Following the announcement by the government of Zimbabwe introducing a new regime for the payment of royalties for designated minerals in October 2022, Statutory Instrument 189 of 2022 was duly promulgated on the 4th of November 2022. The Statutory Instrument facilitates the part payment of royalties with physical mineral product.
Per the government’s intentions, the new royalty policy is meant to enable the country to accumulate strategic mineral reserves. According to the Statutory Instrument the physical reserves shall be maintained by the Reserve Bank of Zimbabwe (RBZ) against domestic and international obligations thus facilitating broader economic initiatives.
Accordingly, the import of the statutory instrument is that effective the 1st of October 2022, royalties remitted to the Zimbabwe Revenue Authority (ZIMRA) are payable as follows:
| MINERAL | ROYALTY COMPUTATION |
| Gold, diamonds, platinum and lithium (and any other precious stone or precious, valuable metal specified by the Reserve Bank by notice in a statutory instrument | Fifty per centum (50%) in the form of the mineral concerned, and in the form, or a purity or a quality as may be prescribed by the RBZ by notice in a statutory instrument, Ten per centum (10%) in foreign currency (cash), and Forty per centum (40%) in Zimbabwe dollars. |
| Other Minerals | 50% in foreign currency, and50% in Zimbabwe dollars. (Calculated on the face value of the invoice for which the royalty is being calculated) |
Muvingi & Mugadza is a member of the Alliott Global Alliance and has a Mining Law Practice Group. For more on Mining Law kindly get hold of us on info@mmmlawfirm.co.zw
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