Since 2018 Zimbabwe has re-focused its attention on maximising the mining industry’s potential, thus re-structuring its policies and regulatory framework to improve investment and productivity. In this article Mining Law Expert Selina Zhuwarara outlines the Major Mining Tax Highlights for 2022.


Amendments to the Finance Act which came into effect on the 1^st of January 2022 brought changes to the royalty rates in platinum and gold. Significant to the changes it the allowance for a 3% royalty rate on gold where global prices are below USD1200 per ounce (One Thousand two hundred United States Dollars), this is a significant review from a flat 5% royalty rate that did not factor in the fluctuations in the price.


The 2022 National Budget Speech as read with the Finance Act also clarified the application of royalty rates. In specific the government reiterated that royalties are calculated on the gross fair market value or face value of the invoice issued either by the local designated entity (MMCZ, Fidelity Refiners and Printers) or as per an internationally recognised pricing standard such as applicable to platinum (London Metals Exchange).


Below are the prevailing royalty rates as applicable from the 1^st of January 2022.

Zimbabwe is focusing on capacitating the mining industry for significant economic contribution. Accordingly, in addition to the adjusted tax structure, the Ministry of Finance and Economic Development announced in February 2022 that mining royalties are now payable in Zimbabwe Dollars (ZWL) up to a limit of 50% of royalties due. This measure assists in alleviating some pressure on the forex requirements of mining entities in the current operational environment.