Low level of integration of the mining industry to the rest of the economy, rendering the mining industry as enclave of its own;
ii. Low and slow growing contribution of the sector to the GDP as compared to the growth rate of the sector (sector growth from 7.7% in 1997 to 10.7% in 2007 while sector contribution grew from 1.4 % in 1997 to 2.7% in 2007). The current sector contribution to GDP is 3.3% (2011);
- Low level of mineral value addition activities as minerals mined were exported in raw form;
iv. Slow development of small scale mining;
v. Low capacity to administer mineral sector;
vi. Growing conflicts between mining projects and communities living around these projects that are mainly centred on insufficient compensation, relocation and resettlement schemes of communities that were originally artisanal and small scale mining communities before start of the large scale mining projects; and
To respond to the above listed challenges, the Government reviewed the Mineral Policy of 1997 which resulted into the establishment of Mineral Policy of 2009, followed by the enactment of the Mining Act 2010. This process was performed by making sure that the international competitiveness in attracting more investment to our country is maintained, the interests of private sector investment that was already established over this period is safeguarded on the other hand addressing the general public concerns over the management of the nation’s mineral wealth.
Apart from the Government remaining as regulator, facilitator, service provider and promoter of private sector investment in the mineral sector it is now made possible under the same policy and legal regime the Government to participate in mining projects. Due to this, efforts are being made to strengthen the State Mining Corporation (STAMICO) to actively engage in mining sector on behalf of the Government.
Currently, STAMICO owns various exploration projects either at 100% ownership (potential for partnership) or under joint venture agreements. Some of the projects are at an advanced stage such as the Buckreef Gold Project located in Geita Region whereby STAMICO owns 45% stake and the balance is owned by private company, Tanzania American International Development Corporation 2000 Limited. Also, STAMICO provides consultancy services and drilling services after acquiring two new drill rigs.