GEITA Gold Mining Limited Signs Historic Gold Sale Agreement with the Bank of Tanzania

Strategic Insights -

GEITA Gold Mining Limited (GGML), a subsidiary of AngloGold Ashanti, has taken a significant step in implementing the gold reserve purchase requirement under Section 59 of the Mining Act. The company has signed a gold sale service agreement with the Bank of Tanzania (BoT), making it the first large-scale mining company in the country to do so. This agreement will allow GGML to sell 20 percent of its gold production to the Government through Geita Gold Refinery (GGR), providing a consistent supply of gold for domestic refining. The arrangement is expected to support the country's goal of increasing local value addition and advancing progress towards international accreditation, such as the London Bullion Market Association (LBMA) certification.

Key Takeaways:

  • The agreement between GGML and the Bank of Tanzania (BoT) is the first of its kind, marking a significant milestone in implementing the gold reserve purchase requirement under Section 59 of the Mining Act.
  • The agreement allows GGML to sell 20 percent of its gold production to the Government through Geita Gold Refinery (GGR), ensuring a consistent supply of gold for domestic refining.
  • The arrangement is expected to support the country's goal of increasing local value addition and advancing progress towards international accreditation, such as the London Bullion Market Association (LBMA) certification.
  • The partnership reflects the company's commitment to increasing the country's gold reserves, promoting value addition within borders, and supporting the Tanzanian economy.
  • The agreement follows extensive engagement between GGML, the Bank of Tanzania, and the Ministry of Minerals, marking a significant milestone in the development of local content frameworks and the national beneficiation strategy.
  • GGML Managing Director Duran Archery emphasized the company's long-term commitment to working with the Government in strengthening the mining sector's contribution to broader economic goals.

Statistics:

  • $0 (amount not mentioned in the article)
  • 20% (percentage of gold production to be sold to the Government)
  • 25 years (number of years GGML has been operating in Tanzania)
  • Section 59 (Mining Act, under which the agreement was made)

Sources:

  • "GEITA Gold Mining Limited Signs Historic Gold Sale Agreement with the Bank of Tanzania" by Daily News.
  • "GGML launches critical skills Internship programme for Tanzanian youth" by Daily News.