A total of 1,356 mining licenses have been issued across three local government authorities in the Kahama Mining Region—Ushetu, Msalala, and Kahama—creating vast opportunities for both local and foreign investors.
Authorities are calling on stakeholders to take advantage of the region’s mining potential to boost economic growth.
According to Kahama’s Resident Mining Officer, Leons Welengeile, the issued licenses include 77 for mineral exploration, primarily for gold.
The region also hosts two large-scale mining operations—Bulyanhulu and Buzwagi. While Bulyanhulu remains operational, Buzwagi is undergoing the mine closure process.
“Currently, mining activities continue at Bulyanhulu, but Buzwagi is in the final stages of mine closure,” said Welengeile.
He further explained that part of the Buzwagi site has been designated as a Special Economic Zone (SEZ) to encourage industrial investment and educational development.
“We have set aside approximately 13 square kilometers for investments, including the manufacturing of mining equipment, spare parts, and explosives, as well as industries focused on mineral value addition,” he said.
Additionally, technical education institutions will be established in the area to equip local communities with specialized skills in mining-related fields.
“We want to ensure that people living in Kahama have access to technical education that will help them secure jobs and actively participate in the mining sector,” Welengeile added.
The region has also issued seven medium-scale mining licenses, with two in the closure phase, four in the development stage, and one in active production.
Meanwhile, as of February 2025, a total of 1,270 small-scale mining licenses have been granted. However, only 40% of these have been developed, while 60% remain at various exploration stages.
Speaking on business potential, Welengeile highlighted the presence of one main mineral market and five buying centers, providing an organized platform for mineral trade.
“The mining business is growing, and we encourage more investors to establish processing plants,” he said, noting that many miners are now shifting from mercury-based extraction to more environmentally friendly Carbon-in-Pulp (CIP) technology.
To further support small-scale miners, the region has introduced three technical support agreements at Shangaza, LHT, and Super Mabomu mining sites.
“Before these initiatives, gold production in these areas was limited to one or two kilograms per month. However, thanks to strategic investments under the technical support agreements, production has now increased to an average of five kilograms per month,” he said.
Authorities are urging both local and foreign investors to seize the available opportunities and contribute to the region’s economic development.