Tanzania to tighten rules on gold processing in new mining law amendment
What you need to know:
- The new amendment seeks to harmonize the legal framework and ensure that contracted firms are held to the same standard of local beneficiation.
Dodoma. The government has announced a significant policy shift in the mining sector aimed at boosting local value addition and improving transparency in gold trade and refining.
Presenting the 2025/2026 national budget in Parliament on Thursday, June 12, 2025, Minister for Finance Dr Mwigulu Nchemba proposed amendments to section 59 of the Mining Act, CAP 123, that would require all companies with government contracts to allocate at least 20 percent of their gold production for domestic smelting, refining, and trading.
Currently, only companies without direct contractual agreements with the government are subject to this requirement. The new amendment seeks to harmonize the legal framework and ensure that contracted firms are held to the same standard of local beneficiation.
“This measure will enhance our efforts to build local capacity in mineral processing and increase domestic revenue from the gold value chain,” Dr Nchemba told Parliament.
The proposed law requires affected companies to complete negotiations with the government and amend their existing contracts within 30 days of the Finance Act coming into force.
Analysts say the move is part of a broader government push to strengthen local participation in the extractives sector, reduce the export of raw minerals, and support Tanzania’s ambitions to become a regional hub for gold refining.
The amendment, if passed, is expected to contribute to employment, technology transfer, and enhanced oversight of mineral exports—a key component of the country’s strategy to benefit more equitably from its natural resources.
