Dar es Salaam. Stakeholders have called for legal reforms to improve exploration, streamline joint ventures, and centralise permit issuance, enabling Tanzania to capitalise on the opportunities within its lucrative critical minerals sector.
Other recommendations include promoting domestic value addition, empowering small-scale miners, and enhancing the recycling of mining products.
These proposals were shared at a recent Policy Forum breakfast debate themed Critical Minerals and Tanzania’s Energy Transition: Seizing Opportunities While Learning from the Past.
Adavale Resources Tanzania Limited general manager, Mr Gerald Mturi, reflected on past lessons and prospects and acknowledged significant progress. He emphasised the need for further legal and regulatory reforms to harness Tanzania’s critical mineral resources.
He proposed reforms to the Tanzania Mineral Act, explaining that the current structure discourages exploration.
“Improvements are needed in areas such as procurement under Local Content Regulations and joint venture structures for mine supplies to encourage more local participation,” said Mr Mturi.
He explained that obtaining a mining or exploration licence near reserves requires additional approvals from various bodies, including the Tanzania Forest Services Agency (TFS), the Tanzania Wildlife Management Authority (TAWA), and the National Environment Management Council (NEMC).
“I propose the establishment of a One-Stop Centre at the Mining Commission, where representatives from these agencies could issue all necessary permits, including Environmental Impact Assessments,” he said.
He argued that this streamlined process would greatly improve the efficiency of the country’s mining operations.
Mr Mturi also highlighted the importance of small-scale miners, who contribute 40 percent of Tanzania’s total mineral exports.
He called for greater efforts to enhance local capacity and pointed to the construction of a smelting plant in Kahama as part of the Kabanga Nickel Project in Ngara, which aims to process extracted nickel, iron, and gold-making copper concentrates. “These discussions are crucial, as Tanzania often initiates large projects but struggles to see them through,” he remarked.
Tanzania’s mining sector has undergone a significant transformation as the country has moved from an era of limited expertise and inadequate infrastructure to a more structured and competitive industry.
Mr Mturi reflected on the country’s early days of mineral exploration and mining, saying the country was transitioning from a socialist economy where there was little understanding of how the mining industry operated.
He pointed out that many of the agreements signed during that time would now be considered questionable. “Many assume corruption played a role, but I believe it was a lack of knowledge. Those who signed the agreements simply didn’t understand the complexities of the industry and were taken advantage of. That was one of our major historical challenges,” he said.
Beyond contractual issues, Mr Mturi noted that Tanzania also faced a severe skills gap, noting that although the country had industrial electricians, for example, they lacked experience in extractive operations.
Additionally, infrastructure was in poor condition, with the main road from Dar es Salaam to the mining-rich Lake Zone only tarmacked up to Dodoma, with the remainder being sandy and barely passable.
“Electricity supply was another major hurdle. Power generation was insufficient, and transmission infrastructure was inadequate. It took 25 years for Geita Gold Mine (GGM) to be connected to the national grid,” he explained.
“Until then, the mine relied on diesel generators, consuming up to eight million litres of diesel per month—a significant loss of foreign exchange due to the Tanzania Electric Supply Company Limited’s (Tanesco) inability to provide reliable power,” he added. However, he acknowledged substantial improvements, with significant upgrades in infrastructure, including better roads and ports, such as the one in Mtwara, which is now facilitating coal exports.
While the power supply has improved, he noted that transmission remains a challenge. The regulatory framework has also evolved, with amendments to the Mining Act in 2017 and 2018, which introduced Corporate Social Responsibility (CSR) and Local Content Regulations.
These amendments enabled Tanzanian businesses to supply consumables to mines—an area previously dominated by foreign suppliers.
“In the past, local firms would win tenders but fail to sustain supply, forcing mining companies to look abroad. That has changed, with more Tanzanian-run businesses thriving in the sector,” he said.
The Women in Mining Operations Chief Executive Officer (CEO), Ms Lightness Salema, emphasised the need for a dedicated framework to support the development of critical minerals in Tanzania.
She stressed the importance of involving key stakeholders—government representatives, ministries, institutions, miners, and local communities—arguing that selecting the right individuals for such a framework is essential for effective dialogue and the development of practical solutions.
“We need a clear strategy to uplift local communities, as many challenges persist at the grassroots level,” she said. Mr Salema acknowledged that local employment in mining provides benefits but argued that it should not be viewed as the sole driver of economic advancement.
She called for the active inclusion of local communities in economic activities beyond employment.
Drawing on examples from Canada, Chile, and Australia, she pointed out that local communities in these countries are not merely recipients of CSR initiatives but active participants in the mining industry.
She also raised concerns over the fairness of joint ventures, in which Tanzanians often hold minority stakes of 15 percent, 19 percent, or 20 percent. These ventures are typically financed through loans from local banks. “Why can’t we establish a 50/50 profit-sharing model?” she questioned, suggesting that investors should contribute capital while Tanzanians provide resources for equal sharing of benefits.
She proposed that if investors need to recover initial capital, profits could initially be distributed to them. However, once profitability is achieved, the profit-sharing model should gradually shift towards a more equitable split.
Ms Salema also called for a stronger focus on empowering local communities and institutions, such as the State Mining Corporation (Stamico), through strategic partnerships.
She recommended that CSR funds be used to support local miners and fund sustainable environmental projects rather than solely to fund infrastructure.
Asusa Creative Writers Initiative Programme adviser Ms Dariah Clemence urged the government to involve all stakeholders in the mining sector, as it does in youth policies and other areas. “Active participation is crucial, as engagement in the mining industry remains limited,” she stressed.
Mr Clement Mworia, executive secretary of the Tanzania United Contractors and Allied Services Association (TUCASA), raised concerns over the status of the country’s copper concentrates.
Meanwhile, Mr Calvin Mmary of the Mentorship to Youth on Development and Global Change Organisation (MYDEGC) criticised public officials for shifting priorities after assuming office.
He referred to the Controller and Auditor General (CAG) report, which mentioned plans to manufacture concrete electric poles, plans that have since been abandoned.
“Inadequate funding to research institutions, like the University of Dar es Salaam (UDSM), prevents comprehensive studies on critical national issues,” he said.
