Mining set to change Tanzanian economy

Dar es Salaam, Tanzania — 26 April 2013 – The Tanzanian mining sector has a crucial and significant contribution to play in the country’s future economy, despite the fact that it is currently facing a variety of  internal and external challenges.

The Tanzania Chamber of Minerals and Energy (TCME) said in a report released here at its 18th annual general meeting that several new major mines would be operational within the next five years. They are expected to significantly change the country’s economic landscape, reports allAfrica.com.

TCME chairman Joseph Kahama said in the report that the new mines would result in a substantial increase in the number of Tanzanians employed in the mining sector; a rise in government revenues and improvements in the infrastructure including roads, rail networks and telecoms; and improved delivery of social services such as education, health and water supply schemes.

At present the mining sector contributes about 2.3% of the gross domestic product, which is expected to rise 10% by 2025. Tanzania is the 4th largest gold producer in Africa after South Africa, Ghana and Mali. Gold production currently stands at roughly 40 tonnes a year, copper at 2,980 tonnes, silver at 10 tonnes and diamond at 112,670 carats.

Business Monitor International (BMI) forecasts average annual growth in the sector of 7.7% between now and 2015. It also predicts a doubling in value of the sector to around US$1.28 billion by 2015.

Minerals so far identified in Tanzania include gold, iron ore, tanzanite, ruby, garnet, limestone, soda ash, gypsum, salt, phosphate, coal, uranium, gravel, sand and dimension stones.

Source: allAfrica.com. For more information, click here.