Zimbabwe is imposing new rules around mining royalties on miners in the country, which will funnel more mining revenue into the government.

The policy shift comes in light of the massive growth in Zimbabwe’s mining sector’s annual earnings over the last few years. Between 2017 and 2021, the sector’s yearly earnings went from US$2.7 billion to US$5.73 billion, nearly doubling in this time.

In addition, the Ministry of Finance predicts that the sector will achieve US$7.3 billion in annual earnings by the close of this year.

This puts the nations mining industry on track to reach its goal of US$12 billion in annual earnings by the end of 2023, being 60.8% of the way there.

The shift will affect miners of precious metals, and high-value minerals: lithium, gold, diamonds, and platinum group metals (PGMs), and lithium.

The new regulations are as follows.

Zimbabwe’s latest rules for mining companies

  • Platinum miners must now pay two times the current amount in mineral royalties
  • Mining companies will now pay half of the royalties that they owe in cash, and half in refined mining product
  • For Anglo Platinum, Impala Platinum, and all other platinum mining companies, the royalty rate has increased from 2.5% to 5%.

Why has the government made these changes?

The main reason for these new regulations, according to Zimbabwe’s government, is the sharp increase in the country’s mineral revenue earnings, as mentioned previously.

They are high enough, the government says, to fund public spending aas well as to go towards building mineral reserves to amass stockpiles of mined products.

This is the first time Zimbabwe will be able to try and accumulate reserves of metals and minerals, which is a huge development for the nation, which will now be able to better manage these finite resources.

The stashes will contain reused final products as opposed to raw mineral and metal materials.

Zimbabwe’s President Emmerson Mnangagwa announced that the central bank will be the legal keeper of these mineral stores.

Bag the best talent in the industry with CA Mining’s expert recruitment solutions for miners in Africa, including our Contingency Placements and Executive Search services.

Find the perfect job for you in the African mining industry on our job board. Explore the latest vacancies in the sector, including engineering, metallurgy, drilling, geology, and board-level jobs, as well as many more.