Tanzania unveils new strategies to promote mineral value addition

Dar es Salaam. The government on Tuesday outlined comprehensive strategies to enhance mineral value addition, focusing on maximising socioeconomic benefits from the country’s natural resources.

The plans were highlighted on the opening day of the Tanzania Mining and Investment Conference 2024 at the Julius Nyerere International Convention Centre (JNICC) in Dar es Salaam. The event, which ends on November 21, is themed “Mineral Value Addition for Socioeconomic Development”.

Minerals minister Mr Anthony Mavunde reiterated the government’s commitment to transforming Tanzania’s mining sector into a key economic driver.

Among the initiatives announced is the construction of a state-of-the-art mineral refining plant at the site of the former Buzwagi Gold Mine in Kahama, Shinyanga Region.

“We are also constructing modern laboratories in Dodoma, Geita, and Chunya to support local miners who have been relying on international facilities for sample testing,” Mr Mavunde said.

He added that the facilities would significantly boost mining activities, reduce operational costs, and enhance the sector’s global competitiveness.

To further advance the sector, the government has procured helicopters for geological surveys and achieved 97 percent completion in geological mapping. This is expected to unlock new opportunities for exploration and investment.

Mr Mavunde noted that the sixth phase government has increased the Minerals ministry’ budget from Sh89 billion to Sh231 billion in efforts to transform the mining sector.

According to him, a significant portion of the funding has been directed to the Geological Survey of Tanzania (GST) to support research and infrastructure development.

For his part, Prime Minister Kassim Majaliwa, who was the chief guest, said the GST has been instrumental in conducting nationwide research to identify and categorise mineral deposits.

The findings have been compiled into a detailed book indicating the types, locations, and availability of minerals in various regions, districts, and villages across Tanzania.

Mr Majaliwa emphasised the importance of collaboration between stakeholders and the government to ensure the sector’s growth.

He directed Tanzania Electric Supply Company (Tanesco) to prioritise electricity supply for mining, refining and value addition projects.

“I urge all gold miners and traders to comply with legal requirements by selling their gold to the Bank of Tanzania (BoT) through designated refineries. This will strengthen our national gold reserves and promote economic stability.”

The Prime Minister also highlighted Tanzania’s investor-friendly policies, emphasising that the government aims to ensure mutual benefits from mining investments.

“What the government wants most is for both sides—investors and the nation—to benefit equitably and respectively from the investments,” he said.

Mr Majaliwa also underscored the need for sustainable mining practices, urging miners to adopt eco-friendly technologies to mitigate environmental damage.

“The mining sector must become part of the global solution to climate change rather than contributing to environmental degradation.”

Mr Majaliwa tasked the Minerals ministry and the Environmental Management Department with ensuring all mining activities meet environmental standards.

Tanzania Chamber of Mines chairman Filbert Rweyemamu commended the government’s efforts in bolstering electricity supply to the national grid, noting that it has effectively cut operational costs and boosted production.

He urged policymakers to maintain initiatives that foster a favourable climate for both domestic and foreign investors.

“The improved energy supply is a game-changer, and consistent investor-friendly policies will ensure sustained growth in the mining sector,” Mr Rweyemamu said.

The chairman of Parliament’s Energy and Minerals Committee, Dr David Mathayo, commended the Minerals ministry’s initiatives which reflect the committee’s recommendations.

“We have consistently advised the Ministry to invest in research and exploration to identify untapped resources. Their commitment to these efforts is yielding tangible results,” he said.

Federation of Small-Scale Miners vice president Victor Tesha outlined key requests from the small-scale mining community.

“We need more excavation machines—currently, there are only ten, but by December, we expect 15. Ideally, every district should have at least one machine. Additionally, we request the reallocation of 2,000 revoked mining licences to small-scale miners,” he said.

Mr Tesha expressed confidence in the sector’s ability to contribute up to 80 percent of Tanzania’s mining output by 2030 with adequate government support.