Tanzania now focuses on geophysical research

Dar es Salaam. Tanzania is implementing Vision 20/30 in the mineral sector targeting increasing the size of surveyed Quarter Degree Sheets (QDS) from 16 percent to 50 percent reaching 2030.

Tanzania has 322 QDS, one of which is equivalent to 2,916 square kilometres of land or 720,252 acres.

Collected data from geophysical surveys would increase the country’s benefit from available natural resources.

Reports from the Ministry of Minerals show that the sector attracted 56 percent of foreign currency and exported $3.3 billion worth commodities in the 2022/23 Fiscal Year.

It also contributed Sh2 trillion in domestic tax revenue which is equivalent to 15 percent of income contributed by individual sectors.

The sector also contributed Sh678 billion to the Centre Government in royalties, 40 percent of which was dished by small scale miners.

“Despite operating in surveyed QDS by 16 percent, Tanzania has been reaping big. The question remains what benefits the country will reap after broadening scope of survey,” argued Mineral Minister Anthony Mavunde.

Mr Mavunde was speaking at Mwananchi Communications Limited (MCL) headquarters last Friday when speaking to journalists during his work visit.

He said the current economic benefits could significantly increase upon investment proliferation at the Geological Survey of Tanzania (GST).

“The vision 20/30 themed: Minerals is Life and Wealth is the area I have chosen for self-assessment,” he said.

Furthermore, he said the research is known as High Resolution Airborne Geophysical Survey involving use of aircraft, drones and helicopters in photographing and provision of preliminary indicative information on places with mineral deposits.

He said the ministry will use the Input Output Modal (IOM) presentations to the ministry of Finance and the Planning Commission in order to attract more funds for the project.

“We will also increase partnership with the private sector in order to implement the project in the six available blocks,” he said.

Mineral is life

Mr Mavunde said data from geophysical surveys will be shared with the Ministry of Water in order to enable them to increase access to clean and safe water through identified rocks.

Through similar data, the ministry of Agriculture will be enabled to strengthen its irrigation initiative, something that will enable farmers to increase efficiency through crop production, food security, the self-sufficiency ratio and most importantly exports.

“The ministry will easily identify places with rocks suitable for production of agriculture lime which is important for neutralisation of soil alkaline in southern highland ecology,” he said.

He said Tanzania has 3.3 million hectares and over 3.7 million hectares that have been adversely affected by alkaline and salt respectively.

Furthermore, he said data generated from the geophysical survey will enable the country to increase investment in fertiliser manufacturing and reduce importation.

Tanzania is spending most of its foreign currency for importation of fertilisers especially DAP, Urea and NPK whose minerals used for the manufacture are found in large quantities locally.

“Once data has been collected from the geophysical survey, investment would be attracted in fertilizers production. This will create jobs, increase agriculture productivity and provide the country with many other economic benefits,” he said.

“Magnetic Resonance Imaging (MRI) used in hospitals uses gas from helium. Survey could attract increased investment in the helium production,” he added.

Mineral is wealth

Mr Mavunde said investors have been using mineral exploration reports for accessing funds from the New York, London, Canada Stock Exchange among others.

However, he said data generation through geophysical survey would enable Tanzanians to increase the size subjected to mining activities as well as the number of players.

“Ultimately, economic benefits will be doubled or tripled as compared to the current benefits when only 16 percent has been surveyed,” he said.

Stamico to be a giant corporation

According to Mr Mavunde, collected data will enable Stamico to be a large state owned Mining Corporation in Africa with the ability to compete and make massive investments in the sector.

“Though we will continue attracting Foreign Domestic Investment (FDI) in the sector, our preference will be for Stamico to implement major activities,” he said.

He said collected data would serve as a negotiation trump card in the country’s attempt to acquire 50/50 share or implement projects ourselves through Stamico.

Ending disputes

Data from geophysical survey would enable the ministry to identify places suitable for both large and small scale miners, something that would significantly address the challenge of disputes in the sector, according to him.

Global energy transition

Mr Mavunde said global transition from fossil fuels to low carbon energy has increased demands for critical and strategic minerals.

He said current demand for critical and critical minerals stood at 10 million metric tonnes, with anticipation being 150 million metric tonnes reaching 2050.

“The government explicitly said in the 2023/24 budget that it is formulating the critical and strategic minerals strategy aimed at stopping Tanzanians spectators reaching 2050,” he said.

Access to funds

Mr Mavunde said they have agreed with bankers through the Tanzania Bankers Association (TBA) to provide loans to miners in categories including sand miners.