include verification of citizenship and beneficial ownership structures, disclosure of financing arrangements, and confirmation of compliance with environmental, labour, taxation, and mineral marketing regulations. Authorities will also assess production levels and investment thresholds to determine whether operations still qualify under the small-scale category.
Mining titles that fail to comply with the new framework risk cancellation or other regulatory action.
Meanwhile, foreign investors already operating in the small-scale gold sector have been directed to transition into the large-scale mining category by increasing production beyond 20 kilograms of gold per month and/or recapitalising investments above US$15 million before the 2027 deadline.
Despite the tighter restrictions in the small-scale sector, Government maintained that Zimbabwe remains open to responsible foreign investment in large-scale mining, exploration, beneficiation, infrastructure development, and value-addition projects.
Tougher Compliance Measures Introduced
Beyond ownership restrictions, the policy also introduces broader compliance measures aimed at strengthening oversight across the gold mining sector.
Mining companies will now be required to maintain transparent production and financial records while fully complying with environmental, taxation, royalty, labour, and safety obligations.
In one of the more far-reaching provisions, Government said senior and middle management positions across gold mines and other mining operations should now comprise 98 percent Zimbabwean nationals, with immediate compliance expected.
At the same time, authorities signalled plans to clamp down on idle mining assets held for speculative purposes, particularly those under foreign ownership, amid concerns that some claims are being retained without meaningful development.
As part of the push for improved sustainability and accountability, all mining projects will also be required to secure approved Environmental, Social and Governance (ESG) frameworks together with Environmental Impact Assessments (EIAs) before operations commence.
Government says the new measures are intended to support the growth and formalisation of indigenous mining enterprises, curb illicit mineral trade and fronting arrangements, improve mineral accountability, and ensure the country’s gold resources contribute more directly to national economic development under the National Development Strategy 2 framework.
The move also comes at a time when the Zimbabwe Miners Federation (ZMF) has repeatedly called for tighter regulation of foreign participation in the small-scale gold mining sector, arguing that uncontrolled foreign involvement was disadvantaging local miners and fuelling regulatory and operational challenges.
