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Mthuli Ncube scales back gold royalty hike
2 hrs ago |
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Finance Minister Professor Mthuli Ncube has reversed his earlier plan to double the gold royalty to 10% following a late-night debate in Parliament on the 2026 national budget.
Under the revised framework, large-scale gold miners will pay a 5% royalty on gold priced between US$1,200 and US$5,000 per ounce, in addition to existing mining taxes. Small-scale miners, who contribute the bulk of the country's gold output, will continue to pay a 2% royalty.
"I have been persuaded to reconsider the proposed increase," Minister Ncube told MPs, noting concerns raised by stakeholders about the potential impact on mining operations and investment.
Despite the adjustment, Ncube cautioned that the disparity between royalties for large-scale and small-scale miners could create opportunities for arbitrage, urging authorities to closely monitor the sector to prevent exploitation.
The move comes amid ongoing efforts by the government to balance fiscal revenue generation with sustaining the competitiveness of Zimbabwe's gold mining industry.
Under the revised framework, large-scale gold miners will pay a 5% royalty on gold priced between US$1,200 and US$5,000 per ounce, in addition to existing mining taxes. Small-scale miners, who contribute the bulk of the country's gold output, will continue to pay a 2% royalty.
"I have been persuaded to reconsider the proposed increase," Minister Ncube told MPs, noting concerns raised by stakeholders about the potential impact on mining operations and investment.
Despite the adjustment, Ncube cautioned that the disparity between royalties for large-scale and small-scale miners could create opportunities for arbitrage, urging authorities to closely monitor the sector to prevent exploitation.
The move comes amid ongoing efforts by the government to balance fiscal revenue generation with sustaining the competitiveness of Zimbabwe's gold mining industry.
Source - online
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