ZIMBABWE will increase royalties on gold producers to capitalise on recent record bullion prices, said Reuters citing the country’s 2026 national budget speech which was delivered on Thursday (November 27).
Gold miners will pay a 10% royalty when prices exceed $2,501 per ounce, part of broader revenue measures designed to boost state income and support domestic industry, the document revealed.
Bullion has declined 5% since reaching a record high of $4,381.21 on 20 October, but has generally traded above $4,000 an ounce, said the newswire.
“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 stated in the speech.
“The royalty will now be linked to the price level or price category,” he was quoted as saying in an article by Bloomberg News. Under the proposed changes, a tax of between 3% to 10% will be applied, depending on the price per ounce of gold.
“This will ensure that government is able to share on the upside of any price increases,” Ncube said.
Zimbabwe depends heavily on gold and tobacco exports for foreign exchange earnings. The country’s largest gold producers include Kuvimba Mining House, Padenga, Caledonia Mining Corporation and Rio Zim.
It is seeking ways to boost revenue as it forecasts expenditure to increase to ZWG290.9 billion ($11bn) in 2026 from ZWG219 billion this, part of its effort to create jobs and grow the economy.
