Zimbabwe has the world's third-largest platinum reserves, after Russia and South Africa. Zimbabwe also mines nickel, chromium, lithium and coal.
Mining companies operating in Zimbabwe include Anglo platinum and subsidiaries of Impala platinum and Sibanye Gold.
The mining industry's annual revenue nearly doubled from $2.7 billion in 2017 to $5.73 billion in 2021.
Forecasts from Zimbabwe's finance ministry show mining revenues will reach $7.3 billion by the end of this year, 60.8% of the 2023 target of $12 billion.
Zimbabwe has set new rules for local companies, including a doubling of royalties from platinum mines.
Royalties for platinum miners, including Anglo Platinum and Impala Platinum, have risen from 2.5% to 5%.
Royalties will now be paid "on a 50:50 basis in local and foreign currencies".
The growth in mining revenues, coupled with recent increases in platinum and lithium royalties, means the government is getting more revenue from mining royalties.
Zimbabwe recently announced changes to its mining royalty policy for precious metals and high-value minerals (gold, diamonds, platinum group metals and lithium). Royalties on the four minerals will be paid in part in cash and in the form of final refined products.
The order was a 2020 decision requiring mining companies to pay taxes only in foreign currency.
Mining royalties are sovereign rights that are paid based on a percentage of the value of minerals exported. Mining royalties are deducted as a percentage of the total value of the shipped minerals.
Diamonds and other gemstones are taxed at 10 percent, platinum at 2.5 percent, other precious metals at 4 percent, base and industrial metals at 2 percent, coal at 1 percent, and black granite and other uncut metals at 2 percent.
The Zimbabwean government says there are several reasons for the new policy shift. The surge in mineral revenues ensured that revenues were available to support public spending, while building mineral reserves also accumulated savings.
Zimbabwe will implement a new policy this month requiring miners to pay half of their royalties in goods and cash, President Mnangagwa said, as the country tries to reserve mined minerals for the first time.
Mr Mnangagwa said Zimbabwe would have reserves of gold, diamonds, platinum and lithium.
Mr Mnangagwa said the central bank would be the custodian of reserves, which would be end-products that could be reused, not ore.
The Chamber of Mines, which represents major mining companies, said it was not concerned about the announcement because the new policy would not increase existing royalties.
"We respect the government's position," said Isaac Kwesu, CEO of the Chamber of Mines. That's their prerogative. They're just saying they're changing the way they pay."
