ASX-listed gold explorer and developer Amani Gold has a secured gold dealer licences in Tanzania via a 60% equity interest in Amago Trading, which permits Amago to buy, sell or deal in gold which is expected to produce a revenue stream for Amani.
The gold dealer licence (No. DL013/GTA/2019-2020) was granted to Amago by Ministry of Minerals Mining Commission, of the United Republic of Tanzania.
Amago is a joint venture (JV) between Amani Gold (via its wholly owned subsidiary) and a consortium of local mining industry professionals headed by Bamwesiga Mwijage (the consortium has a 40 % share).
Amago has opened an office in Tanzania’s gold and minerals trading hub as a requirement of being granted a gold dealer licence.
The in-country members of the Amago JV were instrumental in gaining the gold trading licence and will be responsible for sourcing gold in the Geita region of Tanzania. Gold secured by Amago in Geita will be shipped to Hong Kong for refining and sales.
“The local members of the Amago JV are well established in the local gold mining industry amongst small and medium scale miners, and are well placed to source gold for purchase, which we plan to transport to Hong Kong for refining and sales. We expect our first gold trade to be completed in late November and that gold trading will eventually lead to a significant revenue stream for us,” says Amani MD Jacky Chan.
Gold and minerals trading hubs in Tanzania
Tanzania has launched its first ever international minerals trading hub in the gold rich Geita District in the North-western part of the country and will accommodate buyers, miners, government offices, banks and dealers at a one-stop centre.
Tanzania is the fourth largest producer of gold in Africa and the Geita District produces 40% of all gold produced in Tanzania. Artisanal and local miners produce approximately 20 tpa of gold in Tanzania and up to 90% of this is on-sold illegally; the mineral trading hubs will allow miners to access formal and government regulated markets. This move follows similar establishments made by governments in Botswana and South Africa.
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The Geita District minerals trading hub is expected to attract both local and foreign gold dealers and is designed to be a model for other regional precious metals trading hubs in an effort by the government to crack down on illegal gold and precious metals trading.
The hub’s development at Geita is in line with President John Magufuli`s latest directive to ensure that Tanzania takes a lead in the international gold business.
The international gold bullion market is expected to boost the earnings of the small-scale miners generated from gold mining activities as well as maximize government revenues.
According to records from the Federation of Miners Association of Tanzania (FEMATA), there are more than six million small scale miners across Tanzania and more than US$1.54 billion in gold was exported in 2018.