The mining sector in Tanzania plays a significant role in the country's economy, with a variety of valuable minerals being extracted and exported. Recently, there has been a surge in mineral exploration, particularly for rare earth elements and critical minerals, driven by the growing demand in the global critical metals supply chain.
However, the mining industry in Tanzania has faced challenges due to regulatory and policy changes, including tax obligations imposed on extractive sector participants. In 2017, the government passed laws that granted it renegotiation powers and a stake in mining companies, which impacted investor confidence.
To ensure the prosperity of the mining sector in a responsible and sustainable manner, several measures can be taken. Firstly, deals that benefit Tanzanians and Africans should be prioritised to reduce risks for investors and secure a stable supply of metals globally. Furthermore, environmental protection is crucial to ensure the sustainability of mining operations.
The need for proper governance is emphasised, with the government urged to enhance its capacity to design and implement policies while promoting transparency, accountability, and a corruption-free industry.
In addition to addressing these challenges, it is crucial to monitor the quality of water resources due to the potential chemical pollution caused by mining activities. Water management solutions must be a priority to safeguard the population's access to clean and safe water. This involves implementing stringent environmental regulations, adopting best practices in waste management and water treatment, and ensuring effective monitoring and enforcement mechanisms to prevent and mitigate water pollution.
Considering the increasing global demand for critical minerals and the limited timeframe to achieve net-zero emissions, Tanzania needs to strategically develop its mining industry while prioritizing sustainability, responsible governance, and environmental protection. By leveraging its potential and optimising existing frameworks, Tanzania can maximise the benefits of its natural resources for the economy and its people.
