2024 ends with the resumption of Tanzanite auctions

As 2024 draws to a close, Tanzania has made remarkable progress in revitalizing its mining industry, highlighted by the highly anticipated tanzanite auction held this December in Mirerani, a small town in Simanjiro District, Manyara Region.

This event, the first of its kind since 2017, represents not just a financial success but also a clear reflection of Tanzania’s broader commitment to improving its mining sector.

With 184 kilograms of tanzanite valued at approximately 3.1 billion TZS (around USD 1.3 million) sold at the auction, the event showcased numerous benefits for both miners and the nation, including competitive and transparent pricing, greater revenue retention, and a boost to economic growth. Tanzania is home to one of the world’s rarest and most valuable gemstones—tanzanite.

Discovered in the 1960s near the Mererani Hills in northern Tanzania, tanzanite is highly prized for its striking blue-violet color and is found nowhere else in the world. The gem has steadily gained popularity, particularly in international markets, with jewelry enthusiasts and collectors worldwide vying for pieces crafted from this precious stone.

The December auction featured a wide array of tanzanite stones in various sizes and quality grades, with a total weight of 184 kilograms. Held under the supervision of the government, the auction reflected increased oversight of the gemstone market to curb smuggling and ensure that revenue from Tanzanian tanzanite directly benefits the country.

While the exact details of the auction, such as the number of buyers and final prices for specific stones, remain confidential, the event was heralded as a major success for Tanzania’s mining sector. According to government officials, the proceeds—approximately 3.1 billion TZS—are expected to support national development projects, including infrastructure improvements, education, and healthcare.

In the words of the Minister for Minerals, Doto Biteko:
“This auction represents a new chapter for the Tanzanian mining sector. It demonstrates our commitment to improving transparency, ensuring fair trade, and attracting international investors. It’s not just about tanzanite—it’s about leveraging our mineral wealth to build a brighter future for Tanzanians.”

Deputy Permanent Secretary in the Ministry of Minerals, Msafiri Mbimbo, reported that the auction attracted 195 registered participants, including 120 small-scale traders, 59 large-scale traders, seven gemstone cutters, and nine miners.

Tanzania’s mining industry plays a critical role in the country’s economic development. As of 2024, minerals account for around 4% of Tanzania’s GDP, with the sector growing steadily due to new investments and an increasingly favorable regulatory environment.

In addition to tanzanite, Tanzania boasts vast deposits of gold, diamonds, gemstones, and a variety of industrial minerals. The country is Africa’s fourth-largest producer of gold, with reserves estimated to be worth billions of dollars. Tanzanian gold mines, such as those in Geita, have attracted significant foreign investment, and the country remains a key player in global gold production.

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In recent years, Tanzania has also seen increased exploration activities in sectors such as graphite, nickel, and uranium.

Since President Samia Suluhu Hassan took office in 2021, Tanzania has implemented a series of reforms aimed at modernizing the mining sector. One key initiative has been renegotiating mining contracts with foreign investors to ensure a larger share of profits stays within the country. These negotiations aim to make Tanzania a more attractive destination for investors while ensuring the country receives a fair return for its mineral resources.

The Ministry of Minerals has collected 434bn/- in just five months, thanks to reforms such as the establishment of mineral markets and buying centers across the country. Minister for Minerals Anthony Mavunde noted that in the 2024/2025 fiscal year, the ministry plans to collect 1tri/- . By December 1, 2024, it had already collected 434 billion TZS, raising strong hopes of exceeding the target.

As Tanzania moves into 2025, the mining industry is expected to continue growing, fueled by reforms, rising global demand for certain minerals, and ongoing infrastructure development.

The resumption of tanzanite auctions is just one example of how the country is positioning itself as a key player in the global mining sector. By enhancing transparency, improving governance, and ensuring that more of the wealth generated from minerals stays within the country, Tanzania is setting itself up for a prosperous future.