Stamico flags raw material shortage at Mwanza gold refinery
Tue Jan 06 2026
The State Mining Corporation (Stamico) said the Mwanza Precious Metals Refinery is facing a shortage of raw materials, forcing the plant to operate below its installed capacity, and has appealed to the government to address the challenge by removing existing bottlenecks.
The refinery, owned by Stamico with a 25 percent stake and a private partner holding 75 percent, has the capacity to refine up to 480 kilogrammes of gold per day to international standards. However, due to the limited availability of raw gold, daily production currently ranges between 50 and 100 kilogrammes.
Between January and December 2025, the refinery purchased 2.995 tonnes of raw gold valued at $305.9 million, generating Sh32.4 billion in royalties and service levies for the government.
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, he said, include a one percent inspection fee, as well as the absence of one-stop service centres at border points, ports, and airports.
“The government should help attract more gold imports by reducing some levies, facilitating the establishment of one-stop service centres, and encouraging increased importation of raw gold from abroad,” he said.
“There is also a need to continue supporting miners and companies through advance payment arrangements, and to sensitise small-, medium- and large-scale miners to sell their gold to the refinery so they can benefit from a reduction in royalty rates from six percent to four percent, and the removal of the one percent inspection fee,” he added.
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.
“The refinery has continued to receive gold purchased by the BoT from miners and traders, verify its quality before payment, and refine it to a purity level of 99.999 percent,” he said.
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.
“I direct Stamico to expedite international certification, promote the refinery locally and abroad to attract more raw materials, and involve and recognise youth participation in mining investments,” he said.
He added that the government’s goal is to attract investors and demonstrate that Tanzania is a safe and viable investment destination.
“Stamico has performed well since the mining law reforms. This refinery, which represents an investment of Sh16.5 billion, is performing well, and I commend the board of directors.
While challenges remain, we are proud of our business with the BoT, which has increased national revenue and reduced intermediaries in gold purchasing,” said Dr Chaya.
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.
Source: https://www.thecitizen.co.tz/