Sell gold to BoT for growth, Biteko tells miners

GEITA: DEPUTY Prime Minister and Minister for Energy Dr Doto Biteko has urged miners and gold traders to contribute to the nation’s gold reserves by selling their gold to the Central Bank, supporting the government’s programme.

Dr Biteko made the call yesterday while opening the 7th Mining Technology Exhibition, taking place from October 2-13, 2024, in Geita Region.

“Gold producers and traders, the system has been set up for you to sell your gold easily, the programme is crucial in building substantial gold reserves to safeguard our currency against economic instability,” he said.

Dr Biteko said that the gold sold to the Bank of Tanzania (BOT) will be purchased at market prices and some tax exemptions will be provided, meaning that sellers will receive a better price.

. “Simply saying we have minerals is not enough—Tanzania is the fourth-largest gold producer in Africa, but we don’t have reserves and much of our gold goes to other countries that do,” he said, adding that a good gold purchasing system has been established.

He added, “As a nation, we aspire to start building our own gold reserves, which will help stabilise the value of the shilling during economic turmoil.”

Dr Biteko said that the main goal of the 2009 mineral policy is to ensure that the mining sector is integrated with other economic sectors to bring about faster development for the people and that the extensive efforts put into organising this exhibition are based on that policy.

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BOT on October 1 this year issued a public notice regarding its Domestic Gold Purchase Programme.

“The programme offers gold sellers the opportunity to sell their gold directly to BoT at competitive world market prices. The programme provides reduced fees and faster payment processing as part of the 20 per cent gold purchase commitment outlined in Section 59 of the Mining Act (Cap 123),” the notice reads in part.

Regarding the ongoing mining exhibition, Dr Biteko said it is an important showcase for the mining sector and the technologies displayed will make it easier for miners to access modern tools for their operations.

He urged small-scale miners to change their approach to gold mining and adopt modern technologies to improve their operations and achieve better outcomes from gold resources.

Chairman of the Federation of Miners Associations of Tanzania (FEMATA), John Bina, said that they have already met with the government and agreed to continue selling 20 per cent of their gold to the Central Bank, as previously proposed.

Mr Bina said that there was initial misunderstanding between the government and mineral sellers, but after discussions, it was agreed that the Central Bank will purchase 20 per cent of the gold from sellers in the country.

He added that there had been a threat of a strike by mineral sellers, but after a meeting in Dodoma last Friday, all sellers agreed to sell 20 per cent of their gold to BoT, eliminating any potential negative consequences that could have occurred if they had not agreed to the arrangement.

Regarding the progress of the small-scale mining sector in Tanzania, he said that they currently contribute 40 per cent of the gold revenue and they expect to increase the level of contribution to surpass even the large-scale producers.

Minister for Minerals, Anthony Mavunde, said that the government plans to purchase a helicopter for mineral exploration across the country to help small-scale miners identify mineral-rich areas and access them easily.

Mr Mavunde said that the helicopter will have the capability to detect minerals up to a depth of one kilometre below the surface.

He said these efforts are aimed at assisting small-scale miners in carrying out assured mining activities, enabling them to access minerals without incurring high costs.

The minister also said other initiative by the government to support miners, including the acquisition of 15 rock drilling machines that will be distributed to miners, with two specifically allocated for use by youth and women.

Geita Regional Commissioner Martine Shigela said that the government has allocated 7bn/- to provide electricity to small-scale mining areas in the region.

In addition to connecting electricity to small-scale miners, the government has also connected 485 out of 488 villages in the region and soon all the residents of the region will have access to electricity.

“The mining exhibition has experienced a substantial growth in participation, attracting 817 attendees this year, compared to 317 in 2023. The participants hail from Rwanda, Burundi, Uganda, Kenya, India and other regions,” he said.

Geita Regional Administrative Secretary Mohamed Gombati said the primary objective of the exhibition is to convene stakeholders from the mining sector to showcase advancements in research, mining, processing, refining and gold sales technologies.

Mr Gombati said the specific objectives are to connect large, medium and small miners with companies involved in mining and companies with advanced mining and processing technologies to improve mining operations and make them more efficient.

Vice President for Sustainability at Geita Gold Mining Limited (GGML) Simon Shayo said as the main sponsor of the exhibition since its inception, AngloGold Ashanti, known as Geita Gold Mine, has been instrumental in bringing together stakeholders within the mining value chain.

“This event, held at the EPZA grounds in Geita, a facility we built as part of our CSR commitment, facilitates the exchange of ideas, technologies and business opportunities, underscoring our longstanding contribution to regional infrastructure and economic development,” he said.