Tanzania’s mineral sector up 19.8 pct to $3.24 billion in H1 2023

The value of mineral recovery in Tanzania grew by 19.8 percent to $3.24 billion from the amount registered in the preceding year, with all zones recording improvement according to the Consolidated Zonal Economic Performance Report for the month ending June 2023 release by the Bank of Tanzania (BoT).

“This performance was largely driven by gold and coal, which accounted for 76.8 percent and 13.5 percent of the total value, respectively,” the report shows.

The increase in value of coal was on account of a rise in external demand following the high cost of natural gas, particularly in Europe.

“Demand for coal was mostly from the Democratic Republic of Congo, Spain, Poland, Senegal, Ghana, France, United Arab Emirates, Kenya, and India. For gold, the increase was associated with production expansion by Geita Gold Mine and Backreef Gold Mine due to completion of the underground gold production pits and increased capacity of gold production lines from 15 tonnes per hour to 45 tonnes,” the report shows.

Lake zone accounted for 59.3 percent of the total value of minerals, followed by South

Eastern zone with 17.7 percent.

Regarding performance of mineral market centres, the value of minerals traded grew by 8 percent to 2.54trn/- in 2022/23 from the amount recorded in the preceding year, driven by gold and gemstones.

“The value of minerals traded improved in all zones, save for South Eastern and Lake zones, on account of growing mining activities by artisanal and small-scale miners, and improved management of mining activities by the Government,” the Central Bank report shows.

Gold continued to account for the largest share of the total value of minerals traded at the market centres, at 96.4 percent