Tanzania's mineral recovery value surges, gold leads growth
A handout photo from Africa Barrick Gold of the Buzwagi mine, located in northwest Tanzania. Photo | Courtesy
What you need to know:
- Stakeholders credit this growth to central bank gold purchases and efforts to curb smuggling, but urge further action. They call for accelerated new projects, more research and support for small-scale miners.
Dar es Salaam. Tanzania's value of mineral recovery rose by 24.3 percent to $1 billion (Sh2.6 trillion) for the quarter ending in September last year, compared to the same period the previous year.
This increase was primarily driven by the recovery of diamonds, gold, coal, and building materials.
Notably, gold accounted for 79.4 percent of the total value of mineral recovery and saw a 27.8 percent rise, influenced by both increased quantity and higher prices.
Stakeholders have expressed optimism about the sector's performance, citing the central bank's purchase of gold and market facilitation efforts that have helped curtail mineral smuggling.
Also read: Tanzania unveils mining sector's priorities in 2025
However, they stressed that further action is needed from both the government and the private sector.
There is a strong call for accelerating new projects to ensure ongoing production, conducting more research into other areas, and enabling small-scale miners to enhance their output.
Additionally, they underscored the importance of encouraging neighbouring countries, such as the Democratic Republic of Congo, to process their minerals locally.
According to the Consolidated Zonal Economic Performance report released by the Bank of Tanzania for the period ending in September last year, the value of coal experienced an 11 percent increase, driven by high demand particularly from India, Pakistan, Comoros, Kenya, the Democratic Republic of Congo, and the Netherlands.
The rise in diamond value was attributed to the resumption of production at the Williamson Diamond Mines.
“Regarding mineral recovery performance across various zones, all zones recorded increases in value, with significant growth observed in the Lake Zone, which accounted for the largest share of total mineral value at 63.4 percent, mainly driven by gold,” the report indicated.
The value of minerals traded at market centers surged by 38.9 percent to Sh952.4 billion compared to the corresponding quarter of 2023, largely due to higher gold prices in the global market.
Gold continued to dominate, making up 96.5 percent of the total value of minerals traded at market centres.
All zones saw an increase in minerals traded, except for the Central Zone, which remained relatively unchanged.
A source, who sought anonymity, told The Citizen that the mineral sector remains vital for the country’s economic growth and the influx of foreign currency.
The source emphasised the need for continued investment in geological surveys to identify new exploration areas once current sites are depleted. “We must leverage current gold prices by accelerating new projects that will further boost production and the economy. The government should prioritise these efforts,” they stated.
On the other hand, chairman of the Tanzania Chamber of Mines Philbert Rweyemamu acknowledged the sector's positive progress but stressed that the government should expedite negotiations for new projects, such as Nyangaza, which was expected to begin operations four years ago.
“The government’s negotiations have taken too long. Investors are waiting to secure funding from stock markets, but they will only proceed once all necessary documents are in order. Other countries are advancing. For instance, we possess strategic minerals like Kabanga Nickel, yet negotiations are still ongoing,” he remarked.
