Tanzania turns to research to expand mining

Speaking on the first day of the two-day Tanzania Mining and Investment Forum 2023, themed “Unlocking Tanzania’s Future Mining Potential”, government officials, industry experts and international stakeholders emphasised the significance of research in harnessing the country’s vast mineral resources.

The government’s vision is to boost mineral production and attract investment through extensive research, with President Samila Suluhu Hassan emphasising the need for geological information to attract investors and facilitate detailed exploration.

She reiterated the government’s plan to conduct mineral research using “High Resolution Geophysical Survey” technology in various parts of the country to improve geological information.

In a speech read on her behalf by Deputy Prime Minister and Energy minister Doto Biteko, President Hassan highlighted that information would help identify indicators of mineral presence in various regions, reducing the cost and time of research and attracting potential investors.

The discovery of new diamond-rich sediments is expected to result in the opening of more mines, thereby increasing income and employment opportunities in the country.

“I call on development stakeholders to support the government’s efforts to ensure that the plan to obtain more geological information in various areas of our country is successful,” President Hassan said.

The government’s ambitious goal is to see the mining sector contribute ten percent or more to the national GDP by 2025, a significant increase from the 9.1 percent contribution recorded in 2022.

Tanzania has already engaged nine international mining companies in joint ventures to mine various minerals, including nickel, heavy mineral sands, rare earth elements, gold and diamonds.

Minerals minister Anthony Mavunde stressed the role of geological information in deep mineral exploration. He pointed out that countries successful in mining have invested in obtaining such data to attract investors for detailed exploration.

Tanzania has lagged behind in terms of geological information. Mr Mavunde disclosed that only 16 percent of the country has been researched using “High Resolution Airborne Geophysical Survey” technology, which is essential for identifying indicators of mineral presence.

But, he said, his ministry planned to conduct extensive geological research using modern technology to bridge the gap. “The research will not only benefit large-scale mining operations but also empower small-scale miners by providing valuable data on sediment locations, enhancing productivity in the sector.”

Diamonds, renowned as one of the world’s most sought-after treasures, are poised to play a pivotal role in the country’s mining expansion, according to experts. Recent data from the Kimberley Process, an initiative regulating the global diamond trade, underscores the prominent role African nations’ play in the global diamond industry.

Tanzania, ranking ninth among African diamond-producing nations in 2022, produced a total volume of 375,533.14 carats valued at $110,936,767.64.

However, experts from the Minerals ministry and the Minerals Commission believe that the country has the potential to become a leading global diamond producer, provided they successfully enhance research efforts to identify new diamond-rich areas.

“Currently there are about 35 areas with indications of the presence of diamonds, with the Williamson diamond mine being the one under extraction. If research is done and certainty is given in the areas of indicators, I believe more investors will invest in diamond mining,” a Minerals ministry official said.

As the world accelerates its transition to clean energy, the demand for critical minerals and metals is set to soar. The International Energy Agency (IEA) estimates that meeting the clean energy targets of the Paris Agreement will quadruple the demand for clean energy minerals by 2040.

An expert in the mineral sector, Dr Ayubu Mtweve, said that with Africa holding substantial reserves of critical minerals and transition metals, including Tanzania’s wealth of resources, the opportunity for the nation to become a global mining hub has never been timely.

The country’s mining sector has become the leading foreign exchange earner, contributing increasingly to its GDP. Dr Mtweve noted that the opportunity to harness its position as East Africa’s mining hub for the world was evident.

Moreover, the country holds 19 mineral licences at the grassroots exploration stage, including Rare Earth Elements (REE) and a copper resource project estimated at five million tons. These resources represent a vast untapped potential that can significantly bolster the nation’s economic development.

“With diamonds and other minerals, the nation is poised to attract more investors and deepen its exploration efforts, ultimately contributing to economic growth and job creation,” Dr Mtweve told The Citizen in the corridors of the forum.