Mthuli Ncube Announces New Gold Royalties Linked to Price Levels

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.

“Currently, large-scale mines pay a flat 5% royalty. The mining sector contributes a fair share of revenue during periods of gold price booms, and this new system will eliminate arbitrage between different categories of miners,” Ncube explained.

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Sliding Scale Linked to Gold Price

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.

“This sliding scale ensures that the government is able to share in 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.