Tanzania Mining Industry on the Verge of a New Era Years of Tremendous Growth THEME: “Mining Sector for Stable Economy and Sustainable Development”

INTERNATIONAL MINERAL & MINING INVESTMENT Mining for economic and industrial development Conference 2021 www.madini.go.tz | MINISTRY OF MINERALS 1st Edition

Karibu Tanzania, the home of Tanzanite EDITORIAL

CHIEF EDITOR Prof. Simon Msanjila Permanent Secretary - Ministry of Minerals

CONTRIBUTORS Asteria Muhozya - Ministry of Minerals Francis Mihayo - Ministry of Minerals Nuru Mwasampeta - Ministry of Minerals Tito Mselem - Ministry of Minerals Steven Nyamiti - Ministry of Minerals Edwin Ndetekela - Ministry of Minerals Nelly Mtema - TSN Abdallah Msuya - TSN

GRAPHIC DESIGNER Abubakari .W. Kafumba - MAELEZO

PUBLISHER Tanzania Standard Newspapers - TSN

CONFERENCE SPONSORS

International Mineral and Mining Investment Conference 2021. All rights Reserved. Reproduction whole or in part is strictly prohibited without written permission. Opinions expressed in the International Mineral and Mining Investment Conference 2021 are not necessarily those of the Editor or publisher. All reasonable care is taken to ensure truth and accuracy, but editor and publisher cannot be held responsible for errors or ommissions in articles, advertising, photographs or illustrations. Unsolicited Manuscripts are welcome but cannot be returned without a stamped, self addressed envelope. Welcome Note from Minister for Minerals Doto Biteko

t is my great pleasure to wel- income, create stable relations sector and eventually raise the come all players and other key between mining stakeholders economic value of mining and Istakeholders to the Internation- and the community. Apart from mineral activities. The theme of al Mineral and Mining Investment that, the Conference aims at get- this years Conference is Mining Conference 2021 that will be held ting direct experience from differ- Sector for Stable Economy and from 21-24 February 2021 at the ent stakeholders who have wide Sustainable Development. In our Julius Nyerere International Con- knowledge in mining investment website, specifically for the convention Centre (JINCC) in Dar es and mineral value chain and gain ference, you will find various links Salaam City. a common understanding of the that helps you get more informa- management of the mining sector tion, including the registration The 2021 Conference is a continu- and maximise benefits from the process. ation of other mining conferences extractive industry. held in 2019 and 2020 and will be Therefore, I welcome you all to maintained every year. The 2021 conference is expected to Tanzania, a country with condu- present a highly acclaimed pro- cive investment environment, in- The aim of establishing this Con- gramme with more interactive, ed- cluding good geological setting, ference is to create a platform for ucational and networking events. political stability, international- discussing the Mining Industry in ly competitive legal framework Tanzania, achievements, oppor- The Conference aims to bring key and fiscal regime, vast untapped tunities, challenges and deliber- players together to discuss and mineral resources, access to geo- ate solutions to different obsta- link up one another business, un- graphical resource database with cles hindering the development derstand market demands, and adequate and updated informa- of the sector in order to increase standards required to increase tion and infrastructure devel- its contribution to the national Tanzanians' participation in the opment such as power railways, roads, ports and airports.

i It is a great pleasure to welcome you all to the Tanzania’s Third IInternational Mineral and Mining Investment Conference 2021.

The theme of this year’s Conference is “Mining Sector for Stable Econo- my and Sustainable Development”.

Indeed, the 2021 Conference focus- es on the mineral sector’s transparency and explores the link between the mineral sector development and poverty reduction by linking Welcome Note from with other sectors of the economy. As we meet here today, global min- Permanent Secretary eral markets are beginning to be Prof. Simon Msanjila affected by the world economy’s continuing uncertainty. Investment in Tanzania and Im- here at Julius Nyerere International Minerals play a key role in support- pacts of Mining to the Indigenous Convention Centre. ing consumer needs. However, in will be presented by Mark Bristow, some cases, mining activities have the President of Barrick Corpora- Next year’s Conference theme will generated very limited benefits for tion. be communicated. We are confi- producing countries in terms of dent that your attendance will fur- economic growth and poverty re- Members will consider best prac- ther strengthen the Conference’s duction. Indeed, despite the prog- tices in the whole range of mining complementarity. ress achieved since 2000, some sector issues, the challenges they mining activities still have adverse face in addressing these issues and Tanzania looks forward eagerly to social and environmental conse- proposed measures to enable them the outcome of this year’s Confer- quences for the communities living to exercise better governance. ence sessions. We see it as a key next to extraction sites. advisor on best practices in mining I am convinced that the discus- to advance capacity in developing In this context, this Conference’s sions will be an essential step by our country as well as on global activities aim to improve the min- the Government to build capacity policies that may affect the mining ing industry’s governance so that and support good governance in sector. the sector makes a substantial the mining sector. contribution to sustainable devel- Let me assure you that Tanzania will opment. The Conference is inclusive, bring- continue to provide its steadfast ing together participants from all support to the Intergovernmental Since its inception in 2019, the Con- mineral value chain links. It is the Conference’s activities on Mining ference has focused its work on only event in the mining sector and Sustainable Development. reviewing and discussing emerging during which leading mining com- best practices in mining-related is- panies, executives from the private I wish you successful deliberations. sues, be they social, environmental sector, high ranking policymakers or economic. and activists from civil society in- Thank you. teract freely. It is one of the most The previous meetings provided an highly attended events in Tanzania, opportunity to prepare for the de- with about 1,500 participants an- liberations related to mining and nually since its inception. investment in the mineral sector framework. The major achievement We would like to thank those of has been the successful amedment you who will be participating in the of the Mining Act (2010). One of the Conference, and invite all of you to key substantive topic in this year’s join in the next one, which will take Conference is Large Scale Mining place on the same dates next year ii ii GET TO KNOW TANZANIA’S MINISTRY OF MINERALS

he Ministry of Minerals (MoM) The Ministry oversees five insti- Twas established under the Pre- tutions: The Mining Commission, sidential Order published GN The Geological Survey of Tanza- No. 143 dated on 22nd April, 2016. nia (GST), the State Mining Cor- poration (STAMICO), Tanzania Ex- The Ministry is mandated to for- tractive Industries Transparency mulate and monitor the imple- Initiative (TEITI) and Tanzania mentation of mining policies; Gemological Centre (TGC). mines, geophysical and Geolog- ical Survey; Mining Commission Vision affairs; value addition in mining To be a leading and reputable industry; local content in mining institution in managing mineral industry; Small Scale Mining De- resources for contribution to the velopment; performance improve- national economy and wellbeing ment and development of the hu- of Tanzanians. man resource. Mission The Ministry is also mandated to To manage mineral resources ef- monitor extra ministerial depart- fectively and efficiently through ments performance, Parastatals sound policy and legal frameworks Organization, Agencies, and Proj- for the benefits of Tanzanians. ects Operating under the Ministry.

iii Why Mineral and Mining Investment Conference?

n February 22 and 23, 2020, service providers and companies EXPECTED BENEFITS Tanzania Ministry of Minerals involved in mining, mineral pro- organizedO the International Min- cessing and export. 1. To promote investments in the eral and Mining Investment Con- mining sector. ference 2020 with the theme 3. To discuss and gain a common “Sustainable Investment and Part- understanding of the mining sec- 2. Increase investment capital in nership”. tor’s management and maximise the mining sector from local com- the minerals/mining benefits. mercial banks. The Conference presented a highly acclaimed program with more 4. To share and gain understand- 3. To enhance the participation of interactive, educational and net- ing on the linkage between the private sector in extractive sector working events where the indus- export procedures used and the value addition chain. try key players came together at ICGLR certificate. 4. To improve the extractive indus- Julius Nyerere International Con- try linkage with other key sectors vention Centre in Dar es Salaam 5. To bring mining players from the for national economic growth. – Tanzania. Government, private sector and specifically mining industry and 5. Improved for mining, processing Over 1500 participants ranging the supply value chain together and value addition, especially from investors, miners, educa- to discuss and link businesses, to among small-scale miners. tors, Government to other key understand market demands and stakeholders in the sector from all the standards required so as to 6. To increase markets for mineral over the country and Great Lakes increase Tanzanians’ participation products. Region came together to discuss in the sector and eventually raise key issues in the mining industry the economic value of mining and 7. To enhance the implementation and the future of the country’s ex- mineral activities in the country. of laws, regulations and proce- tractive industry. dures governing the mining sector. 6. Lastly and specifically, to learn The aims of Organizing the Confer- at what stage in the supply chain 8. Strengthening revenue collec- ence are; the ICGLR certificate is issued. tions.

1. To get firsthand experience from various stakeholders on their ac- The 2021 Mining Conference, in- tivities and the linkage between tends to attract more investors in different mining and mineral val- the mining sector value chain, enue chain players. hance transparency in the mining incomes and review the contribu- 2. To document the Government’s tion of the mining sector to the good intention to the practices, country’s economy. legal and institutional set up of the certification mechanism and the working relationship between Governments, chain of custody iv Tanzania’s Mining Industry: Investment Opportunity Worth Grabbing

he United Republic of Tanzania contribution of the players in the imizing benefits from mining, de- is located in Eastern Africa. The country's economy. Minerals developing small scale miners, and countryT is one of the most min- velopment is anticipated to create promoting and facilitating value eral-rich countries, blessed with employment, pay taxes and levies addition to minerals. a conducive geological environ- to the country, bring in technol- ment, representing all the known ogies, boost other sectors of the The Mineral Policy is reflected in stratigraphic formations in the economy through local contents, the amendments of the Mining Act world, ranging from Archaean to and improve our communities 2010 made in 2017, which aimed recent formations. livelihood through Corporate So- at increasing the sector's contri- cial Responsibility (CSR). butions to the economy and job These geological formations host creation. a variety of minerals such as pre- The Ministry of Minerals is re- cious metals (gold and silver), iron sponsible for supervising proper The Mining sector contribution ore, base metals (copper and nick- exploitation of mineral resources to national income has increased el, cobalt, tin and lead), platinum in Tanzania. To realize our mission substantially. A good example is group metals (PGM), Rare Earth of becoming a reputable Ministry gold exports whereby Tanzania Elements (REE), coal, uranium, in Africa that develops mineral earned $ 2.72 billion in the Finan- diamonds. Tanzania has varieties resources sustainably for opti- cial Year that ended on July 31, of colored gemstones (Tanzanite, mal contribution to the national 2020 – up by $ 1.78 billion earned Ruby, Sapphire, Tsavorite, rhodo- economy and well-being of Tan- in the same period of 2019. lite, Aquamarine and Tourmaline). zanians, it regulates the sector Others include industrial minerals to contribute significantly to the Last but not least, Tanzania has (limestone, kaolin, kyanite, mag- acceleration of socio-economic a conducive investment environ- nesite, phosphate and gypsum). development through sustainable ment that includes political sta- Minerals in Tanzania are found at development and utilization of bility; an internationally compet- different levels of its development mineral resources in Tanzania by itive legal framework and fiscal stages; hence there is a noticeable 2025. regime; vast untapped mineral resources; access to geographical In contributing to the country's resource databases with adequate development initiatives, the Min- and updated information and in- istry of Minerals aims to achieve frastructure development (pow- the mineral sector's linkage with er, railways, roads, ports and air- other sectors of economy through ports). Beneficiation and Value addition. Notably, the Julius Nyerere Hydro- These steps are in line with the im- power Project with 2,115 MWs con- plementation of the Mineral Poli- struction will upon completion cy of 2009 which aims to strength- increase massively the availabili- en the integration of the mineral ty of electricity in the country for sector with other sectors of the domestic and industrial use. All economy; improving economic these are key factors to the devel- environment for investment; max- opment of the mining sector.

v AN EYE FROM 2020 INTERNATIONAL MINERAL AND MINING INVESTMENT CONFERENCE

ICGLR secretariat Calls on Member States to expedite formalization

nity's twelve members after DRC, for assurance of the consignment Rwanda and Burundi, that has traceability from the cradle to the complied with ICGLR certificate grave. requirements.

He urged that the rest of the Tanzania Chamber of Mines Com- mends MMIC, Law Reforms Member States should speed up the certification process and learn from Tanzania's experience.

he ICGLR secretariat partici- In his presentation, the Executive T pated in the Tanzania Miner- Secretary mentioned that Tanza- als and Mining Investment Confer- nia is the birthplace of the ICGLR ence 2020 as the event was also in 2004. parallel with launching of the IC- GLR certificates for the Tin, Tanta- This place set the birthstone for lum, Tungsten and Gold minerals the peace, security and social de- (3Ts&G). velopment of the region.

The ICGLR pact for peace, security It was the then President of Tan- and social development has put zania the Late Hon. Benjamin Wil- anzania Chamber of Mines mechanisms in place to ensure liam Mkapa who started the initia- (TMC) is grateful to the Gover- that the minerals produced in the tives of making the peace of the nmentT of Tanzania for establish- Member States will be handled in region after the DRC peace started ing and sustaining Minerals and a manner that guarantees that the deteriorating, especially in east- Mining Investment Conferences, consignment has been mined and ern Congo. an annual event that attracts the processed in a place that has a le- sector's stakeholders from across gal mandate to conduct the busi- President Mkapa argued that the the globe. ness. instability of the eastern DRC may result in destabilization of the TMC believes the Conference is an During the meeting, the Executive whole region and called for the ideal platform to discuss the suc- Secretary of the ICGLR Hon. Zach- Dar es Salaam peace talks initia- cess and challenges the sector en- ary Mubury - Muita congratulated tives, which resulted in the ICGLR. countered in the previous year. the Government of Tanzania for its determination in making Tanzania The ICGLR PACT has 10 protocols, The remarks were made by Mr. Si- a compliant member of the ICGLR. of which one directs on curbing il- mon Shayo, on behalf of the TCM legal exploitation of the minerals. during the Tanzania Minerals and He stated that Tanzania is the Mining Investment Conference fourth state among the commu- The protocol sets the baseline 2020.

vi The TCM equally commended gov- uring the Tanzania Minerals r. John Bina, the President of “Miningernment's decision tois amend like the aD revolutionand Mining Investment Confe- forM Tanzania”the Federation of Miners Ass- Mining Act, 2010. Tanzania Mineral Dealers Associa- ociation of Tanzania (FEMATA), ad- tion (TAMIDA) is among key play- dressing the Conference, thanked Tanzania's Parliament passed ers in the mineral business in Tan- the Ministry for organizing the three pieces of legislation on 3 zania. event, which was very useful to and 4 July 2017 that made signif- rence 2020, the Executive Chair- the miners and regulators. Mr. icant changes to the legal and in- man Mr. Sammy Mollel on behalf Bina further informed that Tan- stitutional frameworks governing of the Association congratulat- zania's mining community, espe- oil, gas and mineral extraction: (1) ed the Ministry for providing the cially the small-scale miners, fac- the Written Laws (Miscellaneous platform for sharing the industry's es challenges like inappropriate Amendments) Act 2017 (Amend- challenges and success. technology for mining and pro- ments Act), (2) the Natural Wealth cessing their ores, high costs of and Resources (Permanent Sover- Mr. Sammy recommended the the regulations compliance like eignty) Act 2017 (Sovereignty Act) minerals trading platform initia- the preparation of the Environ- and (3) the Natural Wealth and Re- tive and asked the authorities to mental Impact Assessments (EIA). sources (Review and Re-Negotia- reconsider higher taxes and ex- tion of Unconscionable Terms) Act port levies in the minerals busi- He said the miners also face the 2017 (Contract Review Act). ness. challenge of inadequate mining areas and lack of enough geologi- Mr. Shayo commended the move, He insisted that, by considering cal information for the respective saying that players from TCM the move, the decision would fa- areas. The FEMATA president also supported the amendments and cilitate minerals produced in Tan- argued that the financial insti- pledged to cooperate. zania to penetrate international tutions in the country were not markets easily. friendly to their mining activities. Minerals dealers association calls FEMATA calls for financial support for tax cuts to small-scale miners He asked for government inter- vention so that the financial institutions can be aided to analyze the mining community risks, which can be pursued, so the sub-sector can start being financially acceptable.

He narrated that if the challenges mentioned above will be dealt with; the sub-sector will grow and contribute more to the economy and create extra employment to the community.

vii Mining investors embrace mining law reforms he 2020 Mining and Invest- ment Conference attracted p- Tarticipants from different groups standing of the orebodies in North including investors, miners, edu- Mara, Bulyanhulu and Buzwagi cators, Government officials and where possible would extend its other stakeholders from all over operations whilst optimizing and the world. Great Lakes Region. delivering on mine plans.

The Conference provided a great According to Mr. Diarra, other platform to discuss issues perti- plans include; restarting the Buly- nent to the country's mining sec- anhulu operations and restructur- tor and its future prospects. ing labour structure, thus placing a right person in the right seat and It was an opportunity for some capacity building to staff (Training mining companies and represen- and developing Tanzanian nation- tatives to share their Tanzania Mr. Hilaire Diarra, Country Manag- als) and increasing transparency mining industry experiences. er for Barrick Gold Mining Limited in their operations. admitted that previous operations The Presentations were meant under Acacia were not based on to give constructive feedback on mutual trust. field experiences from the mining investors in Tanzania after two Hence, he suggested that their years of sectoral reforms which first task is to build mutual trust meant to bring a win-win situation among stakeholders including between Tanzanians, the Govern- Central and Regional Government, ment and Investors. communities, workers and civil society. The Conference also sought to shed new light in mining opera- Commenting on the amendments tions in Tanzania and create great- made to the Mining Act, 2010, Mr. er accountability among mining Diarra said the changes enacted In his presentation, on behalf of investors and surrounding com- in 2017 were long overdue and it is Geita GOLD Mine (GGM), Mr. Rich- munities. the standard practice all over the ard Jordinson, General Manager of world. Anglo Gold Ashanti – Geita Gold While representatives from three Mine, supported the amendments Mining Companies shared their He further stated that Barrick will made to the Mining Act, 2010 and mining, industry experiences and work closely with the Tanzania its regulations in 2017. the way forward, they unanimous- Government in developing the ly applauded the Government for mining industry and highlighted introducing legal reforms sought the plans for execution. Mr. Jordinson said that his compa- to promote the sector's growth ny did not face as many challeng- and ensure better management of The Barrick Country Manager said es as Barrick and commented that the country's mineral resources. that with the improved under- the amendments were long over-

viii due and as he was optimistic that by exploration and development they will bring in new and common of Itumbi, Mbangala and Mgongo standards of operation worldwide. Prospects. He affirmed GGM's com Furthermore, Mr. Leo said Sun- mitment to continue working shine will continue to engage in closely with the Tanzanian Gov- mineral asset acquisition and de- ernment to develop the mining velopment, including exploration industry and highlighted its plans. and feasibility studies on eco- nomically viable mining projects. GGM will continue to invest in developing the underground mine to Mr. Lee insisted that Sunshine will secure Geita Gold Mine's Future. The General Manager of Sunshine- cooperate with the Government of Group, Mr. Leo Lee, commenting Tanzania as a 16% shareholder. The underground mine will unlock on the amendments made to the value from deeper parts of Nyank- Mining Act, 2010 and its subse- He said the company is ready to anga and Geita Hill, he said. quent regulations in 2017, said cooperate with STAMICO, state- the amendments are good in a owned mining company, and oth- He insisted that, while the compa- way that even foreign junior com- er local miners in expediting more ny was waiting for electricity from panies like Sunshine are able to mining projects in Tanzania. So the National grid, the GGM will penetrate the Tanzania mining in- far, Sunshine Group is working continue to invest in its New 40MW dustry. with local partners like Mbogo for Power Plant installed in 2018. explosives and Mazoka Resources He further clarified that; Sunshine for smelter projects. The company also committed it- Group is committed and will work self to implementing the July 2017 closely with Tanzania's Govern- Legislation, which requires that ment in developing the mining extractive companies produce sector. annual CSR plans with their local government authorities (LGAs). Unveiling some of his company's execution plans, Mr. Leo said Sun- GGM agreed with the first CSR plan shine, incorporated in 2012, has in Tanzania with both LGAs in 2018 employed 658 employees (58 Chi- and set aside 9.2 Billion Tanzani- nese and 600 locals) and plans an Shillings, covering Geita Town to employ more as per project's Council and Geita District Council. needs.

He noted that the exploration and development of small to mid-tier gold deposits (0.1-3Moz Au deposits) contribute to 66% of the world gold production.

Still, these deposits have received less attention in exploration and development in the East and Central Africa Region. Therefore, he said, Sunshine will focus on these deposits as demonstrated

ix WHAT’S INSIDE

Preliminaries Welcome Note from Minister for Minerals ______i Welcome Note from Permanent Secretary ______i Get to know Tanzania’s Ministry of Minerals ______iii Why Mineral and Mining Investment Conference? ______iv Tanzania’s Mining Industry: Investment Opportunity Worth Grabbing ______v

Articles It takes Strong Leadership ______01 Uplifting Artisanal and small-scale Miners ______05 Geology and Investment Opportunities in Tanzania ______07 Translating Africa’s Mineral Resources into Socio-Economic Prosperity ______11 ICGLR Certificate: New milestone for Tanzania Mining Sector ______13 Accelerating Industrialization through Mineral Beneficiation and Value Addition ______15 Mining and Environmental Management for Sustainable Development ______17 Kabanga Project demonstrates investors confidence ______19 Unlocking investment opportunities with latest legal developments ______21 A Bilion Reasons to Believe in Tanzania Living the Dream ______27 A story of diamond fortune ______29 How spinel miners changed their fortunes ______31 Tanzanite exclusive gem of Tanzania ______33 Mineral Trading Centres: Breath of fresh air for small-scale miners ______35 Mineral Refineries to Transform Mining Business ______37

Highlights From 2020 Mining Conference Photo Gallery ______40

Upcoming Mining Conference 2021 List of Speakers ______44 IT TAKES STRONG LEADERSHIP

hough richly endowed with Soon after assuming the presi- source wealth to ensure we do not T mineral deposits, Tanzania ha dency, Dr. Magufuli ensured that end up with empty mining pits,” -s generally drawn little benefit the country and locals harness Dr. Magufuli said of his govern- from that wealth. more mining revenues. ment’s measures.

For decades, mining operations in Bold decisions coupled with a One of the milestone decisions Tanzania showed little impact on number of policy and legal re- initiated by President Magufuli’s the country’s economic growth. forms orchestrated by Tanzania’s administration is the introduction fifth-phase President placed the of the Mining (Local Content) Reg- The mining industry often gener- country in a much stronger bar- ulations, 2018, which were includ- ated big profits for foreign compa- gaining position with foreign in- ed in the Written Laws (Miscella- nies, with little local benefit. This vestors. neous Amendments) Act No. 7 of is also the case with other African 2017, following the amendments countries. Dr. Magufuli never hesitated from of the Mining Act of 2010. confronting big investors and de- President John Magufuli wanted to manded renegotiation of exploit- Section 10 (1) of the Act, as revised change that and he has through- ative old contracts while initiating in 2018, states that in any mining out his presidency pursued his better deals with new investors. operations under a mining license dream. His government has been or special mining license, the gov- more accountable in protecting He cracked down on irregularities ernment shall have not less than natural resources. in the mining sector, and devalua- 16 percent non-dilutable free car- tion of exports by some investors. ried interest shares in the capital Dr. Magufuli’s election in 2015 was of a mining company depending the game changer. He cast a ray of “We must benefit from our on type of minerals and level of new hope for the mining industry God-given minerals and that is investment. locally. we must safeguard our natural re-

01 International Mineral & Mining Investment Conference | 2021 Sub-section (2) states, “In addition “We have been able to get this tive Mark Bristow welcomed the to the free carried interest shares, amount of venue because of good amicable end of the long-drawn the government shall be entitled management of the sector, we are out negotiations, and pledged to to acquire, in total, up to 50 per- looking forward to continue bring- back each other’s interests going cent of the shares of the mining ing more positive changes,” stated forward. company commensurate with the Dr. Magufuli. total tax expenditures incurred by the government in favor of the On the other hand, small-scale “I thank God for the success of this mining company.” miners sold 337.482kg of minerals agreement,” remarked Dr. Magufu- valued at 22.5bn/- in 2016 and the li, adding that there would be “no Whereas Sub-section (3) stipu- government received 1.2bn/- in more cheating” in the mining sec- lates that acquisition by the gov- royalty. The figures went up three tor. ernment of shares in the company years later, when the same small- shall be determined by the total scale miners produced and sold “I believe that this today is a his- value of the tax expenditure en- 4656.29kg of minerals, valued at toric day for Africa,” said Mr. Bris- joyed by the mining company. 375.5bn/-, with the government tow who played a big role in strik- receiving 22.5bn/- in royalty. ing the deal. Adoption of the Natural Wealth and Resources - Permanent Sov- “Many people said your criticism ereignty - Act 2017, laid the ground Landmark deal with Barrick will chase away investors ... what for major reforms in extractive in- Gold Mining it’s done is challenge the mining dustry. industry and all of us to embark One of the historic achievements on something where we win to- Major reforms undertaken by the born out of legal reforms is the gether or lose together,” Mr. Bris- government in the recent years signing of a mining agreement be- tow said. have started paying off hand- tween the Tanzanian government somely with revenues from the and Barrick Gold Corporation. The Tanzania-Barrick deal also sector surging up impressively. resulted in establishment of Twi- In early 2020, the government ga Minerals Company, which the Increased minerals output has, inked nine sets of agreements government of the United Repub- thus, helped shoot up revenue with the leading global gold min- lic of Tanzania owns 16 per cent collections by the government. er, marking a great feat in ongoing and Barrick Company 84 per cent economic reforms in Tanzania. of the Shares and provision of 100 For instance, a whooping 528bn/- million US dollars compensation revenues streamed into the gov- The landmark deal, among other paid by Barrick out of 300 US dol- ernment coffers last year, accord- things, gives the government of lars the company agreed to pay. ing to official government data. Tanzania a 16 per cent holding in three operating gold mines whose According to the agreement, the Data show that in 2016 large- combined output is Tanzania’s government and Barrick will split scale mining companies obtained biggest export earners. economic benefits on a 50/50 ba- 17,587.15 kg of minerals valued at sis in the new company after fac- 1.4trl/-, with the government re- The signing of the framework toring in operational costs. ceiving only 53.81bn/- in royalty. agreement ended almost a three- This was before the reforms and year standoff between the miner amendment of laws governing the and the government over sweep- sector. ing legal reforms pursued by the administration to raise the coun- By May 2020, the production in- try’s stake in the mining sector. creased to 21,652.77kg, valued at 2.2trl/- with the government re- Both President Magufuli and Bar- ceiving 130.64= bn/- in royalty. rick’s President and Chief Execu-

International Mineral & Mining Investment Conference | 2021 02 The government will own 16 per cent free carry interest

Following the agreement, Barrick Corporation later issued a state- ment highlighting some of its expected contributions, among them, investing $40 million (TZS 92bn) to upgrade the road between Bulyanhulu and Mwanza as well as constructing a housing estate and related infrastructure.

The company also pledged to partner with the University of Dar es Salaam and commit up to $10 million (23bn/-) in funding over a 10-year period for training and skills development in the mining industry.

President Magufuli insisted Tanzania is still a better place to invest and welcomed more investors to the country.

Allocation of more areas for small scale miners, provision of training according to technological ad- vancements, capital and licenses are part of the current government’s deliberate measures to boost mining production.

Another important measure taken by the government includes the introduction of mining markets in each region and increase the participation of small-scale miners in the mining economy chain and to attract or reduce tax rates.

With mining among major sectors that contribute greatly to economic growth and Dr. Magufuli says his government will continue doing everything in its capacity to strengthen it.

03 International Mineral & Mining Investment Conference | 2021 International Mineral & Mining Investment Conference | 2021 04 UPLIFTING ARTISANAL AND SMALL-SCALE MINERS rtisanal and small-scale min- Through the Ministry of Minerals, During the two-day meeting A ing is increasingly becoming which is the regulator of mining graced by President John Magufuli, an important part of Tanzania’s activities, the Tanzanian govern- the ASM players listed a number of development agenda. ment has taken a number of steps challenges including constrained to help formalise small-scale min- access to mining land; long delays In Tanzania, artisanal and small- ing and better regulate the sector. to register primary mining licenc- scale mining provides a livelihood es; inadequate extension services for thousands of people and is In January, 2019, the ministry or- to improve skills and care for the a major economic development ganised a meeting for small scale environment; unavailability of source for many rural communi- miners to enable national stake- progressive market arrangements; ties. holders to learn and devise ap- and a lack of value-addition op- propriate solutions to ASM’s chal- portunities. For decades, artisanal and small- lenges for smooth operations and scale mining has largely remained increased revenues to miners and Adjourning the meeting on behalf an informal sector with limited the government. of President Magufuli, Vice-Pres- available information on produc- ident, Samia Suluhu Hassan af- tion, revenues, operations and Apart from identifying solutions firmed the government’s commit- even location of activities. to existing challenges, the gov- ment to developing the artisanal ernment intended to promote and small-scale mining sector. Over the past few years, the formalised and more productive government has demonstrated artisanal and small scale miners The VP insisted on the need for massive commitment towards within a more inclusive and re- the mining and business commu- developing this low-tech, la- sponsible mining sector. nity and other stakeholders to bour-intensive industry.

05 International Mineral & Mining Investment Conference | 2021 align their activities according to Honorable Samia significantly tional economy. the governing laws while working vowed that the government would Key measures include the aboli- diligently with efforts to make the work on the stakeholders’ recom- tion of various taxes and levies to mineral sector sustainably benefi- mendations to the government small scale miners together with cial. and many other issues that de- the establishment of mineral mar- railed the sector. The meeting laid kets across the country. She added that the government the foundation for the ASM growth would continue to educate and witnessed today across the coun- On the other hand, the establish- sensitise the small scale miners try. ment of Demonstration Centres and all stakeholders on the min- and Centres of Excellence pro- ing activities governing laws, in- During the past two years, the Tan- vides the SSM with practical skills cluding the Environment Manage- zanian government took a number and experience on exploration, ment Law, instead of penalising of measures to develop the ASM, mining, mineral processing (bene- the miners before exposing them which has seen an increase of the ficiation and value addition) and to that vital education opportuni- sector’s contribution to the na- environmental protection. ty.

International Mineral & Mining Investment Conference | 2021 06 GEOLOGY AND INVESTMENT OPPORTUNITIES IN TANZANIA By Prof. Abdulkarim Mruma

he mining sector is among the ed on “geology and investment Hence, the country is endowed T leading economic sectors in opportunities found in Tanzania”, with diverse mineral resources Tanzania,T- currently contribut- specifically in the minerals sector. ranging from gold, iron ore, nickel, ing over 5.2 per cent to the Gross base metals, rare earth minerals, Domestic Product (GDP), with a Prof. Mruma is a renowned geolo- gemstones and industrial miner- growth rate of 17.7 percent as per gist and Commissioner at the Min- als. the 2019/2020 data. It is the fast- ing Commission. est-growing sector in Tanzania, According to Prof. Mruma, there followed by the construction in- Presenting a topic on the Mining are four classified geology and dustry. Investment Potential in Tanzania, mineral potentials in Tanzania.; Prof. Mruma narrated that; among In February 2020, the Ministry of other factors that make Tanzania I. The Dodoma supergroup Minerals introduced the Tanzania among countries benefiting from Mining and Investment Forum, the the mining economy, is its condu- This is the high-grade metamor- most valued international confer- cive geological environment. phic terrain located in the central ence, which brings together local Tanzania, rich in gold deposits for and international mining stake- He clarified that Tanzania boasts commercial interest in Madengi holders to share experience; dis- various geological formations that Hills and Nholi gold deposits and cuss the successes and challeng- cover the entire Chrono-strati- Nyakavangala Mafulungu - Sim- es facing the industry andsuggest graphic units known worldwide banguru, Mazoka - Undewa. ways to address them. from Archaean through Proterozo- II. The Nyanzian Greenstone ic, quaternary to present. During the 2020 conference, differ- This classified geology and min- ent scholars were given a chance Prof. Mruma emphasized that the eral potential is in the northern to present issues that opened up country geology with all its chro- part of Tanzania. The main miner- participants and panel discus- no-stratigraphical units is poten- al found in Nyanzian Greenstones sions. One among them was Prof. tial for all types of mineralization. is gold with world-class mines of Abdulkarim Mruma, who present-

07 International Mineral & Mining Investment Conference | 2021 Geita and Bulyanhulu; Buzwagi, are plenty of aggregates and di- and 899,000 ounces of gold of and North Mara. Other accesso- mension stones, such as suitable Resources. Also, there is Buck- ry minerals found in Nyanzian pink granites found between Bi- keef/Rwamagaza which has Greenstones include; copper and haramulo and Chato. Apart from 1,150,000 Oz of Resources, Kito- silver associated with gold de- that, other projects in the Nyan- ngo – Mwamazengo has 479,000 posits of Bulyanhulu andBuzwagi. zian Greenstone with indicat- Ounces, Sambaru - Londoni Also, in the Nyanzian greenstones, ed resources are such as Golden (Shanta) has 858,000ounses, Nickel Deposit was found at Dutwa Ridge, which has 770,000 ounces Miyabi has 736,000 ounces of in Simuyu region; Copper Deposit of gold, Nyanzaga with 4,599,000 Resources, Ikungu has 185,000 at Ibaga and Platinum Group Met- Ounces of gold, Nyakafuruwith ounces, and Chocolate Reef has als found in Mara Region. There 388,000 ounces of gold Reserves 1,300,000 ounces.

GEOLOGY OF TANZANIA AND THE DISTIRBUTION OF MINERALS

International Mineral & Mining Investment Conference | 2021 08 III. Paleoproterozoic (Ubendian oped during the initial phase of This type of rocks found in; Bauxite and Usagaran) fragmentation of Gondwana. (Usambara – Pare Mountains); and Kaolin (Matamba Plateau, Uwem- The Paleoproterozoic Mobile Belt Mineralization in the terrains in- ba, Usambara - Pare Mountains, ages < 2500 to 1750 Ma, consist- cludes the main host of Coal de- Pugu); and Other clays (Ochre, ing of high-grade metamorphic posits and the newly discovered Poultry Clays, Meerschaum, Ben- rocks mainly of the almandine Uranium Deposits at Mkuju (35.9 tonite). amphibolites facies to granulite million lbs). facies, locally with eclogite facies) Thirdly are Hydrocarbons and some of its parts contain re- Coal reserves in Tanzania are There are reservoirs for hydro- worked Archaean rocks. found in the following areas: carbon deposits along the whole Mchuchuma with indicated ore coast of Tanzania. Mineral reserves found in the Pa- of 536 million tons; Ketewaka has leoproterozoic Belts of Tanzania indicated ore of 291 million tons; are Gemstones in skarn and hy- Songwe – Kiwira – Ivogo - Kabulo A. Carbonatite Deposits drothermal origin forming the Em- has indicated ore of 595 million eralds of Sumbawanga. tons; Mbalawala “Ngaka” has in- Carbonatites are deposits most- dicated ore of 250 million tones, ly Cretaceous except for Ngualla, There is Gold in Mpanda shear Mbuyura – Mkapa “ Ngaka” has which is Proterozoic. These de- zones at Mukwamba, Sikitiko - Ka- indicated ore of 162 million tons; posits are in Arusha (Oldonyo Len- papa, D-Reef, Ibindi and Kapan- Rukwa (Galula – Nkomolo – Nam- gai and Kerimasi), Mbulu (Oldonyo da together with Lead – Copper wele - Muze) has inferred ore of 70 Dili and Galapo), Morogoro (Wigu Deposits in the Mukwamba shear million tons; Mhukuru has inferred Hill, Majiya Weta, Luhombero and zones; Copper in Kapalamsen- ore of 27 million tons; Mbamba Zizi), Mbeya (Ngualla, Panda Hill, ga; Gold in Lupa Shear Zones Bay has inferred ore of 28 million Songwe Scarp, Musensi and Sen- at Luika, Saza, Ntumbi, Matun- tons; and Njuga has inferred ore of jeri Hill), Karema (Sangu - Ikola), das and Sangambi. There Gold 23 million tons. Malawi Border (Nachendezwaya). – Copper hostsalso in Ludewa, at Carbonatite minerals are Phos- Nkomang’ombe and Amani. phate – apatite, Barite, REE, Fluo- V. Pre-Rift Gondwanaland Break- rite and Niobium. The belt has Manganese in Kabul- Up Events (Jurassic – Paleogene) wanywele, located at Kilimakya B. Kimberlite Intrusions (Home of Nkole and Manyoro; Iron ore and Diamonds) base-metals in mafic rocks locat- The Jurassic – Paleogene and Neo- ed at Liganga in the Livingstone gene – Quaternary Deposits are Mwadui Kimberlite is divided into Mountains and Iron ore in Chert rich in firstly, Sediments. Sedi- two main resources as follows: located at Itewe. the Dimension ments are rich of fluvial red beds • Indicated Resources - the ore stones (marble and granites) and Deposition in the hinterland, Ini- is 69.3 million tons; diamonds other Industrial minerals. tial deposition of marine deposits present are 3.58 million carats along the cost (Coral Limestone with grade 5.17 carats/hundred IV. Gondwanide Terrains for cement factories in Mtwara, tons; and Tanga and Dar es Salaam); Manda- The Gondwanaide terrainsis aged wa Gypsum Deposits; and Beach • Inferred Resources - ore is 500 to 180 Ma and sub-divided sand with Heavy Mineral Sands. 962.9 million tons, diamonds into two parts, the post-Pan-Af- present are 35.13 million car- rican Palaeozoic platform sedi- Secondly are Intrusive Rocks ats with a grade of 3.63 carats/ ments and the Karoo event of late these are Partial intra - Cratonic hundred tons. Carboniferous to Triassic. Karoo rift associated with Carbonatite Sediments of Late Carboniferous and Kimberlite Intrusions. Weath- and Lower Jurassic are rift sedi- ering on the Peneplanes. Other Kimberlite Intrusions (Di- ments deposited in basins devel- amond Occurrences) in Tanzania

09 International Mineral & Mining Investment Conference | 2021 are; Lake Victoria Zone (Mabuki, Helium in Mara Region and CO2 in Prof. Mruma concluded his pre- Kizumbi, New Almasi, Uduhe, Mis- Mbeya Region. sentation by inviting investors ungwi and Usongo), Singida Zone, to come to Tanzania to invest in Lake Rukwa Zone, Songea Zone Presence of natural rivers and el- mineral developments at different (in the Karoo), Masai Plain Zone, evation differences can offer hy- stages starting from exploration, Nachingwea – Masasi Zone. dropower generation suitable en- mining, processing and value ad- vironments (e.g. Kihansi). dition activities as well as investing in integrated industries. C. Limestone, Soda Ash and Gyp- Prof. Mruma argued that the geol- sum Reserves ogy of the country also provides sites of tourist attraction; hence Limestone Geo-Tourism is another line of Tanzania is also blessed with a business. number of limestone deposits, including Tanga limestone which He classified the tourist attrac- has 135 million tonnes, and Wazo tions as follows: Kilimanjaro where Hill limestone (in Dar es Salaam) the highest Volcanic Mountain in has 20 million tons. Songwe lime- the World located; Mautia Hill – stone has 137 million tones and only site with mineral Yoderite in Msolwa Limestone, which has 21 the World; Ngorongoro – largest million tons. Caldera in the World; Embagai – one of the deepest Caldera in the World; Yalumba and Ikola – oldest Soda Ash Eclogites in the World; Oldonyo Also, there is a soda ash deposit Lengai – only site with Carbonatite found in Engaruka Basin and Lake lava in the World; Mbozi meteor- Natron – Arusha with 109 million ite; Mwadui – One of the largest tons (Grade of 18 %) of sodium diamond producing kimberlite in carbonate. the World; Igwisi – The only site in the world with Extrusive Kimber- lite, Dinosaur’s sites; and Olduvai Gypsum Gorge - First home of Zinjanthro- Gypsum is found in Kilwa at Pin- pus - Australopithecus Boisei. diro and Mandawa with estimated reserve of two million tons at the On top of that, Prof. Mruma add- grade is 90% gypsum, Makanya ed other factors, including good in Hedaru has 1.0 million tons at policy, emphasizing that Tanzania the grade is 82 % gypsum, Itigi has mineral policy is investors-friend- 15,000 tons and the grade ranges ly and saves investors and the na- 70-75 % of gypsum, Manda in Sim- tion’s investment purpose. banguru has unknown reserves. Also, political stability and peace D. Other Rift-Related Resources prevailing in the country, stable and acceptable fiscal and regula- On the other hand, Tanzania also tory regime, institutional capacity, lies in the East African Rift System good infrastructure and support- which provides a good environ- ive services are additional factors ment for geothermal Sources of that contributed to the potentiali- Energy in Lake Ngozi, Kisaki, Rufi- ty of country geology to investors, ji and Northern Zone. Also, there he said. are potentials of natural gas like

International Mineral & Mining Investment Conference | 2021 10 TRANSLATING AFRICA’S MINERAL RESOURCES INTO SOCIO-ECONOMIC

PROSPERITYBy Prof. PLO Lumumba

xpounding on Africa’s resource mining sector to social-econom- Value addition: According to Prof. E wealth, Professor Patrick Lum- ic well-being of the nation, Prof. Lumumba minerals can enhance umba recalled how the continent Lumumba said the extractive in- the quality and quantity of the is rich in mineral resources, saying dustry can contribute to the so- chain of production” which leads proper utilisation of the abundant cio-economic well-being of a to the creation of extra value and minerals will spur socio-economic country if mineral resources are creates extra employment by in- prosperity. properly utilized. vesting from one chain to another.

Africa, stressed the Associate Pro- He shared experiences from oth- Development of the manufactur- fessor of Public Law, has vast and er countries outside Africa like ing sector: Prof. Lumumba elab- variety of mineral resources; rang- Norway, Saudi Arabia, United Arab orated this using Zambia’s case ing from high-value metallic min- Emirates, Brunei and many others study (the leading producer of erals such as gold, copper, silver which have developed by linking cobalt and copper). The coun- and iron to high value gemstones the extractive industry and the so- try is globally ranked as the sec- such as diamond and Tanzanite as cial well-being of their respective ond-largest producer of cobalt well as energy minerals like urani- communities. and the seventh-largest producer um and coal. of copper but most of the finished Prof. Lumumba highlighted the products of copper and cobalt Additionally, the presence of Agri- benefits anticipated from the min- are not manufactured in Zambia. cultural minerals deposits such as ing industry in different areas in- Hence, if we can properly utilize phosphate as well as other strate- cluding; our own resources, we can devel- gic minerals, makes Africa a min- op other industries such as the eral-resource-rich continent like Job creation: He argued that, South manufacturing sector. no other, noted Prof. Lumumba in Africa coal industry employs more his presentation at the Minerals than 12% of the mining workforce Taxation: Prof. Lumumba argued and Mining Investment Confer- (more than 65,000 workers) and it that by increasing the amount of ence, 2020. is estimated that more than US$1 taxes that mining corporations billion in wages are paid to its must pay to extract materials Analyzing the contribution of the workforce each year. from the ground helps to limit the

11 International Mineral & Mining Investment Conference | 2021 waste that occurs further along concluded by urging African coun- the aegis of the PLO Lumumba the manufacturing chain. At the tries to know their strength in Foundation. He is an advocate of same time, more revenues can be tapping potential benefits; start- the High Courts of Kenya and Tan- gained through taxation to fund ing from building capacity to the zania and a certified mediator. He other programs that can counter locals so as to avoid exportation is the Chairman of Farafina Invest- the damage caused by mining. of jobs and the resources. Africa is ment Group in Monrovia, Liberia rich in mineral resources yet it is and Economic Strategic growth Enhancing social livelihood: PLO poor in terms of reflecting the re- and Development Initiative for Af- Lumumba mentioned other eco- sources to national development. rica based in Nigeria. nomic benefits including; provid- It is high time Africa to get rid of ing livelihood to local communi- the ‘resources curse’ tag and turn He is the immediate former Di- ties; generating income for the into prosperity. rector and Chief Executive Officer local government thereby directly of the Kenya School of Law, a for- contributing to its economy; pro- Prof. Lumumba is an Associate mer Secretary, of the constitution moting the more efficient use of Professor of Public Law, anLLD of Kenya Review Commission and energy, saving people money; pro- holder (Doctor of Laws) from the a former director of the defunct moting environmental awareness University of Ghent, Belgium. He is Kenya Anti-Corruption Commis- through rehabilitation programs currently practicing Law with Lu- sion (KACC). Prof. PLO Lumumba resulting in more renewable mumba and Lumumba Advocates has written and edited several sources than ever. Prof. Lumumba and coordinates activities under books, co-authored several books on ethics.

International Mineral & Mining Investment Conference | 2021 12 ICGLR CERTIFICATE: NEW MILESTONE FOR TANZANIA MINING SECTOR

n February last year, Tanzania Product (GDP) by 10 percent by the dium and large scale mining proj- launched the Certificate of Aut- year 2025. ects and link the minerals sector thenticityI of 3T&G minerals (Tin, with other sectors of the economy. Tungsten, Tantalum and Gold) He further said that was pos- that changed the landscape of sible after the government ad- “Dear participants mining law the country’s minerals sector. hering to all Great Lakes Re- amendments that took place in gion (ICGLR) agreements and 2017 contributed much to the suc- The certificate allows 3T&G min- insisting that member states find cess stories in the mining sector erals to be legally exported to the how their authorities will ben- and perceived today, let other related issued member States, efit through the mining sector. countries learn from us,” he point- which must meet one of the ten ed out. Articles and express set protocols The Premier noted is satisfied meant to control illegal mining with the Ministry of Minerals and On his part, the ICGLR Secretariat business. the Mining Commission perfor- Executive Secretary, Ambassador mance, seeing positive outcomes, Zachary Muburi said the acquisi- Tanzania became the fourth coun- including increased revenue col- tion of the ICGLR Certificate served try to qualify for the certification lections from mining activities, re- an alert for tin buyers to know that after Democratic Republic of Con- duction of mineral smuggling, and Tanzania is now legalized to sell go, Rwanda and Burundi. Speak- improved living standards of the the mineral, while urging other ing during the certificate’s launch, people in the sector. countries to meet such conditions. Tanzania’s Prime Minister, Kassim Majaliwa said the achievement Elaborating, Hon. Majaliwa said “This launch is a major step for- would enable the country’s min- legal reforms in the mining sector ward, but we all need to fight to- ing sector to increase its contri- now enables the government to gether to protect our resources,” bution to national Gross Domestic own 16 percent of shares in me- said Ambassador Muburi.

13 International Mineral & Mining Investment Conference | 2021 Speaker of the National Assembly, Job Ndugai commended the government for changes made in the mining sector, citing excellent performance of the ICGLR Secretariat and contributions of the member state.

He urged the member state to unite and act fast as a bloc to reform their mining industries so that they realize good returns, saying: “A good example is the foundation put up by the Pres- The tin ingots produced by TanzaPlus Minerals Ltd at Kyerwa, Ngara District, Tanzania. ident of Tanzania, John Magu- fuli to make sure ordinary citi- zens own the mining economy.” Elaborating, he said mineral re- will set a precedent for inves- sources in other countries should tors to invest in their countries. The launched Certificate of Au- be used for prosperity and not a thenticity of 3T&G minerals (tin, source of creating and fuelling She said they should also ensure tungsten, tantalum and Gold) in a armed conflicts and sending their they seal all the loopholes, which way directs a procedure to be fol- nationals to the neighbouring fuel criminal activities as a result lowed in the specified mineral(s) countries as refugees. of mining activities in their inde- business and helps reduce neg- pendent countries. ative involvement of criminals in “Tanzania is leading in minis- the business and lead to conflicts. tering peace in Africa since the While addressing the conference, days of the late Mwl. Julius Nyer- the Minister for Minerals, Doto During the conference, the theme ere, who said that once there is Biteko said it was aimed at show- was ‘Sustainable Investment and peace in the neighbouring coun- casing mining investment oppor- Partnership’ and brought togeth- try, life becomes super to others tunities available in the country er Tanzanian mining stakehold- neighbours,” Ambassador Mubiri and how to create a business part- ers including large scale miners, stressed. nership amongst stakeholders in small scale miners, ICGLR member the industry as well as discuss- states, Mineral Brokers and Deal- However, he said the Secretariat ing challenges, and drawing their ers, experts and facilitators from will continue assisting member solutions. the mining sector as well as the states and ensure their mining ambassador of the African Union sectors are sustainable and devel- He further said the forum was from Kenya, Prof. Patrick Lumum- oped and thereafter, contribute to organized to promote the sector, ba, who played a significant role in national development. achievements and reforms made its facilitation. in the Mining Act that as well pro- Commenting, the Great Lakes vide feedback on the implemen- The Conference held on 22nd and Region Ministers Chairperson, tation of the resolutions reached 23rd February, 2020 simultaneous- Irene Muloni, who is also Ugan- at the Mining Sector Summit of ly exhibited minerals including da Minister of Energy and Min- 2019, whe Tanzania met its mining gems, industrial and energy minerals Development called upon stakeholders. erals, mining tools and services the ICGLR member states to en- available in Tanzania. sure they integrate a system that Speaking during the conference,

International Mineral & Mining Investment Conference | 2021 14 ACCELERATING INDUSTRIALIZATION THROUGH MINERAL BENEFICIATION

ByAND Prof. Mkumbukwa VALUE Mtambo ADDITION

ndustrialization through miner- Prof. Mtambo said mineral value als, improving the development of al beneficiation and value addi- addition referred to transforming other industries, and availability Ition is among the priority areas the raw minerals into a higher-val- of by products that can be used by of the Government of Tanzania. ue product, which can either be other industries, thereby increas- The area directly links the devel- consumed locally or exported. ing employments and taxes. opment of the mining sector and other sectors of the economy. “The concept includes the whole According to Prof.Mtambo there chain of mineral value addition are still plenty of opportunities re- Accelerating Industrialization including downstream activities garding mineral value addition in through mineral beneficiation and such as large-scale capital-inten- the country, noting that all miner- value addition was among the sive activities-smelting and re- als could be transformed into the main topics of discussions at the fining as well as labour-intensive final products for consumption lo- 2020 Minerals and Mining Invest- activities such as craft jewellery cally and export. ment Conference in Dar es Salaam. and metal fabrication, and side stream refers to input such as The minerals highlighted include Presenting the topic, Prof. Mkum- capital goods, consumable and gold, silver, copper, diamond and bukwa Mtambo highlighted the services,’’ he explained. coloured gemstones; industrial concept of value addition, so- minerals and building materials. cial-economic importance, exist- Prof. Mtambo listed the social eco- ing opportunities, challenges and nomic benefits such as increasing He, however, pointed out that the way forward. value of raw materialsraw materi- process of accelerating Industri-

15 International Mineral & Mining Investment Conference | 2021 alization through Mineral Benefi- transfer); the need to invest on of information during execution ciation and Value Addition, faces Research and Development (R&D); of major projects. a number of challenges including; Utilize local R & D (TIRDO, UDSM, lack of necessary technical skills GST etc) to conduct techno-eco- Prof. Mtambo concluded by stress- and knowledge; limited research nomic surveys and exploration of ing that mineral beneficiation and and development initiatives; in- new mineral reserves; industrial value addition are key to acceler- frastructure (roads, energy and technology information forecast- ating industrial development in water); access to capital for ining; investment on roads, energy Tanzania. vestments, access of markets for (Stigler’s Gorge), water etc. locally beneficiated products, en- Hence, there is a need to create vironmental issues and poor link- Other solutions include; enhanced a conducive environment for in- ages between Government Organs. communication between govern- vestment in mineral beneficiation ment organs; encouraging local and value addition projects. He To counteract the above-men- and Foreign Direct Investments insisted that building individuals tioned challenges, the presenter (FDI’s), incentives and loans; en- capacity, Research and Develop- proposed the following solutions: courage joint ventures with foreign ment initiatives are key to fast- capacity building in specialized investors; promote fair business track industrialization. skills (Identify gaps, identify local with importers; promote environ- capacity, use local institutions and mentally-friendly technologies foreign companies for knowledge and improve linkages and sharing

International Mineral & Mining Investment Conference | 2021 16 MINING AND ENVIRONMENTAL MANAGEMENT FOR SUSTAINABLE DEVELOPMENT By Dr. Samwel Mafwenga

ining activities have a direct challenges associated with dividends, and levies and indirect M relationship with environm- the mining sector and environ- revenues collected from the min- ental issues. Mining activities, thus, mental legal structure governing eral commodities supply chain should guarantee environmen- the mining sector. and different linkages to other tal protection and sustainability. sectors of the economy. He also highlighted the need for Cognisant of that, during the 2020 Environmental Impact Assess- Dr. Mafwenga admitted that, both Minerals and Mining Investment ment (EIA) and Environmental surface and underground mining Conference held in Dar es Salaam Monitoring and Auditing to ad- operations have detrimental im- a topic on ‘Mining and Environ- dress adverse environmental pacts to the environment, noting mental Management for Sustain- impacts accompanied by mining the operations can lead to land able Development’ was tabled and operations. degradation, environmental pol- profoundly discussed by mining lution, soil erosion, the formation stakeholders. In legal perspective, Dr. Maf- of sinkholes, and loss of biodiver- wenga classified mining into sity in the area or contamination Dr. Samwel Mafwenga, Director two groups: first, Formal Min- of groundwater by chemicals. General of National Environment ing (Large, Medium, and Small- Management Council (NEMC) and scale mining) and Informal He outlined the most common a renowned mining professional Mining i.e. conducting mining environmental management chal- with over 28 years of experience activities outside the mining le- lenges in mines, such as process- as a mining engineer working with gal system). ing water overflow to the environ- many multinational companies, ment, chemicals and liquid waste presented this crucial topic. He clarified that, the mining management and solid waste sector contributes to the na- management. His presentation included high- tional economy through direct lights on Tanzania’s mining sec- revenue collection in the form On the national legal and institu- tor; environmental management of fees, rents, royalties, taxes, tional frameworks governing the

17 International Mineral& Mining Investment Conference | 2021 Mining Sector, Dr. Mafwenga ex- abandoned mine sites, adher- properly fulfilled, they will affect plained that environmental issues ence to workers’ health and safety the project at some point in the are under the Environmental Man- standards and adoption of envi- future. agement Act, 2004. ronmental management plans to implement the measures. EIA Process – Actors “It provides the legal and institu- Dr. Mafwenga further explained tional framework for sustainable He defined the Environment Im- that the Environmental and Social management of natural resources pact Assessment (EIA), as a proj- Management Plan (ESMP) is re- and the environment in general. ect “Risk Identifier” where all quired so as to ensure sustainable kinds of risks the project could be management of the mining sector. Other key legislation governing subjected to, are clearly identified He stated further that, ESMP con- the Mining Sector includes the and methods to mitigate them are siders many factors for the pur- Mining Act Cap. 123, the Water Re- built prior to project start-up/de- pose of its effectiveness. sources Management Act, 2009, velopment. Occupational, Safety and Health Such factors are; Mine Closure Act, 2003 and the Wildlife Conser- It assists the investor to re- and Rehabilitation, Environ- vation Act, 2005,’’ he said. align his project for bet- ment Monitoring and Standards, ter performance as intended. Emergency Response Procedures Dr. Mafwenga added that, the Dr. Mafwenga said that, any in- for Incidences and Accidents, Site National Environmental Manage- vestment that is developed with- Management and Responsibili- ment Council (NEMC) has always out an EIA is a “Time Bomb”. ties, Record Keeping and Report- insisted on appropriate measures ing, Audit and Validation. to minimize deleterious impacts He narrated that, an EIA is essen- caused by mining activities. tialsince it informs the investor He concluded his presentation by of cost-benefit, which determines reminding all Mining sector stake- The measures include EIAs, En- whether the cost of mitigating holders to develop an efficient environmental Management Plan environmental impacts is greater vironment monitoring mechanism (EMP) requirements, proper mine than the economic benefits of the to ensure adherence to environ- plans and designs to optimize ore project. mental quality standards. recovery. It also informs the investor of all And for the regulating authorities, Also, minimize negative envi- “National and International Pol- including NEMC, Sector Ministries ronmental impacts by pollution icies and Local Legislation” that and LGA’s, he called upon them abatement measures, rehabilita- are needed to be adhered to for to share information and work tion and restoration of active and the types of project being devel- together towards achieving their oped. If some of these are not objectives pertinent to mining activities.

International Mineral & Mining Investment Conference | 2021 18 KABANGA PROJECT DEMONSTRATES INVESTORS CONFIDENCE anzania’s mining sector has Once operational, the Kabanga tween the government of Tanza- continued to attract huge inv- project is expected to yield sub- nia and the investor, and the two estments,T with the government stantial economic benefits and parties will share equal economic and United Kingdom’s LZ Nickel bring significant transformation benefits from the project. I can as- Limited recently inking a frame- in the minerals sector. Witnessing sure you that the country is going work to jointly develop the Kaban- the signing ceremony, President in the right direction,” added Dr. ga Nickel Project in Ngara District, John Magufuli urged timely execu- Magufuli. Kagera Region. tion of the project as he anticipated enormous benefits for both the He assured investors that Tanza- The signing of the deal, which country and investors. nia remains the best investment took place on January 19, this year, partner and invited them to ex- paved the way for the formation He said since the project’s execu- ploit the abundant resources of Tembo Nickel Corporation, a tion has been delayed for many available in the country. joint venture company between days, it is time now for the country the Tanzanian government and LZ to start enjoying the fruits of the “Tanzania is a right place for in- Nickel Limited. available resources. vestors. It is a resource-rich country with water, land and abundant The contract will also see the es- “I’m happy that we have found minerals -- including Graphite, tablishment of a multipurpose an investor who will also build Helium, Cobalt, Petroleum, Gold, smelter plant in Kahama District, a smelter that will ensure that Uranium and Nickel to mention a Shinyanga Region, as investors our minerals are no longer being few,” the President said. Discovery continue to show confidence in smuggled out, but are processed of the minerals at Kabanga result- the country’s investment policies, here for the benefit of the coun- ed from the government’s explo- laws and environment. try,” President Magufuli said. “The ration through the financing of project is a win-win situation be- the UN Development Programme

19 International Mineral & Mining Investment Conference | 2021 (UNDP) from the year 1976 to 1979. asserted that countries like the nies that had been engaged in United States, Japan, Europe, and the nickel project without the The area is home to other miner- the UK have listed nickel as criti- government involvement. als like Cobalt, Copper, Gold and cal minerals with a high demand Platinum in line with Nickel. Be- to economic development within Prof. Msanjila expressed the sides the minerals being found at the next ten years. government’s commitment to Kabanga, nickel is also found in promote the industrial economy Kahama District, Katavi, Kigoma, “Earlier estimates show that nickel through the mining sector, say- Lindi and Dodoma. production is going to bring on av- ing Tanzania is inviting new in- erage US dollar 664 million equiv- vestors in minerals smelting and Guided by the new Mining legis- alent to TZS 1.5 trillion annually,” refinery. He revealed that the lation, likewise getting a 16 per revealed Prof Kabudi. He noted government had already issued cent stake of non-dilutable free that both parties have also agreed licenses for four gold refineries held interest, Tanzania will ben- to carry out a new feasibility study and six for smelting firms. efit from an equitable sharing of to get a clear and reliable picture all economic benefits according to expected to start right away. LZ Nickel Limited Vice-President, the laws of the land. On the other Mr. Anthony von Chistierson said hand, Minerals Minister Doto Bite- The project is envisaged to create the Kabanga deposit is the larg- ko lauded President Magufuli to an environment for establishing est development globally, noting develop the mining sector. industries to produce final prod- that the partnership is a historic ucts obtained from minerals and milestone in Tanzania’s econo- “I would like to commend the ne- attract investments in the produc- my in the East African region and gotiation team that was involved tion of electric vehicle’s batteries. across. in the lengthy discussions with The minister extended recognition the investor so as both parties to President Magufuli for pioneer- Mr. Chistierson pledged to pro- benefit from this deal,” he said. “It ing all the mining reforms, which mote transparency in all the was a challenging and painstaking continue to bear fruit. dealings. British High Commis- job you have done, but it is very sioner to Tanzania Mr. David Con- beneficial to Tanzania, and our According to the Minister, the lat- car, who also graced the signing country has opened a new chap- est achievement demonstrates of the agreement, said the proj- ter,” he added. that President Magufuli’s vision ect has come in the right place and directives made in his Bunge and the right time, and that it Explaining more, Biteko said in Inauguration Speech encouraged will add value to the locals. 2019 revenues from the miner- the construction of industries, als sector soared up by 17.7 per smelting, refining, and manu- “I’m pleased to learn that this cent and was the fastest growing facturing mineral products to be project will involve technology sector. The sector’s average con- done within the country is becom- which is environmentally friend- tribution to GDP was 3.4 per cent ing a reality. ly at the same time, bring tangi- in 2015 and reached 5.2 per cent ble benefit to the societies,” he in 2019. “We believe by 2025 the Prof. Kabudi pointed out that the noted. contribution of the sector to the partnership will also strengthen national GDP will hit 10 per cent,” the government’s reserve, con- As of July 16, 2007, the explora- he said. According to the Minister sidering that all the money will tion programme had placed 9.7 for Foreign Affairs and East African be stored in the country’s banks, million tonnes at 2.37 per cent Cooperation Prof. Palamagamba widening the mining sector bene- nickel into the indicated re- Kabudi, who led the Tanzanian fits and making possible for more source category, with an addi- team in the talks, large deposits mineral smelters construction. tional 30.3 million tonnes at 2.8 of Nickel at Kabanga have made Additionally, Permanent Secretary per cent nickel in the estimated Tanzania a strategic mineral coun- in the Ministry of Minerals Prof. inferred resource category. try worldwide, specifically in the Simon Msanjila noted that they production of electric vehicle bat- had agreed that LZ Nickel Limited At full capacity, the Kabanga teries. Speaking at the contract should finalise all the acquisition mine is estimated to employ signing ceremony, Prof. Kabudi procedures with previous compa- over 2,000 people.

International Mineral & Mining Investment Conference | 2021 20 UNLOCKING INVESTMENT OPPORTUNITIES WITH LATEST LEGAL

DEVELOPMENTSBy Asha-Sabrina Ayub

egal and regulatory frame- She started by making an overview centives; Ease of Doing Business works are key towards ensuri- of the mining laws, detailing the by Setting Conducive Licensing & Lng profitable harnessing of miner- timeline of legal developments in Business Facilitating Environment; al resources for both host nation the Tanzania Mining Sector from and Level Playing Field: ABC, In- and investors. 2010 to date. tegrity, ESG and Sustainability.

Ms. Asha-Sabrina Ayub from Bo- Ms. Sabrina highlighted various She noted that the legal reforms tswana, one of the presenters at mining regulations currently in in 2010 were derived from the the 2020 Minerals and Mining In- use in the United Republic of Tan- work of “Bomani Commission,” vestment Conference, presented zania. which resulted in a new Mining Act a topic; Unlocking Investment Op- 2010 and its regulations. Thereaf- portunities by Using Latest legal She discussed a number of sub- ter, there were a series of amend- Development. jects including; Responses to In- ments to the regulations. vestor Priorities on Calculating Ms. Sabrina explained how legal Returns: Certainty & Achievability; Sabrina recalled the mineral ores/ developments play a crucial role Flexibility & Stakeholder Engage- concentrates investigations and in opening up investment oppor- ment and Ways to Solve Problems the subsequent two Special Com- tunities, drawing examples on le- Facing the Sector. mittees. gal reforms in Tanzania’s minerals sector during the last decade. Also; Taxation & Investment In- The investigations triggered the

21 International Mineral & Mining Investment Conference | 2021 overhauling of the mining act 2010 from 13 July 2018, The Mining (Di- is inconsistent with the Country’s in 2017 through the Written Laws amond Trading) Regulations, 2019 economic Objectives, Policies and (Miscellaneous Amendments Act) and The Mining (Mineral And Gem Strategies,’’ she added. (No.1) 2017. Houses) Regulations, 2019. At the end of her presentation, After that, all the changes testify Sabrina pointed out on the pen- to the sector’s transformation and On the other hand, Ms. Sabrina alties to be imposed in case of its exciting developments. mentioned investor priorities as; breaching an integrity pledge. Certainty & Flexibility, Flexibility Such penalties include revoca- & Stakeholder Engagement, Safe tion of the license, with rights for OVERVIEW OF THE REGULATIONS Exit, Taxation & Investment Incen- the Government to take over the tives, Ease of doing Business and mining facilities (Mining Act) or Level Playing Field. suspension; payment of a fine of She listed various mining regula- at least 100m/- or imprisonment tions currently in use in the United for at least 10 years for a miner- Republic of Tanzania as follows: INTEGRITY PLEDGE REGULATIONS al rights holder engaging in any The Mining (Local Content) Reg- “malpractices including tax eva- ulations, 2018 [G.N. No. 3 of 2018] Sabrina insisted on the word In- sion, double taxation, under or (the “Local Content Regulations’’) tegrity, clarifying that Integrity is a overpricing, transfer pricing and – in force from 10th January 2018 means of choosing thoughts and corruption” and any other penalty (amended on Feb 2019), The Min- actions based on values rather as prescribed under the Act and ing (Minerals And Mineral Concen- than personal gain. any other Written Laws of United trates Trading) Regulations, 2018 Republic of Tanzania. [G.N. No. 2 of 2018], The Mining She explained that an Integrity (Radioactive Minerals) Regula- Pledge must be submitted with The bottom line is that Ms. Sabri- tions, 2018 [G.N. No. 4 of 2018], every application for a licence and na wanted to clear the air showing The Mining (Mineral Beneficiation) that the conduct of mining oper- that not all government undertak- Regulations, 2018 [G.N. No. 5 of ation or activities with utmost in- ings are meant to halt businesses 2018], The Mining (Geological Sur- tegrity. growth or in other ways meant for vey) Regulations, 2018 [G.N. No. 6 resource nationalization, but for of 2018] , The Mining (Audit And In- ‘’Wide objectives and principles – the good of the nation and the in- spection of Records) Regulations: focus on ethical business practic- vestors. The amendments aimed 2018 [G.N. No. 7 of 2018], The Min- es, including environmental, soci- to bring a win-win situation being (Integrity Pledge) Regulations ety, insurance, ABC and AML and tween all the mineral sector play- 2018 [Gn. No. 304 of 2018) in force to disengage in arrangement that ers.

International Mineral & Mining Investment Conference | 2021 22

A BILLION REASONS TO BELIEVE IN TANZANIA

LIVING THE DREAM ne of President John Magufu- A few months later, Laizer un- lent, especially near mines owned O li’s dreams has always been earthed yet another giant vio- by big companies. making the mining sector benefi- let-blue stone weighing 6.3 kilo- cial to Tanzanians. grams (13.9 pounds) and sold it to Mr. Lazier urged his fellow small- the government at 4.8biln/-. scale miners to work with the gov- His dream is being realized as new ernment, saying that his experi- billionaires are gradually emerg- Also, in November, last year, an- ence was a good example. ing from the mining sector thanks other small-scale miner, Gabriel to bold measures taken by Dr. Ma- Sendeu Laizer, discovered a record “Selling to the government means gufuli’s regime to reform this lu- ruby zoisites weighing 5 tonnes in there are no shortcuts they are crative industry. Longido District, valued at 1.7bn/-. transparent,” he said.

Saniniu Laizer, a tanzanite small- Speaking of his instant fortunes, The Laizers’ fortunes vindicate scale miner from Simanjiro, is a Laizer said the windfall would not reforms undertaken to transform testimony to recent success sto- change his lifestyle, and that he the mining sector, and govern- ries in the country’s minerals sec- planned to continue looking after ment’s commitment to empow- tor. his 2,000 cows. ering the small-scale miners are paying dividends. Laizer shot to fame after becom- Mr. Laizer said he did not need to ing an overnight billionaire after take any extra precautions despite Looking to curb Tanzanite smug- he sold to the government two his new-found riches. “There is gling, in 2017, President Magu- Tanzanite stones valued at 7.7 bil- enough security here. There won’t fuli ordered the military to build lion in June, last year. be any problem. I can even walk a 24km (14-mile) perimeter wall around at night without any prob- around the Mirerani mining site in According to authorities, the two lem.” Some small-scale miners Manyara the world’s only source gemstones, which have a total like Mr. Laizer acquire government of Tanzanite. weight of 14.13kg, are the biggest licences to prospect for Tanzanite, ever to be found in the country. but illegal mining has been preva- A year later, the government re-

27 International Mineral & Mining Investment Conference | 2021 ported an increase in revenue in what you can do. What we need Planning Ministry, Governor of the the mining sector and attributed to do is none other than trust- Bank of Tanzania under the coor- the rise to the wall’s construction. ing ourselves so that we can be a dination of Minister Biteko for the game-changer,” he stated. decision to buy the Tanzanite from Minerals Minister Doto Biteko is Mr. Laizer. full of praise for small -scale min- “Yes, we need foreigners to come ers, saying they have never given and assist us because Tanzania is These biggest Tanzanite stones up despite a long-standing belief not an island. Yes, we need for- will be placed in a museum for that they could do nothing unless eigners to come because we are tourism purposes. big investors stepped in. in need of capital from them. Yes, Tanzanite is only found in north- we need foreigners because they ern Tanzania and is used to make “We have come far, a lot was said have more advanced technology ornaments. It is one of the rarest to disappoint small-scale miners, than us, but we don’t have to ac- gemstones on Earth. especially those based in Mirera- cept being taken down.” ni,” recalled Mr. Biteko. “We were The precious stone’s appeal lies brought up with many kinds of President Magufuli was delighted in its variety of hues, including literature and explanations to with Mr. Laizer’s feat. He com- green, red, purple and blue. threaten small -scale miners that mended the new billionaire and they cannot be productive due to Simanjiro residents for their ef- Tanzanite value is determined by lack of technology and capital. forts in taking the mining sector rarity the finer the colour or clari- to the top. The President also ty, the higher the price. We don’t need foreigners to do congratulated the Finance and

International Mineral & Mining Investment Conference | 2021 28 A STORY OF DIAMOND FORTUNE anzania is one of world’s latest dustry has produced a number of the country in 2014. mining success stories. This la- new billionaires among the small- Trgest East African nation is en- scale miners. Petra Diamonds Company (Wil- dowed with the geology that is In 2019, the country witnessed the liamson Diamond Mine Ltd - WDL) highly prospective for various first diamond billionaire emerge which owns the Mwadui Mine in valuable minerals. from a small-scale miner commu- partnership with the Tanzania nity. government discovered the rare A relatively stable political envi- pink gem weighing 23.16 carats ronment with sound legal and fis- The miner, Joseph Temela pro- and was auctioned by WDL for US$ cal policies has helped promote duced an extraordinary sized di- 2.2 million. the growth of this money-spilling amond, weighing 512.15 Carats, Generally, the pink diamond is sector. valued at US$1.418million, at Ma- one of the rarest minerals found ganzo diamond mines in Shinyan- in only some places in the world. The country’s mining industry has ga Region. The pink diamonds are said to be churned out considerable for- highly sought in the extraction in- tunes for big, sophisticated min- Although Temela’s diamond is dustry due to their high quality. ers down the years. said to be an astonishing stone, history tells that there is a unique Way back, the world’s richest pink But in the past two years, the in- and rare pink diamond mined in diamond was weighed at 16.08

29 International Mineral & Mining Investment Conference | 2021 carats. Thus, the 23.16 carats pink diamond obtained in Tanzania broke the previous record set of 16.08 carats diamond.

The 16.08-carat diamond its place of origin is unrevealed. However, the most famous pink gemstone mined at the Mwadui Mine was discovered in 1947 and weighed 54.5-carats.

It is revealed that the gem was cut into 23.6 carats and set into a flower brooch where the original owner of the mine John William- son gifted it Queen Elizabeth and Prince Philip upon their wedding. The Williamson Diamond Mine Ltd has been operational for over 75 years, and geological information shows significant continuous production ahead of it.

International Mineral & Mining Investment Forum | 2020 30 HOW SPINEL MINERS CHANGED THEIR FORTUNES he year 2020 will go down in and estimated value of 137.12m/- It is famous for its vibrant intense history as one recorded a reco- after careful cobbing. pink colour free from any second- Trd number of extraordinary for- ary hue such as the greys com- tunes through the mining sector. In September 2020, another miner monly seen in other Spinel vari- Sabinus Chigumbi excavated a 960 eties. While some earned big to become grams spinel valued at 310.08m/-. new billionaires in town, some These gems’ colour is also nice earned handsomely to earn the Despite the COVID-19 poised chal- and consistent under different millionaires tag. lenges shaking the world by now, lighting conditions. small scale miners in Tanzania In July, 2020 Jonas Mpandule and have continued with their mining The recent spinel fortunes are his partners at Epanko spinel activities and endeavoured to get down the increased transparency mines in Mahenge District, Moro- positive results. in the mining sector, as the stake- goro Region hit the jackpot after holders are now abiding by the discovering a 4.9kg spinel in mar- Spinel is one of the gemstones governing laws. ble matrix worth 720m/-. mined at Epanko Mahenge for many years. It was a year to remember for Spi- nel miners after another, Pascal The Mahenge Spinel is a striking Mpandule, obtained a spinel in stone, and it redefined the stone’s marble matrix, weighing 1.202kgs definition.

31 International Mineral & Mining Investment Conference | 2021 International Mineral & Mining Investment Forum | 2020 32 TANZANITE EXCLUSIVE GEM OF TANZANIA

anzanite is a unique gemstone Tanzanite is a pleochroic gem. as the discoverer of the tanzanite that is 1000 times rarer than d- Pleochroism is a physical property gemstone. Tiamonds. The gemstone is a blue in which the material appears to variety of zoisite composed of hy- change colours when viewed from There are approximately 840 min- drous calcium aluminium silicate different crystallographic direc- ing licenses at Mirerani, of which with an orthorhombic crystal hab- tions or angles. 250 are currently mined. The it. mines at Mirerani are divided into Some Tanzanite specimens can be five blocks: Block A, B, C, D and The rare gemstone is found at only distinct blue when viewed from D-extension. one locality in the world, at Mir- one direction, and vary from vio- erani hills in Simanjiro District, let to burgundy or maroon when The blocks are subdivided to en- Manyara Region, Tanzania. viewed from other directions. sure proper distinction, identifica- tion, and monitoring of the mines It takes only 15 minutes to drive This gemstone’s age is estimat- around the area. from Kilimanjaro Internation- ed to be about 600 million years al Airport and one to one and a in geological time scales. It was All mines in Mirerani are sur- half hours from Moshi and Arusha discovered in 1967 by the Late Ju- rounded by the popularly known town. manne Mhero Ngoma. Magufuli Wall of 24.5 kilometres long and three meters high. However, Mirerani is said to orig- On April 6, 2018, the Government inate from Mirera trees found in of the United Republic of Tanzania The wall is juxtaposed with Mire- the Mirerani Hills. officially recognised Mzee Ngoma rani Controlled Area Regulations,

33 International Mineral & Mining Investment Conference | 2021 have never happened in the histo- Have a Tanzanite experience and ry of tanzanite in the country. The the whole chain of Tanzanite min- big pieces were mined by a Tan- ing and value addition. The goal zanian smallscale miner Saniniu is to give to the world a heritage Kurian Laizer. feeling of the unique wealth that only Tanzania is endowed with. The biggest stone weighed 9.27 kgs worth 4.3 billion shillings, sec- On top of that, tanzanite was des- ond with 6.33kgs and valued at 4.8 ignated as a modern birthstone billion shillings. for December in 2002. Tanzanite is named December birthstone The third piece weighed 5.103 kg together with zircon and tur- attracting 3.375 billion shillings. quoise. December’s birthstones All these symbolise the magnitude offer three ways to fight the winter and significance of the “Magufuli blues; all of them, appropriately Wall”. as best known for best shades of blue. Talking about security at Mirerani, the place is enhanced with about 306 CCTV cameras throughout the wall perimeter recording incidents in all weather conditions.

The purpose is to detect objects and people entering the controlled area, storing permanent information, noticing those who intend to commit crimes, and track incidents.

However, Tanzanite business at Mirerani is progressing well and equipped with all the required ne- cessities for business convenienc- 2018, which significantly helped es with The Mirerani One-Stop control the smuggling of the gem. Center’s construction. The centre includes Tanzanite Valuation The wall was also intended to Amenities. strengthen the conducive environment for tanzanite trade and As a country, we still call upon in- benefit the country from levies vestors to invest in adding value and taxes. to tanzanite and other gemstones by investing in cutting and polish- Since the Magufuli Wall’s con- ing industries in Tanzania. struction, the nation has wit- Opportunities in this area are nessed a number of positive out- bountiful and so encourage every- comes from the rare gemstone one to invest in the Value Addition one among them are the increase Industry. in government revenue from small scale miners at Mirerani raised to Generally, following its unique- 2.15 billion in 2019 from 166 million ness, Tanzania plans to establish in 2018. a Tanzanite Mineral Museum at the Mirerani area to provide op- Nevertheless, recently Tanzania portunities for people from vari- witnessed an extraordinary three ous parts of the world to visit the (3) rare big sized gemstones that mineral’s place of origin.

International Mineral & Mining Investment Conference | 2021 34 MINERAL TRADING CENTRES: BREATH OF FRESH AIR FOR SMALL-SCALEBy Prof. Shukrani Manya MINERS

eforms in Tanzania’s mining During the Tanzania Minerals and Shedding light on mineral mar- laws have successfully transf- Mining Investment Conference kets performance, Prof. Manya Rormed the sector, bringing a much 2020 held from 22nd – 23rd Feb- revealed that, sampling of Per- welcome shift in the trading of ruary, 2020, Prof. Shukrani Manya, formance of Mineral Markets for minerals across the country. former Executive Secretary to the March – December 2019 showed a Mining Commission revealed that, great improvement compared to Mineral and Gem Houses’ intro- the introduction of the Mineral the collection of revenues from duction in Tanzania remains one Markets and Buying Centers Sys- mineral trading activities record- of the most success stories, as the tem in Tanzania has benefited the ed before 2019. country reaps abundantly from re- Artisanal and Small-scale Miners cent mining reforms. (ASM) in many ways. Prof. Manya presented data showing that between March and De- Looking to reap more benefits Prof. Manya, a Geology Professor, cember, 2019 a total of 8,200 kg of from the lucrative mining sector, who is now serving as Deputy Min- gold, 10,6534 carats of diamond, the fifth-phase Government un- ister for Minerals, says the centres 20,099 kg of Tanzanite and 465,186 der President John Pombe Magu- have led to stable and fair prices kg of other coloured gemstones fuli made key amendments to the and reduced their operations cost, had been traded in the estab- Mining Act, 2010 in 2017. such as flying out of the country lished mineral markets leading to seeking markets for their prod- a collection of 58,860,414,561/= as As part of the new legal require- ucts. government revenues. ments, a total of 28 Mineral Mar- kets and 25 buying centres have He added that, the Government He further clarified that; gold been established all over the established Mineral and Gem sales rose by around 4 to 5 times country. As of now there are about Houses to strengthen mineral in mineral markets at Geita and 41 mineral centers and 41 buying trading, promote and countering Chunya, leading to a windfall rev- centers. mineral smuggling. enue collection. 35 International Mineral & Mining Investment Conference | 2021 Taking an example of the Geita ing Licenses cannot trade miner- Prof. Manya elaborated that the Mineral Market, he said gold sales als using such licenses. drawback was noted, necessitat- were above 500 Kg in October, ing Mineral and Gem Houses’ es- 2019 compared to less than 100 Kg Commenting on revenues collect- tablishment, including Auction in January, 2019 leading to a col- ed after the construction of the Centers, Minerals Exchange, and lection of more than 3bn/- gov- Mirerani Controlled Area wall, Prof. the Minerals Clearing Houses. ernment revenue. Manya said that, 2.15bn/- were collected in 2019 from small-scale These markets are established as Narrating on business procedures, miners compared to 1.4364bn/- per Section 27C of the Mining Act Prof. Manya added that, in the collected in 2018 from the same 2010 cap. 123 as amended in 2017. trading process, and as per the with absence of the wall. Mining Act of Tanzania cap. 123 Through mineral markets and and its regulations, whoever deals Prof. Manya said before 2017, large buying centers, revenue collection in minerals has to hold a valid li- scale miners had their own miner- from minerals soared to 528bn/- cense. al markets and exported them af- during the 2019/20 fiscal year, a ter obtaining the requisite Export collection not ever achieved pre- “The license can be either a min- Permit. Therefore, to them, miner- viously. ing license (PML, ML, SML), a li- al trading was not a business chal- cense for mineral trading (Broker lenge. Above all, Mineral Trading Plat- or Dealer) or a license for mineral form has notably helped in for- processing (PCL)’’, he insisted. “For small scale miners, there was malizing and easing the mineral Prof. Manya noted that, in cases no particular market for extract- business in Tanzania. where a person does not hold any ed minerals. This situation led to of the above licenses, he/she is unfair prices for their minerals, allowed to undertake Mineral Dec- escalation of mineral smuggling, laration and trade the declared loss of Government revenues and minerals. He, however, insisted imprecise production statistics,’’ that holders of Mineral Prospect- he stated.

International Mineral & Mining Investment Conference | 2021 36 MINERAL REFINERIES TO TRANSFORM MINING BUSINESS anzania has attained tremen- Refinery Ltd, a joint venture of a as act as a relief for gold miners. dous achievements towards tr- State Mining Corporation (STAMI- Tansforming her mining sector of CO), Dubai based Rozella General Prof. Msanjila says the refinery, late, and the country now looks for- Trading LLC and ACME Consultant which will be managed by STAMI- ward to exporting refined minerals. Engineers PTE Ltd of Singapore, is CO under the EPZA is the first a state-of-the-art-gold refinery. gold refinery in the country to Huge strides have been made in meet international standards, ensuring the processing and re- According to the Permanent Sec- which will make it hot in both lo- fining of minerals is done domes- retary (PS) in the Ministry of cal and international markets. tically. Three gold refineries have Minerals, Prof. Simon Msanjila been established in Dodoma, cherished the establishment of Prof. Msanjila said the coming of Geita and Mwanza to that effect. mineral refineries, saying this had the three refineries will bring the been the long-awaited break- much-awaited transformation In fact, one of the three refineries, through in the gold industry. in the mining sector and make Mwanza Precious Metals Refin- the gold industry vibrant and ery Ltd, was expected to go op- The Mwanza-based refinery will its contribution to the national erational this month, heralding be the first to be built in the economy becoming more visible. a new era in the mining industry, country’s gold industry histo- one of the country’s key econom- ry, which is expected to bring a Prof. Msanjila who inspected the ic sectors.Mwanza Precious Metals lot of positive impacts, as well progress in the construction of the

37 International Mineral & Mining Investment Conference | 2021 refineries in Mwanza and Geita, ing regions, including Geita, from the mineral concentrates. last month, commended STAMICO Mara, Shinyanga and Kahama. for close supervision and timely President Magufuli underscored construction of the gold refinery. According to Dr. Mwasse the the need to invest in smelters in Mwanza Precious Metals Refinery Tanzania instead of exporting min- The PS witnessed the off-load- Ltd, whose construction started in eral concentrates to recover else- ing of machines and equipment March 2020, cost USD 58 million, where. He said among all coun- ready for fixing at the plant. which covered investment, run- tries blessed with large amounts ning cost and purchase of gold for of minerals; only Tanzania shipped STAMICO Acting Managing Director, the initial ten-days of operation. its valuable “sands” abroad. Dr. Venance Mwasse says the Pre- cious Metals Refinery Ltd, is one of The Mwanza plant expects to re- Tanzania is Africa’s fourth-big- the largest refineries in Africa with fine 480 kgs of gold per day that gest gold producer after a capacity to refine 480 kgs a day. will have a purity of 999.99 which South Africa, Ghana and Mali. is at par with the highest purity “The Precious Metal refinery will levels worldwide. In 2017, Presi- be recognised for refining gold dent John Magufuli banned the with international standards by export of raw, citing the fact 99.9 per cent” notes Dr. Mwasse. that the government was los- He adds that the refinery has bee ing much-deserved revenue due n built at a strategic area be- to poor follow-up on amounts cause it will serve gold produc- and value of minerals recovered

International Mineral & Mining Investment Conference | 2021 38

HIGHLIGHTS FROM 2020 INTERNATIONAL MINERAL & MINING INVESTMENT CONFERENCE

UPCOMING EVENT

INTERNATIONAL MINERAL AND MINING INVESTMENT CONFERENCE 2021 ABOUT THE CONFERENCE

This year’s International Mineral and Mining Investment Conference will be a two-day event with insighftul presentations on the mining sector and mineral products exhibitions.

His Excellency Dr John Pombe Magufuli, President of the United Republic of Tanzania will officiate the opening of this crucial meeting with a keynote speech, followed by speeches and presentations from prominent figures in the Mining Sector.

The presentations will constitute of the minerals sector transformations and performance.

There will be special sessions on industrial minerals; colored gemstones; metallic minerals; and mining and processing technologies.

International Mineral & Mining Investment Conference | 2021 www.madini.go.tz

GUEST OF HONOR

H.E Samia Suluhu Hassan Vice President of the United Republic of Tanzania

SOME OF THE KEY SPEAKERS

Hon. Doto Biteko Prof. Simon Msanjila Prof. Florens Luoga Minister for Minerals, Tanzania Permanent Secetary for the Governor of the Bank of Tanzania Ministry of Minerals - Tanzania (Tanzania’s central bank)

Prof. PLO Lumumba Mr. Mark Bristow Matthew Giles Yates Kenya President and CEO of Barrick CEO & MD - ORECORP LIMITED Bardin Davis Cooperation MD – Peak Resources

Christine Ramon Damien Valente Interim CEO – Anglogold Ashanti/ General Manager, OreCorp Geita Gold Mine Tanzania Limited