The panel discussion at the Tanzania Mining and Investment
Conference 2024, moderated by Francis Mihayo, Assistant Commissioner for
Small-Scale Mining from the Ministry of Minerals, centered on the mechanization
of small-scale mining, technological advancements, and organizational
effectiveness within the sector.
Mr. Osman Abdulsattar Tharia, Chairman of the Tanzania
Minerals Dealers Association (Tamida), opened the discussion by highlighting
Tanzania's progress in the minerals and gemstone industry. He remarked on the
country's standing as one of the leading global producers of precious metals,
particularly noting the significant contribution of Tanzanite, one of the
rarest gemstones in the world.
"The rules for local and international dealers are the
same, but for Tanzanians adding value, their regulations should differ from
those exporting raw minerals," Tharia emphasized. He further noted that
Tanzania is one of only a few countries globally with five rare minerals, and
it boasts over 46 active mines.
Mr. Dimitri Mantheakis, Managing Director of Ruvu Gemstones
Mining Co. LTD and another TAMIDA Chairman stressed the importance of value
addition within the mining sector, specifically citing the process of cutting
gemstones.
He stated that while Tanzania has steadily produced
minerals for over a decade, less than 1% are processed locally. "Value
addition can increase by 30-50% when done here. China continues to benefit by
processing Tanzanian gemstones at a higher cost," he noted, explaining
that while the cost of a raw stone maybe just a dollar, processing it can cost
more than nine dollars.
Mantheakis also suggested that the government establish a
dedicated department for value addition, calling it a simple process that could
transform the sector. "A basic workshop can be established for as little
as $20,000. A focused policy on value addition would revolutionize the mining
industry," he said.
Addressing the bureaucratic challenges, Mantheakis urged
the government to simplify and formalize the small-scale mining sector by
removing unnecessary charges and supporting local miners. His comments
underscored the need for small-scale miners to have more accessible
opportunities to process and add value to their gems locally.
MTL Consulting Managing Director Dr. Mtagwaba echoed
similar sentiments regarding the need for policy reforms. He criticized the
current categorization of small-scale miners, which lumps artisanal and
small-scale mining under one umbrella. “We need to categorize miners according
to their capacities, as countries like Zambia and Ethiopia have done, to
streamline the sector," Dr. Mtagwaba said.
He also highlighted Tanzanian entrepreneurs' ingenuity,
pointing to local fabrication of grinding machines that are exported to
neighboring East and Central African countries. "This is a huge
opportunity that should be explored through institutions like Sido, Veta, and
other industrial authorities," he added.
The panel also addressed the critical role of small-scale
miners in job creation and economic growth. According to Stamico, small-scale
miners now contribute 40% of the country's mining revenue, a significant
increase from just 4% before their formal recognition.
In response to feedback from the audience, the moderator
highlighted the government's ongoing efforts to create a conducive environment
for small-scale miners. The discussion emphasized the need for policy changes
that would favor local mining operations and support the sustainable growth of
the sector.
The panel, which was a key part of the Tanzania Mining and
Investment Conference 2024 at JNICC, offered valuable insights into the current
state and future potential of Tanzania’s mining industry, with a strong focus
on the mechanization and value addition needed to enhance local processing and
boost the economy.
