Majaliwa launches TZS12.4 billion drilling equipment to boost small-scale mining

By Our Reporter, Dodoma

Prime Minister Kassim Majaliwa has launched a TSh12.41 billion investment in ten modern drilling rigs and mineral research tools to empower small-scale miners and enhance the sector’s contribution to the national economy.

The equipment, unveiled on Tuesday at the Jakaya Kikwete Convention Centre in Dodoma, is expected to significantly improve access to geological data for small-scale miners, helping them extract minerals more efficiently and sustainably.

“This initiative is part of President Samia Suluhu Hassan’s broader vision to strengthen and formalize small-scale mining activities across the country,” said Mr. Majaliwa. 

“In October 2023, the President launched five rigs. Due to overwhelming demand and the positive response from miners, she directed the Ministry of Minerals to procure additional equipment.”

According to the Prime Minister, the first five rigs have already served 16 mining groups in various regions and have drilled a total of 3,450.37 metres, providing crucial geological insights for improved mining operations.

“The introduction of more rigs will be transformative,” Mr. Majaliwa said. “They will not only accelerate access to critical geological information but also drive productivity and safety for thousands of small-scale miners.”he adde

Mr. Majaliwa used the occasion to call on miners to sell their gold and other minerals through domestic refining plants and the country’s certified markets and buying centres. Tanzania currently operates 43 mineral markets and 109 buying stations.

“If you truly care about this country, sell your minerals locally,” he urged. “Ensure our economy benefits first before anyone else. Minerals should circulate through our internal systems to generate national wealth and opportunities.”

Minister for Minerals, Anthony Mavunde, said the mining sector contributed TSh1.01 trillion to the national treasury in the 2024/25 financial year, a historic achievement.

“We are now among the top ten gold reserve holders in Africa,” he said. “The Bank of Tanzania currently holds 5.7 tonnes of gold, reflecting the increasing value of domestic production and government efforts to retain national wealth.”he added

Mr. Mavunde also noted that the sector’s contribution to GDP has risen to 10.1 percent under President Samia’s leadership — a major milestone ahead of target.

“This is proof that deliberate investment and policy reforms are bearing fruit,” he said. “The small-scale mining segment, in particular, is showing remarkable growth and resilience.”

Speaking on behalf of miners, John Bina, President of the Federation of Miners Associations of Tanzania (FEMATA), praised the government for its commitment to the sector.

“Mining is both a science and a business,” he said. “Thanks to this government’s reforms, Tanzanians are now embracing mining as a serious economic opportunity. We, small-scale miners, are fully aligned with this vision.”

The rollout of the new drilling rigs is expected to drive inclusive growth in the mining sector, unlock new opportunities for local communities, and support the government’s broader goal of industrialising the economy through value addition and responsible resource management.

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