Small-scale miners contribute 40pc of mining revenue

DODOMA: THE government has said that over the past five years small-scale miners have contributed about 40 per cent of government revenue from mining, highlighting their growing role in the sector.

This was said yesterday by the Deputy Minister for Energy Salome Makamba while responding to a question from Aziza Ally (Special Seats, CCM) on the contribution of the two categories of operators.

Ms Ally asked for a breakdown of large- and small-scale miners’ contribution over the period.

She said the government is seeking to increase small-scale miners’ output by improving their access to financing.

Ms Makamba siad through the State Mining Corporation (STAMICO), the Ministry for Minerals has signed agreements with CRDB, NMB, KCB and NBC to establish special lending arrangements for small-scale miners.

“These financing arrangements are meant to enable small-scale miners to access funds and increase their production,” said Ms Makamba.

She said that government revenue from mining increased from 624.61bn/- in 2021/22 to 1.39tri/- in 2025/26, while mining’s contribution to gross domestic product rose from 7.1 per cent in 2020 to 10.3 per cent in 2025.

The increase put the sector’s GDP contribution above the government’s 10 per cent target.

In a supplementary question, Ms Ally asked what additional measures were being taken to help small-scale miners secure loans and expand their contribution to the economy.

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She also asked whether the government is offering tax relief or other incentives to help medium-scale operators transition into large-scale mining.

In response Ms Makamba said amendments to mining laws now allow licence holders who lack sufficient capital to seek technical assistance from qualified local and international experts to develop their licences.

Furthermore, she pointed out that, the government has also designated specific areas for small-scale mining to prevent operators from competing with large-scale miners for mineral-rich land, she said.

“The Ministry for Finance has an institution that provides loan guarantees to help small-scale miners access affordable financing,” said Ms Makamba.

She added that government would continue improving access to mining areas, technical and financial services, mineral markets, processing technology, and systems for regulating mineral trade.

“These measures will enable small-scale miners to increase production and strengthen their contribution to the national economy,” she said.