Zimbabwe has scrapped plans to double its gold royalty rate to 10%, according to a revised 2026 budget bill approved by parliament on Wednesday, following strong opposition from miners and industry groups.
Under the amended proposal, the existing 5% royalty rate will continue to apply to gold prices ranging between $1,200 and $5,000 per ounce. The changes were approved by the lower house of parliament after a lengthy late-night debate.
Finance Minister Mthuli Ncube, who last month proposed raising the royalty to 10% for gold sold above $2,501 per ounce, told lawmakers that the higher rate will now only apply if gold prices exceed $5,000 per ounce.
He added that small-scale miners will continue to benefit from lower royalty rates of up to 2%, a key concession welcomed by artisanal mining groups.
Mining Sector Relief
Large-scale producers had warned that the proposed royalty hike would significantly hurt profitability.
Caledonia Mining Plc, which operates the 80,000-ounce-per-year Blanket mine in southern Zimbabwe, said the higher royalty and other fiscal changes would have undermined operations and threatened future investment.
The company also cautioned that the move could derail development of its $500 million Bilboes project, which is expected to become Zimbabwe’s largest gold mine once operational.
Industry bodies argued that doubling royalties would weaken Zimbabwe’s ability to attract foreign investment and slow its push to reclaim a leading position among Africa’s top gold producers.
Record Gold Output
Zimbabwe’s gold sector has been booming. The country produced 42 metric tons of gold in the 11 months to November 2025, surpassing the previous record of 37 metric tons set in 2024.
The surge has been driven by higher global prices and increased output from both large-scale and small-scale miners.
Gold Prices Seen Rising Further
Gold has posted its biggest rally since the 1979 oil crisis, with prices doubling over the past two years.
While such gains often precede corrections, analysts remain bullish. JP Morgan, Bank of America, and consultancy Metals Focus now forecast gold prices could reach $5,000 per troy ounce in 2026, citing strong investor demand, geopolitical tensions including the war in Ukraine, and shifts in U.S. policy.
