The government of Tanzania has handed over nine mineral exploration licences to Saudia Gold Refinery, a Saudi Arabia-based company. The licences were presented by Minister for Minerals, Anthony Mavunde, in Dodoma on November 5, 2026. The areas have the potential to be developed into a major mine if exploration confirms sufficient mineral deposits. This move is part of the government's strategy to attract investors with the financial and technological capacity to develop mineral resources.
The licences were awarded as part of Tanzania's efforts to curb the practice of individuals holding licences without undertaking exploration or mining activities. The government has been revoking licences held by non-compliant investors and repossessing the areas for reallocation to serious investors committed to developing them. Some repossessed areas are being set aside for small-scale miners, including women, young people, and persons with disabilities, through development programmes in the mining sector.
Minister Mavunde emphasized that the government will not tolerate individuals holding vast areas without working on them. He assured that preliminary licence application processes in Tanzania would be completed within seven working days. Saudia Gold Refinery had expressed interest in investing in Tanzania during the Tanzania-Saudi Arabia business forum held in Dar es Salaam, highlighting its experience in mineral exploration and investment in several African countries.
Saudia Gold Refinery has pledged to invest $10 million in the initial stages of gold exploration in Tanzania. The company plans to conduct a geophysical survey before the end of 2026. The investment is expected to generate employment, stimulate economic activity, and increase government revenue. The Mining Commission collected Sh552.3 billion between July and October 2026, equivalent to 117.8 percent of its Sh468 billion target.
Minister Mavunde urged Saudia Gold Refinery to comply with licence conditions, undertake exploration in the allocated areas, and work with local experts and service providers to ensure Tanzanians benefit from the investment. The Mining Commission will monitor implementation, and areas not developed in accordance with licence conditions will be repossessed by the government.
Saudia Gold Refinery Vice-Chairman, Feisal Sulaiman Alothaim, emphasized the company's commitment to prioritizing the employment of Tanzanians and using locally produced goods and services. The company has the capacity to undertake operations independently, including owning its exploration and mining equipment.
The investment by Saudia Gold Refinery is expected to contribute to Tanzania's mining sector growth. The government aims to improve the investment climate by reducing bureaucratic procedures in licence issuance. The mining sector is a significant contributor to Tanzania's economy, and the government is keen to ensure that the sector benefits the local population.
Key points
- The government of Tanzania has handed over nine mineral exploration licences to Saudia Gold Refinery.
- Saudia Gold Refinery has pledged to invest $10 million in the initial stages of gold exploration in Tanzania.
- The investment is expected to generate employment, stimulate economic activity, and increase government revenue.
