Caledonia Mining Corporation Plc is breathing a sigh of relief after Zimbabwe’s government revised its tax proposals in the 2026 National Budget. The changes, announced on December 17, 2025, are seen as a positive move for the mining sector.
The revisions include a royalty rate increase from 5% to 10%, but only if the gold price exceeds $5,000 per ounce – up from the initial proposal of $2,500 per ounce. Additionally, the government has withdrawn proposed changes to the tax treatment of capital expenditure and scrapped the 15% withholding tax on offshore loan interest.
“We welcome these revisions as they demonstrate the government’s support for the mining sector,” said Mark Learmonth, CEO of Caledonia Mining. With these changes, the company’s financial outlook remains unchanged, provided gold prices stay below $5,000 per ounce.
The changes reinforce the government’s commitment to listening to business and ensuring investments yield a return in an enabling environment.
