Browsing: gold

• As more countries choose gold over dollar for national reserve, Tanzania is requiring all miners to remit 20% of their gold output.
• This is part of Tanzania’s shift from U.S. dollar reserves system to the precious mineral since creating it’s national gold reserve last year. 
• Across the continent, Kibali, a gold mine in the DRC remains the largest gold producer in Africa.

Gold is dominating international markets, with soaring demand set to reshape Africa’s gold mining industry. As more countries shift toward trading in local currencies, gold is emerging as a strong contender against the U.S. dollar as the preferred store of value. This raises a critical question—why aren’t African economies, rich in gold, building up their own gold reserves?

Take for instance, the case of Tanzania, a country that ranks between third and fourth largest gold producers in Africa, this wealth of one of the most valuable minerals does …

• Tanzania is growing its national gold reserve as a smart move to counter USD shortage.
• Already, the country lags behind peers Kenya and Zimbabwe in gold reserve held yet its a major exporter of the precious mineral.
• Will Tanzania’s new plan be enough to counter its currency woes?

In the face of a persistent U.S. dollar shortage crisis, authorities in Tanzania  are turning into gold hoarding as a potential solution. Despite being Africa’s fourth largest gold producer, accounting for 1.3 per cent of the global output, Tanzania’s gold reserves stand at an estimated 45 million ounces, which is relatively low compared to its peers. For context, Kenya holds 0.02 tonnes, Zimbabwe at 2.5 tonnes, while the world’s largest economy and issuer of the dominant dollar, boasts a  staggering 8,133.46 tonnes in gold reserves. Will Tanzania’s new plan be enough to counter its currency woes?

For policymakers in Tanzania, storing value …

• Tanzania is Africa’s fourth-largest gold producer and ranks 18 in the world.
• The country is ramping up production of the precious metal, targeting over 6 tonnes of gold annually.
• Gold miners and traders asked to allocate no less than 20% of their gold output to Central Bank of Tanzania.

Tanzania’s national gold reserve is growing and recent push geared at speeding up the growth of the country’s reserves signal to better days ahead for the nation’s currency. In the latest move, Tanzania has ordered all gold miners and traders to allocate no less than 20 per cent of their gold output to its central bank.

According to the Central Bank of Tanzania (BoT), this strategy is meant to help the country diversify its foreign reserves. By boosting its gold reserves, Tanzania hopes to offset the depreciation pressure facing the Tanzanian shilling.

According to authorities in the country; “This diversification intends …

The mining industry in Tanzania holds a unique position as one of the most financially rewarding sectors, consistently generating foreign currency. Beyond its economic significance, this sector also wields considerable political influence within the nation. Therefore, a recent multi-million-dollar agreement forged with Australia and the US for the extraction and processing of critical minerals positions Tanzania advantageously as it prepares to participate in the forthcoming Critical Minerals Summit 2023.…

In May 2023, Zimbabwe released a gold-backed digital currency for peer-to-peer and business transactions. It acted as a store of value as the Zimbabwean dollar continued its steep depreciation. International gold prices controlled by the London Bullion Market Association will dictate the local pricing of Zimbabwe’s digital currency tokens.…

• Corruption, inadequate mining laws, and crackdowns on artisanal gold miners are fueling trade in conflict minerals.
• Cut-throat competition for control of the profitable mineral is to blame for killings and exploitation of people.
• Armed groups in Burkina Faso, Mali, and Niger are terrorizing gold-mining communities by levying taxes in the pretext of offering protection.

West Africa is becoming a hub for the trafficking of conflict minerals partly because of rampant corruption, inadequate mining laws, and ongoing crackdowns on artisanal and small-scale gold mining (ASGM) operations.

Conflict minerals, which are mostly linked to gold rush, are fanning instability in political, economic, environmental, social, and security spheres of populations in West Africa.

Conflicts in mining zones are on the rise in gold-rich Mali and Burkina Faso and parts of Chad. This as competition for control of the profitable mineral fuels killings and exploitation of poor populations.

Gold mining has been a significant …

• Tanzania will start purchasing gold through the Bank of Tanzania (BoT) with a view to establishing a National Gold Reserve.
• This initiative will significantly drive gold mining activities across the nation.
• Tanzania exports gold mainly to South Africa, India, and Switzerland

A plan to re-stablish Tanzania’s gold reserves is promising to hand a lifeline to thousands of small-scale gold miners in Tanzania’s mining industry.

Tanzania has several significant gold mining projects and operations, offering job opportunities to thousands of people. At the moment, Tanzania is one of the top producers of gold across Africa. Consider the Mwakitolwo gold mine in Shinyanga, which employs over 10,000 people despite using an artisanal approach.

Mines to build Tanzania gold reserves

Numerous large-scale gold mines are present in Tanzania and are run by both local and international mining firms. Some of the leading gold mines are Geita Gold, Bulyanhulu, North Mara and Golden Pride.…

Riozim Limited the Zimbabwe based, and Zimbabwe Stock Exchange-listed diversified miner, has more going wrong for it than right.

For a mining company looking at news reports around it, analyst coverage and its financial reports one cannot help but wonder if all is well at one of the oldest ZSE-listed mining companies.

The company has been in the news for poor labour relations with its workers and for poor operational and financial performance and it looks like there is no end in sight for the troubled miner. Investors on the ZSE and in the diversified miner got some reprieve when Bloomberg broke the story that Riozim had bought a diamond miner in Namibia in a move meant to herald the company’s foray into the rest of the continent and increase its investment activities in Zimbabwe.

• RioZim can be reasonably called a beleaguered or troubled company. It is not exactly

Padenga Holdings Limited fits this description in letter and spirit. During the six months under review, the company achieved US$ 57 million in revenues, which was more than double what the company achieved the previous year. The company increased its revenues by 184% from US$ 20 million in 2021. The company’s mining operations contributed 91% of the revenues.

The crocodile operations contributed a negligible US$ 5 million to the top line. If this trend continues, supported by the elevated gold prices, it would not be unreasonable to surmise that Padenga will soon become a pure-play gold producer or even diversify into other precious metals.

The crocodile business could soon be a thing of the past since gold mining activities have largely eclipsed it. This is all speculation as the company has not made an official statement on the future strategic direction of the company.…