Mthuli Ncube Announces New Gold Royalties Linked to Price Levels

On Nov 27, 2025

Zimbabwe Introduces Sliding Gold Royalty System to Capture Price Upside

Finance and Economic Development Minister, Professor Mthuli Ncube, has unveiled a new royalty framework for gold producers in Zimbabwe.

Speaking during the 2026 National Budget presentation at the new Parliament in Mt Hampden, Ncube said the reform aims to harmonise royalties across miners and ensure the government benefits from gold price increases.

He revealed that currently, large-scale mines pay a flat 5% royalty.

Also Read: Mthuli Ncube Defies ZANU PF, Refuses To Remove 2 Percent IMTT Tax For USD Transactions

Sliding Scale Linked to Gold Price

Minister Ncube proposed a new approach to gold royalties, linking them directly to the prevailing gold price. He emphasized that the mining sector contributes significantly to government revenue.

“The mining sector contributes a fair share of revenue to the fiscus during periods of gold price boom as way to eliminate arbitrage between categories of miners. I propose to harmonise and review the royalty structure of all gold producers. Royalty will now be linked to the price level or price category.”

Under the new system:

Gold priced between US$0 and US$1,200 per ounce will attract a 3% royalty.
Gold priced between US$1,201 and US$2,500 per ounce will attract a 5% royalty.
Gold priced above US$2,500 per ounce will attract a 10% royalty, the highest in the region.

He argued that the proposed system aims to ensure that the government benefits from any upward movement in gold prices, effectively sharing in the sector’s gains while reducing discrepancies between different types of producers.

“This will ensure that the government is able to share on the upside of any price increases,” Ncube said.

Part of Broader Economic Strategy

The reform is part of Zimbabwe’s 2026 National Budget, themed “Enhancing Drivers of Economic Growth and Transformation Towards Vision 2030”.

This is the first annual fiscal plan to implement the National Development Strategy 2 (NDS2), focusing on boosting revenue generation and fostering economic growth.

Crédito: Link de origem