Thanks to recent developments and strategic interventions by the Ministry of Minerals, the Ruvuma region is emerging as a focal point for Tanzania’s mining sector. With top government officials like Minister Anthony Mavunde and Deputy Minister Dr. Steven Kiruswa visiting key mining sites in September 2024, Ruvuma’s trajectory towards becoming a significant contributor to the national economy is gaining momentum. These visits signal a new chapter for the region, from coal and uranium mining to substantial policy reforms.
Coal Mining in Ruvuma: Investing in Power Generation
During a visit to Mbinga, Minister Mavunde praised the increased output of coal mining companies and called for greater investment in domestic power generation. As the coal mining industry continues to flourish, he urged companies to explore clean energy solutions by generating electricity from coal. This would help Tanzania meet its energy demands sustainably while also capitalizing on its rich coal reserves.
The region’s coal production has already yielded significant economic benefits, contributing to the mining sector’s growth. Ruvuma surpassed its revenue collection targets by 112% in the first two months of FY 2024/25. With coal exports and mineral revenues on the rise, Tanzania’s mining sector is on track to contribute 10% to the country’s GDP by 2025.
Local Content and Corporate Social Responsibility in Tanzania’s Mining Sector
Mavunde emphasized the importance of Corporate Social Responsibility (CSR) and local content compliance in mining operations. By prioritizing local service providers, mining companies can help ensure that the wealth generated from Tanzania’s natural resources benefits the local economy. This focus on local content in coal mining and other sectors is vital for sustainable development and community empowerment.
Deputy Minister Dr. Steven Kiruswa, during his oversight of the uranium mining project in Likuyu, Namtumbo District, reinforced this commitment by overseeing the signing of contracts between Ako Group Tanzania Limited and local suppliers. These contracts, focusing on services like catering and cleaning, are a significant step toward ensuring that the local economy benefits directly from mining activities.
Also, read Launch of TAMISA
Formalizing Tanzania’s Mining Industry: Bans and Reforms
To formalize the mining sector and curb illegal activities, Mavunde announced a series of critical reforms during his visit to Tunduru. One of the key reforms is the prohibition of conducting mineral trade in people’s homes. This aims to prevent mineral smuggling and ensure transparent transactions. Traders found violating these rules will face severe penalties, including the revocation of licenses and confiscation of minerals.
Additionally, the minister announced the establishment of a TZS 2.1 billion Mineral Market in Tunduru, jointly funded by local traders and the District Council. This market will provide a secure environment for mineral transactions, promoting transparency and reducing the risk of fraud. The ban on foreigners purchasing minerals at mining sites is another step toward ensuring that mineral transactions are conducted in officially sanctioned markets, further formalizing the industry.
Resolving Disputes and Supporting Long-Term Growth
Dr. Kiruswa’s visit also saw the resolution of a decade-long land dispute between Mantra Company and the Namtumbo Economic Development Group (KUNA). The successful mediation of this issue reflects the government’s focus on resolving local grievances to ensure a harmonious relationship between mining companies and local communities. This resolution, along with ongoing CSR initiatives, is expected to foster long-term cooperation and economic growth in the region.
A Bright Future for Ruvuma and Tanzania’s Mining Sector
The mining sector in Ruvuma is shaping up to be a significant driver of Tanzania’s economy. With coal mining, uranium mining, and continued investment in local infrastructure, Ruvuma’s contribution to the national mining sector will only grow. The government’s push for transparency, local content, and formalization of the mining industry ensures that Tanzania’s rich mineral resources will benefit the country for years to come.
As Tanzania’s mining sector moves closer to contributing 10% of GDP by 2025, the region’s focus on sustainable practices and local empowerment will serve as a model for other mining regions. With ongoing reforms, investment in clean energy, and a commitment to Corporate Social Responsibility, Ruvuma is poised to become a central pillar in Tanzania’s mining success story.
