Tanzania affirms gold reserves as strategic assets

He said for gold to be internationally recognised and traded, it must undergo certification by an accredited refinery, which includes the application of an official seal or hallmark.

“This certification ensures that the gold meets rigorous international standards, allowing it to be accepted by central banks and global financial institutions, thereby solidifying its role in the international monetary system.”

Mr Tutuba added that Tanzania’s gold is refined to a purity level of 99.99 percent by the country’s three refining firms. However, international recognition requires official stamping and certification, a process facilitated through collaboration with institutions such as the Bank of England.

“Since we began storing gold at the central bank, we have sent initial batches to the Bank of England for certification. This process typically involves a swap. We deliver our gold and receive stamped, certified gold in return, paying a specified amount for the certification.”

Barrick’s assistance sought

Two weeks ago, the government announced that it had sought assistance from Barrick Gold Corporation to facilitate the international certification of gold processed at its three domestic refineries.

Tanzania, Africa’s fourth-largest gold producer after South Africa, Ghana and Mali, has been purchasing gold from small-scale miners to bolster its foreign exchange reserves. However, none of its three gold refineries are accredited by an international gold smelting body. This has prompted the government to turn to Barrick for support in ensuring that locally smelted gold meets global standards.

“We have a policy of buying gold from small-scale miners and refining it to be held in reserves by the Bank of Tanzania. We have requested Barrick to leverage its extensive network to help us achieve this goal,” said Minerals deputy minister Steven Kiruswa in Kahama recently while addressing a gathering at Barrick’s Bulyanhulu Gold Mine.

Speaking in Dodoma last month, Minerals minister Anthony Mavunde confirmed that the BoT had acquired 2.6 tonnes of locally mined and refined gold to strengthen Tanzania’s reserves. He made these remarks while presenting a report to the Parliamentary Standing Committee on Energy and Minerals regarding the performance of the gold refining industry between March and December 2024, alongside the BoT’s gold procurement strategy.

Tanzania’s refining capacity

Tanzania currently has three gold refineries: Mwanza Precious Metal Refinery, Arusha Gold Smelter and Morogoro Gold Smelter (MGS). However, their lack of international accreditation has been a significant challenge in positioning Tanzanian gold within the global market.

During a recent high-level meeting attended by government officials and Barrick president and CEO Mark Bristow, Dr Kiruswa noted that the government was exploring the possibility of utilising Barrick’s Rand Refinery in South Africa to further refine gold acquired by the BoT, ensuring it meets international standards.

“We will soon convene a meeting involving Barrick, BoT officials, and other stakeholders to explore how this initiative can be implemented,” he said.

According to Dr Kiruswa, for gold bars to gain international accreditation, they must be approved by bodies such as the London Bullion Market Association (LBMA). Barrick, through its joint venture, Twiga Minerals Corporation, is working to enhance its refining operations by expanding its partnership with Rand Refinery.

Rand Refinery, an LBMA-accredited gold and silver refiner based in South Africa, currently processes most of Twiga’s gold doré. Historically, all gold from Barrick’s other African operations has been refined at Rand Refinery. To streamline its Africa-based refining activities, Barrick has opted to consolidate most of its gold refining through this facility.

“This is the kind of partnership we are looking for—where Barrick can extend its refining network to include gold produced by small-scale miners and processed locally before being acquired by the BoT,” Dr Kiruswa said.

Strengthening the industry

Through the World Gold Council, of which Barrick is a member, Tanzania also sees an opportunity to facilitate the transition of small-scale miners’ gold into recognised monetary gold, further integrating it into the global financial system.

The move to secure international certification for Tanzanian gold is part of the government’s broader strategy to enhance the country’s role in the global gold trade. By strengthening certification processes and refining capacity, the government aims to position Tanzania as a key player in the international gold market while ensuring that its gold reserves contribute effectively to economic stability.

Industry experts note that accreditation by bodies such as the LBMA would increase the acceptability of Tanzanian gold, allowing it to be traded with ease in global financial markets. Additionally, it would support small-scale miners by ensuring their gold meets high standards, ultimately boosting their earnings and contribution to the national economy.

As the government continues to push for greater recognition of Tanzanian gold, the partnership with Barrick and other global institutions is expected to accelerate the country’s efforts in achieving international certification, strengthening its reserves, and reinforcing the credibility of its gold industry on the world stage.

Additional reporting by Rosemary Mirondo