Govt searches for solid footing in mining sector

Mwanza. It’s never been a secret that Tanzania’s mining industry has mostly frustrated. Despite boasting several minerals, their contribution has never been really satisfactory.

However, latest figures announced by the director general of the National Bureau of Statistics (NBS), Dr Albina Chuwa, paint a bright picture for not just mining, but also the tourism industry.

Dr Chuwa said mining combined with tourism contributed 6.3 per cent to the GDP during the third quarter of last year as opposed to the 5.4 per cent input they both registered during the same period in the previous year.

The 2025 National Development Vision targets between 8 per cent and 10 per cent GDP for the country to realise its dream to become a semi-industrialised economy.

While there has been a notable increase in the contribution of the industries to the gross domestic product, that positive trend is yet to be reflected in real life.

This is despite the nation’s resolve to open doors for locals and foreigners to invest in big projects, particularly in the extractive industry.

Tanzania is globally known to have a variety of mineral resources ranging from gold to iron ore, nickel, copper, and silver, let alone gemstones such as diamond, tanzanite, ruby, garnet, and pearl.

The nation is also endowed with abundant construction minerals scattered across the country, namely sand, dimension stones, and aggregates.

Geological surveys and research also indicate that Tanzania also boasts having industrial minerals like soda ash, salt, limestone, phosphate, and gypsum, not forgetting energy minerals such as natural gas, uranium, and coal.

All this wealth in mineral resources is neither reflected in the national economy nor in the living standards of the people.

The national income accrued from the mining and energy sectors does not tally with the extraction and export of the resources to the international market.

With President John Magufuli at the helm since November 5, last year, when he was sworn in, the fifth phase government has set strategies to not only further improve the environment in the mining sector, but also to boost revenue collection.

In his recent meetings with small-scale miners in the Lake Zone regions early this month, the minister for Energy and Minerals, Prof Sospeter Muhongo, revealed two strategies of increasing extraction as well as receipts.

“We’re planning to take over all undeveloped mining sites from large-scale miners and distribute them to small-scale miners,” Prof Muhongo said.

The government, he said, would through the State Mining Corporation (Stamico) conduct a thorough geological research and survey to ascertain the quantity of minerals available underground before allocating the idle mining site to small-scale miners.

“Stamico will also assist small-scale miners in devising project write-ups, imparting mining skills, and identifying markets,” he said.

Reinvigorating Mining

Prof Muhongo said there were several reasons for improving the performance of the mining sector, including fetching sufficient foreign exchange from the trade of minerals overseas.

The move would go a long way in reducing the country’s dependency on donors in the implementation of its development projects.

“A conducive environment in the mining sector will not only increase the formal and informal employment to our youth, but will also protect and preserve our environment which is a global concern,” Prof Muhongo added

Mr John Bina, the president of the federation of small-scale miners, Femata, commended the government’s strategies.

If properly and effectively implemented, the strategies will not only realise the 10 per cent GDP and the pipedream of the nation departing to a mid-economy, but will also help to combat the global challenge of unemployment among youth.

“Statistics show the mining sector employs over five million Tanzanians in both formally and informally,” said Mr Bina, explain that the rate could increase fourfold if the government fully implemented its strategies aimed at improving extraction, sale, control, and revenue in the industry,” Bina said.

He, however, called on the government to also consider improving its rapport with the industry stakeholders by holding regular meetings with them to deliberate on challenges facing each of them.

“We must harmonise the current mining legislation, regulations, and policies,” Mr Bina stressed.

Subsidy

The government has through the TIB Development Bank Limited so far granted Sh6.4 billion to 97 out of small-scale miners it targets to empower.

Ms Monica Luziro from the bank said in an exclusive interview with The Citizen in in Mwanza recently that the money was until December 19, last year, already disbursed to qualified beneficiaries. Ms Luziro said when attending a small-scale miners meeting with the minister for Energy and Minerals that Sh7.2 billion was allocated for the artisanal miners.

“Support to the small-scale miners is one of the surest ways of improving the environment at mines,” said Ms Luziro, adding: “It also enables the small-scale miners to access capital for financing their activities.”The remaining grant amounting to Sh800.3 million would be extended to 14 small-scale miners whose applications were at various stages, she explained.

Mr Bina urged the government to apply scientific exploration in a bid to identify the location and quantity of the underground minerals before the small-scale miners were provided with mines.

Prof Muhongo said the government’s decision to provide small-scale miners with grants was three-pronged: to create jobs for the youth, promote economic growth, and increase the gross domestic product.

“This subsidy programme also aims at imparting knowledge and skills on small-scale miners as well as giving them the tools they need for finishing the job.