Zimbabwe’s Finance Act, 2025, which enacts the 2026 National Budget, has clarified contentious provisions affecting the gold mining sector, bringing relief to investors and producers who had expressed concerns over fiscal uncertainty.
Caledonia Mining Corporation confirmed that the enacted legislation aligns with the company’s earlier statements and removes the need for any revisions to its Bilboes Gold Project Technical Report Summary, published in November 2025.
Under the finalised Finance Act, the higher gold royalty rate of 10 percent will only apply if international gold prices exceed US$5,000 per ounce.
Other proposed changes to the tax and royalty regime, highlighted in the government’s December 1, 2025 announcement, have been withdrawn.
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The confirmation of these measures provides clarity for the sector, which has faced uncertainty over how proposed fiscal adjustments could affect profitability, investment planning and long-term project viability.
Analysts note that policy certainty is critical for gold mining, which remains a major foreign currency earner for Zimbabwe.
Caledonia said the budget outcome ensures that its Bilboes Gold Project assumptions remain intact, preserving the economic feasibility and projected returns of the operation.
The enactment of the Finance Act is seen as a step towards stabilising Zimbabwe’s investment climate, balancing government revenue objectives with the need to maintain confidence in the mining sector.
The company said that the clear guidelines on royalties and taxes will be closely monitored by other gold producers and investors as Zimbabwe continues efforts to attract investment and sustain production in its mining industry.
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