Amani Gold has announced that on 28 November Amago completed its first shipment of approximately 6.77 Kg gold from Geita mineral and gem Hub in Tanzania to a Hong Kong refinery.
The total amount of refined gold at Hong Kong was 5.08 Kg gold (purity 99.9999%) on 29 November.
Amani secured a Dealer Licence in Geita, Tanzania via a 60% equity interest in Amago Trading.
The Dealer Licence No. DL013/GTA/2019-2020 was granted to Amago by Ministry of Minerals Mining Commission, The United Republic of Tanzania.
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Amago is a Joint Venture between Amani and a consortium of local mining industry professionals.
Amago has opened an office in the Hub as a requirement of being granted a Dealer Licence.
The in-country members of the Amago joint venture were instrumental in gaining the Trading Licence and sourced the 6.77 Kg from small scale producers in the Geita region.
It was initially processed in the Geita Hub and securely shipped to Hong Kong for final refining and sale.
Amago received payment from the Hong Kong refinery the same day as it was processed (29 November.
Tanzania has launched its first ever international minerals trading hub in 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 4th largest producer of gold in Africa and the Geita District produces 40% of all it produced in Tanzania.
Artisanal and local miners produce approximately 20 tonnes of gold per annum 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 enacted by governments in Botswana and South Africa.
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, there are more than six million small scale miners across Tanzania and more than US$1.54 billion in gold was exported in 2018.
Amani’s MD; Jacky Chan comments:
“Amani is pleased that we have completed our first ever shipment of gold to Hong Kong. This first trade was nearly 8 months in the making and represents a proof of concept.
“The gold was sourced from small scale producers from the Geita region of Tanzania. Our plan is to increase the size and frequency of shipments as soon as possible”.