Miners push BoT for exploration surveys

DAR ES SALAAM: THE Artisanal and SmallScale Miners (ASMs) have urged the Bank of Tanzania (BoT) to conduct geological surveys in efforts to make their mining predictable.

Surveys would also ease their access to loans, enabling them to expand their capital, owing to the predictability that guarantees loan repayment.

They made the call this week, during the capacity building training to ASMs, over alternative ways of investments for their better tomorrow, which was organised by the Central Bank in Mwanza. One of ASMs in the Shilalo gold mine, Misungwi District (Mwanza), Ms Tagaya, stressed that surveys show not only mineral reserves, but also the available (minerals) amount.

“Then how big or small the mineral rock is, would suggest the kind and size of technology that should be applied for extraction on such a specific reserve,” she said.

Another participant, Mr Omary Kakia, supported the initiative and called for the establishment of special mining zones dedicated exclusively to artisanal and small-scale miners (ASMs), whose capital is typically limited.

ALSO READ: Octopus fishers record bumper harvest

He observed that investors with greater financial capacity often sideline ASMs by encroaching on areas where the latter have already identified mineral reserves through their own efforts.

To boost productivity in ASM operations, the Bank of Tanzania (BoT) encouraged miners to invest in government bonds, which can also serve as collateral for quick access to loans, as the coupons provide assurance of repayment.

The Bank’s Senior Financial Investigator, Mr Fidelis Mkate, noted that preliminary findings indicate limited access to loans remains a major challenge for ASMs due to a lack of collateral, often leading to low or non-productive investments.

Opening the meeting, Ilemela District Commissioner, Mr Amir Mkalipa, urged ASMs to seize opportunities in the extractive sector, including investing in accommodation facilities around the upcoming Sotta Gold Mine at Sengerema District in Mwanza Region, a project valued at over 500 million US dollars.