UPWARDS of 56 percent of all foreign currency earnings in 2023 came from the export of minerals, making the sector the dominant foreign exchange earner for the country.

President Samia Suluhu Hassan made this affirmation at the closure of the 7th Mining and Technology Exhibition in Geita yesterday, underlining that the government intends to invest in modern equipment and technology like geospatial equipment to facilitate nationwide surveys to identify mineral-rich areas and their quantities.

She said that the decision was prompted by the fact that only 16 percent of potential minerals-laden areas had been properly surveyed, so this investment will place the government in a better position to elicit more foreign investment in the sector.

It will enable a clearer understanding of the mineral resources within the country. 

“We are increasing funding for research to obtain reliable statistics on our mineral wealth,” she said, noting that investment in the sector is expected to yield positive results.

The minerals sector contribution to the gross domestic product stands at 9,0 percent, and is projected to reach 10 percent by late 2025, she said, explaining the growth as tied to creating a conducive environment for investment; along with the acquisition of technology.

Through the State Mining Corporation (STAMICO), the government has purchased 15 large rock drilling machines, she said, noting further that the government has allocated 200bn/- as loan guarantees to enable buyers of minerals to borrow and conduct their operations effectively.

Similarly, the Bank of Tanzania has set aside 1trn/-for gold purchasing, she affirmed, citing these efforts as intended to enhance minerals extraction while ensuring we retain gold reserves as a stabilising factor for the national currency.

Markets for minerals have been established in most regions with 44 markets across the country and 103 buying centres, helping to create a lively market cycle, she stated.

In the 2023/24 financial year, minerals worth over 2trn/- were sold through these markets, enabling the government to collect 180bn/-from the sales in addition to other revenues collected in the value chain, she said.

The president assured the audience of government support for small-scale and large-scale miners as a priority, after Minerals minister Anthony Mavunde had announced that the government had revoked over 2,000 prospecting licenses held for long periods.

They include those held by local investors, at that point monopolising over 13m acres, set for reallocation to small-scale miners, especially for the youth and women, he stated.

A total of 231bn/- has been allocated to the Geological Survey of Tanzania (GST) to build two large laboratories, one in Dodoma and a regional laboratory in Geita to assist miners in sample testing, he said.

John Bina, the president of the Federation of Miners’ Associations in Tanzania (FEMATA), appealed for granting tax exemptions on gold mining equipment purchased by small-scale miners.

In a recent meeting in the capital, small-scale miners and traders agreed to withhold 20 percent of gold destined for thej central bank, demanding that BoT scales up support for minerals refining industries.

Martin Shigela, the Geita regional commissioner, stated that last year the exhibition brought 350 participants from within and outside the country, while this year participation rose to 856, with 3,301 licenses issued for small-scale miners.

“A total of 7bn/- has been allocated by the government to provide electricity to areas where small-scale miners have produced over 16,262 kilogrammes, with sales worth 2.2trn/-,” he added.