By Nyasha Chuma
HARARE – The Government of Zimbabwe has announced a sweeping new policy that reserves the country’s small and medium-scale gold mining sector exclusively for indigenous citizens and wholly owned local entities, while requiring existing foreign participants to upgrade to large-scale operations by January 1, 2027.
The policy, issued this Friday by the Minister Hon Dr Engineer Polite Kambamura, cites growing concerns over unsustainable mechanised practices, environmental damage and conflicts between foreign investors, communities, local miners and farmers.
It states that with immediate effect, no foreign individual, foreign-controlled company or foreign beneficial owner may acquire, hold or control any small-scale gold mining title nor participate directly or indirectly in operations or management.
Any proxy, nominee or undisclosed beneficial ownership arrangements designed to circumvent the policy are declared unlawful and subject to cancellation and enforcement action.
For regulatory purposes, small and medium-scale gold mining is defined as operations producing up to 20 kilograms of gold per month and/or involving capital investment of up to US$15 million. Operations exceeding either threshold will be classified as large-scale ,a purview that permits foreign participation.
All current operators within the sector must regularise their operations with the Ministry of Mines and Mining Development on or before the deadline date of 1 January 2027. The re-registration process will include verification of citizenship and beneficial ownership, disclosure of corporate and financing structures, confirmation of environmental, tax, labour and mineral marketing compliance, and verification of production levels and capital investment.
All existing foreign investors and foreign-controlled entities currently in the small-scale sector must transition into large-scale mining by the aforementioned deadline. This entails either increasing monthly gold production beyond 20 kilograms or recapitalising their investment beyond US$15 million.
The government reaffirmed its commitment to an open, investment-friendly environment for responsible foreign investment in medium-scale, large-scale, value-addition and infrastructure projects.
All gold produced must be marketed through authorised channels in accordance with Zimbabwean law. Operators are required to maintain transparent financial and production records, comply fully with taxation, royalty, environmental, labour and safety obligations and also observe gold traceability and anti-smuggling measures.
Additional key measures stated in the policy include a requirement for senior and middle management at gold mines to comprise of 98% Zimbabweans, with immediate compliance expected. Gold mining rights held by foreign investors will be secured based on verifiable production performance and gold deliveries to government authorised buying channels. Applications for additional claims will be approved based on demonstrated productivity and effective use of current holdings. Idle foreign-owned mining assets held for speculative purposes will be reviewed. All mining projects must submit an approved Environmental, Social and Governance framework and Environmental Impact Assessment before commencing operations. Operators must comply fully with labour laws and industry collective bargaining agreements. Heap leach gold mines must immediately register with the Minister’s office and declare monthly production and elution plant details.
The policy aims to promote meaningful participation of Zimbabwean citizens, support indigenous mining enterprises, enhance transparency, prevent illicit mineral trade and resource leakages, encourage responsible investment and ensure mineral wealth contributes directly to national development under National Development Strategy 2.
The government also reiterated its cntinued support to foreign investment in mining and guarantees security of tenure.
