Production of the precious safe haven yellow metal gold by Tanzania, Africa's fourth largest gold producer, jumped 13 per cent to 40.4 tonnes in 2011 from 35.6 tonnes in 2010, as companies increased production output prompted by the metal's rising price during the period in reviews.

In a report on its Web site, the Central Bank of Tanzania said earnings from gold exports in 2011 rose 47 per cent to $2.226 billion.

As the country's biggest foreign exchange earner, gold contributed for 59.1 per cent of Tanzania's total non-traditional exports last year. It exports its gold to Switzerland, China and South Africa, along with diamonds and tanzanite.

"The price of gold went up by 28 per cent to $1,568 per troy ounce and the export volume increased to 40.4 tonnes from 35.6 tonnes recorded in 2010," the Central Bank of Tanzania said.

Meanwhile, African Barrick Gold, a unit of the world's largest gold producer Barrick Gold, announced on Wednesday it has voluntarily increased by 1 per cent royalty dues to the Tanzanian government.

The new royalty is apart from the 3 per cent rate specified in Mineral Development Agreements that African Barrick Gold signed with the Tanzanian government.

African Barrick Gold, which has four producing mines located in northwest Tanzania, contributed $176 million in taxes to Tanzania, and spent $400 million with Tanzanian registered suppliers and contractors in 2011.