Coal demand increases as Tanzania values  it as a vital player in the manufacturing sector

DODOMA: TANZANIA’S push for industrial growth is set to significantly increase demand for coal, with Mining Minister Anthony Mavunde saying the resource will play a central role in powering value addition and manufacturing expansion.

Speaking during a stakeholder meeting on coal development held at the Mining Commission hall in Dodoma today, March 30, 2026, Mr Mavunde said coal remains a strategic input not only for energy generation but also for strengthening industrial production chains.

According to the minister, proper utilisation of coal would help reduce import dependence, boost domestic production, and enhance value addition across key sectors including mining, energy and industry.

“Coal is a key pillar in industrial development. We must increase production and ensure its use adds value within the country,” he said.

Additionally, the minister said the government will continue engaging stakeholders in the sector to resolve challenges and improve efficiency in production, transport, and marketing.

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Miners and traders used the forum to raise concerns, including high production costs, transport constraints and limited access to reliable markets where the minister assured them that the government is working on solutions to improve the investment climate.

He further highlighted a major industrial development, noting that A1 Steels Tanzania Ltd plans to establish a steel manufacturing plant in Dodoma, expected to consume about 20,000 tonnes of coal annually.

The project, he said, is expected to stimulate coal demand and create new opportunities for local miners while strengthening Tanzania’s industrial base.