The Bank of Tanzania (BOT) has signed agreements to purchase 20% of the gold extracted from the country in order to increase its foreign reserves. The four agreements were signed on Monday, June 16 in Dodoma, the capital, with Geita Gold Mining, Shanta Gold Mining Company, Buckreef Gold Company, and Geita Gold Refinery.
This is a major step taken by the Tanzanian government to boost the national economy and support local miners. “This is a major strategic initiative for our country. It helps strengthen our foreign reserves, valorize our minerals, and enhance the economic capacity of small and large mining operators,” said Finance Minister Mwigulu Nchemba.
Bank of Tanzania Governor Emmanuel Tutuba stated that the gold purchase initiative is part of a national strategy to reduce dependence on external borrowing by strengthening the foreign reserves of the mining sector. According to the Finance Minister, who spoke at the signing ceremony, these partnerships are part of the implementation of the mining law, which requires miners to grant BOT a right of preemption and allocate 20% of their production to the domestic market.
In order to maintain the competitiveness of Tanzanian gold in international markets, he also urged gold refining companies to increase their production capacity and comply with international standards set by the London Bullion Market Association.
Mr. Nchemba revealed that BOT had so far purchased 5,022 kilograms of pure gold, valued at 554 million dollars.
