INTRODUCTION TO Tanzania

The United Republic of Tanzania located in East Africa, is one of Africa’s biggest and most successful mining countries. Tanzania is highly prospective for gold and a number of other minerals including diamonds, coal, iron, uranium, nickel, chrome, tin, platinum, coltan and niobium.

Tanzania has a relatively stable political environment with sound legal and fiscal policies. Strong fiscal policies are important when integrating the mineral sector with other sectors of the economy to maximizes benefits to the economy as a whole.

The average annual growth rate of the mineral sector was 13.74% from 1997 to 2007, and the value of mineral exports increased from US$ 26.66 million in 1997 (less than 1% of total exports) to US$ 1,003.21 million in 2007 (52% of total exports). Tanzania’s mining industry has experienced an upswing in mineral exploration and mining activities during the past ten years. Six large-scale gold mines were commissioned at Nzega, Geita, Bulyanhulu, North Mara, Buhemba, and Tulawaka. During this 10 year growth period more than fifteen mineral prospects for gold, nickel and uranium, were developed and are at various stages of exploration.

INVESTMENT OPPORTUNITIES

Tanzania is endowed with substantial mineral resources, however the following minerals offer the most lucrative investment opportunities:

Gold
Gold offers one of the best areas for investment in Tanzania. Current opportunities range from mines in the Archaean Greenstone belts around Lake Victoria, Proterozoic rocks and conceptual grass root plays in the Karoo and younger rocks. Gold exploration has grown rapidly during the 1990’s due to modern technology and more refined models.

Base Metals and Platinum Group Metals
Geologically, both the Prtozoic and Archaean rocks are prospective for base metals and platinum group metals. Recent exploration in North West Tanzania has revealed extensive nickel-cobalt-copper mineralisation associated with the ultramafic rocks of the Karagwe-Ankolean System.

EXPLORATION POTENTIAL

Tanzania has great mining potential particularly for gold, base metals, diamonds, ferrous minerals and a wide variety of gemstones , some of which are unique to Tanzania such as tanzanite. Coal, uranium and various industrial minerals such as soda, kaolin, tin, gypsum, phosphate and dimension stones are available at attractive economic rates. The following are the minerals that have attracted the most interest in the recent years:

Gold found in greenstone belts located in the east and southern parts of Lake Victoria, and rock formations in southern and southwestern parts of the country.

Base metals found in a belt running from Kagera through Kigoma to Mbeya, Ruvuma and Mtwara regions.

Gemstones found in the eastern and western belts running from the Kenyan border in the north to the Mozambique border in the south and Mbeya and Rukwa regions.

Gold and diamonds have always been the mainstay of the country’s mineral production.

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COMPANIES MINING IN Tanzania


LEGISLATION & MINING POLICY OVERVIEW

Tanzania has a globally competitive and investor-friendly legal regime. The Mining Act, 2010 guarantees investors’ security of tenure, repatriation of capital and profits, and transparency in the issuance and administration of mineral rights. It also addresses environmental concerns adequately.

Tanzania’S ECONOMY

The Mining sector contributes about 2.3% of the GDP, which is projected to account 10% in 2025.

Export of minerals accounts for earnings of around US$ 50 million.

Given the heavy flow of foreign investments into this sector it is expected that the value of such exports will increase significantly in the near future.