OPINION · MINING AND NATIONAL DEVELOPMENT · TANZANIA
Our Minerals, Our Future
Making mining work for every Tanzanian, from the first licence to the last tonne and the decades after
Mr Ih Ashten [Economist] and Prof.
Khanindra Pathak (Emeritus Professor, Mining Engineering, IIT Kharagpur)
Tanzania is blessed with valuable minerals. Their true value lies in the jobs they create, the businesses they grow, the families they support and the public services they pay for, as much as in the gold, tanzanite or graphite taken from the ground.
Tanzania holds gold, tanzanite, diamonds, graphite, nickel, rare earths, limestone, gypsum and more. Several of these, graphite and nickel among them, are now treated worldwide as critical minerals for batteries and clean energy. That gives the country a stronger hand than it has ever had.
Mining is already a pillar of the national economy. The sector's share of GDP rose from 9.1 per cent in 2023 to 10.1 per cent in 2024, reaching the national 10 per cent target a year ahead of schedule, and averaged about 11.9 per cent in the first three quarters of 2025. As recently as 2008 it stood at roughly 3.5 per cent.
10.1%
Mining share of GDP, 2024 (9.1% in 2023)
97%
Share of large and medium scalemining jobs held by Tanzanians
88%
Local procurement by mines, 2024 (62% in 2018)
~40%
Share of gold collected nationally from small-scale miners
Figures as reported by the Ministry of Minerals and Tanzanian press, 2025–2026.
These are real achievements. They lead to the question that matters most: how do we make sure the wealth beneath our land brings lasting benefit to the people living on it? Our answer is mining that shares opportunity, protects land and water, and is planned from the start for the community that will remain after the mine has gone.
1 Mineral wealth must improve people's lives
Many countries with rich resources still have deep poverty. Economists call this the resource curse. It follows when revenue is poorly managed, when local people cannot take part, or when farming and industry are neglected while minerals boom. None of this is inevitable, and Tanzania is well placed to avoid it.
When a gold mine opens near a village, the benefits should reach well beyond a few jobs. Farmers should be able to sell food to the mine. Transport operators should carry its goods and people. Young people should learn trades there, and qualified local firms should supply equipment and services. Mining revenue, used well, should show up as classrooms, clinics, clean water, roads and electricity.
A successful mining industry leaves behind stronger communities, not only empty pits.
2 Mining should strengthen farming and other businesses
Tanzania's future cannot rest on minerals alone. Agriculture, livestock, fishing, tourism, manufacturing and small enterprise employ far more people, and tourism is now the country's second-largest earner of foreign exchange after mining.
A fast-growing mining sector can draw money, attention and skilled workers away from these activities. A town that depends on one mine is exposed when output falls or the mine closes. Mining should therefore be used to build the rest of the local economy:
farmers near mines supported to raise output and supply mine canteens on reliable contracts;
young entrepreneurs running workshops for machinery repair, welding, fabrication, tyre and hydraulic services;
local firms supplying uniforms, safety equipment, accommodation, cleaning and catering.
The rise in local procurement to 88 per cent shows this is possible. The next step is to move Tanzanian suppliers up the value chain, from consumables and services into maintenance, spare parts and engineering, where margins and skills are higher. Mine maintenance is one of the largest costs in any operation; a local base of trained technicians and certified workshops keeps that money in the country and outlasts any single mine.
3 Tanzanians should be participants, not observers
Our minerals belong to the nation. Tanzanians should take part as owners, investors, shareholders, contractors, processors, traders and suppliers, and not only as employees.
Small-scale miners matter greatly. They now produce close to two-fifths of the gold collected nationally and support many families. Yet they still face costly equipment, scarce finance, limited technical knowledge, unsafe working conditions and uncertain markets. Better access to geological data, affordable credit, training, suitable equipment and transparent mineral markets would make them safer and more productive. Mercury-free processing deserves particular support, because it protects miners' health and the rivers downstream.
Skills are the long-term foundation. Young Tanzanians should be encouraged into mining engineering, geology, mineral processing, environmental science, maintenance engineering and digital technology. The modern mine runs on sensors, data and remote monitoring as much as on drills and trucks. Universities, technical colleges and industry should design courses together, so that graduates can solve problems on real sites from their first day.
Our ambition is a generation of Tanzanians who can run, improve and own mining businesses.
4 We should add more value to our minerals
Consider a piece of tanzanite. Sold rough, most of its value is captured elsewhere. Cut, polished, set and sold as jewellery by Tanzanians, it creates many more jobs and businesses here at home. Tanzanite is found nowhere else on earth, which makes the case for local cutting and branding especially strong.
The same applies to other minerals: gold refining, gemstone cutting, graphite processing into battery-grade material, and limestone and gypsum turned into cement and building products for the houses, schools and hospitals the country needs.
Value addition must be practical. Processing plants need reliable power, water, transport and skilled operators, and they must compete on cost and quality. Policy should back investments that are technically and commercially sound, and build the infrastructure and skills that make more of them possible.
5 Communities must have a voice
A licence gives a company the legal right to mine. It does not give it the trust of the people around it. Where communities feel ignored, unfairly treated or exposed to pollution, mistrust grows and projects stall.
Before and during operations, communities should receive clear information in Kiswahili about planned activities, environmental effects, jobs and development plans. They should be able to ask questions, raise concerns and take part in decisions affecting their land, water and livelihoods. Where land is acquired or people are moved, compensation and resettlement must follow the law. Grievances need a simple, known route and a timely answer.
Trust runs both ways. Mines take years and heavy investment before they earn a return. Not every resident can be employed, and not every request can be met at once. Honest communication and realistic promises that are then kept build more goodwill than generous promises that are later broken.
A licence gives the right to operate. Community trust lets a mine operate in peace.
6 Protecting water, land and health
For most Tanzanian families, land and water are the most valuable things they own. Farmers need healthy soil, herders need grazing and clean water, and every household needs safe drinking water.
Mining companies must follow environmental law and their approved management plans: control dust, manage waste rock and tailings safely, protect water sources and restore disturbed land as they go rather than leaving it all to the end. Tailings storage facilities need the same engineering discipline as dams, because a failure can harm people far downstream.
Communities have a role too. Residents should report suspected pollution, unsafe dumping or changes in water quality to the authorities, with evidence where possible. Regulators must inspect, verify and act. Simple, shared water and air monitoring around mine sites, with results published openly, can replace suspicion with facts.
Environmental protection is part of good mining practice. A mine that protects water, land and health keeps public confidence and is more likely to operate successfully for its full life.
7 Mining revenue must benefit the nation
Mines pay royalties, taxes and fees. Government revenue from the sector has grown strongly, passing TZS 1 trillion in 2024/25 and about TZS 1.39 trillion in 2025/26. Collecting revenue is only half the task. It must also be managed well and invested for present and future generations.
The government should keep strengthening inspection, production reporting, export controls and anti-smuggling measures; the mineral markets and buying centres introduced in recent years have already helped. Companies must keep accurate records and meet their obligations. Citizens can help by supporting lawful trade and reporting smuggling through proper channels.
People should also understand that most mining revenue goes to the national treasury and funds national priorities. That is why a clear and visible local share matters.
A lesson from India
Since 2015, India has required mining leaseholders to pay an additional contribution, linked to the royalty they pay, into a District Mineral Foundation in each mining district. The money is earmarked for drinking water, health, education, sanitation and livelihoods of people affected by mining, and spending is guided by a national welfare scheme.
The experience has been instructive. Large sums have reached mining districts, but results depend on whether affected villages help choose projects, whether spending is published, and whether funds go to lasting needs rather than prestige buildings. Tanzania's existing Corporate Social Responsibility and local content rules could be strengthened in the same spirit: a predictable local share, community participation in deciding its use, and open public reporting.
8 Preparing for life after mining
Every mine has a limited life. One day its ore will run out or mining will no longer pay. What happens to the community then must be decided at the start of a project, not in its final year.
A responsible company plans for closure from the beginning, rehabilitates land progressively and sets aside money, under the law, so that closure is paid for even if the company's fortunes change. A financial guarantee for closure is a protection for the nation, not a burden on investors.
Government, local authorities and communities should plan together for what comes next: farming, livestock, forestry, tourism, manufacturing or other uses that suit local conditions and are safe. Mine land, roads, power lines, water and workshops can become the base for new enterprises. Training young people in skills useful beyond mining is just as important.
The best legacy of a mine is a community that keeps prospering long after the last tonne is extracted.
9 Working together
The future of the industry depends on cooperation among government, companies, workers, investors, universities and communities. Each has clear responsibilities.
PARTNER
RESPONSIBILITY
Government
Clear laws, fair and transparent licensing, firm regulation, closure guarantees, and a stable climate for responsible investment
Mining companies
Safe operations, legal compliance, environmental care, respect for communities, local procurement and skills, and kept promises
Communities
Constructive participation, respect for lawful operations, care of shared resources, and concerns raised through proper channels
Universities and colleges
Industry-ready graduates, applied research on local problems, and training for small-scale miners and suppliers
Mining companies are not the enemies of communities, and communities are not obstacles to mining. Both gain from mining that succeeds responsibly. Where trust exists, disputes are settled by dialogue. Where commitments are kept, cooperation grows. Where benefits are shared fairly, mining becomes a source of pride.
10 Measuring what matters
Minerals are finite; once extracted, they are gone. Success should therefore be judged by what endures. Alongside tonnes exported, licences issued and revenue collected, we propose that Tanzania tracks and publishes, district by district:
Tanzanians in skilled, technical and management roles, not only total jobs;
value of goods and services bought from Tanzanian firms, and how much of it is manufacturing and engineering;
share of minerals processed or finished in Tanzania;
water quality and land rehabilitated around each mine, against approved plans;
community projects completed and grievances resolved on time;
closure plans in place with funded guarantees.
Let us support mining. Let us demand responsible mining. And let us work together so that Tanzania's mineral wealth becomes a lasting blessing for every Tanzanian.
Our minerals are a national treasure. Their greatest value lies in the prosperity they create for our people.
Mr Mr Ih Ashten writes on mining and national development in Tanzania.
Prof. Khanindra Pathak is Emeritus Professor of Mining Engineering at IIT Kharagpur, India, a former Independent Director of Coal India Limited and a recipient of India's National Mineral Award. He works with Tanzanian mining professionals on modern mine operations, mine closure and asset management.
Our Minerals, Our Future
Making mining work for every Tanzanian, from the first licence to the last tonne and the decades after
Mr Ih Ashten [Economist] and Prof.
Khanindra Pathak (Emeritus Professor, Mining Engineering, IIT Kharagpur)
Tanzania is blessed with valuable minerals. Their true value lies in the jobs they create, the businesses they grow, the families they support and the public services they pay for, as much as in the gold, tanzanite or graphite taken from the ground.
Tanzania holds gold, tanzanite, diamonds, graphite, nickel, rare earths, limestone, gypsum and more. Several of these, graphite and nickel among them, are now treated worldwide as critical minerals for batteries and clean energy. That gives the country a stronger hand than it has ever had.
Mining is already a pillar of the national economy. The sector's share of GDP rose from 9.1 per cent in 2023 to 10.1 per cent in 2024, reaching the national 10 per cent target a year ahead of schedule, and averaged about 11.9 per cent in the first three quarters of 2025. As recently as 2008 it stood at roughly 3.5 per cent.
10.1%
Mining share of GDP, 2024 (9.1% in 2023)
97%
Share of large and medium scalemining jobs held by Tanzanians
88%
Local procurement by mines, 2024 (62% in 2018)
~40%
Share of gold collected nationally from small-scale miners
Figures as reported by the Ministry of Minerals and Tanzanian press, 2025–2026.
These are real achievements. They lead to the question that matters most: how do we make sure the wealth beneath our land brings lasting benefit to the people living on it? Our answer is mining that shares opportunity, protects land and water, and is planned from the start for the community that will remain after the mine has gone.
1 Mineral wealth must improve people's lives
Many countries with rich resources still have deep poverty. Economists call this the resource curse. It follows when revenue is poorly managed, when local people cannot take part, or when farming and industry are neglected while minerals boom. None of this is inevitable, and Tanzania is well placed to avoid it.
When a gold mine opens near a village, the benefits should reach well beyond a few jobs. Farmers should be able to sell food to the mine. Transport operators should carry its goods and people. Young people should learn trades there, and qualified local firms should supply equipment and services. Mining revenue, used well, should show up as classrooms, clinics, clean water, roads and electricity.
A successful mining industry leaves behind stronger communities, not only empty pits.
2 Mining should strengthen farming and other businesses
Tanzania's future cannot rest on minerals alone. Agriculture, livestock, fishing, tourism, manufacturing and small enterprise employ far more people, and tourism is now the country's second-largest earner of foreign exchange after mining.
A fast-growing mining sector can draw money, attention and skilled workers away from these activities. A town that depends on one mine is exposed when output falls or the mine closes. Mining should therefore be used to build the rest of the local economy:
farmers near mines supported to raise output and supply mine canteens on reliable contracts;
young entrepreneurs running workshops for machinery repair, welding, fabrication, tyre and hydraulic services;
local firms supplying uniforms, safety equipment, accommodation, cleaning and catering.
The rise in local procurement to 88 per cent shows this is possible. The next step is to move Tanzanian suppliers up the value chain, from consumables and services into maintenance, spare parts and engineering, where margins and skills are higher. Mine maintenance is one of the largest costs in any operation; a local base of trained technicians and certified workshops keeps that money in the country and outlasts any single mine.
3 Tanzanians should be participants, not observers
Our minerals belong to the nation. Tanzanians should take part as owners, investors, shareholders, contractors, processors, traders and suppliers, and not only as employees.
Small-scale miners matter greatly. They now produce close to two-fifths of the gold collected nationally and support many families. Yet they still face costly equipment, scarce finance, limited technical knowledge, unsafe working conditions and uncertain markets. Better access to geological data, affordable credit, training, suitable equipment and transparent mineral markets would make them safer and more productive. Mercury-free processing deserves particular support, because it protects miners' health and the rivers downstream.
Skills are the long-term foundation. Young Tanzanians should be encouraged into mining engineering, geology, mineral processing, environmental science, maintenance engineering and digital technology. The modern mine runs on sensors, data and remote monitoring as much as on drills and trucks. Universities, technical colleges and industry should design courses together, so that graduates can solve problems on real sites from their first day.
Our ambition is a generation of Tanzanians who can run, improve and own mining businesses.
4 We should add more value to our minerals
Consider a piece of tanzanite. Sold rough, most of its value is captured elsewhere. Cut, polished, set and sold as jewellery by Tanzanians, it creates many more jobs and businesses here at home. Tanzanite is found nowhere else on earth, which makes the case for local cutting and branding especially strong.
The same applies to other minerals: gold refining, gemstone cutting, graphite processing into battery-grade material, and limestone and gypsum turned into cement and building products for the houses, schools and hospitals the country needs.
Value addition must be practical. Processing plants need reliable power, water, transport and skilled operators, and they must compete on cost and quality. Policy should back investments that are technically and commercially sound, and build the infrastructure and skills that make more of them possible.
5 Communities must have a voice
A licence gives a company the legal right to mine. It does not give it the trust of the people around it. Where communities feel ignored, unfairly treated or exposed to pollution, mistrust grows and projects stall.
Before and during operations, communities should receive clear information in Kiswahili about planned activities, environmental effects, jobs and development plans. They should be able to ask questions, raise concerns and take part in decisions affecting their land, water and livelihoods. Where land is acquired or people are moved, compensation and resettlement must follow the law. Grievances need a simple, known route and a timely answer.
Trust runs both ways. Mines take years and heavy investment before they earn a return. Not every resident can be employed, and not every request can be met at once. Honest communication and realistic promises that are then kept build more goodwill than generous promises that are later broken.
A licence gives the right to operate. Community trust lets a mine operate in peace.
6 Protecting water, land and health
For most Tanzanian families, land and water are the most valuable things they own. Farmers need healthy soil, herders need grazing and clean water, and every household needs safe drinking water.
Mining companies must follow environmental law and their approved management plans: control dust, manage waste rock and tailings safely, protect water sources and restore disturbed land as they go rather than leaving it all to the end. Tailings storage facilities need the same engineering discipline as dams, because a failure can harm people far downstream.
Communities have a role too. Residents should report suspected pollution, unsafe dumping or changes in water quality to the authorities, with evidence where possible. Regulators must inspect, verify and act. Simple, shared water and air monitoring around mine sites, with results published openly, can replace suspicion with facts.
Environmental protection is part of good mining practice. A mine that protects water, land and health keeps public confidence and is more likely to operate successfully for its full life.
7 Mining revenue must benefit the nation
Mines pay royalties, taxes and fees. Government revenue from the sector has grown strongly, passing TZS 1 trillion in 2024/25 and about TZS 1.39 trillion in 2025/26. Collecting revenue is only half the task. It must also be managed well and invested for present and future generations.
The government should keep strengthening inspection, production reporting, export controls and anti-smuggling measures; the mineral markets and buying centres introduced in recent years have already helped. Companies must keep accurate records and meet their obligations. Citizens can help by supporting lawful trade and reporting smuggling through proper channels.
People should also understand that most mining revenue goes to the national treasury and funds national priorities. That is why a clear and visible local share matters.
A lesson from India
Since 2015, India has required mining leaseholders to pay an additional contribution, linked to the royalty they pay, into a District Mineral Foundation in each mining district. The money is earmarked for drinking water, health, education, sanitation and livelihoods of people affected by mining, and spending is guided by a national welfare scheme.
The experience has been instructive. Large sums have reached mining districts, but results depend on whether affected villages help choose projects, whether spending is published, and whether funds go to lasting needs rather than prestige buildings. Tanzania's existing Corporate Social Responsibility and local content rules could be strengthened in the same spirit: a predictable local share, community participation in deciding its use, and open public reporting.
8 Preparing for life after mining
Every mine has a limited life. One day its ore will run out or mining will no longer pay. What happens to the community then must be decided at the start of a project, not in its final year.
A responsible company plans for closure from the beginning, rehabilitates land progressively and sets aside money, under the law, so that closure is paid for even if the company's fortunes change. A financial guarantee for closure is a protection for the nation, not a burden on investors.
Government, local authorities and communities should plan together for what comes next: farming, livestock, forestry, tourism, manufacturing or other uses that suit local conditions and are safe. Mine land, roads, power lines, water and workshops can become the base for new enterprises. Training young people in skills useful beyond mining is just as important.
The best legacy of a mine is a community that keeps prospering long after the last tonne is extracted.
9 Working together
The future of the industry depends on cooperation among government, companies, workers, investors, universities and communities. Each has clear responsibilities.
PARTNER
RESPONSIBILITY
Government
Clear laws, fair and transparent licensing, firm regulation, closure guarantees, and a stable climate for responsible investment
Mining companies
Safe operations, legal compliance, environmental care, respect for communities, local procurement and skills, and kept promises
Communities
Constructive participation, respect for lawful operations, care of shared resources, and concerns raised through proper channels
Universities and colleges
Industry-ready graduates, applied research on local problems, and training for small-scale miners and suppliers
Mining companies are not the enemies of communities, and communities are not obstacles to mining. Both gain from mining that succeeds responsibly. Where trust exists, disputes are settled by dialogue. Where commitments are kept, cooperation grows. Where benefits are shared fairly, mining becomes a source of pride.
10 Measuring what matters
Minerals are finite; once extracted, they are gone. Success should therefore be judged by what endures. Alongside tonnes exported, licences issued and revenue collected, we propose that Tanzania tracks and publishes, district by district:
Tanzanians in skilled, technical and management roles, not only total jobs;
value of goods and services bought from Tanzanian firms, and how much of it is manufacturing and engineering;
share of minerals processed or finished in Tanzania;
water quality and land rehabilitated around each mine, against approved plans;
community projects completed and grievances resolved on time;
closure plans in place with funded guarantees.
Let us support mining. Let us demand responsible mining. And let us work together so that Tanzania's mineral wealth becomes a lasting blessing for every Tanzanian.
Our minerals are a national treasure. Their greatest value lies in the prosperity they create for our people.
Mr Mr Ih Ashten writes on mining and national development in Tanzania.
Prof. Khanindra Pathak is Emeritus Professor of Mining Engineering at IIT Kharagpur, India, a former Independent Director of Coal India Limited and a recipient of India's National Mineral Award. He works with Tanzanian mining professionals on modern mine operations, mine closure and asset management.