Zimbabwe has unveiled plans to claim a 26% free-carry stake in all new mining projects as part of its strategy to increase government participation in the nation’s lucrative mining sector, which includes resources such as gold, platinum, lithium, and chrome, according to a Bloomberg report.
The new policy aims to enhance Zimbabwe’s economic benefits from its mineral wealth while extending negotiations to existing mining operations to secure a similar stake.
“We need to move to a level where we reach 26% shareholding in most of the big projects. A lot of these things would take negotiations with the investors that are on the ground,” stated Pfungwa Kunaka, Zimbabwe’s Secretary for Mines.
He emphasized that revisiting agreements signed under previous frameworks requires careful negotiations rather than abrupt changes.
However, Kunaka did not specify the minimum value of mining assets subject to this policy, noting that additional details will be released later. The policy is set to take effect in 2025.
Zimbabwe’s mining sector hosts prominent companies, including Zimplats Holdings, Anglo American Platinum’s Unki Mine, and RioZim, all of which could be affected by the government’s new approach.
In addition to the stake acquisition plan, Zimbabwe announced last month that it would discontinue tax relief for mining companies from January 2025.
The government is compelling companies to establish local processing facilities for raw materials, reinforcing its broader objective of value addition and economic transformation.
President Emmerson Mnangagwa has signaled the government’s intention to introduce incentives for domestic processing of mining outputs, aiming to maximize resource-based revenues.
This approach aligns with Zimbabwe’s broader strategy to capitalize on its abundant natural resources, including the world’s third-largest platinum reserves after Russia and South Africa.
By increasing its stake in mining ventures and promoting local beneficiation, Zimbabwe seeks to assert greater control over its resource economy and enhance long-term national benefits.
