Small-scale gold mining by foreigners banned

Zimbabwe has with immediate effect reserved the small-scale gold mining sector exclusively for citizens and citizen-owned companies, while simultaneously declaring gold, diamonds, lithium and a range of other minerals as strategic or critical assets subject to new state controls, reports ZimLive. The measures, announced by Mines Minister Polite Kambamura, represent the most sweeping overhaul of Zimbabwe’s mining regulatory framework in recent years, affecting both small operators and major foreign investors across multiple mineral categories. The new policy on participation in the small and medium-scale gold mining sector, states that no foreign individual, foreign-controlled company, or foreign beneficial owner will be permitted to acquire, hold or control any mining title in the small-scale gold category. The ban also extends to indirect participation through tribute agreements, joint ventures, syndicates or partnerships. For purposes of the policy, small and medium-scale gold mining is defined as operations producing up to 20kg of gold per month and/or carrying capital investment of up to $15m.

Foreign operators currently active in the sector have been given until 1 January 2027, to regularise their operations – but only through upscaling, not through divestiture. The Ministry requires them to increase production beyond 20kg per month and/or recapitalise beyond the $15m threshold, thereby qualifying for operation under the large-scale mining framework, which remains open to foreign investment. The policy explicitly targets fronting and proxy arrangements, stating that ‘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.’ All existing operators, local and foreign, are required to re-register with the Ministry by the same January 2027 deadline, submitting to citizenship and beneficial ownership verification, disclosure of corporate and financing structures, and confirmation of compliance with environmental, tax and labour laws. According to ZimLive, the Ministry has also moved to localise the management of gold mines, requiring that senior and middle management staff across all gold and other mining operations be constituted of 98% Zimbabweans. The Ministry said it expects ‘immediate compliance’.