Mining sector growth ‘set to surpass targets’
11
Mar 2022
Polycarp Machira
Dodoma
News
The Guardian
Mining sector growth ‘set to surpass targets’
GROWTH in the mining sector is rapid and likely to surpass targets set by the government, the minister, Dr Dotto Biteko has declared.
Steady growth has been observed over the past year and is likely to surpass the government’s target of 10 per cent contribution to the gross domestic product (GDP) by 2025, the minister said when outlining achievements in the sector during the one year of the sixth phase government.
The sector’s contribution to the national economy from January to September 2021 increased to 7.3 per cent, up from 6.5 per cent in 2020 as investors injected $579.3m equivalent to 1.33trn/- in the sector.
Mining sector contribution in the third quarter of July –September 2021 increased to 7.9 per cent, from 7.3 per cent in the same period in 2020, he said, noting that sales of minerals reached 8.3trn/-during the year and the government collected 597.53bn/- in taxes and levies.
Local participation in mining sector supplies increased from 43 to 63 percent, he stated.
Mining sector growth accelerated during the sixth phase, raising hope that government targets as outlined in the 2025 Vision are likely to be attained earlier, he said.
He lauded sixth phase policies under President Samia Suluhu Hassan for its strong advocacy of artisan miners’ development, with small scale miners now contributing nearly a third of mining sector revenues.
This is the highest contribution from the sub-sector as its GDP input stood at four percent before mining laws were reviewed to localize the business, he stated, underlining that sixth phase commitment to enhance local participation even if they have low income had added impetus to the sector.
Through reforms, the government has established 44 gold markets and 70 trading centres, creating transparency and trust among small scale miners, the minister asserted, pointing out that existence of the markets enabled banks to trust small scale miners’ transaction projections.
CRDB Bank, NMB Bank, Stanbic Bank, Azania Bank, Ecobank and Standard Chartered Bank have shown a lot of interest in small miners, he stated, praising NMB and CRDB for taking the lead in ensuring availability of capital for miners and mineral traders, saying the trend was ‘encouraging.’
In the first year of the sixth phase, at least 8,172 mining licences were issued, 5,937 being primary licences, 282 prospecting licences, and five were mining licences and two others special mining licences, he stated.
About 49 were processing licences, two refinery licences and 1,531 brokers’ licences, he elaborated, noting while some 364 were dealers’ licences. From March 2020 and February 2022 a total of 6,334 licences were issued.
Last December there were 36,400 valid primary licences, 1,309 prospecting licences, 221 actual mining licences, 17 special mining licences and 210 processing licences. For the first time the government signed four new mining contracts and established big mining firms at a go within one year of the new phase of government, he added.
GROWTH in the mining sector is rapid and likely to surpass targets set by the government, the minister, Dr Dotto Biteko has declared.
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