Zimbabwe’s gold mining industry is calling for a review of the country’s royalty framework amid concerns that soaring global gold prices could trigger a sharp increase in royalty payments, undermining gains from the ongoing bullion rally.
The concerns were raised during a Chamber of Mines of Zimbabwe (CoMZ) strategy workshop in Kadoma, where industry representatives warned that the current sliding-scale royalty system could see gold royalties automatically double from 5% to 10% once international prices surpass the US$5,000 per ounce threshold.
While the government previously revised the trigger level from an initially proposed US$2,500 per ounce following industry consultations, miners now fear that forecasts pointing to further gains in gold prices have brought the higher royalty band within reach.
The Chamber argues that although strong gold prices have boosted revenues, a combination of fiscal and operating pressures continues to squeeze margins across the industry.
One of the miners’ key concerns is that royalties are calculated on gross revenue rather than profit, meaning operations with high production costs are required to pay the same royalty rates regardless of their profitability.
The industry is also lobbying for improvements to foreign currency retention rules. Gold producers currently retain 70% of their earnings in foreign currency while converting 30% into local currency. The Chamber has proposed increasing the retention level to 85%, arguing that additional foreign currency would support exploration, mine expansion and capital investment.
Miners further cited rising production costs linked to unreliable electricity supplies, with many operations relying on expensive diesel-powered generators to maintain production during power shortages.
The debate comes as Zimbabwe’s gold sector records strong growth. Rising deliveries from both large-scale producers and artisanal and small-scale miners have helped gold remain the country’s leading mineral export, generating billions of dollars in export earnings.
Government maintains that the current fiscal regime is necessary to support national development priorities and help achieve Vision 2030 objectives, while also maximizing revenue from the country’s mineral resources.
However, the Chamber of Mines argues that a more predictable and competitive tax structure is essential if Zimbabwe is to achieve its long-term ambition of producing 100 tonnes of gold annually. Industry representatives are advocating for the consolidation of mining taxes and royalties into a simpler framework that encourages investment, supports production growth and enhances the sector’s global competitiveness.
The emerging policy debate highlights the delicate balance between maximizing government revenue during periods of high commodity prices and maintaining the profitability needed to sustain investment and expand gold production. 
