Tanzania’s mineral recovery value rose by 24.3% to $1 billion, largely due to gold, which made up 79.4% of this total. Stakeholders commend gold purchases by the central bank and the reduction of smuggling as key factors but urge the government to expedite new mining projects and support small-scale miners. The overall positive trend reflects increasing global demand, especially from major markets.
Tanzania has experienced a significant increase in the value of mineral recovery, which rose by 24.3 percent, reaching $1 billion (Sh2 trillion) for the quarter ending September last year. This growth is attributed primarily to diamonds, gold, coal, and building materials, with gold alone accounting for 79.4 percent of the total recovery value and experiencing a 27.8 percent increase in output and pricing.
Stakeholders attribute the positive performance to purchases of gold by the central bank and measures taken to reduce smuggling. However, there is a consensus among industry representatives that more proactive initiatives are necessary. They advocate for the acceleration of new mining projects, enhanced research into unexplored sectors, and support for small-scale miners to bolster their production capabilities.
Additionally, stakeholders have highlighted the importance of encouraging neighboring countries, such as the Democratic Republic of Congo, to process their minerals domestically. The Bank of Tanzania’s Consolidated Zonal Economic Performance report indicates that coal’s value surged by 11 percent, driven by strong demand from countries including India and Pakistan. Significant growth was also noted in diamond production due to resumed activities at the Williamson Diamond Mines.
A detailed account shows that all zones recorded increases in mineral value, particularly the Lake Zone, which represented 63.4 percent of the total mineral value, largely due to gold. The value of minerals traded at market centers rose by 38.9 percent to Sh952.4 billion, reflecting soaring gold prices on the international market.
Despite the overall positive trend, a source revealed that further investment in geological surveys is necessary to discover new exploration sites post depletion of existing ones. They emphasized the urgency of leveraging current gold prices through expedited projects to stimulate economic growth. The source called for government prioritization of these initiatives.
Philbert Rweyemamu, chairman of the Tanzania Chamber of Mines, recognized the advancements within the sector but urged for faster negotiations on new initiatives, pointing out delays regarding the Nyangaza project, which should have commenced operations four years ago. He expressed concern that while Tanzania possesses strategic minerals, such as Kabanga Nickel, prolonged negotiations hinder progress.
The mineral recovery sector in Tanzania has demonstrated remarkable growth in recent months, particularly driven by gold. Stakeholders emphasize the necessity for further action from the government to sustain this momentum through new projects and support for small-scale mining operations. Moreover, the need to process minerals locally in neighboring countries highlights a broader regional opportunity. Continued investment in exploration across Tanzania remains critical to securing future growth.
Original Source: www.thecitizen.co.tz
