Tanzanian Government Reaches Agreement on National Gold Reserve Sales

The Government of Tanzania, through the Minister of Minerals, Anthony Peter Mavunde, has announced a consensus between the Bank of Tanzania (BoT) and stakeholders in the mining sector regarding the sale of 20% of the gold produced for the national reserve.

In a public statement issued on October 7, 2024, Minister Mavunde explained that discussions with large-scale, medium-scale, small-scale miners, and gold traders have yielded positive results. The talks were held to address a strike by gold buyers in the Geita region.

During these discussions, all parties agreed on pricing, payments, and incentives to facilitate the successful implementation of Section 59 of the Mining Act, which mandates that 20% of gold production be set aside for the national reserve through the Central Bank.

The Minister clarified that the gold price to be used will align with the global market price, as determined daily by the Mining Commission. Payments to gold sellers will be made within 24 hours after the refining report is received, with the Central Bank covering 100% of the refining costs.

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“The Central Bank will cover 100% of the gold refining costs, and the 20% allocation of the gold pertains to the holder of the mining license and large-scale mining traders,” Mavunde stated.

The Minister also noted that holders of mining licenses, large-scale traders, and gold refineries can sell any amount of gold to the Central Bank.

He added, “We have introduced incentives for sellers, including reducing the royalty from 6% to 4% and removing the inspection fee, which will now be 0% instead of 1%.”

Minister Mavunde highlighted that these measures are not only aimed at improving the management of the national reserves but also at encouraging growth in the mining sector. He emphasized that the plan is part of a broader strategy to bring transparency and efficiency to the gold market while boosting the national economy by enhancing the Central Bank’s influence in gold regulation.

The Central Bank is expected to continue collaborating with the mining sector to ensure the successful implementation of this initiative, benefiting miners, traders, and the national economy as a whole.