Tanzania orders gold dealers to reserve 20% for purchase by central bank
Tanzania's mining regulator has ordered all mining firms and traders exporting gold to allocate at least 20% of the commodity for sale to the central bank to bolster the bank's move to diversify its foreign reserves.
The central Bank of Tanzania (BoT) began buying gold from local traders and miners in the last financial year that ended in June to boost its reserves amid depreciation pressure on the local currency, the shilling.
In the 12 months to June, the central bank bought 418 kg of gold to beef up its reserves and in the current financial year it intends to buy 6 metric tons of gold.
The regulator, the Tanzania Mining Commission, said late on Friday in a statement that the directive will take effect effectively on October 1 as part of a newly enacted mining law.
Miners and traders, according to the statement, will be required to submit the reserved gold to two major mineral refineries, Eye of Africa Ltd in the capital Dodoma and Mwanza Precious Metals Refinery, located in the lake city of Mwanza in the north of the East African country.
"All payments will be done according to the Bank of Tanzania arrangements," the statement said, without providing details on rates.
Tanzania's foreign exchange reserves stood at $5.29-billion at the end of July, sufficient to cover 4.3 months of projected imports of goods and services.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Since 1919, Victaulic’s innovative solutions and design services continue to increase construction productivity and reduce risk, ensuring projects...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
