African Barrick’s
Tulawaka mine,
which closed
down in March
 
Dar es Salaam, Tanzania — 19 June 2013 – Major foreign investors have played a significant role in the growth of the Tanzanian mining industry which is expected to double in value from US$64 million in 2010 to US$1.28 billion in 2015.

A study by Business Monitor International (BMI) made available to Kampala-based East African Business Week here forecast an average annual growth in the sector of 7.7% between 2011 and 2015, reports allAfrica.com.

Tanzania is the 4th largest gold producer in Africa after South Africa, Ghana and Mali. Gold production currently stands at roughly 40tpa, copper at 2,980tpa, silver at 10tpa and diamonds at 112,670 carats.

In total the mining sector contributes 3.0% to GDP each year but this could rise considerably in future years, if Business Monitor International’s average annual growth forecast in the sector proves correct.

However, African Barrick Gold had already announced that it is to cease operations in its Tulawaka mine. It ceased mining operations on March 7, 2013 after its gold reserves became economically unviable to extract and refine.

The major pieces of legislation governing the industry today are the 1997 Mineral Policy, 1998 Mineral Act and 2010 Mineral Act.

Major foreign investors in Tanzanian mining include African Barrick Gold and AngloGold Ashanti.

Tanzania is home to significant deposits of coal, cobalt, copper, diamonds, gold, nickel, silver and uranium. The country has long been a significant producer of gold, a move which has lifted them to be the Africa’s fourth largest producer.

“We also expect coal, nickel and uranium production to become key sub-sectors of Tanzania’s mining sector,” says one of the central bank’s monthly economic reviews.

“We have long held the view that coal should become one of the fastest-growing commodities  in Tanzania over coming years, as the country looks to coal-fired power stations to offset an energy shortage that is holding back its development,” the minister said. The country could also be in a position to export coal, most likely to India and China.

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