DAR ES SALAAM, June 16 (Xinhua) -- Tanzania's central bank on Monday signed four agreements to purchase 20 percent of the gold mined and refined in the country, marking a major step toward boosting the national economy and empowering miners.
The agreements were signed in the capital Dodoma between the Bank of Tanzania (BoT) and Geita Gold Mining Ltd., Shanta Gold Mining Company Ltd., Buckreef Gold Company Ltd., and Geita Gold Refinery.
Speaking at the signing ceremony, Finance Minister Mwigulu Nchemba said the deals were part of the implementation of the Mining Act, which requires miners to allocate 20 percent of their production to the domestic market, with the BoT granted the right of first refusal.
"This is a major strategic move for our nation. It helps strengthen our foreign exchange reserves, adds value to our minerals, and enhances the economic capacity of both large and small-scale miners," said Nchemba.
He also urged gold refining companies to expand their production capacity and meet international standards set by the London Bullion Market Association, so that Tanzanian gold remains competitive in global markets.
Nchemba revealed that BoT has so far purchased 5,022 kg of pure gold worth 554 million U.S. dollars.
BoT Governor Emmanuel Tutuba said the gold purchase initiative is part of a national strategy to reduce dependence on external borrowing by bolstering foreign currency reserves through the mining sector. ■
