The Zimbabwean government has proposed a new sliding-scale royalty structure for gold producers, aimed at ensuring the mining sector contributes a "fair share" to the national treasury during commodity price booms.
Under the new proposal announced by the finance, economic development, and investment promotion minister, Mthuli Ncube, during a 2026 budget presentation in parliament on Thursday, said gold royalties would be harmonised with a 3% rate applied when the gold price is between $0 and $1,200 per ounce.
The rate would increase to 5% for prices between $1,201 and $2,500 per ounce, and rise further to 10% when the price reaches $2,501 per ounce and above.
He said the measure is designed to increase government revenue during periods of high gold prices and to "eliminate arbitrage between categories of miners" by creating a uniform royalty system for all gold producers.
Gold prices have reached historically high levels, exceeding $4 000 per ounce as at October 2025.
Under the current legislative provisions, royalty rates differ between small-scale and large-scale producers.
“These differentiated rates have created administrative complexities, opportunities for tax arbitrage and distortions in the gold value chain,” said Ncube.
“In particular, the varying rates are being exploited through misreporting, under-declaration or strategic restructuring of ownership arrangements.”
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
