By The Respondent Online Reporter
Tanzania's mining sector,
anchored by large-scale operations owned by both domestic and foreign companies
as well as joint ventures, relies heavily on the significant contribution of
small-scale miners. Despite using outdated technology and facing capital
challenges, these miners play a crucial role in national development by
boosting revenue, providing employment, and improving livelihoods for many
Tanzanians.
Contribution of
Small-Scale Miners to Tanzania's Mining Sector
In recent years, small-scale
miners have significantly increased their contribution to the revenue of
Tanzania's mining sector. According to Ministry of Minerals data, their
contribution has risen from 5% before the 2017 Mining Act amendments to
approximately 40% in the 2022/2023 fiscal year. This increase underscores their
vital role in the production of various minerals like gold, Tanzanite, and
other gemstones, leading to substantial government revenues.
Employment and Social
Development from Small-Scale Mining
Small-scale mining provides jobs
for thousands of Tanzanians, particularly in rural areas where employment
opportunities are scarce. These jobs help diverse populations earn sustainable
incomes and improve their living standards. Additionally, the sector
contributes to community development by funding social services such as
schools, health centers, and essential infrastructure. Many mining areas have
seen rapid social development directly attributed to the contributions of
small-scale miners.
Licensing and Control
Measures for Small-Scale Miners
The Tanzanian government has
implemented supportive measures for small-scale miners, including streamlined
licensing processes and stringent controls against mineral smuggling. The
issuance of mining licenses has increased from 5,094 licenses in the 2018/2019
financial year to 10,067 licenses between July 2023 and March 2024, with 6,934
specifically designated for Small-Scale Mining Licenses (PMLs).
Moreover, the establishment of
mineral markets across Tanzania has enhanced transparency and reduced
smuggling. Currently, there are 42 markets and 100 buying centers nationwide.
These markets facilitate digital tracking systems that record mineral
transactions from miners to buyers, ensuring fair pricing and minimizing
illicit trade practices.
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Collaborative Efforts with Financial Institutions
A major challenge for
small-scale miners is access to capital and modern technology. In collaboration
with financial institutions like CRDB, KCB, and NMB, Tanzania's State Mining
Corporation (STAMICO) has facilitated access to affordable loans. This
partnership has enabled miners to acquire modern equipment and operate more
efficiently. Notably, loans totaling Sh 187 billion were disbursed to
small-scale miners between July 2023 and March 2024, compared to Sh145 billion
in the previous year.
Training and
Technological Advancements
STAMICO has initiated nationwide
training programs for small-scale miners aimed at enhancing their technical
skills and promoting the use of modern technology. Collaboration with the
Geological Survey of Tanzania (GST) has provided crucial geological data,
aiding miners in more efficient operations. Vision 2030: "Mining is Life
and Wealth" focuses on leveraging advanced technologies such as
high-resolution geophysical surveys conducted via drones to improve mineral
exploration accuracy.
Challenges Faced by
Small-Scale Miners
Despite their significant
contributions, small-scale miners encounter challenges such as inadequate
capital and outdated technology. Many lack the means to invest in modern mining
equipment, hindering productivity. To address these challenges, STAMICO has
procured and plans to acquire additional mining machinery worth Sh 2.22 billion,
aiming to enhance efficiency and safety while reducing production costs and
time.
The Tanzanian government,
through the Mining Commission, continues to create an enabling environment for
small-scale miners. Efforts include simplified licensing procedures and
education on safe and productive mining practices. Collaborative learning
trips, organized by the Ministry in conjunction with the Federation of
Small-Scale Miners Associations Tanzania (Femata), have enabled miners to gain
insights from international experiences, such as a specialized training visit
to China in 2023.
The prosperity of Tanzania's
small-scale mining sector has attracted interest from countries across
sub-Saharan Africa seeking to learn about effective management and operation
strategies in the mining industry, underscoring its regional significance.
The substantial contribution of
small-scale miners in Tanzania cannot be overstated. They are pivotal in
providing employment, boosting national revenue, and fostering community
development. Through ongoing government support and strategic partnerships,
Tanzania aims to further empower small-scale miners to drive growth in the
mining sector and the economy at large.
