Dodoma. The Bank of Tanzania (BoT) has purchased 2.6 tonnes of locally mined and refined gold at a cost of over Sh570 billion as part of efforts to address foreign currency shortages, bolster foreign reserves, and stabilise the value of the shilling.
This was revealed by the minister for Minerals, Mr Anthony Mavunde, on Wednesday, January 22, 2024, when he was presenting a report to the Parliamentary Standing Committee on Energy and Minerals regarding the performance of gold refining plants between March and December 2024, as well as BoT’s ongoing gold acquisition initiatives.
BoT’s gold acquisition progress
According to Minister Mavunde, on October 1, 2024, the Mining Commission issued a directive requiring gold miners and traders to comply with Section 59 of the Mining Act, Chapter 123.
The provision mandates that 20 percent of all mined gold be sold to the BoT through certified refining plants.
“Honourable Chairperson, since the issuance of this directive up to January 21, 2025, the BoT has successfully acquired 2.6 tonnes of gold from medium-scale miners, small-scale miners, and gold traders. The value of this gold, based on the global market price as of January 22, 2025, exceeds Sh570 billion,” stated Mr Mavunde.
He further emphasised that this initiative is aligned with the government’s ambition to position Tanzania among the top ten African countries with the largest gold reserves, thereby advancing the nation’s economic resilience.
Government Revenue Growth
Minister Mavunde also highlighted improvements in royalty collection from gold mining.
Between July 1, 2024, and December 31, 2024, the government generated Sh400.22 billion from the sale of 34,826.75 kilogrammes of gold.
This marked a 5.55 percent increase compared to the same period in 2023, during which 32,995.54 kilogrammes of gold were sold, earning Sh278.86 billion.
Progress on Kahama refinery
In other developments, the minister discussed the construction of the Tembo Nickel Refining Limited plant in Kahama, Shinyanga, on the site previously occupied by the Buzwagi Gold Mine, which ceased operations.
Mr Mavunde explained that the refinery, one of the few in Africa capable of producing finished products, is expected to significantly benefit the national economy and enhance the mining sector’s contribution to the country’s GDP.
Benefits of BoT’s gold purchase plan
The Chairperson of the Parliamentary Standing Committee on Energy and Minerals, Dr Mathayo David, commended the initiative, noting that it would strengthen the Tanzanian shilling, increase the country’s gold reserves, and place Tanzania among nations with significant gold holdings globally.
These measures form part of broader government strategies, spearheaded by the Ministry of Minerals, to ensure the mining sector contributes more substantially to the national economy and improves the livelihoods of Tanzanians.
