Surge in Tanzania’s Mineral Recovery Value Driven by Gold Growth

Tanzania’s mineral recovery value surged by 24.3% to $1 billion in the third quarter of last year, driven primarily by gold, which constituted 79.4% of this value. Stakeholders acknowledge the central bank’s role in curbing smuggling but call for faster project initiations and research. Notable growth in coal and diamonds also contributed to this increase, while the importance of enhancing the sector’s contribution to the economy was emphasized.

Tanzania experienced a significant 24.3 percent increase in mineral recovery value, reaching $1 billion (approximately Sh2 trillion) for the quarter ending in September of the previous year. This growth was largely attributed to diamonds, gold, coal, and building materials, with gold alone accounting for 79.4 percent of the total recovery value. The rise in gold values resulted from both increased production and elevated market prices, showing a 27.8 percent growth during the period.

Stakeholders have remained optimistic about the mining sector’s future, crediting the central bank’s gold acquisitions and initiatives to reduce smuggling. Nevertheless, they emphasize the necessity for additional governmental and private sector initiatives, including the acceleration of new projects, enhanced research efforts, and support for small-scale miners to boost their productivity. Furthermore, they urged collaboration with neighboring nations, such as the Democratic Republic of Congo, to process their minerals domestically.

According to the Bank of Tanzania’s Consolidated Zonal Economic Performance report, coal value grew by 11 percent due to high demand from countries like India and the Netherlands. Diamond production resumed at the Williamson Diamond Mines, contributing to this growth.

All zones, except for the Central Zone, reported increases in mineral trade, with an overall surge of 38.9 percent to Sh952.4 billion, driven mainly by higher global gold prices. Gold represented 96.5 percent of the total mineral trade value, underlining its dominance in the sector. Notably, the Lake Zone was highlighted for accounting for the largest share of total mineral value at 63.4 percent.

An anonymous source cited the mineral sector’s critical role in the nation’s economic growth and foreign currency influx. They advocated for continued investment in geological surveys to uncover new exploration opportunities once existing sites are exhausted, emphasizing the importance of leveraging current gold prices.

Philbert Rweyemamu, chairman of the Tanzania Chamber of Mines, acknowledged the sector’s advancements but urged the government to expedite negotiations for new projects like Nyangaza, which was initially slated to begin operations four years ago. He expressed concern that investors await the conclusion of negotiations, which impacts their ability to secure funding.

In conclusion, Tanzania’s mining sector is witnessing a significant upsurge, particularly in gold recovery, driving overall mineral value growth. The collaboration among various stakeholders is crucial for sustaining this growth through accelerated projects and research, particularly in supporting small-scale miners. The government must act swiftly to facilitate ongoing negotiations for new projects to maintain this upward trajectory and enhance the country’s economic stability.

Original Source: www.thecitizen.co.tz