DAR ES SALAAM: AS Tanzania celebrates 63 years of independence, geologically, the country has continued to reap the benefits of its rich mineral resources for economic prosperity.
Geologically, Tanzania is endowed with various mineral resources, making it one of the leading mineral-producing countries in Africa.
The minerals produced in the country include gold, copper, diamonds, tanzanite, ruby, limestone, gypsum, gravel, sand, clay, uranium, coal, etc. This makes the mining sector a significant contributor to the community and the national economy.
To enhance the national income derived from mineral products, Tanzania and the world at large are focusing on adding value to these products. Therefore, to develop productive mining activities, investment in industries and technologies for value addition of mineral products, such as processing, refining and polishing industries is essential.
Tanzania is recognised in Africa and globally for its abundant mineral resources. These minerals are mined both through open-pit and underground methods using different technologies and equipment depending on the level of investment.
Tanzania’s minerals are categorised into metallic minerals (gold, iron, silver, copper, nickel, niobium); gemstones (diamonds, tanzanite, ruby, sapphire, etc.); construction minerals (sand, gravel, stones, clay and aggregates); industrial minerals (limestone, gypsum, salt); Strategic minerals (graphite, nickel, cobalt); and energy minerals (coal and uranium).
Strategy for value addition of minerals
Mineral Value Addition is the process of improving raw minerals by processing and transforming them into intermediate or final products that have higher market value.
This process involves several crucial steps that can increase revenue, employment and technological development in the country. A comprehensive strategy for adding value to minerals considers market demands, technological capabilities, infrastructure and regulatory environments to boost the economy for the benefit of society and the nation.
Value addition of minerals is implemented through private sector, public sector, collaboration between public and private sectors, mining stakeholders and research institutions to achieve specific goals.
Mineral value addition steps include; beneficiation, processing, refining and manufacturing.
Beneficiation involves the physical or chemical separation of minerals from ore to increase their purity and quality. Beneficiation can improve the value of minerals by removing impurities and increasing their concentration. For example, nickel ore from Haneth – Dodoma can be value added from 2.5 per cent to 60 per cent.
Processing involves converting raw minerals into intermediate or final products through techniques such as crushing, grinding and sorting. This can enhance the value of minerals by making them suitable for specific applications or markets.
Refining is the process of purifying minerals to remove impurities and produce high-quality products. For example, refining of metals like gold, silver and platinum involves processes such as smelting, electrolysis and chemical treatments.
To date, Tanzania has more than 14 refineries including six gold refineries with capacity ranging from 60kg to 600 kg per day which are located in Geita, Mwanza, Kahama, Dodoma and Dar es Salaam. There are also eight smelters for graphite, copper, nickel and tin located in Kagera, Shinyanga, Tanga, Dodoma, Dar es Salaam and Lindi regions.
Manufacturing involves using processed minerals as raw materials to produce finished goods. This can add significant value to minerals by creating products with higher market demand and value. In Tanzania there are ten lapidaries including four large lapidaries and six small lapidaries in Dar es Salaam and Arusha.
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The importance of innovation and technology
Investing in research and development to improve processing techniques, develop new products and optimise production processes can also enhance the value of minerals.
Overall, a comprehensive mineral value addition strategy should consider factors such as market, demand, technological capabilities, infrastructure and regulatory environment to maximise the economic benefits of mineral resources.
Overall, a comprehensive mineral value addition strategy should consider factors such as market, demand, technological capabilities, infrastructure and regulatory environment to maximise the economic benefits of mineral resources.
Some minerals and their products
Tanzania’s metallic minerals; gold, iron, silver, copper, nickel and niobium, are used differently based on their properties and needs of various sectors.
Gold, which is abundantly found in the Lake Zone region of Geita, Shinyanga, Mara and Mwanza regions, is used to make valuable jewellery such as necklaces, rings and earrings. It is also used in the manufacture of electronic devices such as computer cables due to its excellent conductivity.
Iron is a crucial raw material in the construction sector and the manufacture of various products such as railway tracks (SGR), rebar, doors and kitchen utensils (pots and plates). It is also used in the manufacture of vehicles, machinery and infrastructure construction such as buildings, bridges and roads and is also used to manufacture cement.
Iron is abundantly found in the Liganga area, Njombe Region, which has large iron ore deposits, as well as in other parts of the country.
Silver, which is obtained as a by-product in gold and copper deposits, especially in the Bulyanhulu and North Mara mines, is used to make valuable jewellery, household items like spoons and plates and in electronic devices such as phones. It is also used to make computers, batteries and solar panels (electricity and solar power).
Copper, abundantly found in the Lake Zone and western parts of the country, is used in the manufacturing of electrical wires and electronic devices. It is also used in making pipes and household items such as door handles and decorations.
Tanzania’s gemstones tanzanite, diamonds, rubies, sapphires and garnets), predominantly found in Mirerani-Manyara, Tanga, Morogoro and Mwanza, are famous for their beauty and are mainly used in the production of valuable jewellery such as rings, earrings, necklaces, bracelets and other precious items.
Although there are small-scale gemstone processing industries in the country that manufacture these gemstones for local and international markets, the gemstone sector in Tanzania faces challenges such as export of rough gemstones (un-cut, un-polished and un-processed), lack of modern processing technology and lack of reliable markets for small-scale miners.
However, the government has initiated efforts to encourage gemstones value addition by establishing the Tanzania Gemological Centre in Arusha with the specific role of training young Tanzanians to various aspects of gemstones value addition and stone carvings. Other efforts include building processing industries, establishing gemstone markets and mineral auctions (both domestic and international) to ensure gemstones minerals contribute more to the national income and boost the country’s economy.
Tanzania is also rich in industrial minerals such as limestone, gypsum, coal, kaolin, soda ash and phosphates. These minerals are used in the production of various essential products for the construction, agriculture, energy and other industries.
Gypsum is used to make cement, construction plaster, wallboards (gypsum boards) and also as a soil conditioner in agriculture. Gypsum is extensively mined in areas such as Itigi (Singida), Manda (Dodoma), Mkuranga (Coast Region), Kilwa and Lindi. The gypsum is used by Knauf Gypsum Tanzania to produce gypsum boards for construction, as well as by Dangote Cement in Mtwara, Camel Cement in Dar es Salaam and Lafarge Holcim (Mbeya Cement) for making cement. Additionally, gypsum is used in building construction for making plaster and wallboards.
Limestone is a key raw material in cement manufacturing. It is also used in agriculture to neutralise soil acidity and as a raw material in the production of paint and glass. Limestone is abundantly found in areas such as Tanga, Wazo Hill (Dar es Salaam), Lindi and Mbeya. The limestone produced in the country is used in cement factories like Wazo Hill Cement Factory, Kiln Product Industries, Tanga Cement and Mbeya Cement Factory. It is also used in the agricultural sector as a fertiliser for highly acidic soils.
Phosphate is used to make phosphate fertilisers and is also used in the production of soap and other industrial chemicals. Phosphate is extensively mined in areas such as Minjingu (Manyara) and Nachingwea (Lindi). Industries that use this raw material to produce fertilisers include Minjingu Mines & Fertiliser Ltd (Minjingu Rock Phosphate – MRP). Phosphate raw material is also used in soap industries as an ingredient in the production of powdered and bar soaps.
Soda Ash is used in the production of glass, soap, industrial chemicals and also as a raw material in making powdered and dishwashing soaps. Soda ash is abundantly found in the Lake Natron area, in Arusha Region. It is used in industries for the production of glass and glass products. These industries use sand and gravel to make cement blocks. Examples include Nyati Cement Blocks and Hansa Blocks (Dar es Salaam); Concrete Mixing Plants; Industries like Simba Cement and Bamburi Ready Mix use sand and gravel in making concrete. Road Construction Companies such as China Civil Engineering Construction Corporation (CCECC) and Sinohydro Corporation use gravel and sand in road construction.
Clay is used in the manufacture of burnt bricks, roofing tiles, decorative pots and other pottery products. Clay is found in areas such as Pugu (Dar es Salaam), Bagamoyo (Pwani), Moshi (Kilimanjaro) and Kondoa (Dodoma). In value addition processes, there are industries that use clay to make burnt bricks like Kioo Limited (Dar es Salaam); roofing tile industries like Tanga Tiles and Kilimanjaro Ceramics and pottery industries including small pottery industries like Nungu Ceramics that make pots and decorative items.
Marble and granite are used to make floors, wall tiles, countertops and statues. They are also used in the construction of luxurious buildings and tombstones. Marble is found in areas like Kilimanjaro and Dodoma, while granite is found in areas like Mbeya, Morogoro and Dodoma. In the value addition, there are marble industries like those in Dodoma. Marble Ltd manufactures marble products for flooring and walls, while Granite industries such as Mbeya Granite Factory and Morogoro Stone Quarry produce granite tiles and countertops for both domestic and international markets.
Tanzania also has a wealth of strategic minerals, which are becoming increasingly important in the production of new technologies and renewable energy. Some of these minerals are nickel, cobalt, graphite and rare earth elements (REEs).
Nickel is used in the production of stainless steel, electric vehicle batteries, chemical industries and in making alloys that resist corrosion and high temperatures. It is also a crucial raw material in the manufacture of electronic devices (phones, computers, etc.). According to research, nickel is abundantly found in areas such as Kabanga (Kagera), Haneth (Dodoma) and Lindi. Although nickel is used in international industries that manufacture stainless steel products, domestic industries utilising nickel are not yet well established in the country.
However, electric vehicle battery industries use nickel as an essential raw material for lithium-ion batteries used in electric vehicles. Although such industries do not currently exist in the country, the raw material is exported. Also, Kabanga Nickel Project aims to mine and transport nickel through the Kahama refinery (Tembo Nickel Refinery Company Limited) and establish industries to process these minerals for domestic use and export.
Cobalt is used in the production of electric vehicle batteries, phones and electronic devices. It is also used in industries that manufacture stainless steel alloys and superalloys.
Graphite used in the manufacture of batteries, construction materials, electrical equipment and industrial products such as electrodes, electric brushes and lubricants. Graphite is found in areas like Nachu (Lindi), Handeni (Tanga) and Mererani (Manyara).
Lithium-ion battery industries use graphite as a raw material for anodes in batteries for electric vehicles and electronic devices. Electrical industries use graphite to make electric brushes used in electrical equipment and electric motors.
Currently, this raw material is exported. The Mahenge Graphite Project aims to mine and process graphite for battery use as well as supply the mineral to other sectors worldwide.
Rare Earth Elements (REEs) are used in the manufacture of electronic devices, powerful magnets, electric vehicle batteries, military equipment and renewable energy technologies such as wind turbines. These minerals are abundantly found in areas like Lake Rukwa and Ngualla (Njombe).
To add value to REE minerals, the Ngualla Rare Earth Project aims to mine and process rare earth minerals for domestic use and export.
Benefits, challenges and opportunities in value addition activities
Processed or value-added products are sold at higher prices in the market, thus increasing the income of the country and communities involved in the sector. Value addition processes also require more workers, thus increasing employment for local citizens and helping to reduce the problem of unemployment;
On the other hand, value addition requires modern technologies and specialised expertise, which can help in enhancing the professional capabilities of the country and developing other production sectors. Additionally, a country that processes and adds value to its minerals can control product prices in the market and avoid challenges of falling raw material prices internationally.
It is equally important to note that there are still a number of challenges in the value addition of minerals. Many developing countries face the challenge of lacking modern technologies and machinery to conduct value addition activities.
Operational costs pose another challenge. Building processing and production factories requires significant financial investment, which often poses a challenge for countries without sufficient resources. It is also important to note that processed products need markets with demand for those products and often countries may lack opportunities for international markets due to high competition.
Opportunities in value addition of minerals
The Tanzanian government can attract foreign investment in the mineral processing sector by offering incentives such as tax exemptions and improved infrastructure.
Trade agreements between countries also present good opportunities for market access for value-added products.
Creating an enabling environment for research and innovation in the mining sector can help reduce dependence on foreign technology.
In conclusion, the journey from extracting minerals deep within the Earth to their application in advanced technologies highlights the critical economic opportunities in mineral value addition. Historically, Africa has been a major source of raw materials, but the focus is now shifting towards adding value within the continent. This shift is essential for sustainable economic growth and reducing dependency on raw material exports. By processing and refining minerals locally, African countries can create jobs, foster technological advancements and build stronger economies. This approach not only benefits the local economies but also contributes to global technological progress, as these minerals are crucial for manufacturing electronics, electric vehicles and other high-tech products. Hence, the move towards mineral value addition is a transformative step that can drive economic development, technological innovation and a more equitable global economy.
