Tanzania Mining Sector Record 6.5% Growth in Q1 2016

Tanzania’s mining sector grew at a rate of 6.5% in Q1 2016, reaching TZS360b, compared to TZS338b in Q1 2015.

This was indicated in a report recently issued by the Tanzanian National Bureau of Statistics (NBS), highlighting the mining trends in the country in Q1 2016 GDP.

According to NBS, the growth in the mining sector was mainly attributed to an increase in the production of diamond, tanzanite, salt and natural gas.

Tanzania’s natural gas production rose by 48%, from 8,117m standard cubic feet per day (MMSCFD) in January-March 2015 to 11,980 MMSCFD in the corresponding period of 2016.

NBS indicates that the increase is largely due to the high demand for natural gas for power generation at the Kinyerezi Power Plant in Tanzania.

Salt production in Tanzania grew by 44%, from 25,807t in January-March 2015 to 37,248 in the corresponding period of 2016.

Tanzanite production rose by 71%, from 1,606kg in the first three months of 2015 to 2,744kg in the corresponding period of 2016.

Tanzania’s diamonds production rose by 8%, from 72,086 carats (ca) in January-March 2015 to 77,959ca in January-March 2016.

Tanzania Mining

Mining in Tanzania includes metals (gold, iron ore, nickel, copper, cobalt, silver), industrial minerals (diamond, tanzanite, ruby, garnet, limestone, soda ash, gypsum, salt, phosphate, gravel, sand, dimension stones and lately graphite), and fuel minerals (coal, uranium).

Mining and quarrying activities in Tanzania contributed 4% to its GDP in 2015 with nearly TZS3.7t.

Based on Tanzania’s Development Vision 2025 plan, the mining sector is expected to account for 10% of the GDP by that year.