THE government has opened talks with the World Gold Council (WGC) to develop a joint action plan aimed at removing bureaucratic bottlenecks that could delay access to critical mining data and project implementation.

Prof Kitila Mkumbo, Planning and Investment state minister in the President’s Office led the government delegation in the talks, which also included Minerals minister Anthony Mavunde, Youth minister Joel Nanauka and Community Development, Gender, Elders and Children minister Dr Dorothy Gwajima.

The talks dwelt on strengthening investment in the mining sector, with a particular focus on empowering small-scale miners and expanding geological surveys nationwide, he said, noting that the discussions brought together cabinet ministers and various experts, while the WGC CEO David Tait led the opposite side.

The World Gold Council is an international trade association for the gold industry based in London, with offices in India, China, Singapore, the United Arab Emirates (UAE) and the United States, with membership drawn from gold mining companies.

Seeking to stimulate and sustaining demand for gold through market development, WGC was  founded in 1987 in a merger with South African company Intergold when imports of the South African Krugerrand were banned in Europe and North America on account of the country’s apartheid policies.

It publishes research advocating for gold, gold-based exchange traded funds at the New York Stock Exchange, along with gold accumulation plans in India and China, while being targeted by global, activists for pushing surveying and mining from among “non-contacted indigenous peoples' lands,” demanding that they keep such gold out of their supply chains.

WGC late last year accused Survival International of launching a cyber-attack after the industry association received emails from the public concerned about un-contacted peoples, while its new association with the government is aimed at stimulating growth in the mining sector, particularly among small-scale operators, with women and youth prioritised to ensure they benefit from emerging opportunities.

The minister, briefing journalists after the meeting, described the discussions as in-depth and productive as they focused on uplifting small-scale miners and ensuring that gold and other minerals are value-added before export.

Noting that Tanzania’s current policy requires all minerals to be processed locally before sale as well received by the WGC delegation, he stressed the need to create a conducive environment for investors who are ready to operate within that framework, while ensuring mining activities adhere to environmental conservation standards.

Gold remains the country’s top export earner, accounting for more than 80 percent of mineral export revenue, whereupon the government has introduced policies requiring mining companies and traders to sell a portion of their gold domestically.

This includes a mandate that at least 20 percent of gold output be offered to the Bank of Tanzania in order to bolster foreign reserves and strengthen the national currency, he affirmed.

The Minerals minster said that small-scale miners contribute roughly 40 percent of total minerals production but face numerous challenges, including outdated equipment, lack of reliable geological data and limited access to finance.

“Many small-scale miners operate largely through trial and error due to insufficient information about underground mineral deposits,” he said, hinting that through the partnership, investors are expected to introduce modern technologies, including satellite-based geo-surveys to accurately identify gold deposits, also providing professional guidance to small-scale miners. 

This boost productivity, improve efficiency and enhance miners’ capacity to add value to the produce, he said, while the WGC CEO said that small-scale miners have a strong opportunity to grow as the council plans to introduce traceability technology to ensure they fully benefit from their production.

“We thank the government for allowing us to hold these discussions, which we believe will bear fruit,” he said, noting that the council is satisfied with incentives for foreign investors and plans to promote Tanzania as an attractive mining destination globally.

“We will work with the government in areas including training and technology transfer in the mining sector. The standards that have been set give confidence to international investors. We will use Tanzania as an example in promoting small-scale mining,” he added.