Amani Gold opens up new source of revenue

Amani announced that it has secured a gold trading license in Tanzania through a 60% interest in Amago Trading Limited (Amago). The gold trading license no. DL013/GTA/2019-2020 was granted to Amago by the Ministry of Minerals Mining Commission of the United Republic of Tanzania.

Amago is a joint venture between Amani and a consortium of local mining industry experts led by Mr Bamwesiga Mwijage (40% “Consortium”). Amago has opened an office in the Geita Mining Centre as a condition for the granting of the trading licence. The local members of the Amago Joint Venture were instrumental in obtaining the gold trading licence and will be responsible for gold procurement in the Geita region. Gold secured by Amago in Geita will be delivered to Hong Kong for affining and sale.

The gold trader license allows Amago to buy, sell or trade gold and Amani expects the new business to become a “significant” source of revenue for the company. It is currently expected that the first gold trade will take place at the end of this month.

Tanzania Opens International Trade Centre for Minerals

Tanzania has opened its first international trade centre for minerals in the gold-rich Geita district in the northwest of the country, offering buyers, miners, government agencies, banks and traders a “one-stop centre”. The East African country is the fourth largest gold producer in Africa, with 40% of the gold mined in Tanzania coming from Geita mining. Mining sites run by local miners produce about 20 tons of gold per year in Tanzania and up to 90% of it is illegally resold. The mineral trade centres will give miners access to formal and state-regulated markets. Similar government institutions have also been opened in Botswana and South Africa.

Tanzania expects the Geita district’s mineral trade centre to attract both domestic and foreign gold traders. It is designed as a model for other regional precious metal trading centres to combat illicit trade in gold and precious metals.

The development of the Geita centre is another step in line with President John Magufuli’s recent policy to ensure that Tanzania takes a leading role in the international gold business. The international bullion market is expected to increase revenues for small mining companies from gold mining and maximise government revenues. According to the Federation of Miners Association of Tanzania (FEMATA), Tanzania has more than six million miners engaged in small-scale mining. In 2018, gold worth over USD 1.54 billion was exported.