Dr. Mwigulu pushes formal mining deals to curb disputes

By The Respondents Reporter

Prime Minister Mwigulu Nchemba has called for mining partnerships to be governed by formal contracts, warning that informal agreements between investors, licence holders and landowners can create disputes and undermine the benefits of Tanzania’s mineral wealth.

Dr Mwigulu said clear contracts should define the rights, responsibilities and benefits of all parties involved in mining, particularly where investors work with licence holders or owners of mineral-bearing areas.

He made the remarks on Saturday, October 3, 2026, when he closed the ninth National Mineral Technology and Investment Exhibition in Geita.

“Let us continue building trust, but we should also start formalising our procedures for cooperation when undertaking mining activities. The Ministry has made efforts to establish contracts; let us use them and abide by the terms set out in those contracts,” he said.

The Prime Minister’s call places greater emphasis on transparency in mining partnerships at a time when the Government is seeking to increase mineral production and ensure that communities and Tanzanians benefit more from the sector.

Dr Mwigulu said the Government would continue working with miners, investors and other stakeholders to strengthen the sector while ensuring mineral resources contribute to national development and the wellbeing of communities living around mining areas.

He also said the Government had put in place a mechanism to direct 10 percent of revenue collected from minerals towards detailed geological exploration.

The move, he said, was necessary to improve Tanzania’s understanding of its mineral potential and provide information that can guide investment and mining decisions.

Minerals Minister Anthony Mavunde said the mining sector contributes 10.3 percent of Tanzania’s Gross Domestic Product, with small-scale miners accounting for about 40 percent of mineral production.

However, he said only 16 percent of the country had so far undergone geological exploration by the Tanzania Geological Survey, leaving a large part of Tanzania’s mineral potential yet to be fully mapped.

Mr Mavunde said part of the revenue generated from mining would therefore be used to expand geological research.

“The more we know about our mineral resources, the better positioned we are to attract investment and plan how these resources should be developed,” he said.

The minister said the Government collected TZS1.39 trillion from the mining sector last year and had set a target of TZS1.40 trillion for the current year.

In the first quarter, the Government had targeted TZS351 billion but collected TZS411 billion, equivalent to 117 percent of the target.

The figures underline the growing importance of mining revenues to Government finances, while also increasing pressure on authorities to ensure that mineral production translates into wider economic benefits.

Mr Mavunde also disclosed that the Government had started reviewing large-scale mining licences covering areas that had not been developed.

He said steps would be taken to revoke licences where holders had failed to develop the projects in accordance with requirements.

Sitarike in Katavi is among the areas already being addressed, he said, adding that land released from undeveloped projects would be made available to small-scale miners.

The move could provide additional operating areas for small-scale miners, who remain a major source of mineral production and employment in the sector.

President of the Federation of Miners’ Associations of Tanzania (FEMATA), John Bina, commended the Government for measures aimed at supporting small-scale miners.

Mr Bina said the Bank of Tanzania had continued purchasing locally produced gold and had so far accumulated more than 35 tonnes.

He called for commercial banks to increase lending to miners, arguing that access to finance would allow them to acquire better equipment and increase production.

He also called for stronger geological information and action against false geological information that could mislead miners and expose them to financial losses.

Mr Bina further urged authorities to maintain protection of Tanzania’s Tanzanite resources.

AngloGold Ashanti–Geita Gold Mining (GGML) managing director Ashraf Suryaningrat said the company would continue working with the Government to develop Tanzanian skills and talent, strengthen local businesses and supply chains, and support technology, innovation and development in communities surrounding the mine.

The ninth National Mineral Technology and Investment Exhibition was held in Geita under the theme “Minerals are Wealth: Let Us Take Collective Responsibility to Achieve the National Vision 2050.”

A total of 1,052 participants attended this year’s exhibition, compared with 400 at the previous edition.

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