Minerals Ministry sets strategic priorities despite budget cut

Dodoma. The Ministry of Minerals has outlined its strategic priorities for the 2025/26 financial year, emphasising strengthening revenue collection despite facing a significant budget cut.

Other areas of priority are increasing the sector’s contribution to the national economy, advancing value addition for critical minerals, and supporting small-scale miners.

Minerals Minister Anthony Mavunde announced the priorities on Friday, May 2, 2025, when tabling a Sh224.98 billion budget for the 2025/26 fiscal year, a sharp decrease from the Sh531.2 billion allocated in 2024/25.

Of the proposed budget, Sh124 billion is earmarked for development projects, down from Sh299 billion last year.

Despite the cuts, the Ministry has set an ambitious revenue target of Sh1.2 trillion, of which Sh1 trillion—representing 82.95 percent—will be generated by the Ministry’s departments, units, and the Mining Commission, while Sh205.5 billion (17.05 percent) will be retained by affiliated institutions.

To boost revenue, Mr Mavunde said the Ministry will implement stringent measures to combat mineral smuggling and illegal trade, enhance oversight of mining operations, and improve governance in the Tanzanite and construction minerals trade.

“The Ministry will intensify inspections of large- and medium-scale mines to ensure the country and investors benefit fairly. We will also enhance the management of mineral markets and buying centres across the country,” he said.

To improve transparency in the Tanzanite trade, Mr Mavunde announced plans to introduce a new monitoring system requiring mineral inspectors and valuers in the Mirerani Controlled Area to wear hard hats fitted with cameras.

He noted that if successful, the system will be extended to cover other gemstones.

To strengthen field operations, the Ministry plans to procure 26 vehicles to support the Mining Commission, bolstering its ability to monitor activities, enforce regulations, and deter illegal practices.

Mr Mavunde said the Ministry would continue pushing for increased domestic benefits from the mining sector by promoting the establishment of new mines.

It will also ensure that investors promptly begin operations upon receiving licences, and enforce compliance with local content and Corporate Social Responsibility (CSR) requirements.

He reiterated that the Ministry will prioritise minerals of strategic importance such as lithium, graphite, helium, nickel, cobalt, titanium, copper, aluminium, niobium, and rare earth elements, which are vital for modern technology and national security.

“To harness the full value of these resources, we are identifying mineral-rich zones, analysing global demand, encouraging exploration, and finalising a national strategy for their development,” he said.

“No medium or large-scale mining licences will be issued without a credible plan for value addition within Tanzania,” added Mr Mavunde.

The Ministry will continue promoting the development of processing, smelting, refining, and manufacturing industries to encourage local and foreign investment.

Support will also be extended to gold refinery operators aiming for LBMA certification, while infrastructure for the Gemology Centre will be further developed to boost training in value addition.

The Ministry also plans to hold more gemstone auctions and exhibitions, particularly in high-production areas, and increase investment promotion via exhibitions, conferences, digital platforms, and media outreach.

“Advanced mineral exploration will be prioritised by conducting high-resolution airborne geophysical surveys and establishing a national system for storing and sharing geoscientific data,” he said.

He said collaboration with domestic and international stakeholders will be strengthened to expand the scope and effectiveness of mineral research across Tanzania.

Mr Mavunde emphasised continued support for small-scale miners, particularly youth, women, and persons with disabilities.

The Ministry aims to create a conducive environment for investment in small-scale mining by improving access to credit and equipment, expanding training, and enhancing services at model mining centres.

“To support this, the government has formed a six-member team of experts in finance, mining, and law to explore how small-scale miners can better access capital,” he noted.

“Through STAMICO (State Mining Corporation), the Ministry will continue establishing gold-processing centres and installing CIP equipment in small-scale mining zones,” he insisted.

In collaboration with the private sector, he said the government also plans to establish equipment centres in key mining regions to improve access to essential tools and machinery.

“This initiative is expected to significantly boost mineral production among small-scale miners,” Mr Mavunde said.

Efforts to formalise artisanal mining will include allocating geologically surveyed plots, issuing licences, and encouraging participation in local and international trade fairs, conferences, and auctions to build business linkages and skills.

Institutional capacity-building is also a key priority, said Mr Mavunde, highlighting that the Ministry will strengthen agencies under its umbrella, including the Mining Commission, the Geological Survey of Tanzania (GST), the Tanzania Gemological Centre (TGC), and the Tanzania Extractive Industries Transparency Initiative (TEITI).

He said resources will be allocated to improve regulatory enforcement, expand geological mapping, promote value addition, and enhance transparency in the extractive sector.

Deputy Chairperson of the Parliamentary Committee on Energy and Minerals, Mr Kilumbe Ng’enda, urged the government to develop more robust strategies to meet non-tax revenue targets, noting that historical shortfalls have affected the delivery of critical projects.