The State Mining Corporation (STAMICO) is planning to establish a large-scale gold mine that it will own 100 per cent, in a move aimed at expanding its mining operations, increasing production and strengthening its contribution to Tanzania’s economy.
The plan was announced by Minister for Minerals Anthony Mavunde on November 7, 2026, during the inauguration of the TZS3.7 billion Rafiki Briquettes factory in Chigongwe, Dodoma.
Mr Mavunde challenged STAMICO to increase returns from its investments and position itself among Africa’s leading state-owned mining corporations, saying its transformation should translate into greater productivity, competitiveness and economic benefits.
He said the corporation had made significant progress after facing serious operational challenges five years ago, when it was among public institutions considered for dissolution.
The minister commended STAMICO’s board and management for implementing reforms but stressed that the corporation needed to pursue strategic investments to sustain its recovery.
The planned gold mine would mark a significant expansion of STAMICO’s operations, although the minister did not disclose its proposed location, investment cost or implementation timeline.
The announcement comes as the Government seeks to increase local participation in the mining industry and ensure more value from the country’s mineral resources remains within the domestic economy.
At the same event, Mr Mavunde inaugurated the Rafiki Briquettes factory, which processes coal from the Kiwira Mine into alternative cooking fuel.
The TZS3.7 billion investment has the capacity to process 20 tonnes of briquettes per hour and is expected to create more than 150 direct jobs, alongside business opportunities for traders and service providers in Dodoma and neighbouring regions.
The factory forms part of broader efforts to reduce dependence on firewood and conventional charcoal, which contribute to deforestation and expose households to harmful indoor air pollution.
Mr Mavunde said the investment reflected President Samia Suluhu Hassan’s commitment to expanding access to clean cooking energy, protecting public health and conserving the environment.
He said the Ministry of Minerals, through STAMICO, would continue supporting investments that combine mineral value addition with environmental sustainability.
The minister also directed STAMICO to seek a strategic investor to develop electricity generation using coal, saying the project could contribute to the Government’s target of producing 8,000 megawatts of electricity by 2030.
He further called on the corporation to work with other companies to promote Rafiki Briquettes and educate residents about their benefits and proper use.
However, wider adoption of the product will depend on its affordability, distribution networks and the availability of compatible cooking stoves.
Mr Mavunde also directed factories established in the country to introduce corporate social responsibility programmes to ensure surrounding communities benefit from industrial investments.
He urged STAMICO to plant and maintain trees in Chigongwe and other areas where it operates, stressing that industrial expansion should go hand in hand with environmental protection.
STAMICO Managing Director Venance Mwasse said the Chigongwe facility was the fourth factory under the corporation’s clean cooking energy programme, which is intended to expand the availability of alternative cooking fuels across the country.
He said the plant would employ more than 150 people directly, while creating indirect opportunities through transportation, distribution, trading and other services.
Mr Mwasse said STAMICO planned to expand the initiative to all regions, strengthening the market for locally processed cooking fuel.
Speaking on behalf of Dodoma Regional Commissioner, Chamwino District Commissioner Janeth Mayanja said the investment would support domestic industrialisation, increase the value of national resources and create employment opportunities.
She urged residents to participate in economic activities generated by the factory and support its operations to ensure lasting benefits for the surrounding communities.
Meanwhile, Parliamentary Standing Committee on Energy and Minerals chairperson Subira Mgalu said the investment would contribute to the Government’s target of ensuring at least 80 per cent of Tanzanians use clean cooking energy by 2034.
She called on the Rural Energy Agency (REA) to facilitate the availability of cooking stoves compatible with Rafiki Briquettes to make adoption easier for households.
STAMICO Board chairman Simon Sirro said the corporation was committed to increasing the value of coal through industrial investments and the production of higher-value products.
He said the Chigongwe factory demonstrated how mineral resources could be processed locally to support industrial development, generate employment and improve livelihoods.
CCM Dodoma Regional chairman Adam Kimbisa also welcomed the investment, saying initiatives promoting clean cooking energy could contribute to economic growth and improved livelihoods.
The investment adds to Tanzania’s efforts to expand domestic mineral processing while addressing the environmental and health challenges associated with traditional cooking fuels.
Its long-term impact will depend on whether the briquettes can reach households at competitive prices and become a practical alternative to conventional charcoal and firewood.