Editor’s Note
This report highlights a critical challenge facing Tanzania’s mining sector, as a key refinery operates below capacity due to raw material shortages. The appeal to the government underscores the need for policy interventions to unlock the full potential of this strategic asset.
The State Mining Corporation (Stamico) has stated that the Mwanza Precious Metals Refinery is facing a shortage of raw materials, forcing the plant to operate below its installed capacity. Stamico has appealed to the government to address this challenge by removing existing bottlenecks.
The refinery, owned by Stamico (25% stake) and a private partner (75%), has the capacity to refine up to 480 kilograms of gold per day to international standards. However, due to limited raw gold availability, daily production currently ranges between 50 and 100 kilograms.
Between January and December 2025, the refinery purchased 2.995 tonnes of raw gold valued at US$305.9 million, generating Sh32.4 billion in royalties and service levies for the government.
The disclosure was made on January 5, 2025, by Stamico Secretary Mr. Mudrikat Kiobya, while presenting a performance report on the refinery to the Deputy Minister in the President’s Office for Planning and Investment, Dr. Pius Chaya.
He told the minister, who toured the refinery at Sabasaba in Ilemela District, Mwanza Region, that the challenge is largely attributed to levies imposed on local and foreign traders importing minerals into the country. These include a 1% inspection fee, as well as the absence of one-stop service centers at border points, ports, and airports.
Mr. Kiobya, who also serves as Stamico’s Legal Services Manager, said that in 2025, the refinery provided gold refining services totaling 7.429 tonnes for the Bank of Tanzania (BoT) and other clients, generating Sh2.976 billion in revenue.
He added that Stamico and the refinery’s management remain committed to encouraging miners to sell their gold to the plant. He said the programme has significantly helped the central bank meet its gold reserve targets within a short period, a development expected to boost the refinery’s revenue and its contribution to the national economy.
Commenting on the challenges, Deputy Minister Dr. Chaya said the government had taken note of the concerns and would continue working to address them to eliminate monopolistic practices and unnecessary disruptions in the gold trade. He also directed Stamico to strengthen local and international promotion to attract more mineral traders.
Dr. Chaya further urged Stamico to fast-track the process of obtaining international certification, one of whose requirements is an annual production capacity of at least 10 tonnes. Currently, the refinery produces about seven tonnes per year.
He added that the government’s goal is to attract investors and demonstrate that Tanzania is a safe and viable investment destination.
The refinery, inaugurated in 2021 by President Samia Suluhu Hassan, is a direct outcome of the 2017 mining law reforms and the enactment of Law No. 5 governing ownership of the country’s natural wealth and resources.
