Tanzania mining sector proves very lucrative

The forum brought together various stakeholders including mining companies’ chief executive officers (CEOs) from different countries across the world (Photo: The Exchange) The forum brought together various stakeholders including mining companies’ chief executive officers (CEOs) from different countries across the world (Photo: The Exchange)

The Tanzanian government has successfully managed to collect 2.12tri/- as income and withholding tax from mining sector in the country from 1998 to 2015, the Acting Commissioner for Minerals in the Ministry of Energy and Minerals, Mr Ally Samaje, has said.

Also in the same period, at least 875.9bn/- have been paid to the government by various mining companies as loyalties. Mr Samaje said the amount has been paid to the government in accordance to the current legal framework. He said for the government to earn more cash from the mining sector, the operation costs need to go down to allow both sides to benefit from the business.

The acting commissioner of minerals was speaking to reporters during the 2016 Tanzania investment forum that focused on economic growth and investment opportunities in the country.

The forum brought together various stakeholders including mining companies’ chief executive officers (CEOs) from different countries across the world. “In order to get more money from mining sector, we must make sure the costs of running mining businesses are reduced,” he said.

He said there is need for both the government and the public to support investment in the mining sector and establishment of mining sites. “Both ‘wananchi’ and the government must support the establishment of mining sites and make sure there are good environment for doing business, this will help to boost our economy,” he noted.

According to Mr Semaje, the government is doing everything in its powers to boost mining sector by inviting new investors and enabling the existing investors to expand investments. He said new mining companies are set to start production in the near future.

He mentioned the new companies as Uranex, which mines graphite in Ruangwa, Lindi Region, Mantra Tanzania Limited that deals with uranium and expansion of graphite project at Epanko in Ulanga District. Earlier, Mr Semaje told the participants of the business forum that mining sector contributes 4 per cent to the GDP and that the government targets the sector to contribute at least 10 per cent by 2025.

Source: The Exchange