Australian gold mining company Amani Gold Limited (ASX: ANL) has recently secured a Gold Dealer Licence in Tanzania via a 60% equity interest in Amago Trading Limited (Amago).
Amago is a joint venture between Amani and a consortium of local mining industry professionals headed by Mr. Bamwesiga Mwijage.
The Gold Dealer Licence permits Amago to buy, sell, or deal in gold. The company’s aim is to source gold in the gold-rich Geita district in northwest Tanzania where Tanzania has launched its first-ever international minerals trading hub to accommodate buyers, miners, government offices, banks and dealers at a one-stop center.
The gold secured by Amago in Geita will be shipped to Hong Kong for refining and sales, Amani explains.
Amani focuses on the exploration, development, and production of precious metals and minerals and currently manages gold mines in the Haut-Uele province in northeastern Democratic Republic of Congo.
Tanzania is the 4th largest producer of gold in Africa in Africa after South Africa, Ghana and Mali.
The Geita District produces 40% of all gold produced in Tanzania.
Artisanal and local miners produce approximately 20 tonnes of gold per year and up to 90% of this is on-sold illegally.
The mineral trading hubs will allow miners to access formal and government-regulated markets.