Mining:

Mining sector contributes about 2.3 per cent of the GDP, which is projected to account 10 per cent in 2025 as stated in the Development Vision 2025. It is one of the leading components in generating foreign exchange earnings within the non-traditional exports. Further is has great potentials for employment opportunities and spearheading for both the forward and backward linkage of the Tanzania’s economy.

 

Mineral Resources Endowments

Tanzania has a great potential particularly for gold, base metals, diamonds, ferrous minerals and a wide variety of gemstones, some of, which are unique such as tanzanites. Coal, uranium, and various industrial minerals such as soda, kaolin, tin, gypsum, phosphate and dimension stones are available at an attractive economic rates. The following are minerals that has attracted most interest in the recent years:

  • Gold found in greenstone belts located in the east and southern of Lake Victoria, and rock formation in southern and southwestern of the country;

  • Basemetals found in a belt running from Kagera through Kigoma to Mbeya, Ruvuma and Mtwara regions, and,

  • Gemstones, which are found in eastern and western belts running from Kenya border in the northern part to Mozambique in the south and Mbeya and Rukwa regions.

  • Gold and diamonds have always been the mainstay of the country’s mineral production. Brief explanation is provided below for easy reference.

Diamonds:
Tanzania has been a significant diamond producer for several decades, with the bulk of production coming from the Williamson Diamonds Mine at Mwadui where commercial production began in 1925. Over 300 kimberlites are known in Tanzania of which, 20% are diamondiferous. Some 600 dipolar magnetic anomalies with similar geophysical characteristics to known kimberlite pipes have been recorded during recent geophysical surveys. Also of relevance are the psuedo-kimberlites or para-kimberlites along the young craters where diamonds have been discovered.

 

Alluvial diamonds have been recorded but a large deposit of economic exploitation has not yet been found. Locating shallow buried superficial deposits using airborne infrared surveys may prove useful.

Gold:
Gold offers one of the best areas for investment. The current perceived opportunities range from former mines in the Archaean Greenstone belts around Lake Victoria, Proterozoic rocks and conceptual grass root plays in Karoo and younger rocks.

 

Gold exploration has grown rapidly during the 1990’s using modern technology and refined models. Investigation has mainly been focused on the greenstone belts around Lake Victoria with particular attention on the shear hosted gold mineralization associated with banded iron formations (BIF), tufts and volcano-sedimentary exhalatives.

 

Several "world class" gold deposits have already been discovered in the Lake Victoria Goldfields and are at different stages of development. These deposits have reached various stages of development.

 

Gold targets have also been revealed in the Proterozoic rocks in the Southwest of Tanzania. In this case, gold is associated with BIF, and in gneisses and granites in shear zones.

Base Metals and Platinum Group Minerals (PGM):

Geologically, both the Archaean and the Protozoic rocks are prospective for base metals and PGM.

Recent exploration in North West Tanzania has revealed extensive nickel-cobalt-copper mineralization associated with ultramafic rocks of Karagwe-Ankolean System. Sutton Resources is evaluating the resources where diamond drilling has outlined contained resources of 500,000 t nickel, 75,000 t copper and 45,000 t cobalt, so far.

 

In addition, chromium and platium group metals (PGM) have been recorded. Substantial deposits of nickel enriched laterite with cobalt have been delineated over the ultramafics in the Kagera region. There is also an indication of stratiform copper-silver-uranium type mineralization in Shinyanga region.

 

Ferrous Metals:

Numerous iron ore bodies have been identified in the Proterozoic rocks. Titaniferous magnetic bodies associated with anorthositic gabbro occur at Liganga SW Tanzania and is in close proximity (80 kin) to the coal resources of Ketewaka-Mchuchuma. Shallow drilling established a resource of 45 million tonnes grading 52 percent Fe. The Titanium resources are also known in beach sands along the coast.

Tin-Tungsten:
Tin and Tungsten have been produced from both lode, alluvial and eluvial deposits from the Karagwe Tinfields in the extreme Northwest of Tanzania. Mineralization is associated with the Late Proterozoic Karagwe-Ankolean System.

 

Gemstones:
Tanzania is endowed with various species of colored gemstones including the beautiful Tanzanite (blue zoisite) occurring in the Proterozoic metamorphic rocks of the Usagaran and Ubendian Systems.

 

Tanzanite is mined at Mererani from weathered rock, sometimes in association with bands, which are also of commercial value. Other gemstones mined in the country include ruby, rhodolite, sapphire, emerald, amethyst, chrysoprase, peridot and tormaline. Recently, a major alluvial occurrence was discovered in the southern region of Ruvuma, Mtwara and Lindi. Varieties include chrysoberyl, spinels, sapphire, garnets, zircons and diamonds.

 

Official gemstone exports were approximately US$10 million in 1996 majority of which were exported uncut. Great potential exists in the establishment of lapidary and jewelry manufacturing industry.

 

Carbonates:
Well over 20 carbonates associated with Mesozoic-Cainozoic volcanics have been identified in the country which could prove to be useful source of rare earth elements, niobium and phosphates.

 

Coal:
Coal resources similar in quality to the Gondwana coals of southern Africa occur in the Ruhuhu and Songwe-Kiwira basins in the Southwest Tanzania. A total of about 1 .5 billion tonnes in reserves have so far been identified.

The country’s only coal mine at Kiwira has an average annual output of 35,000 tonnes - all of which is consumed mostly locally for power generation.

 

Industrial Minerals:

Limestone and dolomite-good resources of high purity occur in the white marble deposit of the Morogoro Region. Potential for dimension stone and refractory grade limestone is therefore excellent.

 

A variety of clays - bentonite, kaolin and fullers earth - in size-able deposits have been identified and are only scantily exploited. The Pugu kaolin deposit located some 30 kms West of Dar es Salaam has a great potential for development.

 

Evaporates and saline deposits of economic significance are associated with the rift valley lakes. Investigations of the Soda ash deposits at Lake Natron revealed a potential recovery of over one million tonnes a year. Currently, salt production stands at 105,000 tonnes per annum.

 

Graphite occurs in high-grade gneisses mainly ion the Usagaran system. Sufficient reserve have been identified at Merelani, northern Tanzania, for a 40 year operation at a mining rate of 15,000 tonnes per year of high grade flake graphite of 97-98% purity. The mine will also producer Tanzanite, which occur in association with graphite.

 

Phosphate deposits have been exploited at Minjingu in Arusha Region at around 48,000 tonnes per year in order to support fertiliser manufacturing. Following the closure of the fertiliser plant in Tanga, current production is mainly used for direct application.

Mineral Sector Policy:

The Mineral Policy of Tanzania, 1997 stresses on private sector led mineral development while the major roles of the government are regulating, promoting and facilitating. The public roles consist of the inter alia:

  • Policy formulation to accommodate the overall and sectoral government policy framework.

  • Advising on legislation, regulation and fiscal matters related to the sector.

  • Revenue collection through royalties, annual rents, prospecting rights and licenses.

  • Monitoring of mining activities.

  • Collection and maintenance of geo-technical data for promotional purposes.

  • Provision of extension services to small scale miners.

  • Administration and inspection of mining activities, and

  • Carrying out research on minerals.

The mineral policy objectives are:

  • to stimulate exploration and mining activities;

  • to regulate and improve artisanal mining;

  • to ensure that wealth generated from mining support sustainable economic and social development; to minimise or eliminate adverse social and environmental impact of mining activities

  • to promote and facilitate mineral and mineral based products’ marketing arrangements;

  • to alleviate poverty especially for artisan and small scale miners;

  • to promote and develop Tanzania as the gemstone centre of Africa

Mineral Sector Legal and Regulatory

Salient features of the Mining Act 1998 are as follows:

  1. right to trade in mineral rights;

  2. simplification and consolidation of past statutes on mining and mineral trading;

  3. improved security of tenure through removal of most past ministerial discretionary powers and introducing a mining advisory committee responsible of advising the Minister on decisions to make;

  4. Enhanced clarity and transparency;

  5. Fair, streamlined and non-discriminatory licensing procedure, and,

  6. Environmental management.

 

The mining Act of Tanzania is aimed to deter information hoarding on new discoveries, freezing of exploration acreage for speculative purposes, transfer pricing and tax evasion.

The fiscal incentives provided to exploration and mining activities includes the following among others:

  • Exemption of import duty and Value Added tax (VAT) on equipment and essential materials up to the anniversary of start of production, thereafter 5 per cent  seal applies;

  • Depreciation allowances of 100 per cent;

  • Repatriation of capital of capital and profit directly related to mining, and,

  • Non-mandatory government participation.

Mineral Sector Reform

As any sector of the economy in Tanzania, mining has been tuned to economic reforms and restructuring undertaken by the government from the mid 1980s to the 1990’s which have marked a clear shift in favour of private sector development and market-oriented economic management. With this effect the government has commenced on setting up constructive partnerships to promote private sector enthusiasm and accelerate economic growth. With these changes therefore, the roles of the government has been redefined from that of owning the and operating the mines to that of providing a clear policy guidelines, stimulating private investment and providing support for investors. The reform is in line with the Mineral Policy of Tanzania 1997, Mineral Act 1998, and Fiscal Package 1998. 

Professional Associations:

Tanzania Exporters Association,

Tanzania Geological Society