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| :: Tanzania Mining History |
Tanzania is a country with significant mineral resources potential and has a long history of mining stretching back to the German colonial days. During the German rule 1884 - 1918, there is evidence of considerable surveying and prospecting for mineral resources using technology available during those days. Gold and mica were the first mineral commodities to be mined in the then Tanganyika on a commercial basis. Gold was first discovered and mined in Geita, Kahama and Sekenke areas of the LakeVictoria Goldfield in 1898.
History has it that the estimated total value of minerals, mainly gold and mica, produced during 34 years of German administration (1884-1918) was between Shs. 7.0 million and Shs. 10.0 million. Then came the British Rule (1919 - 1961). In 1921, the first mining legislation, the Mining Ordinance, was enacted under the British administration. The Geological Survey, which was established in 1926 continued, but this was solely dictated by the British economic and security needs, hence placing the country in 'cold storage' or under 'care and maintenance'.
In the early 1970s to late 1980s as most you will recall, Tanzania's mineral sector was characterized by state control which in the long run failed to yield the desired results.
Tanzania then took a paradigm shift in economic management policies with the introduction of economic reforms which begun in the late 1980s, the mineral sector has become increasingly important in the plans and programs of the Government of Tanzania. The Government, in 1990s decided to undertake a mineral sector restructuring programme so as to encourage and promote private sector led development.
Since the second part of the 1990s, Tanzania has witnessed growing investment interests in the minerals sector. Once a state controlled sector of the economy, in recent years with the on-going economic reforms, the mining sector has become very vibrant. When the country embarked on the various economic reforms, the mining sector took the lead in creating the necessary environment required for stimulating investments and therefore opening the doors for foreign investment in Tanzania.
The recent increase in investment in the mining sector has been dictated by amongst others two important phenomena, namely:
- The changes in the country’s macro economic policies. The Government has, since 1980s continued to implement with notable success, various policies and reforms.
- The accumulated geo-data acquired over-sixty years of regional geologic and exploration works along with available mineral production statistics and information, which reveal that Tanzania has a diverse mineral resources base and potential has been a factor. Tanzania's main mineral development potential is in gold, diamonds, gemstones, energy minerals (coal, peat and uranium) iron ore, base metals (nickel, cobalt and platinum group minerals-PGM)’ and a range of industrial minerals, including kaolin, soda ash, gypsum, mica, phosphate, salt and limestone.
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