Zimbabwe has reversed plans to double its gold royalty rate to 10% after protests from miners and industry groups, according to a revised 2026 budget bill approved by the country’s lower parliament chamber early Wednesday following a lengthy debate, reported by Reuters.
Under the revised bill, a royalty rate of 5% will continue to apply to gold prices ranging between $1,200 and $5,000 per ounce.
This is a reversal from proposals made last month by Finance Minister Mthuli Ncube, who had announced in his budget speech that the royalty rate would be doubled to 10% for gold sold above $2,501 an ounce.
Speaking during the late-night parliamentary debate, Ncube told lawmakers that the higher 10% royalty rate would now only take effect if the price of gold rises above $5,000 an ounce.
He also said that small-scale miners would continue to pay lower royalty rates of up to 2%.
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Large-scale producers, including Caledonia Mining Plc (CALq.L), had warned that the proposed royalty increase would hurt profitability at its Blanket mine in southern Zimbabwe, which produces about 80,000 ounces of gold per year.
Caledonia said the higher royalty and other fiscal changes would also weaken plans to develop its $500 million Bilboes project, which is expected to become Zimbabwe’s largest gold mine.
Zimbabwe produced 42 metric tons of gold in the 11 months to November 2025, setting a new record and surpassing the previous peak of 37 metric tons recorded in 2024.
Industry groups had cautioned that raising royalties would damage efforts to attract investment and reposition Zimbabwe among Africa’s leading gold producers.
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Image Credit: Reuters
