More gold refineries or LBMA certification for Tanzania?

DAR ES SALAAM: TANZANIA has a fantastic opportunity to turn its mineral wealth into a more robust economy, increased foreign exchange reserves, industrial growth and jobs.

However, policymakers face a crucial question: Should the nation prioritise securing internationally renowned London Bullion Market Association (LBMA) Good Delivery certification, as South Africa’s rand refinery has, or continue issuing licenses and building more gold refineries? Tanzania’s success is best measured by the economic value it earns per gramme of gold produced, not by how many refineries it builds.

Setting installed refinery capacity aside, eight facilities were operating in Tanzania as of October 22, 2026, with two more scheduled to open in Mara and Chunya. Elsewhere, data indicate that in April 2026 the Ministry of Minerals reported six refineries, while some reports cite eight.

The variations may reflect the reporting date, licensing status and the inclusion of facilities that are nearly ready for commissioning.

Tanzania is already one of Africa’s major gold producers. Reports say the country produced 67.8 tonnes of gold, valued at 18.4tri/- in the 2025–2026 fiscal year.

The Bank of Tanzania (BoT) bought 21,710 kilogrammes through its domestic gold-purchasing programme, while five local refineries sold 28,701 kilogrammes.

These figures suggest that the nation’s economic strategy is becoming increasingly reliant on domestic refining.

However, processing gold locally and securing international acceptance for the refined product are separate achievements.

Tanzania must recognise this distinction to maximise the returns from its mineral resources. I stand to be corrected, but adding more refineries isn’t always the answer.

Building gold refineries can bring several financial benefits: Expanding infrastructure for resource trade, creating skilled jobs, attracting industrial investment and supporting more domestic processing.

Therefore, Tanzania and its licensing authorities should measure progress not by the number of new refinery plants built, but by whether existing facilities operate efficiently, process sufficient volumes and sell their products competitively in global markets.

Why LBMA Good Delivery certification matters. The LBMA Good Delivery List sets the internationally recognised standard for gold bars accepted in London’s over-the-counter bullion market.

The association sets strict requirements for refiners, bar quality and ethical sourcing. Depending on its specific needs and business agreements, a Tanzanian refinery with LBMA Good Delivery accreditation would be better positioned to supply qualified bullion to foreign institutional buyers transparently.

This could also strengthen Tanzania’s prospects of becoming a regional refining hub by attracting gold from nearby producing nations. However, certification does not automatically raise prices or increase government revenue.

Its value is in improving market access, building credibility and helping firms compete globally. Refiners would still need reliable suppliers, affordable prices, strong governance and customers willing to purchase their products.

It’s also important to distinguish a mine’s certification from a refinery’s accreditation. LBMA Good Delivery applies to qualifying refiners and their bars, but not all mines that supply them are LBMAcertified.

Traceability and ethical sourcing remain essential parts of the process. The cost of lacking international recognition extends beyond individual refinery companies. It also affects Tanzania’s ability to convert its gold output into financial assets usable worldwide.

ALSO READ: BoT records rise in monetary gold holdings

To bolster external resilience and diversify the nation’s reserve portfolio, the Bank of Tanzania has been increasing its gold holdings.

Recently the Bank reported to have accumulated about 34 tonnes over 19 months, valued at roughly 4.37 billion US dollars at the market price cited in the statement.

This accomplishment is noteworthy. The next phase, however, should focus on improving the efficiency of converting domestically acquired gold into monetary gold that can be sold globally in line with LBMA certification.

Tanzania could retain more value in the domestic value chain and rely less on external processing if a local refinery secures the required accreditation and the bank agrees to financially viable terms.

Any savings would depend on the actual costs of refining, certification, financing, storage, and foreign transactions.

Integrating local refining, global bullion markets, monetary reserves and mineral output into a cohesive national plan, and incentivising financial institutions to offer more facilities to increase production, especially for small-scale miners, offers greater potential.

Tanzania has five goals that could deliver greater economic gains from gold if it puts its house in order.

First, prioritise accrediting existing refineries. The government should work with refinery owners to identify the facilities most likely to meet LBMA regulations.

Support should focus on technical upgrades, quality-control systems, independent audits, ethical sourcing and traceability. Measure progress against clear benchmarks, not solely on announcements.

Second, develop a national plan for gold refining.

The Bank of Tanzania, the Mining Commission, the Ministry of Minerals, and other relevant organisations should jointly assess installed capacity, actual throughput, projected gold supply, and global market demand.

This assessment would help determine suitable locations for new refineries and whether they would be commercially viable and sustainable.

Third, strengthen Tanzania’s gold supply chain by establishing clear purchasing agreements with licensed traders, artisanal and small-scale miners, and large-scale mines.

Building international trust requires reliable assaying, verified ownership, anti-money-laundering measures and ethical sourcing.

Certification is essential to ensuring the integrity of the gold entering a refinery. Fourth, link the national financial system to refining.

Subject to quality, liquidity, custody and risk management standards, the Bank of Tanzania should assess whether domestically refined gold could support reserve management.

Commercial agreements should be transparent and evaluated impartially to ensure that any savings or added value outweigh the costs.

Fifth, prioritise strategic investment rather than treating refinery statistics as goals in themselves. Investors should be welcomed for their technical know-how, funding, global distribution networks and proven quality-assurance methods.

To build local capabilities and reach international clients, Tanzania could consider joint ventures with well-known foreign refiners. Strategically, certification should not take priority over broader economic growth.

Tanzania still needs a competitive domestic refining sector that supports local businesses, jobs and knowledge transfer.

The greatest benefits, however, will come from integrating refining with other services, including financial services, equipment maintenance, safe transport, laboratory testing and precious-metals trading. Together, these efforts could help expand the gold-related industrial ecosystem.

Those unfamiliar with gold issues, or with why a country like Tanzania, given its gold production level, needs a certified gold refinery, or who think that more gold refineries scattered across the nation with gold deposits are the way to go, should know that Rand is the only gold refinery on the continent with LBMA certification.

It joined the LBMA 105 years ago, in 1921. Given South Africa’s gold production levels and experience, one may ask why a nation like Tanzania needs a certified LBMA refinery.

From an economic perspective, although not stated outright, Tanzania’s LBMA refinery would significantly reduce costs and enable direct delivery to other institutions and central banks.

International markets mean international pricing, which in turn produces better pricing for miners and all in the supply chain.

Unquestionably, Tanzania’s government has done a fantastic job restructuring the nation’s gold industry so far.

Will it now squander a once-ina-lifetime opportunity by failing to apply the same rigorous international standards when granting refining licenses? The government’s role is crucial to finding a solution.