Zimbabwe has scrapped plans to increase royalties on gold production and raised the threshold for its windfall tax, a move aimed at encouraging investment in the mining sector, according to a statement from the Ministry of Mines and Mining Development and reported by Reuters.
The government said the changes are intended to make gold mining more attractive while ensuring that the sector continues to contribute significantly to foreign exchange earnings. Officials highlighted that the adjustments come amid efforts to boost production and attract new investors, as cited by Bloomberg.
Industry analysts welcomed the revisions, noting that higher profit retention could incentivize exploration and expansion, while still maintaining mechanisms for the state to benefit from surging global gold prices, according to reports from Mining Review Africa.
