PRESENTATION
BY
THE HEAD OF TANZANIA DELEGATION,
H.E. BARAKA H. LUVANDA,
HIGH COMMISSIONER OF THE UNITED REPUBLIC OF TANZANIA
MINERALS AND METALS OUTLOOK, 2030
AT THE HOTEL TAJ PALACE, DIPLOMATIC ENCLAVE,
NEW DELHI, OCTOBER 9-10, 2018


Honourable Minister, Shri Chaudhary Birender Singh,
Minister of Steel, GOI,

Honourable Minister, Shri Narendra Singh Tomar,
Minister of Mines, GOI

Secretary General of FICCI, and Our Host,

Invited Guests,

Friends,

Dear Participants,

Ladies and Gentlemen

Namaskkaram! Jambo!

At the outset, let me express my sincere thanks to FICCI for their kind invitation extended to me and, especially for honouring me with the slot at this auspicious Dias. Thank you very much.

I was happy to learn that the National Mineral Development Corporation (NMDC) is celebrating its Diamond Jubilee and I wish to congratulate them for a deserving existence for all these years. Tanzania has benefitted quite significantly by associating with you and we hope we can count on the continued relationship for many years ahead.

In terms of the panel discussion for which I was asked to bring the Tanzanian Perspective on Minerals and Metals, I must admit that it was tricky a decision for me accepting to be in the panel. I am not a Geologist nor have I been involved in the sector at any time before. In any way, I do not want to be seen as if I condone the view that “that is the way the cookie crumbles”.

But, in all fairness I thought I could source some relevant information from the sector and be able to share with you albeit, in a nutshell or rather as thought-provoking. And for this, I will seek your indulgence for any clarity that may be lacking. But I can assure you one thing. Even though I will be presenting these notes as prepared by compatriots in the sector, I will try to be absolutely faithful to their instructions as to what I should speak to you this evening.

With that in mind, please allow me to take you through these few slides:

The Mandate

The Ministry of Minerals is in-charge of the following: • Formulating, developing, and monitoring of mining policies, strategy and plans;
• Managing mines and promoting mining excavations and exploration activities;
• coordinating and promoting mining industry;
• Promoting participation of Tanzania in mining, exploration and trading activities (local content);
• Managing and developing of small scale miners in Tanzania;

Monitoring the performance of mineral departments, Parastatal Organizations, Agencies programs and projects under the Ministry: The parastatal organizations/Institutions under the Ministry are include the following: i. The Mining Commission (MC),
ii. Geological Survey of Tanzania (GST),

iii. State Mining Corporation (STAMICO),
iv. Tanzania Gemological Centre (TGC),
v. Mineral Resource Institute (MRI); and
vi. Tanzania Extractive Industries Transparency and Initiatives (TEITI)

Facilitating Mining Investment through Laws, Policies and Regulations

• Massive investment in the mineral sector for the past two decades.


• Mining Policy of 1997 and the Mining Law of 1998 paved the way for various exploration and mining companies to apply for prospecting and mining licenses.

• Led to discovery of various mineral potential fields that led into different mining exploitation in Tanzania.
• Tanzania has initiated and implemented ambitious strategic reforms in the mining legislations and regulations to facilitate the process.
• Currently being administered under the Mineral Policy of 2009 and the Mining Act of 2010, in line with the recent amendments which were made under the Written Laws (Miscellaneous Amendments) Act, 2017.
• Beneficial for both investors and partners.
• Government plays the role of a facilitator and promoter of investment in the industry.
• Alternatively, Tanzania mining industry is currently a private and government-led economic sector.
• Ongoing Efforts

• Introducing the Primary Mining Licence (PML) – This is the licence that is issued to Tanzanians only;
• Conducting the extension services to assist the safe mining and efficient dressing of the minerals;
• Supporting the small scale miners through giving loans and grants for upgrading their mining activities;
• Upgrading the geological information to assist the miners on ways of identifying suitable areas for specific minerals; and
• Allocating the offices and officers to places where mining is taking place and facilitating the market of their products through auctions and exhibitions.

Investment Climate

• Conducive environment.
• Politically stable.

• Internationally competitive legal framework and fiscal regime.
• Vast untapped mineral resources.
• Access to geological resource database.
• Infrastructure development such as power, roads, railways, ports and airports
• Opportunities for investment in Tanzania’s mining sector include :
1. Exploration and mining
2. Value addition for minerals in terms of cutting and polishing of gemstone, refinery and smelting of metallic minerals; and
3. Infrastructure development for mines development

Geological Database

• High Resolution Airborne Geophysical data (coverage 15% of the country)
• Low resolution airborne geophysical survey (100%)


• Geological maps (94% of the country)

• Geochemical data (Coverage 19% of the country)
• Other maps include Mineral Promotion Geological Maps of Lake Victoria Gold Field, Mpanda Mineral Field, Lupa Mineral Field, and developed Sindida – Dodoma – Handeni Mineral Field.

Mineral Endowment
(Investment Opportunities)

Tanzania is one of the most mineral-rich countries with the following deposits:
• Precious metals (gold and silver),
• Iron ore,

• Base metals (copper, nickel, cobalt, tin, lead,)
• Platinum Group Metals (PGM),
• Rare Earth Elements (REE) like niobium,
• Energy minerals (coal, uranium);
• Diamonds,

• Varieties of coloured gemstones (tanzanite, ruby, sapphire, tsavorite, rhodolite, tourmaline,) and
• Industrial minerals (limestone, kaolin, kyanite, magnesite, phosphate, gypsum).
• There are also naturally occurring resources such as ground water; carbon dioxide and helium gas; geothermal energy; and natural gas


Gold

The Lake Victoria goldfields (greenstone belt) still stands potential for areas of investment in gold mining (Geita, Mara, Singida, Tabora, Shinyanga Regions). There are also other prospects such as Kitongo, Nyakafuru, Miyabi and Sekenke which are not well developed. The Lupa goldfields (Chunya) in South West of Tanzania and Mpanda area are also potential for gold mineralization. Most of the gold mineralization in these areas are associated with base metals. Other potential areas include Dodoma, Bahi, Iringa, Handeni, Mbinga, etc. Many other areas can be discovered upon detailed exploration


Diamond

Over 300 kimberlites are known in Tanzania of which, 20% are diamondiferous. Diamond is found in Kimberlite pipes in the central and southern parts of the Archaean craton mainly in Shinyanga Region (Mwadui, Mabuki, Maganzo). Areas in Tabora and Singida regions are worthwhile for detail work


Ferrous and Non-Ferrous Metals

Ore bodies for iron, nickel, copper, tin, cobalt, chromium, and Platinum Group Metals (PGM) are associated with ultramafic intrusions whilst tin and tungsten related to granitic intrusions. None of these metals have been mined in Tanzania although there are advanced projects such as Kabanga Nickel.


Iron

Numerous iron ore bodies have been identified in the Proterozoic rocks. Titaniferous magnetic bodies associated with anorthositic gabbro occur at Liganga SW Tanzania and is in close proximity (80 km) to the coal resources of Ketewaka-Mchuchuma. There are many occurrences of various grades and types of iron ore deposits in Tanzania. The titaniferous type is found in large quantities and it is rich in iron oxide, vanadium pentoxide and titanium dioxide. The known titaniferous magnetite ore deposits in Tanzania are found at Liganga/Maganga Hills, Lugarawa, Mlangali in Ludewa District and at Kisaki in Morogoro District.


Coal

Coal resources occur in Karoo rock formations in southwestern part of Tanzania. Currently coal is being exploited at Kiwira Coal Mine, and Ngaka. Coalfields with highest potential are Mchuchuma (total reserve of 428Mt); Ngaka (A total reserve of 145Mt); Ketewaka (120Mt)–Mbamba bay coal field (A total reserve of 29Mt), in the Ruhuhu basin and Songwe –Kiwira (Coal reserves - Ivogo 35.5Mt, Kabulo 45.5Mt and Ilima 20.5Mt).


Tanzanite

• Resource at Mirerani Mine (Block C) for the year ended November 2015:
• Total tonnage without reductions due to strike folding and illegal mining is estimated at 1,759,102 tons at a grade of 49.5 cpt which will give a total carat of 87,103,683.
• Total tonnage with reductions due to strike folding and illegal mining is estimated at 1,469,743 tons at a grade of 49.5 cpt which will give a total carat of 72,752,292.
• Therefore, at the current mining rates of nearly 54,000 tons per annum; the resource is large enough to support a Life of Mine (LOM) plan for approximately 27 years. The mine can run up to the year 2042 but still there is a room for further exploration and resource estimation.


Industrial minerals

A variety of industrial minerals and rocks include kaolin, diatomite, bentonite, clays, mica, magnesite, talc, vermiculite, phosphate, feldspar, fluorspar, graphite, limestones and marble stands to be priority areas for investment in Tanzania and available in different areas


Limestone

• Limestone is a sedimentary rock consisting of 50% or more of the minerals calcite and dolomite with calcite predominating. High-calcium limestone consists of at least 95% calcite, CaCO3. On the other hand high purity dolomite contain 87 to 94% of the mineral dolomite, CaMg(CO3)2.
• It occurs in marine sedimentary rocks extending from 60 to 160 kilometers inland from the coast. They include coral limestone from raised beach deposits of Tertiary age and various types of limestone formations of Cretaceous to Jurassic age.
• The coastal areas extending from Tanga in the north to Mtwara in the south has extensive limestone occurrences of high quality that can be used for lime and cement production as well as for other industrial uses.
• The Tanga Cement and Wazo Hill Cement companies are examples of limestone of this type. Other potential areas for limestones include Mbeya, Kidugalo in Njombe – Lugoba, Lindi, Mahenge, Uluguru Mountain, Handeni, near Karema, Uvinza and Kigoma; Manonga basin, Seseko-Shinyanga, Bunda, Nzega ,Kahama ,Igunga Massai Plain, Rukwa and Ruaha trough, Uvinza etc.


Gypsum

Soft white or grey mineral is found in Tanzania in the following areas; Mbaru, Pindiro, Mkomore, Itigi, Mkomore, Makanya, Makangaga, and Mkomazi.


Collaborative Projects in Industrial and Strategic Minerals

State Mining Corporation (STAMICO), undertakes several mining roles including, exploration projects, Joint venture Projects and Subsidiary mines. It is the right holder of several potential and accessible older mines that are considered commercially viable such as Buhemba Gold Mine and Kiwira Coal Mine.


Mr. President;


As required by the Tanzanian law, the ratification of any international Treaty such as ISA Charter has to pass several stages including, stakeholders’consultations, the inter-ministerial consultations, the Cabinet and eventual Parliamentary scrutiny.


Collaborative Projects in Industrial and Strategic Minerals
Projects Under State Mining Corporation

Tanzania is one of the Solar rich Countries in the World and yet it has not started reaping benefits of power generated from this resource. Infact, we are the Country whose geographical location could not allow all our people to be connected with grid electricity and yet the opportunity of using isolated solar and mini grids solutions is untapped.


1. Kiwira Coal Project:
• Location: Mbeya/Songwe region (Southern West Tanzania)
• Objectives: To develop open and underground mine and construction of power plant in order to generate 200-600MW Power.
• Current Coal Reserves/Resources: Reserves of 35.85 Million tons of Coal in Ivogo ridge and resources of >300 Million tons of Coal in Kabulo ridge.

Ongoing activities: Coal Mining at Kabulo.


Possible Areas of Cooperation and Collaboration with GST


2. Phosphate Projects (Exploration Projects)
• Location: Sengeri, Mbeya and Bahi Basin, Dodoma.
• Objectives: To develop phosphate resources in the two prospecting Licenses.
• Completed activities: Geological mapping and sampling. Requires drilling testing.


3. Mirerani Graphite project (Advanced Project)
• Location: Mererani, Manyara Region.
• Objectives: To develop and mine "Block C" upper graphite horizon (old Graphtan mine).
• Current graphite Reserves in Block C: Reserves of 8.4 Million tons of ore at 6.5% TGC (Total graphite content) plus graphite tailings with 1 Million tons of ore at 3.5% TGC.

Ongoing activities: Tanzanite Ore Mining

4. Buhemba gold project (Advanced Project-Hard rock)
• Location: Butiama, Mara region.
• Objectives: To develop and mine gold from hard rocks and increase resources through drilling.
• Current resources: Indicated resources >400,000 ounces of gold in Buhemba 1,Buhemba 4,Mwizi and Kilamongo (north & south). Additional resources expected from Nyasanero from resource drilling.
• Ongoing activities: Preparation for tailings project.

Conclusion

Tanzania has a great set of opportunities to offer, owing to the mineral potential it has. The mining sector is number one in Tanzania in terms of foreign earnings.
We assure all those potential investors and traders from India to conform to the legal and regulatory requirements in starting up trade and or investment undertaking.

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