Foreigners have been banned from Zimbabwe’s small-scale gold mining sector with immediate effect.
Mines and Mining Development Minister Polite Kambamura announced the ban at a media conference in Harare last week.
He said the government was concerned about unsustainable mechanised and non-standard mining practices by some foreign investors in the sector, as well as growing conflicts between communities, local miners and farmers.
“With immediate effect, the small-scale gold mining sector in Zimbabwe is reserved exclusively for Zimbabwean citizens and Zimbabwean citizen wholly owned entities,” said Kambamura.
He said that no foreign individual, foreign-controlled company or foreign beneficial owner will be allowed to acquire, hold or control mining titles classified under the small-scale gold mining category.
They will also be barred from taking part, directly or indirectly, in the operation or management of small-scale gold mining activities, or from entering into any arrangement intended to give them operational control.
Kambamura warned that nominee arrangements, proxy ownership structures, undisclosed beneficial ownership, or any other mechanism designed to circumvent the policy will be unlawful. Such arrangements will be subject to cancellation and enforcement action under Zimbabwean law.
Under the new policy, a small to medium-scale miner is defined as a mining operation producing up to 20kg of gold per month or with a capital investment of up to US$15 million.
Operations exceeding those thresholds will be classified as medium or large-scale mining, where foreign investment is permitted.
Kambamura said all persons and entities currently operating in the small and medium-scale gold mining sector must regularise their operations with the Ministry of Mines and Mining Development by 1 January 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,” said Kambamura.
“Any mining title not re-registered within the prescribed period shall be liable to cancellation or other regulatory action in accordance with applicable law.”
Foreign-controlled entities currently operating in the small-scale gold mining sector will be required to transition to large-scale operations. To do so, they must increase production to more than 20kg per month or raise their capital investment to above US$15 million before 1 January 2027.
Kambamura also announced that Zimbabweans must hold 98 per cent of senior and middle management positions at gold mines and other mining operations.
“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,” he said.
“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.
“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.”
Kambamura added that all mining projects will be required to submit Environmental, Social and Governance (ESG) frameworks, along with Environmental Impact Assessments, and obtain approval before operations begin.
More: The Herald
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