• New 10% royalty to apply from 2026 when gold hits $2,501 an ounce

• Move mirrors recent fiscal adjustments in Mali and Burkina Faso

• Rising prices lift revenue prospects but raise miners’ operating costs

Zimbabwe plans to impose a 10% royalty rate on gold producers starting January 1, 2026, if the metal’s price is equal to or above $2,501 an ounce. The announcement was made by Finance Minister Mthuli Ncube on Thursday, November 27 during the presentation of the 2026 national budget in Parliament. The measure aims to tap into the bullish market and follows a similar approach to that adopted by Mali and Burkina Faso.

Faced with sustained price increases in recent years, the two West African countries have revised their fiscal policies on gold revenues. In Mali, the fixed 3% rate in place since 1991 was replaced in 2024 by a progressive scale that now sets a 6% rate for prices between $1,600 and $2,000 an ounce, then 7% up to $2,500. In Burkina Faso, where royalties were previously capped at 7% for any price above $2,000, a decree adopted in April 2025 raised this threshold. The rate now stands at 8% at $3,000 an ounce, then increases automatically by 1% for every additional $500.

In Zimbabwe, the announced reform builds on the 2022 revision that changed the fixed 5% rate. The scale provided a 3% rate when gold traded below $1,200 an ounce, then 5% for prices between $1,201 and $2,500. With a new 10% rate, the Southern African country could better benefit from current prices, which stood at $4,159 an ounce on Thursday evening.

The minister said international gold prices have reached historic levels, surpassing $4,000 an ounce in October 2025. He noted that this exceptional price environment offers a strategic opportunity for the government and mining operators to increase the value added of the mineral resource while maintaining investment and ensuring the viability of the gold subsector.

In 2025, gold has gained 57% so far according to Trading Economics, compared with 30% the previous year. Although a slight pullback has been seen in recent weeks, experts expect the upward trend to continue into 2026. U.S. bank Morgan Stanley has raised its forecast, now expecting $4,400 an ounce, up from $3,313 previously.

While this favorable context already benefits Mali and Burkina Faso, Zimbabwe must still wait for approval of its fiscal adjustment. Once submitted, the budget must undergo parliamentary review before approval. These developments will be closely watched by gold producers operating in the country, especially given the impact of such fiscal measures on their operating costs.

In its third-quarter financial report, Canada’s Orezone, operator of the Bomboré mine in Burkina Faso, noted a high AISC due to higher government royalties linked to better gold prices. Allied Gold also reported a “disproportionate” impact on its costs at the Sadiola mine in Mali amid rising royalties. Zimbabwe also hosts foreign companies such as Caledonia Mining, although most gold production in the country remains artisanal.

Aurel Sèdjro Houenou