Online Reporter
Farirai Machivenyika
Senior Reporter
GOVERNMENT has, with immediate effect, banned foreigners from participating in the small-scale gold mining sector while also classifying the country’s minerals into different categories to strengthen strategic planning, beneficiation and sustainable exploitation.
This comes amid growing global demand driven by the energy transition.
The new policy measures were announced by Mines and Mining Development Minister Dr Polite Kambamura at a media conference in Harare.
Announcing the ban, Dr Kambamura said the Government was concerned about unsustainable mechanised and non-standard mining practices by some foreign investors operating in the small-scale gold mining sector, as well as growing conflicts involving communities, local miners and farmers.
“Considering the finite nature of our mineral resources and the need to sustainably exploit and manage these resources, there was therefore need to promote sustainable mining practices for broad-based growth and socioeconomic development, improve environmental compliance, mineral accountability and promote sustainable large-scale mining development,” he said.
“The Government of the Republic of Zimbabwe, through the leadership and guidance of President Mnangagwa, reaffirms that the country’s mineral resources constitute a strategic national asset, whose development and exploitation must advance national economic transformation, broad-based citizen development and intergenerational equity, empowerment and sustainable development.
“In furtherance of these national objectives, and pursuant to the Mines and Minerals Act, the Gold Trade Act and all other applicable laws and regulations governing the mining sector, Government hereby announces the following policy measures regarding participation in Zimbabwe’s small-scale gold mining sector: Reservation of the small and medium-scale gold mining sector for indigenous Zimbabweans.
“With immediate effect, the small-scale gold mining sector in Zimbabwe is reserved exclusively for Zimbabwean citizens and Zimbabwean citizen wholly owned entities.”
Dr Kambamura said no foreign individual, foreign-controlled company or foreign beneficial owner would be permitted to acquire, hold or control mining titles classified under the small-scale gold mining category.
They will also not be allowed to participate directly or indirectly in the operation or management of small-scale gold mining activities or enter into any arrangements meant to give them operational control.
“Any nominee arrangements, proxy ownership structures, undisclosed beneficial ownership arrangements, or other mechanisms intended to circumvent this policy shall be unlawful and subject to cancellation and enforcement action in accordance with the laws of Zimbabwe,” Dr Kambamura added.
Under the new policy, a small to medium-scale miner is defined as a mining operation producing up to 20 kg of gold per month or with a capital investment of up to US$15 million.
Mining operations exceeding those thresholds will be classified under medium or large-scale mining frameworks applicable to foreign investment participation.
Dr Kambamura said all persons and entities currently operating within the small and medium-scale gold mining sector are required to regularise their operations with the Ministry of Mines and Mining Development on or before January 1, 2027.
“The re-registration process shall include, among other requirements: verification of citizenship and beneficial ownership, disclosure of corporate and financing structures, confirmation of compliance with environmental, tax, labour, and mineral marketing laws, and verification of production levels and capital investment thresholds.
“Any mining title not re-registered within the prescribed period shall be liable to cancellation or other regulatory action in accordance with applicable law,” he said.
Foreign-controlled entities presently operating in the small-scale gold mining sector will be required to transition into large-scale mining operations by increasing production above 20kg per month or recapitalising investment beyond US$15 million before January 1, 2027.
Despite the restrictions, Dr Kambamura said Government remains committed to supporting responsible foreign investment in the mining sector.
“Government remains committed to maintaining an open, secure, and investment-friendly environment for responsible foreign investment in Zimbabwe’s mining sector, particularly in medium-scale, large-scale, value-addition, beneficiation, exploration, and infrastructure development projects,” he said.
All gold produced in the country would continue to be marketed and sold strictly through authorised channels in line with the law, Dr Kambamura added.
He also said that Government is strengthening monitoring, compliance verification and enforcement systems to safeguard the integrity and sustainability of the sector.
Dr Kambamura also announced that senior and middle management positions at gold mines and other mining operations must comprise 98 percent Zimbabweans.
“Gold mining rights held by foreign investors shall be secured and sustained on the basis of demonstrated production performance above the prescribed small-scale mining thresholds, as evidenced through verifiable proof of gold deliveries to Government through authorised gold buying and marketing channels.
“Applications for the pegging or acquisition of additional gold mining claims by existing mining operations shall be considered and approved on the basis of demonstrated productivity, operational performance, and effective utilisation of currently held mining locations.
“In this vein, we encourage all idle foreign-owned gold mining assets to be developed. Government will be following up on all idle mining assets being held for speculation,” he said.
Dr Kambamura added that all mining projects would be required to submit and obtain approval of Environmental, Social and Governance (ESG) frameworks together with Environmental Impact Assessments before commencing operations.
Meanwhile, Government also classified several minerals as critical, special critical and strategic minerals to support industrialisation and value addition.
Critical minerals include lithium, nickel, cobalt, graphite, copper, rare earth elements, chrome, platinum group metals, manganese, antimony, uranium, ruthenium, tungsten and niobium.
Metallurgical coal was declared a special critical mineral, while limestone, potash, phosphorus, iron ore, pyrites, oil and gas, coal, gold and diamonds were classified as strategic minerals.
Under the Critical Minerals Development Strategy, Government said designated Special Purpose Vehicles would hold a mandatory minimum shareholding in the exploitation of critical minerals.
No one will be allowed to export listed minerals in raw or unbeneficiated form unless authorised under a transitional plan approved by the Minister of Mines with clear timelines for local beneficiation.
