Tanzania’s mineral recovery value rose by 24.3% to $1 billion, driven largely by gold, which accounted for 79.4% of this increase. Stakeholders applaud central bank purchases and efforts to combat smuggling but call for accelerated new projects and support for small-scale miners. The coal sector also showed a positive trend, with rising exports spurred by international demand.
Tanzania’s mineral recovery value has seen a remarkable increase, surging by 24.3 percent to reach $1 billion (Sh2 trillion) for the quarter ending September last year, compared to the same quarter in the previous year. This growth was largely attributed to the recovery of key minerals including diamonds, gold, coal, and building materials. Notably, gold led this growth, contributing 79.4 percent to the total mineral value and experiencing a 27.8 percent rise due to increased quantities and higher market prices.
Stakeholders attribute this improvement in the sector to the central bank’s proactive gold purchases and initiatives to tackle smuggling. However, they caution that additional efforts are necessary from both the government and private sectors. There is a strong call for accelerating new mining projects, increasing research efforts into unexplored areas, and enhancing support for small-scale miners to boost their productivity.
Moreover, stakeholders emphasized the importance of encouraging neighboring countries, such as the Democratic Republic of Congo, to process their minerals locally to enhance regional economic stability. The Bank of Tanzania’s Consolidated Zonal Economic Performance report indicated an 11 percent increase in coal value, primarily due to rising demand from countries including India and Pakistan, along with the resumption of production at the Williamson Diamond Mines contributing to higher diamond values.
The report further revealed that all zones experienced increases in mineral value, with the Lake Zone achieving the most significant growth at 63.4 percent, largely driven by gold. The minerals traded at market centers grew by 38.9 percent to Sh952.4 billion, reflecting the rising global gold prices, which dominated the market by making up 96.5 percent of total traded minerals.
An anonymous informant stated that the mineral sector is crucial for Tanzania’s economic development and foreign currency influx. They highlighted the importance of ongoing investment in geological surveys to discover new exploration opportunities. Furthermore, they urged that current gold prices should be leveraged to expedite new projects that would advance production and economic growth. Philbert Rweyemamu, chairman of the Tanzania Chamber of Mines, acknowledged the sector’s advancements but stressed the need for the government to hasten negotiations for new ventures such as the long-awaited Nyangaza project. He pointed out that investors are poised for funding from stock markets but are hindered by delayed document finalizations, which could jeopardize Tanzania’s position against progress made by other nations in the mining sector.
In conclusion, Tanzania’s mineral recovery value has significantly improved, primarily propelled by gold production. Stakeholders are optimistic but emphasize the urgent need for further governmental support, accelerated project implementation, and enhanced research efforts. The economic potential of the mineral sector remains substantial, and it is imperative for the government to engage in swift negotiations to unlock new projects and maintain growth momentum.
Original Source: www.thecitizen.co.tz
