Mwanza Precious Metals Refinery Faces Raw Material Shortage, Operating Below Capacity

Mwanza – The State Mining Corporation (Stamico) has revealed that the Mwanza Precious Metals Refinery is experiencing a critical shortage of raw materials, forcing the facility to operate significantly below its installed capacity.

The refinery, a joint venture between 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 limited availability of raw gold, daily production currently ranges between just 50 and 100 kilogrammes.

During 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.

Stamico Secretary Mudrikat Kiobya presented a performance report on the refinery to Deputy Minister in the President’s Office for Planning and Investment, Dr Pius Chaya, during a tour of the facility at Sabasaba in Ilemela District, Mwanza Region.

The shortage has been attributed to levies imposed on local and foreign traders importing minerals into the country, including a one percent inspection fee and 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," Kiobya stated.

He emphasized the need to continue supporting miners and companies through advance payment arrangements, and to sensitize small, medium and large-scale miners to sell their gold to the refinery. Doing so would enable them to benefit from reduced royalty rates from six percent to four percent and removal of the one percent inspection fee.

Kiobya, who also serves as Stamico’s Legal Services Manager, reported that in 2025, the refinery provided gold refining services totaling 7.429 tonnes for the Bank of Tanzania and other clients, generating Sh2.976 billion in revenue.

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 Bank of Tanzania from miners and traders, verify its quality before payment, and refine it to a purity level of 99.999 percent," he explained.

Deputy Minister Dr Chaya acknowledged the challenges and assured that the government would continue working to address them to eliminate monopolistic practices and unnecessary disruptions in the gold trade.

He directed Stamico to strengthen local and international promotion to attract more mineral traders and to fast-track the process of obtaining international certification, which requires an annual production capacity of at least 10 tonnes. Currently, the refinery produces approximately 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 recognize youth participation in mining investments," Dr Chaya said.

He emphasized 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. While challenges remain, we are proud of our business with the Bank of Tanzania, which has increased national revenue and reduced intermediaries in gold purchasing," Dr Chaya added.

The refinery was inaugurated in 2021 by President Samia Suluhu Hassan as 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.