Mbeya – The immense wealth potential of the mining sector in Tanzania was once again proven in Chunya District, Mbeya Region, on September 17, 2024, when small-scale miner Aidan Msigwa registered and sold 111.82 kilograms of gold worth Sh 20.11 billion at the Chunya Minerals Market.
Msigwa, a licensed small-scale miner operating in various locations across Chunya District, also owns a gold processing plant in the area. He holds licenses for small-scale mining (PML) and mineral exploration (PL), allowing him to actively contribute to the local mining industry.
Speaking after the sale, Chunya Regional Mining Officer Engineer Laurent Mayalla highlighted the economic impact of the transaction, stating that the government collected Sh1.2 billion in royalties, Sh201 million in inspection fees, and Sh 60.34 million in service levy to the Chunya District Council. Additionally, the Tanzania Revenue Authority (TRA) received Sh 402.31 million as withholding tax.
"Msigwa utilized the mercury amalgamation method to extract gold from high-grade ore. His cooperation with the Chunya Regional Mining Office (RMO) and other relevant institutions ensured the gold was brought to the market in compliance with mining laws and regulations," said Engineer Mayalla.
He further commended Msigwa for his patriotism and exemplary conduct in the mining industry, stressing that other miners should follow his lead. "This kind of transparency will help curb the smuggling of minerals, ensuring that the government receives its due revenue, which in turn supports the improvement of essential services," he added.
The Chunya Minerals Market, established in May 2019, was the second market to be set up in the country, following the launch of the Geita Gold Market in March 2019. To date, Tanzania boasts a total of 43 mineral markets and 105 buying centers. Chunya ranks second nationwide in gold production by small-scale miners. For the fiscal year 2024/25, the Chunya Mining Office is expected to collect Sh 60.2 billion.
The establishment of mineral markets and buying centers has brought transparency and fairness to gold trading, with indicative prices benefiting both sellers and buyers. These markets have increased sales and government revenue while positioning Tanzania as a model for other nations due to its robust mining and trade systems. Ministry data shows that in the fiscal year 2023/24, mineral markets facilitated the sale of minerals worth over Sh 2 trillion.
Chunya’s mining operations are predominantly run by small-scale miners, many of whom rely on basic tools and mercury-based gold production methods. Additionally, most miners in the region use vat-leaching technology for gold processing.
In his budget speech delivered on April 30, 2024, Minister for Minerals Anthony Mavunde noted that Tanzania’s mining economy is largely driven by gold, which accounts for approximately 80% of revenue generated from mineral resources.