The government has given gypsum miners and buyers three days to submit detailed production cost figures as authorities move to resolve growing tensions over rising operational expenses and stagnant market prices in the sector.
The directive was issued in Dodoma on May 14, 2026 by Deputy Minister for Minerals, Steven Kiruswa, during a high-level meeting that brought together gypsum miners, cement manufacturers and gypsum processing companies at the Mining Commission headquarters.
The meeting follows mounting pressure from small-scale gypsum miners, who say the sharp increase in fuel prices, machinery spare parts and labour costs has made the business less profitable over the past decade.
Dr Kiruswa said the government wants all stakeholders to submit a comprehensive breakdown of production and operational costs to help pave the way for a fair and sustainable agreement.
“We want each side to clearly outline the challenges they face so that, after analysis, we can reach a common solution that benefits miners, buyers and consumers,” he said.
He added that the government would also review complaints related to multiple levies imposed by some local authorities, which miners argue are contributing to higher production and transportation costs.
Small-scale miners insist that gypsum prices have remained unchanged since 2016 despite rising costs across the mining value chain.
Chairman of Small-Scale Gypsum Miners in Lindi Region, Salum Kassim, said the current pricing structure is no longer sustainable for many operators.
According to him, the situation has affected production levels and discouraged investment in the subsector, particularly among small-scale miners who depend on the industry for their livelihoods.
The miners are now proposing significant price adjustments in key markets. They want the price per tonne in Dar es Salaam and Coast Region increased from Sh110,000 to Sh150,000, while in Mtwara they are proposing a rise from Sh75,000 to Sh95,000.
In Mkuranga, miners are seeking an increase from Sh95,000 to Sh130,000 per tonne, while gypsum from Kiranjeranje is proposed to rise from Sh60,000 to Sh75,000 per tonne.
Kassim said the proposed adjustments would help revive production and improve the welfare of miners who are currently struggling to cope with rising operational expenses.
However, industry players on the buying side have warned that higher raw material costs could trigger a rise in cement prices and affect the broader construction sector.
Procurement Director at Dangote Cement Limited, Halima Kuchwa, said any increase in gypsum prices could have a direct impact on cement production costs and eventually be passed on to consumers.
Gypsum remains one of the key raw materials used in the manufacture of cement, gypsum boards and other construction products. Tanzania’s major gypsum-producing areas include Lindi, Mtwara, Coast Region and Mkuranga.
The latest discussions highlight the delicate balance the government faces in protecting miners’ interests while ensuring industrial stability and affordable construction materials in the market.
