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Gold March 19, 2019 10:30:02 AM

Tanzania Sets Up Mineral Trading Hubs to Curb Illegal Gold Exports

Paul Ploumis
ScrapMonster Author
Rough estimates indicate that around 20 tonnes of gold are produced by small-scale miners in the country, out of which almost 90% is illegally exported out of the country.

Tanzania Sets Up Mineral Trading Hubs to Curb Illegal Gold Exports

SEATTLE (Scrap Monster): All mineral-producing regions in Tanzania have been ordered to establish government-controlled mineral trading centres, in a bid to curb illegal exports of gold from the country. These trading centres will primarily serve small-scale miners. The government has set end-June as the deadline, before which trading centres need to be set up in respective regions.

According to statement issued by the Prime Minister’s office, the first mineral trading centre was commissioned by Prime Minister Kassim Majaliwa in the northwestern town of Geita on Sunday. This centre would serve as a model for other, the statement noted. Further, the statement noted that the centres are mainly aimed to control smuggling of minerals, especially gold.

Rough estimates indicate that around 20 tonnes of gold are produced by small-scale miners in the country, out of which almost 90% is illegally exported out of the country. Incidentally, the country’s gold exports edged higher slightly from $1.541 billion in 2017 to $1.549 billion in 2018. Still, mining sector continues to be a relatively small contributor of national revenues, data says.

Earlier, the government had ordered the country’s central bank to start buying domestically produced gold. In addition, the plans to construct a gold smelter in the country are in its final stages of negotiations.

The above measures are intended to propel development of gold industry in the country and to curb illegal gold exports.

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