Tanzania's Gold Exports In Year To July Up 31% - Central Bank

Tanzania's gold exports in the year ended July 2010 increased by 31% on account of improved gold prices on the international market as well as the commencement of gold shipments from the Buzwagi Gold Mine, the Central Bank of Tanzania said Friday.

In a report, the Bank of Tanzania said that a total of 38.1 metric tons of gold was exported in the year ending July 2010 compared with 29.1 tons exported in the same period last year.

"The value of gold exports went up by 61.5% to $1,365.3 million, following a rise in the export volume as well as price in the world market," the bank said in a report, adding that during the year under review, international gold prices increased to an average of $1,112.9 per troy ounce compared with $873.1 per troy ounce recorded in the year ended July 2009.

The 250,000 ounces-a-year Buzwagi Gold Mine started gold shipments in June, boosting the country's gold exports, gold is currently Tanzania's leading foreign revenue earner. Buzwagi is owned by London-listed Africa Barrick Gold (ABG.LN), a unit of Canada's Barrick Gold Corp. (ABX), the world's largest gold producer.

The mine continues to ramp up production and may help Tanzania regain its position as the third-biggest gold producer in Africa, this year, analysts say.

Until last year, Tanzania was Africa's third-largest gold producer after Ghana and South Africa before it was overtaken by Mali, according to metal consultancy firm GFMS. Other gold miners operating in Tanzania include South Africa-based AngloGold Ashanti Ltd. (ANG.JO) and Australia-based Resolute Mining Ltd. (RSG.AU).

-By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615 [e-mail]