Coal has been identified as a strategic resource that could accelerate Tanzania’s shift towards an industrial economy, as the government moves to strengthen production and address challenges facing stakeholders in the sector.
The Minister for Minerals, Anthony Mavunde, said coal plays an important role in supporting industrial development, noting that the resource is not only a source of energy but also a catalyst for adding value to minerals and other industrial raw materials.
Speaking on March 30, 2026 during a meeting with coal stakeholders held at the headquarters of the Mining Commission in Dodoma, Mr Mavunde said effective use of coal could help reduce reliance on imported products while strengthening domestic production and industrial value chains.
He said sectors such as energy, manufacturing and mining stand to benefit significantly if coal resources are efficiently utilized.
“Coal is a crucial pillar in the development of industries. We need to increase production and ensure that its use contributes to value addition within the country,” said Mr Mavunde.
During the meeting, stakeholders raised several challenges facing the sector, including high production costs, transportation difficulties and limited market access.
The minister assured them that the government would work on the concerns in order to improve the business environment and attract more investment into the coal industry.
He also said the government plans to introduce indicative pricing for coal, which will be developed in consultation with stakeholders to ensure transparency and protect the interests of industry players.
Stakeholders in the coal sector welcomed the minister’s engagement, saying the government’s willingness to consult them had strengthened trust and openness in the management of the industry.
They also pledged to increase coal production to meet growing domestic demand and boost government revenue through the mining sector.
Mr Mavunde further urged coal stakeholders to establish an association that would unite them and enable them to address common challenges more effectively while improving coordination within the industry.
In another development, the minister revealed that A1 Steels Tanzania Ltd plans to build a steel manufacturing plant in Dodoma.
The planned factory is expected to use about 20,000 tonnes of coal annually, a move likely to expand demand for the resource and create new opportunities for local coal producers.
The project is expected to generate employment, enhance value addition in the mining sector and strengthen the contribution of manufacturing to the country’s economy.
The meeting underscored the government’s commitment to making the coal sub-sector a key driver of industrial development, with collaboration between the state and private sector seen as essential for unlocking the industry’s full potential.
