Zimbabwe scraps gold royalty hike, sets higher threshold for windfall tax
Finance Minister Mthuli Ncube last month proposed doubling the gold royalty rate to 10% for gold sold above $2 501/oz.
HARARE - Zimbabwe has reversed plans to double its gold royalty rate to 10%, a new 2026 budget bill showed on Wednesday, following protests by miners and industry groups.
A royalty rate of 5% would continue to apply for gold prices between $1 200 and $5 000 per ounce, according to the revised budget bill, which was approved by Zimbabwe's lower parliament chamber in the early hours of Wednesday following lengthy debate.
In his budget speech last month, Finance Minister Mthuli Ncube had proposed doubling the gold royalty rate to 10% for gold sold above $2 501 an ounce.
During the late-night budget debate, however, he told lawmakers that a 10% royalty rate would now only apply if the bullion price topped $5 000 an ounce.
Small-scale miners would continue to pay lower royalty rates of up to 2%, he added.
Large-scale miners such as Caledonia Mining have warned that the proposed royalty hike would impact profitability at its 80 000 ounce-per-year Blanket mine in southern Zimbabwe.
Caledonia said the royalty increase and other changes to Zimbabwe's fiscal regime would also undermine plans to develop its $500-million Bilboes project, which is set to be Zimbabwe's biggest gold mine.
The southern African nation produced 42 metric tons of gold in the 11 months to November 2025, a new peak, outpacing the previous record of 37 metric tons in 2024.
Industry groups had warned that the government's royalty hike would hurt efforts to attract investment and reposition Zimbabwe among Africa's top gold producers.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Projects
Latest Multimedia
Latest News
Showroom
Occupational health services, mobile clinics, wellness campaigns, aviation.
VISIT SHOWROOM
Sweet-Orr, established in 1871, is a global leader in superior protective workwear, known for quality, innovation, and performance.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
