Tanzania’s mineral recovery value rose by 24.3% to $1 billion in the last quarter, led by gold’s 27.8% increase. Stakeholders commend central bank purchases and smuggling controls but call for more project support and research. Coal and diamond values also rose significantly. The Tanzania Chamber of Mines emphasizes the need for faster negotiations on new projects to jumpstart further economic benefits.
In the third quarter of the previous year, Tanzania’s mineral recovery value surged by 24.3% to approximately $1 billion (Sh2 trillion), a notable increase attributed largely to gold. The sector’s growth was primarily driven by diamonds, coal, building materials, and notably, gold, which constituted 79.4% of the total recovery value, witnessing a 27.8% rise due to increased output and favorable market prices.
Stakeholders attribute this growth to significant gold purchases by the central bank, alongside enhanced market regulations that have reduced mineral smuggling. However, they emphasize the necessity for further governmental and private sector actions to foster a sustainable mining environment. Calls for accelerated project developments, increased research efforts, and support for small-scale miners highlight the strategic measures needed to enhance production and economic contribution.
According to the Bank of Tanzania’s Consolidated Zonal Economic Performance report, the value of coal increased by 11%, fueled by demand from countries including India and the Netherlands. The revival of diamond production at Williamson Diamond Mines also contributed to rising values. The report indicated that the Lake Zone exhibited the highest mineral valuation, chiefly due to gold’s dominance.
The total value of minerals traded surged by 38.9% to Sh952.4 billion, largely driven by global gold price increases. Gold represented 96.5% of the overall value traded at market centers, with the only exception being the Central Zone, where figures remained stagnant. An anonymous source highlighted the sector’s crucial role in fostering economic growth and foreign currency inflow, advocating for continued investments in geological surveys to explore new areas for future development.
Philbert Rweyemamu, chairman of the Tanzania Chamber of Mines, pointed out that although progress in the mining sector is commendable, the government must expedite negotiations for new projects, such as the delayed Nyangaza operations. He expressed concerns that prolonged negotiations hinder potential investments and that other countries are moving ahead in securing mining projects.
In conclusion, Tanzania’s mineral recovery growth showcases a robust trajectory primarily driven by gold. While growth is evident, stakeholders demand urgent governmental action to expedite new mining projects, enhance smuggling prevention, and improve support for local miners, ensuring sustainable development in the sector.
Tanzania’s mineral sector demonstrates significant growth, particularly in gold recovery, which constitutes a large portion of the total mineral value. Continued governmental and stakeholder involvement is crucial for maintaining and enhancing this growth. Urgent action is needed to expedite negotiations for new projects, support local miners, and invest in exploration to ensure future economic stability.
Original Source: www.thecitizen.co.tz
