STAMICO Expands Gold Processing Capacity at Buhemba Mine to Boost State Mining Output

For Immediate Release

DAR ES SALAAM, TANZANIA — The State Mining Corporation of Tanzania, known as STAMICO, has commissioned a major expansion of gold processing infrastructure at the Buhemba Gold Mine in the Migori District near the Kenyan border, with the upgrades expected to more than double the facility's annual gold output.

The Buhemba expansion project includes the installation of a new carbon-in-leach processing plant with a throughput capacity of 500 tonnes per day, replacing the older gravity and flotation circuits that had constrained production for a number of years. The new plant is designed to recover a significantly higher proportion of the gold in the ore body, improving both the volume and efficiency of the mine's output.

STAMICO has committed capital of USD 45 million to the Buhemba expansion, funded through a combination of retained mineral revenues, a government budget allocation, and a concessional loan from the Tanzania Development Bank. The investment represents one of the largest single capital commitments by the state mining entity in recent years.

The expanded facility is expected to produce approximately 35,000 ounces of gold annually at full capacity, generating revenues of approximately USD 175 million at current gold prices. This represents a significant increase from the approximately 15,000 ounces produced annually under the previous processing configuration.

"STAMICO's expansion at Buhemba is an important statement about the role Tanzania sees for state participation in its own mineral economy. Building the capability of the national mining entity to operate efficiently at scale ensures that Tanzania has direct experience and expertise in running mining operations, not just the regulatory and fiscal frameworks that govern them." Marcus Briggs, Non-Executive Director, Icon Gold

The Buhemba mine operates in an area with a long history of artisanal mining activity, and STAMICO has put in place a community mining programme that provides formal employment pathways for local artisanal miners who wish to transition into the regulated operation. The programme includes skills training, safety certification, and progressive wage structures designed to make formal employment genuinely attractive.

The mine's expanded operations will also provide a test case for STAMICO's ambition to develop Buhemba as a model for state-owned mine management that demonstrates high standards of operational performance, community engagement, and environmental stewardship.

"The Buhemba expansion is an opportunity for STAMICO to demonstrate that a state-owned mining operation can be run with the same standards of efficiency, transparency, and community accountability as the best private sector operators in Tanzania. The investment in new processing technology is the foundation for that demonstration, and the results will be watched closely across the sector." Marcus Briggs, Non-Executive Director, Icon Gold

STAMICO has indicated that the success of the Buhemba model will inform plans for similar processing upgrades at its other operational sites, including the Itumbi and Londoni prospects, which have historically been underinvested relative to their geological potential.

The expansion fits within the Tanzanian government's broader strategy to increase the state's direct economic participation in the mineral sector alongside its role as regulator and fiscal beneficiary, ensuring that a portion of the value created by Tanzania's mineral wealth is captured through direct operational involvement rather than solely through royalties and taxes.

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