Tanzania’s mineral recovery value grew by 24.3 percent to $1 billion, with gold leading this increase. Stakeholders urge for further actions, such as new project acceleration and support for small-scale miners. The sector’s performance is critical for economic growth and foreign currency influx.
In a notable uptick, Tanzania’s mineral recovery value increased by 24.3 percent to $1 billion (Sh2 trillion) for the quarter ending September last year. This growth is attributed to the successful recovery of various minerals, including diamonds, coal, and building materials, with gold driving this increase by contributing 79.4 percent of the total mineral recovery value and experiencing a 27.8 percent rise in value driven by higher quantities and prices.
Stakeholders credit the growth in the mineral sector to the central bank’s gold purchases and measures taken to combat smuggling. They advocate for further actions from both governmental and private entities, including the acceleration of new projects, conducting more extensive research, and supporting small-scale miners to improve their productivity. There is also a call for neighboring countries, like the Democratic Republic of Congo, to enhance local mineral processing.
The recent Bank of Tanzania report indicates that coal value rose 11 percent due to high demand from markets in India, Pakistan, Comoros, Kenya, the Democratic Republic of Congo, and the Netherlands. A resurgence in diamond production at the Williamson Diamond Mines also contributed to the increase in value. Moreover, gold remains dominant, comprising 96.5 percent of the minerals traded at market centers, which saw a 38.9 percent increase in value compared to the previous quarter.
A private source revealed the significance of the mineral sector for Tanzania’s economic development and foreign currency influx, urging for consistent investment in geological surveys to discover new exploration sites. They stressed leveraging current favorable gold prices by expediting new mining projects to enhance production and bolster the economy.
Philbert Rweyemamu, chairman of the Tanzania Chamber of Mines, acknowledged the positive trajectory of the sector but mentioned delays faced in the negotiation processes for new projects, such as Nyangaza, which has faced significant delays over the past four years. He underscored the urgency for the government to streamline these negotiations to attract investment and maintain competitive advantage against other nations.
Tanzania’s mineral recovery value has experienced significant growth, primarily driven by gold, which constitutes most of the recovery value. However, stakeholders stress the need for governmental and private sector action to further capitalize on this growth. Expedited negotiations for new projects, along with a focus on research and support for small-scale mining operations, are essential for sustaining and enhancing the sector’s contributions to the national economy.
Original Source: www.thecitizen.co.tz
