Mineral Industry in Tanzania
Mineral Industry in Tanzania
In 2019, Tanzania played a significant role in the global The Government required a mineral dealers’ license to sell
production of gold, accounting for about 1% of the world’s gold minerals at the trading centers. The Government also canceled
mine output. The country was also the world’s only producer about 1,000 inactive mining licenses and announced plans
of tanzanite, which is a gemstone variety of zoisite that gets to redistribute them to small-scale miners (Reid, Lewis,
its color from trace amounts of vanadium. Other domestically and Herman, 2019).
significant mining and mineral-processing operations included In 2019, the Government lifted the ban on the export of
cement and natural gas. Tanzania was not a globally significant mineral concentrates, which it had established in June 2017
consumer of minerals or mineral fuels in 2019 (National Bureau to encourage downstream processing. The Government also
of Statistics, 2020, p. 63; Sheaffer, 2021). replaced mining taxes that included an 18% value-added tax on
mineral sales, a 7.3% inspection fee, a 5% withholding tax, and
Minerals in the National Economy a 0.3% government service fee with a 7% royalty on mineral
sales (Thomson Reuters, 2019; Kahn, 2020).
In 2019, the manufacturing sector accounted for 8.5% of
In October 2017, the former Ministry of Energy and Minerals
the gross domestic product (GDP), and mining and quarrying,
was divided into the Ministry of Energy and the Ministry of
5.2%. The value of output in the mining sector increased by
Minerals. The Ministry of Energy was responsible for regulating
17.7% in 2019 compared with 1.5% in 2018, which could be
natural gas and petroleum exploration and production. The
attributable to increased gold production. Large-scale mines
Mining Commission, which was part of the Ministry of
employed about 12,000 workers in 2017 (the latest year for
Minerals, was responsible for mine inspections, licensing and
which data were available); as many as 1.5 million artisanal
mineral rights, and the regulation and promotion of artisanal and
miners were estimated to produce bauxite, building materials,
small-scale mining (Lewis, 2017).
colored gemstones, copper, diamond, gold, tin, and other mineral
commodities (Zavala, 2017; Bank of Tanzania, 2020a, p. 27, 31). Production
In 2019, Tanzania’s total exports were valued at $5.57 billion,
of which gold accounted for 39.8%. Total imports were In 2019, the production of pumice increased by 187%; salt, by
valued at $9.02 billion in 2019, of which petroleum products 173%; limestone, by 88%; sand, by 45%; cement, by 44%; tin,
and fertilizers accounted for 24.7% and 1.6%, respectively by an estimated 25%; gold, by 23%; and coal, by 13%. Refined
(Bank of Tanzania, 2020b, p. 10–11). aluminum and lead production started in 2019, but information
Tanzania is a signatory to the Kimberley Process Certification was not available to make a reliable estimate of output. Between
Scheme, which is a certification system established to reduce the 2015 and 2019, kaolin production increased by 686%; coal, by
trade in conflict diamond. Upstream natural gas and petroleum 178%; cement, by 108%; diamond, by 93%; and natural gas, by
exploration and production are governed by the Petroleum Act 70%. Kaolin output decreased by 88% in 2019. Bauxite mining
2015 and the Petroleum (Local Content) Regulations 2017. shut down in 2018. Between 2015 and 2019, tin production
In July 2017, the Government passed the Natural Wealth decreased by an estimated 94%; emerald, by an estimated 87%;
and Resources (Permanent Sovereignty) Act 2017, the Natural lime, by an estimated 70%; amethyst, by an estimated 66%;
Wealth and Resources Contracts (Review and Re-negotiation sapphire, by an estimated 64%; aquamarine, by an estimated
of Unconscionable Terms) Act 2017, and the Written Laws 63%; and sunstone, by an estimated 53% (National Bureau of
(Miscellaneous Amendments) Act 2017. The new laws mandate Statistics, 2020, p. 63).
Government ownership of at least 16% in mining projects and Coal production increased in 2019 because of recent mine
allow the Government to renegotiate or terminate contracts with openings and increases in capacity. The increase in reported gold
mining companies. The new laws also increase royalties on production was at least partially attributable to the establishment
copper, gold, platinum, and silver exports to 6% from 4% and of mineral trading centers by the Government in March. Data on
royalties on colored gemstone, diamond, and uranium exports to mineral production are in table 1.
6% from 5% (Solomons, 2017; Daghar, 2019).
In January 2018, the Government passed new regulations Structure of the Mineral Industry
mandating that Tanzanian companies have at least 5% equity
Most of Tanzania’s gold mines were privately owned;
in mining operations in addition to the Government’s free-
the cement plants, natural gas operations, the Minjingu
carried interest. The regulations also mandate that priority be
phosphate mine, and the Nyanza salt mines were also owned
given to Tanzanian companies when mining licenses are issued
by private investors. The Government-owned State Mining
(Ng’wanakilala, 2018).
Corp. (STAMICO) operated the Biharamulo gold mine. The
In March 2019, the Government established a total of
Government also held a 50% share in the large-scale tanzanite
28 mineral-trading centers in various mineral-producing
mining operations at Block C at Merelani and minority interests
localities in Tanzania to formalize artisanal and small-scale
in the privately owned Ngaka coal mine and the Williamson
mining and to reduce smuggling of gold and other minerals.
Stone:
Crushed, limestone 4,443,600 4,170,057 3,300,899 2,944,000 r 5,527,000
Other, size and shape unspecified:
Calcite -- e 1 1 1e 1 e
e
Marble 43,000 58,512 42,729 43,000 e 43,000 e
Commodity Major operating companies and major equity owners Location of main facilities Annual capacity
Aluminum, refined, secondary Gravita Tanzania Ltd. (Gravita India Ltd.) Plant near Dar es Salaam 6,000.
Cement Dangote Cement plc Plant at Mtwara 3,000,000.
Do. Tanzania Portland Cement PLC (Scancem International Plant at Wazo Hill 2,200,000.
DA, 69.3%)
Do. Tanga Cement PLC [AfriSam Consortium (Pty) Ltd., 62.5%] Plant at Tanga 1,800,000.
Do. ARM Cement Ltd. Plant at Dar es Salaam1 1,600,000.
Do. Mbeya Cement Company Ltd. (LafargeHolcim Ltd., 61.5%) Plant at Mbeya 1,100,000.
Do. Lake Cement Ltd. Plant at Kimbiji 500,000.
Do. Kisarawe Cement Ltd. Plant at Nazimuzubwi 108,000.
Coal, bituminous Intra Energy Corporation Ltd., 70%, and National Ngaka Mine in Ruvumu District 960,000.
Development Corp., 30%
Do. Edenville Energy plc Rukwa Mine near Sumbawanga 120,000.
Copper, mine Artisanal and small-scale miners Mine at Mbesa 12,000.e
Do. Twiga Minerals Corp. (Barrick Gold Corp., 100%) Buzwagi Mine in Shinyanga Region1 4,200.
Do. do. Bulyanhulu Mine near Kahama1 3,200.
Diamond carats Williamson Diamonds Ltd. (Petra Diamonds Ltd., 75%, Williamson Mine near Shinyanga 450,000.e
and Government, 25%)
Do. do. El Hillal Minerals Ltd. Mine near Shinyanga 17,000.e
Do. do. Artisanal and small-scale miners do. 12,000.e
Gemstones:
Emerald do. Mines near Lake Manyara NA.
Ruby do. Mundarara Mine near Longido NA.
Tanzanite kilograms TanzaniteOne Mining Ltd. [Sky Associates Ltd., 50%, Mine at Merelani, Block C 2,000.e
and State Mining Corp. (STAMICO), 50%]
Do. Kilimanjaro Mines Ltd. Mine at Merelani, Block A NA.
Do. Artisanal and small-scale miners Mines at Merelani, Blocks B and D NA.
Do. Tanzanite Africa Ltd. (IPP Media Ltd.) Mine at Merelani, Block D Extension NA.
Gold kilograms Twiga Minerals Corp. (Barrick Gold Corp., 100%) North Mara Mine in Tarime District 11,500.
Do. do. do. Bulyanhulu Mine near Kahama 10,500.2
Do. do. do. Buzwagi Mine in Shinyanga Region 4,800.
Do. do. Geita Gold Mining Ltd. (AngloGold Ashanti Ltd., 100%) Geita Mine near Nyakabale 18,800.
Do. do. Shanta Gold Ltd. New Luika Mine in Songwe Region 2,600.
Do. do. Stamigold Co. Ltd. [State Mining Corp. (STAMICO)] Biharamulo Mine in Kagera Region 1,200.e
Do. do. Artisanal and small-scale miners Mines in various locations 5,200.e
Lead, refined, secondary Gravita Tanzania Ltd. (Gravita India Ltd.) Plant near Dar es Salaam 3,000.
Lime Neelkanth Lime Ltd. Plant at Tanga 180,000.
Do. Athi River Mining Ltd. (ARM) Plant at Tanga1 40,000.
Natural gas million Etablissements Maurel et Prom SA, 48.06%; Wentworth Gasfield at Mnazi Bay 2,170.
cubic meters Resources plc, 31.94%; Tanzania Petroleum
Development Corp., 20%
Do. do. Orca Exploration Group Inc. Gasfield on Songo Songo Island 1,770.
Phosphate rock Minjingu Mines and Fertilizers Ltd. (Mac Group Mine at Minjingu1 100,000.
of Companies)
Salt Nyanza Mines (Tanganyika) Ltd. (Mac Group Nyanza Mines at Uvinza 60,000.
of Companies)
Silver kilograms Twiga Minerals Corp. (Barrick Gold Corp., 100%) Bulyanhulu Mine near Kahama 8,900.
Do. do. do. Buzwagi Mine in Shinyanga Region1 4,300.e
Do. do. do. North Mara Mine in Tarime District 1,300.e
Do. do. Shanta Gold Ltd. New Luika Mine in Songwe Region 3,400.e
Do. do. Geita Gold Mining Ltd. (AngloGold Ashanti Ltd., 100%) Geita Mine near Nyakabale 2,300.e
Steel Aluminum Africa Ltd. Plant at Dar es Salaam 70,000e rolled.
Do. MM Integrated Steel Mills Ltd. do. 36,000e rolled.
Do. Aluminum Africa Ltd. do. 70,000 galvanized.
Do. MM Integrated Steel Mills Ltd. do. 36,000 galvanized.
e
Estimated; estimated data are rounded to no more than three significant digits. Do., do. Ditto. NA Not available.
1
Not operating at the end of 2019.
2
Only 1,600 kilograms per year of capacity was available because underground mining operations were on care-and-maintenace status .