Home NEWS Sh1.2 trillion mining projects in the offing

Sh1.2 trillion mining projects in the offing

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By The Citizen Reporter

Dodoma/Dar. Two large-scale mining projects will start their operations in the country next year as President Samia Suluhu Hassan’s government ups the tempo in improving Tanzania’s investment climate with a view to attracting investors who will create jobs and earn the country billions of shillings in taxes and millions of dollars in foreign exchange earnings.

A total of $531 million (about Sh1.2 trillion) will be invested in the Lindi Jumbo Graphite and Nyanzaga Gold projects, Minerals minister Doto Biteko, said yesterday.

Of the amount, $489 million (about Sh1.12 trillion) will be invested in the Nyanzaga Gold which is located in Mwanza, while the remaining $42 million (close to Sh100 billion) will be invested in the Lindi Jumbo Graphite.

“The two projects are finalising negotiations with the Government of Tanzania, including the government’s stake in both projects,” he told stakeholders during CSO Week 2021 in Dodoma yesterday.

The week goes with the theme of “CSOs’ Contribution to National Development”.

A total of 1,200 people will be employed in the Nyanzaga Gold project while 350 more will get jobs in the Lindi Jumbo Graphite project, Mr Biteko said.

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Minerals minister Doto Biteko at CSO meeting in Dodoma yesterday. PHOTO|ONLINE

Actual mining development starts next year.

Going by the current prices for graphite and gold, the two projects are expected to inject $5.5 billion worth of foreign exchange earnings into the economy per year.

“The Ministry of Minerals is expected to collect an estimate of $380 million in revenues through mining royalties and inspection fees from both projects during the period of the life of the mines,” said Mr Biteko.

Speaking on the achievements of the mining sector during the past six months of President Hassan’s leadership, Mr Biteko said the sector has registered great success across all the performance parameters, including revenue collection, management of local content and gold exports.

“The ministry through its Commission has collected a total of Sh290.68 billion from its various sources including mining royalty, clearance and inspection fees and annual rents,” he said.

This, he said, was a growth of four percent compared to the Sh279.88 billion that was collected in the period between October 2020 and March 2021.

“This growth has been contributed by the firm supervision of the Ministry of Minerals in the mining operations,” Mr Biteko said, noting that during the financial year ending June 30, 2021, the Ministry collected a total of Sh584.83 billion.

This was 111 percent of the target of collecting Sh526.72 billion. Gold exports continue to contribute more than 75 percent of the revenue collection in the mining sector whereas during the period between April and September 2021, Tanzania exported 30,956.74 kilograms of gold worth $1.429 billion.

There has also been a compliance with the local content policy, whereby during the past six months, a total of 7,151 Tanzanians were holding various employment positions in the sector. This represented 96 percent of total jobs in the mining sector as only 267 expatriates – representing only four percent of the jobs – were employed in the sector.

“On the other hand, among the companies providing services to the mining industry, 961 (which represents 66 percent) were those owned by Tanzanians compared to the 506 (34 percent) Foreign companies that were approved by the Ministry of Minerals through the Mining Commission,” Mr Biteko said. The Ministry also approved the procurement of products and services worth 579.32 million from local sources. This was 63 percent of such requirements, higher than products and services worth $337.19 million that was procured from foreign countries.

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