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Govt aims for enhanced reforms in mining

TANZANIA has set its sights on becoming a dominant player in the global mining sector, driven by a series of innovative government strategies designed to boost the industry growth and economic prosperity.

DAR ES SALAAM: TANZANIA has set its sights on becoming a dominant player in the global mining sector, driven by a series of innovative government strategies designed to boost the industry growth and economic prosperity.

The remark was made on Tuesday by Minister for Minerals Mr Anthony Mavunde during a virtual meeting on achievements of the sixth phase government on enhancing the mining sector in the country hosted by Tanzania Connect.

On Sunday during the closing of the 7th Mining Technology Exhibition in Geita, President Samia Suluhu Hassan said that in ensuring the growth of the mining sector, the government has allocated 250bn/- as a loan guarantee scheme to enable mineral buyers to borrow and operate effectively.

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“All of this is to ensure that the mining sector grows and a certain percentage of wealth remains in the country as a future guarantee,” said President Samia.

She further said that the government places significant importance on the mining sector, recognising its role in transforming citizens’ lives, especially small-scale miners and contributing to the economy by generating foreign currency.

“Last year, the mining sector contributed approximately 56 per cent of all foreign exchange earnings, making it the leading sector in this regard. That is the reason we prioritise this sector,” she added.

The Head of State said the government has also increased the Ministry of Mineral’s budget from 89bn/- for the fiscal year 2023/2024 to 231bn/- for 2024/2025 year, aiming to increase efficiency in the mining sector, including strengthening revenue collection systems and building the capacity of the Geological Survey of Tanzania (GST) to conduct comprehensive mineral exploration across the country.

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Currently, she said, only 16 per cent of mined areas have undergone survey. To address this, the government is purchasing equipment to conduct surveys nationwide to identify which minerals exist in each region and in what quantities.

“This investment is already bearing fruit.” Speaking during the virtual meeting, Minister Mavunde explained the significant strides made by the sixth-phase government in enhancing the mining landscape.

He mentioned the strategies as strengthening the revenue collection system and controlling mineral smuggling to ensure the country benefits from revenue generated through taxes, levies and various duties by connecting mineral markets with purchasing centres.

“For the 2024/2025 financial year, the mining sector intends to collect 1tr/-, within the first 90 days it had planned to collect 247bn/-, but to date the sector has already collected 287bn/-, exceeding the target by 106 per cent as it moves towards the 1tr/- goal,” Mr Mavunde said.

He said another strategy involves engaging Tanzanians through local content initiatives, with many citizens actively participating in the mining sector through direct and indirect employment, providing various services in mines and selling products.

The Minister said the government has also launched the Mining for a Brighter Tomorrow (MBT) initiative aimed at increasing the participation of women and youths in the mining sector, which has received a significant response.

Another strategy mentioned by the Minister is to enhance the value of minerals within the country through the Mining Act, which prohibits the export of unprocessed minerals and requires all minerals to be processed domestically to increase their value.

Prof Abel Kinyondo from the University of Dar es Salaam said there is involvement of citizens in the mining sector, particularly smallscale miners.

“Statistics show that there are between 1.5 million and 6 million small-scale miners, equivalent to 40 per cent of the total miners,” he said.

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Currently, he said that the country has 43 mineral markets, 100 sales centres and specialised training centres and model mines, which have contributed to changes in small-scale mining involving ordinary citizens.

Magare Essentials Company Limited Managing Director, Mr Mabula Magangila, noted that the existence of long-established mines and new mines at various stages of development indicate ongoing improvement in the sector and ensures that Tanzanians benefit from it.

He said that the presence of small-scale miners continues to grow and formalise, evolving into medium-scale miners through the use of technology.

Georgia Mutagaywa, Communication and Coordination Manager of Barrick Gold Corporation and Twiga Minerals said that based on her experience working in both international and local mining companies, the country has the political will to create enabling environments for investors.

She added that regarding local content, significant progress has been made, citing an example of Twiga Minerals, where foreign participation is only 6 per cent, while 94 per cent is local and local suppliers account for 82 per cent. State Mining Corporation (STAMICO) Managing Director, Dr Venance Mwasse said that the government has purchased drilling machines for small-scale miners to increase efficiency in their operations.

He said the government has created a conducive environment for foreign investors, which is why mines are performing well and there is harmony between small and large miners, contributing to sector balance.

Benedict Busunzu, Director General of Tembo Nickel, stated that under the leadership of Dr Samia Suluhu Hassan, the sixth phase government has changed the investment outlook for mining activities since taking office.