The Zimbabwean government has banned foreign individuals and foreign-owned companies from participating in the country’s small-scale gold mining sector with im...
The Zimbabwean government has banned foreign individuals and foreign-owned companies from participating in the country’s small-scale gold mining sector with immediate effect as part of major reforms announced by the Ministry of Mines and Mining Development.
The new policy, announced by Mines Minister Polite Kambamura on May 22, reserves small and medium-scale gold mining exclusively for Zimbabwean citizens and citizen-owned companies.
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Under the policy, no foreign individual, foreign-controlled company or foreign beneficial owner will be allowed to acquire, hold or control mining titles in the small-scale gold mining category. The restrictions also apply to indirect involvement through tribute agreements, joint ventures, syndicates and partnerships.
The ministry defined small and medium-scale gold mining as operations producing up to 20 kilograms of gold per month or projects involving capital investment of up to US$15 million.
Foreign investors operating in the sector will now be required to increase production above 20 kilograms per month or recapitalise beyond the US$15 million threshold to qualify under the large-scale mining category, which remains open to foreign investment.
The ministry also warned against fronting and proxy ownership arrangements designed to bypass the new rules. According to the policy, nominee arrangements, undisclosed beneficial ownership structures and similar mechanisms will be considered unlawful and may result in cancellation of mining rights and enforcement action.
All existing mining operators are required to re-register with the ministry before January 2027. The re-registration process will include citizenship verification, disclosure of ownership and financing structures, and confirmation of compliance with environmental, tax and labour laws.
In another major change, the ministry directed that senior and middle management positions across gold mining and other mining operations must now be made up of 98 percent Zimbabwean citizens. The government said it expects immediate compliance with the directive.
The ministry also warned foreign-owned gold mining companies against holding idle mining assets for speculative purposes. Heap-leaching gold mines have been instructed to immediately register with the minister’s office and declare their monthly production figures and elution plants.
At the same time, the government introduced a new classification system for minerals considered important to the economy and global industrial demand. The ministry created two categories known as critical minerals and strategic minerals, both of which will now be subject to tighter state oversight.
Critical minerals listed by the government include lithium, nickel, cobalt, graphite, copper, rare earth elements, chrome, platinum group metals, manganese, antimony, uranium, ruthenium, tungsten and niobium. Metallurgical coal was separately designated as a special critical mineral.
Strategic minerals include gold, diamonds, limestone, potash, phosphorus, iron ore, pyrites, oil and gas, and coal. These resources were identified as important for domestic industry, national development and food security.
The government said the state will hold a mandatory minimum shareholding in all declared minerals through designated Special Purpose Vehicles, although authorities did not specify the percentage that will apply.
Under the new framework, exports of raw or unbeneficiated declared minerals will no longer be allowed unless approved under a transitional plan authorised by the mines minister. Such plans must include clear timelines for local beneficiation beyond concentrate level.
Applications for mining rights involving declared minerals will also require prior approval from the minister of mines under the revised system.
Kambamura said the new measures were partly introduced in response to growing conflicts involving foreign investors, local communities, miners and farmers in some mining areas. He also cited concerns over unsustainable mechanised mining practices and non-standard operations by some foreign investors.
The minister said the classification of critical and strategic minerals was influenced by increasing global demand linked to the energy transition and Zimbabwe’s position as a major holder of mineral reserves in several categories.
Despite the tighter controls, Kambamura said Zimbabwe remained open to foreign investment in large-scale mining, exploration, infrastructure development, value addition and mineral beneficiation projects.
