Tanzania Cuts Drilling Rig Fees for Small-Scale Miners and Initiates a Processing Plant Project Project at Buzwagi Mine

Small-scale miners in Tanzania will pay TZS 10 million for drilling rigs, reduced from TZS 25 million. Ten new rigs will be delivered by November 2024. The government is investing US$ 500 million in a 1,331-hectare processing plant at Buzwagi mine.
Tanzania cuts drilling rig fees for small-scale miners

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.

Tanzania Investment Guide 2026 Free Edition

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.

TanzaniaInvest Capital Markets Report Banner

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.

Want to know more about Mining in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers Mining, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources, and is also available at no cost upon completion of a short form.

Download Free OverviewGet the Full Edition for Free
Related Posts
Tanzania Fitch Ratings
Read More

Fitch Revises Tanzania Outlook to Positive, Affirms ‘B+’ Rating, Forecasts GDP Growth of 5.8% in 2026 Driven by Tourism and Mining

Fitch Ratings revised Tanzania's outlook to positive from stable while affirming the sovereign rating at 'B+', citing strengthening reserves and a gradual decline in government debt, warning, however, that the credit rating remains constrained by weak governance and low government revenue. The agency forecasts real GDP growth of 5.8% in 2026 and an average of 6.1% in 2027 and 2028, driven by public investment, tourism, the country's role as a regional logistics hub, and expansion in the mining sector.
Tanzania Samia Suluhu Hassan DRC Felix Tshisekedi
Read More

DRC to Build Dry Port in Dar es Salaam, Deepen Transport and Mining Ties with Tanzania

The Democratic Republic of the Congo (DRC) has begun preparations to build a dry port in Dar es Salaam that will provide customs, cargo handling, mineral certification, and quality control services for Congolese goods moving through Tanzania, President Félix Tshisekedi announced during a state visit to Tanzania on 18 August 2026. The DRC is among the largest users of Tanzanian ports, with approximately 7.2 million tonnes of cargo handled in 2023, as the two countries agreed to accelerate transport, trade, and mining cooperation along the Central Corridor.