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MINING IN TANZANIA
A brief on the Tanzanian Mineral Sector
Tanzania’s mining industry has experienced a boom in both mineral exploration and mining,
activities during the past ten years. Notable developments during the boom period include the
commissioning of six large-scale gold mines at Nzega, Geita, Bulyanhulu, North Mara,
Buhemba, and Tulawaka. During this period more than fifteen mineral prospects of gold, nickel
and uranium, have also been developed to various stages of exploration. This development has
resulted in increase of the country’s annual gold production from less than one tonne per annum
in 1998 to about 50 tonnes in 2008, making the mining industry the second fastest growing
sector after tourism and increasing its contribution to the GDP from 2.0% in 1998 to 3.5% in
2005 (based on 1991 prices).
Furthermore, the cumulative total direct foreign investment (FDI)
in the mining industry in the past ten years exceeded US$ 2.5 billion and employed around 1% of
wage earners.
Factors that led to the rapid growth of the mineral sector in Tanzania include: conducive
geological environment, major economic reforms which have been undertaken since mid 1980’s;
(mineral policy of 1997, enactment of internationally competitive fiscal and legal regimes for the
mineral sector); and political stability of the country.
These developments pose challenges and create opportunities to Tanzania as more goods and
services are needed to support this fast growing sector. Capacity building is thus essential to
meet the demands in the country for delivering essential services and goods such as reliable
power supply, mining equipment and other consumables for the mining industry.
Tanzania Mineral Endowment
Mineral exploration and geological work undertaken so far reveal that Tanzania has a diverse
mineral resource base. Most mineralization falls into a number of geological environments.
These include the following:
- Gold occurrences hosted by the Archean greenstone belts and banded iron formations
around the southern and eastern parts of Lake Victoria.
- Gold and base-metal occurrences in the Proterozoic Ubendian Supergroup in southwest of
Tanzania.
- Kimberlite pipes in the central and southern parts of the Archean craton.
- Nickel, cobalt, copper, tin and tungsten bearing rock formations in the Karagwe – Ankolean
Supergroup in northwest Tanzania.
- Major gemstone occurrences in the Proterozoic Usagaran (eastern Tanzania) and Ubendian
Supergroups. Main gemstone types include: tanzanite, ruby, green garnet, green tourmaline,
rhodolite, sapphire, emerald, acquamarine and chrysoprase.
- Carbonatites associated with the East African Rift Valley system.
- Iron ore hosted in anorthositic intrusives in the Proterozoic Ubendian Supergroup.
- Evaporites in the Rift Valley and younger formations along the coastal belt.
- Coal resources in the Karoo Supergroup in south-western Tanzania.
- Uranium occurrences in the Karoo Supergroup in southwestern and southern Tanzania and
in superficial deposits within the Archaean craton in central Tanzania.
- A variety of industrial minerals such as kaolin, diatomite, gypsum, pozollana, limestone,
meerschaum, bentonite, ball clay and dimension and artstones (granites, marble, anyolite)
occurring in different rock formations.
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