Tanzania generates Sh225 billion from mineral trading in 84 days

Tunduru. The government has generated Sh225 billion from mineral trading within the first 84 days of the 2024/25 fiscal year, as announced by minister of Minerals Anthony Mavunde.

The announcement was made during his visit to Tunduru District, Ruvuma Region, on Thursday, September 26, 2024, where he launched a newly developed mineral market in collaboration with public and private sector partners.

Speaking to President Samia Suluhu Hassan, who is on a regional tour to assess development projects and the implementation of the CCM election manifesto in Ruvuma Region, Mr Mavunde expressed optimism that the government would meet its Sh1 trillion target for mineral revenue in the current financial year.

He said that the Sh225 billion collected so far was achieved despite the lack of new mining projects.

“These achievements have been realised through increased efficiency, enhanced monitoring of mineral smuggling, and strict enforcement of mineral regulations,” Mr Mavunde explained.

In the previous 2023/24 fiscal year, the mineral sector saw Sh1.7 trillion in revenue, with Sh753 billion remitted to the consolidated fund, marking a significant increase from Sh161 billion in the 2015/16 fiscal year. 

The minister  credited these gains to amendments to the Mineral Act of 2017, which required the establishment of mineral markets and purchasing stations across the country.

To further support the mineral sector’s growth, the government has provided 89 vehicles and 140 motorcycles to facilitate operations and meet the Sh1 trillion revenue goal for the fiscal year.

Tunduru District Executive Director, Chiza Marando, highlighted the new mineral market project, valued at Sh1.4 billion. The facility was developed with financial contributions from Thai partners, who provided Sh1.085 billion, while the government contributed Sh389 million, which included Sh258 million for land value and Sh61 million from the district council.

The new facility features 127 rooms for administrative purposes, along with essential infrastructure such as a powerhouse and a police station to ensure the security of mineral trading activities.

Tunduru District and the surrounding areas are rich in various minerals, including gemstones, coal, uranium, gold, and diamonds, according to the region’s investment guide. Gold is primarily located along the Muhuwesi River in Tunduru, while coal deposits are found in the five basins of Ngaka, Muhukuru, Mbamba Bay, Njuga, and Lumecha.

Namtumbo District is particularly noted for its significant uranium deposits, as well as materials for buildings such as rocks, stones, gravel, sand, murals, and clay.