Political environment tanzania has continued to enjoy political stability since it became independent in the early 1960s. Beyond our forecast period to 2020, the countrys mining sector could diversify as various miners are looking to invest in the countrys nickel, coal and uranium. Problems with reporting and evaluating mining industry. Mining in tanzania started as far back as the precolonial era. Today, 56 years after independence, integration of the sector into the national economy is still held back by a heavy focus on exportation of mineral sand concentrates for smelting abroad. Improving mining revenue collections in tanzania deloitte. In this years edition of state of mining in africa in the spotlight, we take a further look at, and reflect back on, our observations to see how the broad industry is progressing.
Since the mid1990s, the mining sector has been the fastestgrowing sector in the economy, following adoption of favourable investment policies with specific measures for the mineral sector. Tanzania introduced its first mining policy in 1996, aiming to transform the nascent industry into a robust privateled sector. Tanzanias mineral sector reforms yield results the east. Tanzania has the ambition to make the mining industry account for 10% or more of gdp by 2025.
This guide tries to respond to frequently asked questions on existing opportunities, procedures and legal, regulatory and fiscal environment for tanzania s mining industry. Corporate social responsibility in the mining industry. Several concerns affecting mining communities as a result of mining operations were raised at this conference and recommendations proposed to the government for change. Mining industry in tanzania september 11, 2018 no comments. Foreignowned banks, insurance companies and law firms could be locked out of tanzanias mining sector as part of tough new regulations that aim. Makene 1 and esther wangari 2 1 graduate school of geography, clark university, 950 main street, worcester, ma 01610, usa. Barrick gold, ashanti anglogold, and resolute investing in largescale mines. The mining sector involves both largescale mining lsm and artisanal and smallscale mining asm operations. Tanzania is an investorfriendly east african country, which is also highly endowed with prospective geology. A little over a year ago, the government of tanzania boldly took legislative and policy measures that are supposed to put tanzanians. Constant reforms spur tanzanias mining industry a the positive yields came after tanzania relaxed the mining sector regulations 2018, which required local companies to own a controlling stake in multinationals. Although mining in tanzania initially focused around gold, today the biggest projects include various minerals such as magnetite, chlorite, ilmenite, and pyrite with some of these mining projects, such as the liganga mining project, valued at up to zar6, 8 billion recent mining in tanzania has seen the country become the third largest gold producer in africa after south. This guide tries to respond to frequently asked questions on existing opportunities, procedures and legal, regulatory and fiscal environment for tanzanias mining industry. Mining makes up more than 50% of the countrys total.
The mineral policy formulated in 2009, tried to address some of the contemporary challenges affecting the mining industry, such as the low contribution of the sec. Mining is increasingly important in tanzania for the development of the countrys economy. While mining of gold, gemstones mainly tanzanite and diamond dominate the sector tanzania is endowed with a variety of other minerals. The tanzania economic outlook 2017 report provides an overview of tanzanias economic environment and key sectors. Major export markets for tanzanian gold 20112015 21 figure 3. It was revealed that prior to the reforms the extent of minerals extraction in tanzania was low, dominated by mineral sector development.
Status of mines in tanzania since 2000, tanzania s mining industry has experienced a boom in mineral exploration and mining activities. Econometric analysis of fdi in the mining sector to. Artisanal and smallscale mining in tanzania evidence to. Status and challenges of the mining sector has been conducted by the east africa regional office of the society for international development, with support from the heinrich boll foundation in nairobi. This study provides background information on the industry, its impacts, and the legal and political environment of its operation.
Mining and quarrying activities in tanzania contributed 3. Tanzanias new mining rules impose restrictions on foreign. By the end of march, tanzania had collected tsh244. Tanzanias mining sector and its implications for the countrys. The mining policy of 1996 and the mining act of 1997 laid out a 2530year vision that would see the sectors contribution to gdp grow from 1.
In the 1990s, the laws were further relaxed to encourage the introduction of companies who would export the mining products, and investment by international mining companies which opened up large scale mining operations. Tanzanias vision for the next 10 years for the mineral sector is to have a strong, vibrant, wellorganized large and smallscale mining industry conducted in a safe. The first commercial mining for gold was undertaken in the area surrounding lake victoria under the german colonial administrations in the 1890s. The performance of the industry over the years has been determined by various political, social and economic ideologies and policies that characterised different phases, namely. By contrast, supply is added in bulk when a new development is completed. The act established the tanzania mining audit agency with powers among others to advice the government on matter relating to mining sector. Tanzanias mining sector has grown rapidly in recent years. Shaba mining tanzania info phone dar es salaam kawawa st. Section 6 concludes this research with a number of policy recommendations, which are intended for use by the tanzanian government. Amendment of the mining act and its impacts to the mining. Tanzania has the second largest economy in the east african community and the tenth largest in africa. The report also highlights significant allocations in the 201718 budget to various sectors of the economy. The mining industry is cyclical, thanks to the lag between investment decisions and new supply.
An estimated 34 percent of tanzanians currently live in poverty. In the mining industry, the global mining initiative 7 gmi brought together many of the worlds largest mining, metals and minerals companies. Typical mode of msm penetration into asm gold value chain 34. Foremost among them is the impact of climate change, highlighted by the rising frequency of extreme weather events.
Miningselected waste or simply mining waste can be defined as a part of materials that result from the exploration, mining and concentration of substances governed by legislation on mines and quarries identification of the environmental risks associated with such waste requires the. Demand tends to grow in a relatively stable fashion on the back of global economic growth. The tanzania economic outlook 2017 report provides an overview of tanzania s economic environment and key sectors. The role of tncs in the extractive industry of the united.
Artisanal goldminers, geita, tanzania brian sokolpanos. The mining sector now contributes 41% of the countrys foreign exchange and is. The mining act, 1998 arrangement of sections section title part 1. Mining sector taxation in tanzania the international. The united republic of tanzania an act to make provision for prospecting for minerals, mining and dealing in minerals, and to provide for any other. Mining companies in tanzania including dar es salaam, arusha, and more. The analysis of legislation and governance of the mining sectors in those countries. Onesmo was presenting on a study which angonet conducted to assess the situation of csr in tanzanias mining industry with a specific focus on tanzanite which according to her found that there was endemic poor governance e. The conundrum facing tanzanias mining sector has its roots in the countrys colonial history. Based on tanzanias development vision 2025 plan, the mining sector is expected to account for 10% of the gdp by that year. In the last decade, the country has witnessed growth in mining sector with reputable mining companies e.
Historically, there has been limited external pressure on mining companies in tanzania to increase local content. Key challenges, new directions in tzs mining sector the. There are however, sentiments that the sectors contribution to the gdp is lower compared to other sectors of the economy. Tanzania is the 4th largest gold producer in africa after south africa, ghana and mali. For example, the global market price for uranium is still at its historical low, to a point that most companies exploring and developing uranium have.
Over the past decade, the global mining industry has undergone dramatic changes that may have farreaching implications for tanzania the mining sector in tanzania is expected to contribute over 10% of the gdp in order to take advantage of these opportunities the mining sector in tanzania decided to shift towards a. We also follow case studies that, in our view, provide good examples that support our previous observations and suggest the potential for a. Up to 15% of africas exploration expenditure has been spent in tanzania, thought to have africas largest gold reserves after south africa. Corporate social responsibility in tanzania mining sector. The economy has been transitioning from a command economy to a market economy since 1985. Tanzania mining and industrial news african mining market. Tanzania to issue mining licences through cabinet approval. The new face of informality in the tanzanian mineral. Pdf an examination of some key issues on legal and policy. In addition, government set up mineral trading hubs across the country with an eye on roping in smallscale miners, brokers and. While traditional export commodities in particular, gold and diamonds remain staples of tanzanias export industry, newcomer exports of coal, 2 uranium, and nickel represent significant potential. It argues for a joint effort of all stakeholders to overcome typical challenges of the extractive resource industry in africa, in order to make tanzania the best performer in her class.
The extractive resource industry in tanzania heinrichbollstiftung. Acacia mining plc total economic and tax contributions in. Tanzania is a relatively late arrival to largescale mining. Foreign direct investment stock in 20 tanzania by investor origin 20 figure 2. Gdp from mining in tanzania decreased to 1290552 tzs million in the third quarter of 2019 from 23862 tzs million in the second quarter of 2019. Status of mines in tanzania since 2000, tanzanias mining industry has experienced a boom in mineral exploration and mining activities.
Since taking the office in 2015, president magufuli has been pushing for more revenues from the mining sector. Mining companies in tanzania add your free listing. The outlook for upstream producers largely improved in 2018, with a modestly positive rating bias. African mining market offers insights into key market and commodity trends, indepth analysis of resources and prospects and licensing and policy decisions affecting the mining industry in africa.
Diamonds, gold, nickel and gemstones play key roles in tanzanias growing minerals industry. Econometric analysis of fdi in the mining sector to tanzanias export capacity johansein rutaihwa policy research for development repoa, tanzania aneth simwela ministry of industry and trade mit, tanzania abstract this study concentrated in examining the role fdi in the mining sector to tanzanias export capacity during 19892009. Tanzania will issue largescale mining licences only after cabinet approval, a senior official said on friday, part of new measures aimed at further tightening control of the industry. Tanzanias minister of minerals has the power to create regulations under different acts of parliament, such as under the mining act and the tanzania extractive industries transparency and accountability act 2015 the teiti act. It is largely dependent on agriculture for employment, accounting for about half of the employed workforce. The study the extractive resource industry in tanzania. Mining claims were then opened up to individuals, which sparked the small scale mining industry of tanzania. Problems with reporting and evaluating mining industry community development projects.