By The Respondent ReporterThe Bank of Tanzania (BoT) has purchased 2.6 tons of gold mined and refined locally, a move aimed at addressing foreign currency shortages, boosting foreign reserves, and strengthening the Tanzanian shilling.
Minister of Minerals, Anthony Mavunde, announced this on January 22, 2024, in Dodoma while presenting a report to the Parliamentary Standing Committee on Energy and Minerals.
The report detailed the performance of gold refining plants from March to December 2024 and the progress of gold purchases by BoT.
Minister Mavunde explained that on October 1, 2024, the Mining Commission issued a directive requiring miners and gold traders to reserve 20% of their production for sale to BoT through approved refining plants.
Since the directive's issuance, BoT has acquired 2.6 tons of gold valued at over TZS 570 billion, based on the global market price as of January 22, 2025.
He emphasized that this initiative is part of the government’s broader goal to position Tanzania among Africa's top 10 countries with significant gold reserves, enhancing national prosperity.
The minister further reported that government revenue from gold royalties has increased steadily. Between July and December 2024, the government earned TZS 400.22 billion from the sale of 34,826.75 kilograms of gold, a 5.55% increase compared to the same period in 2023, when 32,995.54 kilograms were sold, generating TZS 278.86 billion.
Highlighting progress in infrastructure development, Mavunde spoke about the upcoming Tembo Nickel Refining Limited project in Kahama, Shinyanga.
The refinery, set to be built on the former site of the Buzwagi Gold Mine, is one of the few facilities in Africa producing ready-to-use products. It is expected to significantly boost the country's economy and the mining sector's contribution.
The Chairperson of the Parliamentary Standing Committee on Energy and Minerals, Dr. Mathayo David, commended these efforts, noting that they will stabilize the Tanzanian shilling, enhance gold reserves, and elevate Tanzania’s status among global gold reserve leaders.
These initiatives underscore the government’s commitment to ensuring the mining sector significantly contributes to the national economy and the well-being of Tanzanians.
