Tanzania small-scale miners smell fortune

Minister for Minerals, Mr. Anthony Mavunde

DODOMA: THE government, through the Ministry of Minerals, has unveiled a special strategy aimed at empowering small-scale miners to progress into medium and large-scale mining operations.

The initiative seeks to facilitate access to capital, modern technology, and sustainable capacity-building to enhance their mining and business skills.

Minister for Minerals, Mr. Anthony Mavunde, revealed the plan yesterday in Dodoma during a special meeting with leaders of the Federation of Miners’ Associations of Tanzania (FEMATA).

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The discussions focused on improving the mining sector’s management and business operations for the overall benefit of the industry and the nation.

Minister Mavunde stated that the programme would help small-scale miners transition into medium-scale mining and ultimately become owners of large mining enterprises that significantly contribute to the country’s economy.

“The government recognizes the contribution of small-scale miners to national revenue. Through this initiative, we aim to identify and support the most committed and skilled small-scale miners, enabling them to scale up and own large mining ventures. Our goal is to see, in the coming years, Tanzanian billionaires emerging from this sector,” said Minister Mavunde.

He directed the Mining Commission to establish a system for identifying outstanding small-scale miners who will be included in the empowerment programme to ensure gradual and tangible progress in the sector.

As part of the strategy, Minister Mavunde disclosed that the government, through the Ministry of Finance, will utilize the Export Guarantee Scheme to enable small-scale miners to access affordable loans. The financial support will allow them to acquire modern machinery and equipment, shifting from trial mining to more productive and profitable operations.

“We want to empower small-scale miners to own efficient machinery that will boost production and increase their incomes. Through this guarantee fund, they will access loans under favorable terms, allowing them to invest more in the mining sector,” Minister Mavunde emphasized.

In ensuring miners access accurate geological data before beginning extraction, Minister Mavunde instructed the State Mining Corporation (STAMICO) to acquire additional portable drilling machines and modern geological survey equipment. He emphasized that STAMICO must provide affordable, high-quality services to small-scale miners to enable scientific and efficient mining practices.

“We will not distribute the drilling machines immediately; instead, we will first acquire additional modern equipment. This way, small-scale miners will not only extract minerals but also process them on-site. We aim to enhance their efficiency while reducing operational costs,” added Minister Mavunde.

During the meeting, Minister Mavunde and FEMATA leaders agreed on five key resolutions to uplift small-scale miners in Tanzania.

Announcing the resolutions, Permanent Secretary in the Ministry of Minerals, Eng. Yahya Semamba, highlighted the formation of a special advisory team to provide recommendations on how best to economically empower small-scale miners.

Other resolutions include reducing or eliminating various taxes imposed on small-scale miners, establishing a special body to assess miners’ activities and issue certification to enhance their creditworthiness, and launching FEMATA-led projects for self-sustainability. Additionally, a nationwide rally is planned to express support for President Samia Suluhu Hassan’s initiatives to uplift the mining sector.

Minister Mavunde reaffirmed the government’s commitment to ensuring the economic empowerment of small-scale miners, emphasizing that the engagement with sector stakeholders was crucial in shaping policies that align with their needs.

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The meeting brought together leaders from various small-scale miners’ associations under FEMATA. It was attended by key figures, including Mining Commissioner Dr. Abdulrahman Mwanga and STAMICO Chief Executive Officer Dr. Venance Mwasse.

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