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[h=2]East African Business Week (Kampala)[/h]
BY LEONARD MAGOMBA, 30 AUGUST 2013
Dar es Salaam Tanzania's mining industry is envisaged to double in value of the sector to $1.28bn from $0.64bn between 2010 and 2015, thanks to major foreign investors.
A study by Business Monitor International (BMI) availed to East African Business Week in Dar es salaam recently forecasted the average annual growth in the sector of 7.7% between 2011 and 2015.
Tanzania is the 4th largest gold producer in Africa after South Africa, Ghana and Mali. Gold production currently stands at roughly 40 tons a year, copper at 2,980 tons, silver at 10 tons and diamond at 112,670 carats.
"In total the mining sector contributes 3.0% to GDP each year but this could rise considerably in future years, with Business Monitor International forecasting average annual growth in the sector of 7.7% between 2011 and 2015." It said.
However, African Barrick Gold plc (ABG) has already announced to cease operations in Tulawaka mines.
Tulawaka Gold Mine ceased mining operations on March 7, 2013 after its gold reserves became economically unviable to extract and refine.
Minerals that have been identified in Tanzania include gold, iron ore, nickel, copper, cobalt, silver, diamond, tanzanite, ruby, garnet, limestone, soda ash, gypsum, salt, phosphate, coal, uranium, gravel, sand and dimension stones.
The major pieces of legislation governing the industry today are the 1997 Mineral Policy, 1998 Mineral Act and 2010 Mineral Act.
Tanzanian mining industry is relatively small in terms of value, but its importance is highlighted by the fact that mining earns a significant share of the country's export revenues.
The contribution of mining sector to the GDP still very law but Minister for Energy and Minerals, Prof Sospeter Muhongo says, the government wishes to expand this to 10% by 2025 , "a target we think is too optimistic," he said.
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 attributed them to be the Africa's fourth largest producer and diamonds.
However, "we also expect coal, nickel and uranium production to become key sub-sectors of Tanzania's mining sector," one of the central bank's monthly economic review quotes.
"We have long held the view that coal should become one of the fastest-growing areas 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.
BY LEONARD MAGOMBA, 30 AUGUST 2013
Dar es Salaam Tanzania's mining industry is envisaged to double in value of the sector to $1.28bn from $0.64bn between 2010 and 2015, thanks to major foreign investors.
A study by Business Monitor International (BMI) availed to East African Business Week in Dar es salaam recently forecasted the average annual growth in the sector of 7.7% between 2011 and 2015.
Tanzania is the 4th largest gold producer in Africa after South Africa, Ghana and Mali. Gold production currently stands at roughly 40 tons a year, copper at 2,980 tons, silver at 10 tons and diamond at 112,670 carats.
"In total the mining sector contributes 3.0% to GDP each year but this could rise considerably in future years, with Business Monitor International forecasting average annual growth in the sector of 7.7% between 2011 and 2015." It said.
However, African Barrick Gold plc (ABG) has already announced to cease operations in Tulawaka mines.
Tulawaka Gold Mine ceased mining operations on March 7, 2013 after its gold reserves became economically unviable to extract and refine.
Minerals that have been identified in Tanzania include gold, iron ore, nickel, copper, cobalt, silver, diamond, tanzanite, ruby, garnet, limestone, soda ash, gypsum, salt, phosphate, coal, uranium, gravel, sand and dimension stones.
The major pieces of legislation governing the industry today are the 1997 Mineral Policy, 1998 Mineral Act and 2010 Mineral Act.
Tanzanian mining industry is relatively small in terms of value, but its importance is highlighted by the fact that mining earns a significant share of the country's export revenues.
The contribution of mining sector to the GDP still very law but Minister for Energy and Minerals, Prof Sospeter Muhongo says, the government wishes to expand this to 10% by 2025 , "a target we think is too optimistic," he said.
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 attributed them to be the Africa's fourth largest producer and diamonds.
However, "we also expect coal, nickel and uranium production to become key sub-sectors of Tanzania's mining sector," one of the central bank's monthly economic review quotes.
"We have long held the view that coal should become one of the fastest-growing areas 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.