Tanzania’s small-scale mining industry has been experiencing growth in recent years, with revenues from the sector increasing by an average of 20% annually. The government hopes to achieve the sector’s target contribution of 10% to the national income. The Minister of Minerals, Mr Doto Biteko, says that this growth has come proportionally with increasing revenues reaped by small-scale miners, which increased to 1.19 trillion Tanzanian shillings by February 2023, up from 451.6 million shillings in 2021.
Small-Scale Industrial Minerals Conference
At the opening of the small-scale industrial minerals conference in Dar es Salaam on Wednesday, Mr Biteko highlighted the government’s efforts to support small-scale miners’ growth and create more job opportunities to contribute to the country’s economic development. The two-day meeting aimed to discuss challenges facing the sub-sector, especially on safety, finance, and business education.
According to Mr Biteko, the success in the small-scale mining sector came mostly from precious metals and other industries, with gold providing about 80% of total revenues gained. One of the initiatives for increasing income was recognizing small-scale miners involved in industrial minerals and jewelry as well as the establishment of mineral trading centers across the country.
New Strategy to Provide Safety and Business Market Education
The conference also saw the launch of a new strategy to provide safety, financial, and business market education to the miners. Mr Biteko hopes that the strategy will help miners to operate safely and efficiently, increase their income, and contribute more to the country’s economy. The Minister also directed Stamico, the government-owned mining company, to convene a meeting with small-scale mining stakeholders and financial institutions to discuss how this sector can receive loans as a way of facilitating capital.
Dr Venance Mwasse, the Managing Director of Stamico, underscored the need for a good mechanism for small-scale miners to receive cash and in-kind loans to facilitate their activities. He suggested that short-term lending arrangements could be made for an agreed amount of money to push for more production since some miners can’t afford to purchase the heavy machines used for extractive works.
Stamico Will Work More in Research
According to Dr Mwasse, Stamico will work more in research to find ways to help miners produce and process industrial minerals that meet the required standards in local and international markets. Mr Biteko hopes that the mining trading centers established in different regions and towns will increase trade, and this sector will continue to grow to employ more people.
The Tanzanian government’s concerted efforts to support small-scale miners are expected to further boost the sector’s growth.
