Tanzania’s small-scale miners will be required to pay TZS 10 million instead of the previous TZS 25 million for the use of drilling rigs from the State Mining Corporation (STAMICO).
This annoucement was made by Tanzania’s Minister for Minerals, Hon. Anthony Mavunde, during a press briefing on 14th November 2024.
Hon. Mavunde added that 10 additional drilling rigs will be delivered through STAMICO by the end of November 2024.
Minister Mavunde acknowledged that Small-scale mining, which accounts for 40% of government revenue, has become a model for many countries in the Southern African Development Community (SADC).
He also highlighted that in efforts to add value to Tanzania’s mineral resources, the government has initiated a project to build a processing plant at the Buzwagi mine in Kahama, in the Shinyanga region.
The plant will cover 1,331 hectaresand is set to cost US$ 500 million once completed, it will have the capacity to produce final mineral products, supporting the broader strategy of value addition along the mining value chain.
Mavunde noted that the mining sector in Tanzania continues to attract interest from large international companies like BHP, a major Australian mining company, that has been absent from Africa for the past 15 years and is now considering returning to Tanzania.
He added that this signals a positive development for Tanzania, as it reflects the growing confidence in the country’s mining environment and its potential as a profitable investment destination.
Tanzania’s Small Scale Miners
Small-scale mining is crucial to Tanzania’s mining sector, contributing significantly to mineral production and employment, accounting for around 44% of total production by 2021.
It provides livelihoods for thousands in rural areas and boosts local economies.
However, small-scale miners face challenges such as limited access to land, licenses, technology, and markets, along with poor working conditions and environmental concerns like mercury pollution.
The Tanzanian government has introduced policies to support small-scale mining, including mineral markets, primary mining licenses, and efforts to formalize the sector. Despite these measures, implementation challenges persist. The government aims for the mining sector to contribute 10% of GDP by 2025, with small-scale miners playing a key role.
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