Zimbabwe’s Cabinet has approved a sweeping review of licences, permits, and levies in the mining sector, eliminating duplicative fees and introducing tiered charges based on a miner’s capacity to pay, Minister of Information Hon. Zhemu Soda announced.
By Rudairo Mapuranga
The reforms comply with a July 2025 Cabinet directive to lower the cost of doing business across 12 sectors. Below is a breakdown of the key changes and their expected impact.
Single Authority to Issue Licences
Multiple overlapping permits from different regulators will now fall under one authority.
Previously, miners had to secure approvals from both the central government and Rural District Councils for similar activities. The change is expected to reduce processing times and remove opportunities for rent-seeking.
80% of Fees Frozen at Current Levels
Fees deemed reasonable will remain unchanged.
Stability in the fee structure allows for long-term planning. The freeze covers most prospecting, production, and environmental levies.
Small-Scale Miners Pay a Fraction of Large Firms
Artisanal and small-scale miners will now pay licence fees pegged at a fraction of what large operators pay.
The previous flat-rate system drove many small players into the informal sector. The differential pricing is designed to encourage formalisation.
“Lower barriers help bring artisanal miners into the regulated economy,” Hazel Karoro, Secretary General of the Association of Junior Mining Professionals of Zimbabwe, said.
New Fees for Lithium Plants and Gold Jewellery Permits
New regulatory fees have been introduced for:
- Gold jewellery permits
- Applications to register approved lithium processing plants
Zimbabwe is seeking to capture more value from downstream processing.
The fees are intended to fund oversight of the rapidly expanding lithium and jewellery sectors.
Precious Stones Registration Fees Cut, Validity Extended to 5 Years
Registration fees for dealing in precious stones have been reduced and will now be payable every five years instead of annually.
The change lowers the annualised cost of compliance. Karoro said extended validity periods “reduce administrative harassment” and encourage long-term investment in gemstone trading.
Multiple Inspection Fees Reduced for Blocks of Claims
The Ministry of Mines has reduced annual fees for the first, second, and subsequent inspections of blocks of claims (base minerals, precious metals, and mining leases).
Multiple inspections had become a cost burden. The reduction is expected to push the ministry to consolidate oversight. “Efficiency gains from fewer, focused inspections will lower operating costs,” Karoro noted.
Trading on Mining Location Fee Scrapped Entirely
The fee for trading on a mining location has been abolished.
Industry bodies had described the levy as a “tax on productivity” with no clear service attached. Its removal eliminates a direct disincentive to sell ore and concentrates at the claim site.
Diamond Cutting and Polishing Licence Fee Reduced
The licence fee for diamond cutting and polishing has been lowered.
Zimbabwe aims to build local diamond beneficiation capacity. A lower entry cost is meant to attract diamond processing firms, creating jobs before rough stones are exported.
Rural District Council Levies Standardised
Land development levies charged by Rural District Councils will now be uniform across the country.
RDC levies had varied widely, with some councils charging fees that exceeded central government permits. Standardisation creates a level playing field for miners operating in different provinces.
Policy Reforms Underway
Cabinet also addressed broader governance issues:
- Mines and Minerals Act Review: The government is revising the colonial-era Act to modernise security of tenure.
- Mining Cadastre System: An electronic, legally binding cadastre is being operationalised to track and manage licences. Tafadzwa Chinamo, CEO of the Zimbabwe Investment and Development Agency, warned that “investors must be sure of the legitimacy of the claim they hold.” The system is expected to end double allocation of claims.
- Formalisation of Small-Scale Mining: Alongside tiered fees, the state is rolling out programmes to bring artisanal miners into the formal framework, reducing smuggling and environmental damage.
The reforms lower regulatory costs for miners of all sizes while introducing targeted fees for new sub-sectors like lithium processing. Implementation remains the key risk: ministry officials and RDCs must comply with the new, lower fee schedule.
If enforced, the changes could expand the formal mining sector, improve Zimbabwe’s investment ranking, and narrow the gap between declared production and estimated output from small-scale operations.
