Tanzania’s PM directs Ministry of Minerals to monitor inactive mining companies

Lindi. Prime Minister Kassim Majaliwa has instructed the Ministry of Minerals to closely monitor mining companies that have held on to exploration areas for extended periods without developing them, citing three firms operating in Ruangwa District as examples.

Mr Majaliwa said companies such as Nachu, Uranex and Paco Gems Ltd must clarify the status of the areas they have retained for years. If they fail to do so, the land will be reclaimed and returned to the local communities.

The directive was issued on Tuesday, October 7, 2025, during a visit to the Huaer International Limited mining site in Ng’au Village, Ruangwa District, Lindi Region.

“Paco Gems has remained inactive since 2009. Uranex in Chunyu paid compensation to residents as far back as 2012, yet there has been no progress to date. As for Nachu, which had the honour of signing an agreement before the President of the United Republic of Tanzania, the company has since disappeared without providing any information,” Mr Majaliwa said.

He commended Huaer International Limited for quickly initiating its investment after obtaining all the necessary permits.

“Your company began inspections in 2024, received results the same year, applied for permits, and today has commenced construction. You deserve recognition and should serve as an example for other companies that have delayed development,” he said.

The Prime Minister noted that the company’s establishment aligns with President Dr Samia Suluhu Hassan’s vision of creating employment opportunities for Tanzanians through strategic investments.

“This company has started and continues construction. Once completed, it will provide jobs for Tanzanians, particularly residents of Ruangwa,” he said.

He also urged young Tanzanians employed by the company to work with diligence, professionalism, discipline and integrity.

“We need to assure investors that our youth are employable and capable of performing their roles efficiently,” Mr Majaliwa said.

Acting Lindi Regional Commissioner and Mtwara Regional Commissioner, Colonel Patrick Sawala, thanked the government for opening up investment opportunities in Lindi and across the country, noting that such initiatives have significantly boosted local development.

He said Huaer International Limited’s investment will be a major economic opportunity not only for Ruangwa District and Lindi Region but for Tanzania as a whole.

“As a region, we are committed to implementing all government investment policies and to maintaining a conducive environment to attract and retain more investors,” Colonel Sawala said.

The project, valued at $20 million, is expected to boost local economic activity and create numerous employment opportunities once fully operational.