The Bank of Tanzania (BoT) signed gold purchase agreements with four firms to buy 20% of their output. The policy supports new legal changes to enhance domestic refining and reduce raw gold exports.
The contracts were signed between BoT and Geita Gold Mining, Shanta Gold Mining Company, Buckreef Gold Company, and Geita Gold Refinery (GGR), in the presence of Finance Minister Dr. Mwigulu Nchemba, Minister of Minerals Antony Mavunde, and BoT Governor Emmanuel Tutuba. The gold purchase programme forms part of the national strategy introduced during the 2022/2023 financial year to build Tanzania’s financial resilience through the mining sector and ensure stable sources for the central bank’s gold reserves.
Finance Minister Dr. Mwigulu Nchemba stated that the agreements are part of the implementation of Section 59 of the Mining Act, which requires miners to allocate 20% of their production for sale in local markets, including to the BoT, which holds the legal mandate to purchase gold. He said, “This step will enable the Central Bank to obtain reliable sources in achieving its gold purchase program and will help local gold refining industries achieve the goals of obtaining international accreditation by the London Bullion Market Association (LBMA).”
Dr. Nchemba also highlighted that the gold purchase plan is a government commitment led by President Samia Suluhu Hassan to ensure sufficient foreign exchange reserves, increase the minerals sector’s contribution to national income, and maximise domestic mineral value addition. He noted, “To date, the Central Bank of Tanzania has purchased 5 tonnes of gold equivalent to USD 554 million, exceeding its target of purchasing gold worth USD 350 million. This step is significant and historic for our country, as it will ensure that we have enough gold in the country for refining by existing industries in the country, but also to provide it to the Central Bank of Tanzania, which has decided to purchase and hold gold as part of foreign exchange reserves.”
Read more at: https://www.tanzaniainvest.com/mining/central-bank-gold-purchase-miners
