Zimbabwe plans to increase royalties on gold producers to capitalize on recent record-high bullion prices, according to the country’s 2026 national budget speech delivered on Thursday.
As part of several revenue measures aimed at boosting state income and supporting local industry, gold miners will pay a 10% royalty on prices exceeding $2,501 per ounce, as seen on Reuters.
While gold has declined 5% since reaching a record $4,381.21 per ounce on October 20, it has generally traded above $4,000 per ounce.
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“In order to ensure the mining sector contributes a fair share of revenue to the Fiscus during periods of commodity price boom, as well as eliminate arbitrage between categories of miners, I propose to harmonise and review the royalty structure for all gold producers,” Finance Minister Mthuli Ncube said in the speech.
Zimbabwe depends heavily on gold and tobacco exports for foreign exchange. Its largest gold producers include Kuvimba Mining House, Padenga, Caledonia Mining Corporation, and Rio Zim.
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Image Credit: CNBC Africa
