Tanzania Mandates Gold Dealers To Be Selling 20% Of Gold To Central Bank Starting Oct. 1

Tanzania’s mining regulator has mandated that all mining companies and traders exporting gold must sell at least 20 per cent of their gold to the central bank.

This move was announced last Friday by the Tanzania Mining Commission and is aimed at helping the Bank of Tanzania increase its foreign reserves. The new directive, part of a revised mining law, will take effect from October 1.

The central bank began purchasing gold from local traders and miners in the last financial year, which ended in June, to strengthen its reserves amid pressures on Tanzania’s local currency, the shilling. In the previous year, the bank bought 418 kilogrammes of gold and plans to purchase 6 metric tons in the current financial year.

According to the statement by the mining commission, miners and traders must submit the gold to two major refineries: Eye of Africa Ltd in Dodoma and Mwanza Precious Metals Refinery Ltd in Mwanza, Tanzania.

The central bank will handle payments for the gold, but details on the rates have not been disclosed.

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