Tanzania’s mineral output nears $1bn as gold, diamond production surge

The surge was primarily driven by gold and diamond production, both of which recorded multi-year highs, while coal output slowed slightly.

Gold — which accounts for more than 80 percent of Tanzania’s mineral export earnings — continued to dominate the sector’s performance.

Production rose from 9,538.5 kilograms in the first quarter of 2025 to 10,573.7 kilograms by September, marking the highest output in the reporting period.

The value of gold produced grew accordingly, jumping from $692.4 million in March to $878.3 million by September 2025.

The upward trend was supported by record-breaking global gold prices, which climbed from $2,709.69 per troy ounce in January to $3,667.68 per troy ounce by the end of September, reflecting investor demand for safe-haven assets amid global economic uncertainties.

The Bank of Tanzania (BoT), in its Monthly Economic Review for September 2025, reported that gold exports surged by 35.8 percent to $4.43 billion, up from $3.26 billion in the corresponding period last year.

The central bank attributed this sharp rise to both higher production volumes and elevated global prices.

“The consistent growth in gold output and exports demonstrates the resilience of Tanzania’s mining sector and its capacity to capitalize on favorable international market trends,” said one Dar es Salaam-based commodities analyst.

“It also highlights the role of mining as a stabilizing force for Tanzania’s foreign exchange reserves.”

Diamonds also made a notable comeback, with production rising from 93,557 carats in March 2025 to 111,125.8 carats in September, the highest level in more than two and a half years.

The corresponding value increased from $15.7 million to $17.4 million, reflecting moderate price gains and improved output at key mining sites.

The surge in diamond production comes after a period of volatility in 2023 and 2024, when several mines experienced operational disruptions and declining yields.

Industry analysts suggest the rebound may be linked to enhanced exploration activity and capital reinvestment by established operators.

“Diamonds are a small but growing component of Tanzania’s mineral basket,” said an official from the Ministry of Minerals who spoke on condition of anonymity. “The renewed output signals better stability in the sector and growing investor confidence.”

While gold and diamonds powered the overall growth, coal output showed a mild decline over the same period. Production fell from 790,100 tonnes worth $98.1 million in March 2025 to 754,300 tonnes valued at $95.4 million by September. 

The drop was partly attributed to weaker export demand and falling global coal prices amid the transition to renewable energy sources and reduced demand from key trading partners in Asia. Nevertheless, officials say domestic demand for coal — especially from cement factories and thermal plants — remains steady.

The mining industry remains optimistic about the year ahead. Benjamin Mchwampaka, the Executive Secretary of the Federation of Large and Medium Scale Miners (Tanzania Chamber of Mines), said the sector’s upward momentum is expected to continue well into 2026, bolstered by sustained gold price strength and favorable policy measures.

“The price of gold continues to climb, establishing a favorable environment that will allow the sector’s positive trend to persist throughout the rest of the year and into 2026,” said Mr. Mchwampaka. “This confidence suggests the recent record quarterly values are not an anomaly but a sustainable trajectory.”

He added that Tanzania is witnessing increasing formalization of artisanal and small-scale mining — a long-standing goal for policymakers seeking to broaden participation and enhance safety in the sector.

“Efforts to encourage and integrate small-scale miners are critical,” he noted. “It’s about ensuring the country’s mineral wealth benefits more citizens, not just large investors.”

The Chamber also expressed optimism about the new government under President Samia Suluhu Hassan, particularly her administration’s plan to review the tax regime for mining companies.

The sector expects the review to bring much-needed relief and unlock fresh investment opportunities. “We hope to see a stable, affordable, and predictable fiscal regime,” said Mr Mchwampaka.

“Consistent and competitive tax policies are essential to attract new investors, unlock foreign direct investment, and boost long-term national revenue from Tanzania’s mineral wealth.”