The VP stated that the government is determined to provide all necessary incentives to ensure Tanzania remains one of the leading gold producers in the continent.
The mining sector has continued to grow whereas last year it grew by 17.7 percent while revenue collections increased to 528bn/- in 2019/2020 compared to 270bn/- recorded in the 2015/2016 financial year, she stated.
She was addressing a three-day international conference on minerals and mining investment themed ‘mining sector for stable economy and sustainable development,’ bringing together mining experts, investors and mining companies from 24 countries.
The conference is expected to bring to light challenges facing miners for governments to take actions, officials said
“Amendments of laws and endorsement of new regulations in the mining sector are not for scaring away investors but to create a win-win situation between them and the government. Changes in the Mines and Minerals Act 2017 were meant to create a conducive environment for investors in the mining sector,” the VP affirmed.
Talks are ongoing with two foreign companies on new mining sites the deals of which will be revealed in due course, she stated, noting that despite the COVID-19 pandemic, Tanzania has remained among top gold producers in Africa.
The government targets increasing mining sector contribution to national income to 10 percent by 2025 despite that it contributes 3.5 percent at present, she said.
The Ministry of Minerals projects 526.7bn/- in tax collections during the 2020/2021 financial year, while between July 2020 and January 2021 the ministry had already collected 360.74bn/-, equivalent to 117 percent of the mid-year target, she pointed out.
The minister, Doto Biteko said that the conference was held for the first time in 2019 to set common ground between investors and the government, to ensure prosperity of the sector.
“The ministry is committed to strengthening ties with the private sector as the key investor in minerals. We have been deploying initiatives to curb smuggling of minerals with 102 cases of smuggling filed at different courts by the end of last year,” he said.
Mining companies need to ensure transparency in their operations as well as making open their budgets for corporate social responsibility, he told the gathering, underlining that the ministry has learnt that some of the companies are not honest with the CSR.
“The government will not tolerate such firms,” he declared.
Permanent Secretary Prof Simon Msanjila said in his opening remarks that this year’s conference is being virtually followed by 19 ministers in various countries including Brazil, India, China, Mali, Australia, Angola, Burundi, the Central African Republic, Kenya and Rwanda.
Others following the meeting include the Democratic Republic of Congo (DRC), South Sudan, Zimbabwe, Zambia, Ghana and Nigeria.
The number of participating countries had increased as last year ten countries took part in the conference, while the number of participating firms rose to 49 from 10 last year, he added.