The Tanzanian government has proposed a comprehensive amendment to the Mining Act that would require all firms with government contracts to process a portion of their gold domestically, as a move aimed at strengthening local value addition and increasing transparency in the gold sector.
The proposed amendment, announced by Tanzanian Finance Minister Dr. Mwigulu Nchemba during the presentation of the 2025/2026 national budget in Parliament on Thursday, June 12, aims to amend Section 59 of the Mining Act, CAP 123. The amendment would require contracted companies to allocate at least 20/ percent of their gold production for domestic smelting, refining and trading.
Currently, only firms that do not have direct contract agreements with the government are required to comply with this requirement. The proposed revision aims to harmonize the legal framework and ensure uniform compliance with local beneficiation standards across all players in the sector.
“This measure will enhance our efforts to build local capacity in mineral processing and increase local revenues from the gold value chain,” Dr. Nchemba said while presenting the budget.
The proposed legislation also requires affected companies to renegotiate and update their contracts within 30 days of the enactment of the Finance Act.
Experts see the move as part of a broader strategy to deepen local participation in the mining industry, reduce exports of unprocessed minerals and position Tanzania as a regional hub for gold refining.
If passed, the amendment is expected to spur job creation, facilitate technology transfer and strengthen regulatory oversight of mineral exports, all key objectives in Tanzania’s drive to reap more benefits from its natural resources.