Tanzania’s mineral recovery value rose by 24.3% to $1 billion, driven chiefly by gold, which accounted for 79.4% of this figure. Stakeholders praise efforts like Central Bank gold purchases but urge for accelerated projects and research support for small-scale miners. Growth in coal and diamonds also contributed, but the government is encouraged to expedite negotiations for new initiatives in the sector.
Tanzania witnessed a remarkable increase in its mineral recovery value, rising by 24.3 percent to $1 billion (Sh2 trillion) for the quarter ending September of the previous year. This growth was primarily fueled by diamonds, gold, coal, and building materials, with gold alone accounting for 79.4 percent of the total recovery and showing a notable 27.8 percent increase due to higher production and market prices.
Stakeholders attribute this surge to the Central Bank’s gold purchases and successful efforts to combat smuggling. Nevertheless, they demand that both government and private entities take further steps, including expediting new mining projects, conducting research, and boosting support for small-scale miners. There is also an emphasis on encouraging neighboring countries, like the Democratic Republic of Congo, to process their minerals locally, thereby enhancing regional economic growth.
According to the Consolidated Zonal Economic Performance report by the Bank of Tanzania, the value of coal also saw an increase of 11 percent, particularly due to heightened demand from countries such as India and Kenya. Additionally, the resumption of production at the Williamson Diamond Mines played a critical role in the rise of diamond value in the market.
The report indicated that all zones recorded growth in mineral recovery, with the Lake Zone achieving the most significant increase, responsible for 63.4 percent of the total value primarily driven by gold. Furthermore, the value of minerals traded at market centers soared by 38.9 percent, largely attributed to global gold price increases. Gold comprised an astounding 96.5 percent of the total value of minerals traded in these centers.
Despite a general increase in mineral trading across most zones, the Central Zone reported only marginal changes. A source expressed the view that the mineral sector is crucial for the nation’s economic expansion and foreign currency influx, advocating for ongoing investment in geological surveys to identify potential new drilling sites.
Philbert Rweyemamu, chairman of the Tanzania Chamber of Mines, acknowledged the sector’s advancements but noted delays in government negotiations for new projects, specifically mentioning the Nyangaza venture, which was expected to commence operations four years ago. He cautioned that investors are awaiting the finalization of necessary documents to secure funding, warning that Tanzania risks falling behind due to these protracted negotiations.
In summary, Tanzania’s mineral recovery value has experienced substantial growth, predominantly driven by gold, and supported by governmental actions against smuggling. Stakeholders advocate for further initiatives to bolster production and support small-scale operations. The government is encouraged to expedite negotiations for new mining projects to sustain this positive trend and enhance the sector’s contribution to the country’s economy.
Original Source: www.thecitizen.co.tz
