Tanzania’s Mineral Recovery Value Surges, With Gold Leading the Growth

Tanzania’s mineral recovery value rose by 24.3% to $1 billion, driven largely by gold, which made up 79.4% of total recovery. Stakeholders advocate for accelerated projects, more research, and support for small-scale miners. The sector’s importance in the economy and the need for government action were emphasized, along with the urgency of negotiations for new mines.

The value of mineral recovery in Tanzania significantly increased by 24.3 percent, reaching $1 billion (Sh2 trillion) for the quarter ending September of last year, compared to the same period in the previous year. This substantial growth can be attributed to the recovery of diamonds, gold, coal, and construction materials, with gold alone accounting for 79.4 percent of the total mineral recovery value.

Gold showcased remarkable growth, with a 27.8 percent rise prompted by both higher quantities produced and increasing global prices. Stakeholders expressed optimism regarding this growth, crediting the central bank’s gold purchases and enhanced measures to combat smuggling. However, they underscored the necessity for further actions from the government and private sectors to maintain momentum in the mineral sector.

There is an urgent call from industry stakeholders for the acceleration of new mining projects, comprehensive research in untapped areas, and greater support for small-scale miners. Encouraging neighboring countries, such as the Democratic Republic of Congo, to localize mineral processing was also emphasized as a beneficial strategy.

The Bank of Tanzania’s Consolidated Zonal Economic Performance report indicated an 11 percent rise in coal value, primarily driven by high demand from importers, including India and the Netherlands. Additionally, diamond recovery increased due to the resumption of production at the Williamson Diamond Mines. The Lake Zone notably recorded the largest share of mineral value at 63.4 percent, largely due to the influence of gold.

Market trading of minerals surged by 38.9 percent, reaching Sh952.4 billion, thanks largely to elevated gold prices. Gold accounted for 96.5 percent of the total value traded, with nearly all zones showing positive trade growth, except for the Central Zone, which remained steady.

Anonymous sources confirmed the mineral sector’s critical role in Tanzania’s economic growth and foreign currency influx. They emphasized the importance of investing in geological surveys to discover new exploration areas, suggesting that leveraging current gold prices with accelerated project implementation would significantly bolster the economy.

Philbert Rweyemamu, chairman of the Tanzania Chamber of Mines, acknowledged the sector’s advancement but highlighted the lag in government negotiations for new projects, such as Nyangaza, which should have commenced operations four years ago. He urged for expedited negotiations to attract investors who are currently awaiting necessary documentation to proceed with funding.

In summary, Tanzania’s mineral recovery value has shown noteworthy growth driven primarily by gold, which comprises a significant portion of this increase. Stakeholders advocate for further investment, project acceleration, and support for small-scale miners while urging the government to expedite negotiations for new mining projects to sustain this positive trend in the sector’s performance.

Original Source: www.thecitizen.co.tz