New major project expected to turn Tanzania into mining hub
Tanzania is set to become one of Africa’s main gold producers with the establishment of the country’s first gold refinery in the administrative capital Dodoma. The new mining installation is close to completion with the official opening set for 25th October 2019. A Serbian mining company, Eyes of Africa Ltd, is said to be behind the $15 million industry, which is expected to process raw gold from various parts of Tanzania and the neighboring Democratic Republic of Congo. Analysts will be monitoring this new development to find out if it will attract more foreign investment and improve the ease of doing business in Tanzania.
A new era
After many years of mining and exporting unprocessed gold, Tanzania will finally get to trade in refined products that fetch higher prices due to the value addition. Government officials toured the refinery to assess the work in progress and according to the Minister for Minerals, Dotto Biteko, this is a major step for Tanzania which is expected to benefit economically from this new investment.
Industrial Capacity
The expected output of the new plant is approximately 40 kilos of refined gold each day which will be processed from about a ton of raw gold ore. This is a step-up from the current rate of about 20 kilos traded by smaller mineral enterprises in the region.
ALSO READ: Tanzania Government Has a Free Offer for Investors
Economic Potential
Plenty of job opportunities for the locals are expected once the refinery is operational and traders from various sectors are largely optimistic. Small-scale miners will also be able to refine their gold and use the finished products as collateral when seeking bank loans. Miners and traders have been finding it difficult to access loans and this has contributed to a slump in capital investment. While speaking to journalists during the tour of the refining plant, the Chief Operating Officer of Eyes Of Africa Ltd stated, “Artisanal and small-scale miners in the country have suffered from a lack of loans, capital, and poor investment, but this is about to change.” In the long-run, this will boost the economy of the region and market Tanzania as a favorable investment location.
Government Backing
The government authorities are gradually improving the mining business in Tanzania. President John Magufuli recently issued an order to the central bank to set up a gold reserve to supplement the country’s other national reserves. This is an important direct investment by the government in the mining sector. The president has also been vocal about regulating mining in Tanzania and the need for locals to benefit directly from the countries resources.
ALSO READ: Can Cobalt be Congo’s Golden Ticket to Prosperity for All
Responses