Natural Resources Accounting in Tanzania MINERAL ACCOUNTING: Natural Resources Accounting in Tanzania MINERAL ACCOUNTING Pankras Uwoya
Ministry of Energy and Minerals
UNITED REPUBLIC OF TANZANIA Background: Background NRA (Minerals) Initiatives in Tanzania started this year 2005.
Basic data for the initial construction of the mineral accounts were obtained from Ministry's Headquarter in Dar es Salaam.
The data included mineral production and export by some large-scale mines and mineral dealers.
Background cont: Background cont The Team for Mineral Accounts for Tanzania comprises of the following:
Pankras Uwoya (System Analyst) – Team leader;
Salim Salim (geologist) – Mineral production and sales;
Elikunda Kanza (Geologist) – Mineral deposits;
Invocavit Swai (Director) – Quality check; and
Mr. Oyuke (NBS) – Monetary Accounts. INTRODUCTION: INTRODUCTION Tanzania has a mining history of almost a century, at both large and small-scales with gold and diamond being the major export minerals produced in Tanzania at different times.
GDP contribution by the mineral sector has risen from 2.3% in 2000 to 2.5% in 2001, and 2.7% in 2002. In 2004 its contribution to the GDP stands at 3.5%. It is expected to rise to 10% by 2020.
INTRODUCTION cont.: INTRODUCTION cont. Mineral exports rose by 69% from US $ 185 million in 2000 to US $ 312 million in 2001. mineral exports rose further by 38% to US $ 430.8 million in 2002, thus accounting for nearly 48% of Tanzania’s export earnings. Mining is the leading sector in terms of contribution to foreign exchange earnings.
More than 1,000,000 people are engaged in mining with over 90 percent engaged in small-scale and artisanal mining. In 2002 employment by five large mining companies was 5,885. MINERAL POLICY OF TANZANIA 1997: MINERAL POLICY OF TANZANIA 1997 The Mineral Policy of Tanzania, 1997 stresses on private sector led mineral development while the government is to regulate, promote and facilitate. The public role consists of inter alia:
policy formulation to accommodate the overall and sectoral government policy framework;
advising on legislation, regulation and fiscal matters related to the sector;
revenue collection through royalties, annual rents, prospecting rights and licenses; MINERAL POLICY OF TANZANIA 1997 cont.: MINERAL POLICY OF TANZANIA 1997 cont. monitoring of mining activities;
collection and maintenance of geo-technical data for promotional purposes;
provision of extension services to small-scale miners;
administration and inspection of mining activities; and
carrying out research on minerals. MININING ACT 1998: MININING ACT 1998 The Mining Act of Tanzania is aimed to deter information hoarding on new discoveries, freezing of exploration acreage for speculative purposes, transfer pricing and tax evasion. MINERAL AND POVERTY LINKAGE: MINERAL AND POVERTY LINKAGE Minerals and Poverty Linkage
The Government of Tanzania is currently implementing second phase of Poverty Reduction Strategy known as the National Strategy for Growth and Poverty Reduction [NSGPR] in Swahili it is called Mkakati wa Kukuza Uchumi na Kuondoa Umaskini – [MKUKUTA].
MINERAL AND POVERTY LINKAGE cont.: MINERAL AND POVERTY LINKAGE cont. The existing linkage between mining activities and poverty can be gauged through a number of intermediaries including employment creation, revenue generation and public service delivery as follows:
Minerals, Women and Youth. Some efforts have been made aimed at empowering women and youth to improve their income generation. By establishment of Tanzania Women Miners Association (TAWOMA) more employment for women has been created; MINERAL AND POVERTY LINKAGE cont.: MINERAL AND POVERTY LINKAGE cont. Minerals and Neighbouring Communities. Communities surrounding mining areas benefits in different ways: mining areas are potential markets for their services and agricultural products and large mining companies do provide public services to the communities in the neighbourhood. Most common services are road construction, water, health services and education; and MINERAL AND POVERTY LINKAGE cont.: MINERAL AND POVERTY LINKAGE cont. Industrial Mineral Linkage to Agriculture and Construction Industry. Tanzania is endowed with potential of industrial minerals. These minerals include: limestone, marble, soda, salt, aggregates, stones, coal, and phosphate. Phosphate can be applied directly to farming and hence, increasing production. Construction industry depends much on industrial minerals. Emphasis on industrial minerals will create job, and increase income to Tanzanians. MINERAL RESOURCES’ ENDOWMENTS: MINERAL RESOURCES’ ENDOWMENTS MINERAL RESOURCES’ ENDOWMENTS
Tanzania has great potential particularly for gold, base-metals, diamonds, ferrous minerals and wide varieties of gemstones, Natural gas, coal, uranium, columbine-tantalite, and various industrial minerals such as soda, kaolin, tin, gypsum, phosphate and dimensional stones are available at an attractive economic rate. Minerals that most contribute to the economy include gold, gemstones (especially diamonds and tanzanite), natural gas and coal. MINERAL RESOURCES’ ENDOWMENTS: MINERAL RESOURCES’ ENDOWMENTS Gemstones
Tanzania has been a significant diamond producer for several decades, with the bulk of production coming from the Williamson Diamonds Mine where commercial production began in 1925. Over 300 kimberlites are known in Tanzania of which, 20% are diamondiferous. MINERAL RESOURCES’ ENDOWMENTS: MINERAL RESOURCES’ ENDOWMENTS Tanzanite is mined at Merelani in Arusha, the only place known in the world. Production is by one large mining company (AFGEM), small-scale and artisanal miners.
Gold exploration has grown rapidly during the 1990s using modern technology and refined models. Investigation has mainly been focused on the greenstone belts around Lake Victoria. MINERAL RESOURCES’ ENDOWMENTS: MINERAL RESOURCES’ ENDOWMENTS Several “world class” gold deposits have already been discovered in the Lake Victoria Goldfields where six large-scale mines are in operation. These mines are: Kahama, Geita, Nzega, Buhemba, Afrika Mashariki and Tulawaka. MINERAL RESOURCES’ ENDOWMENTS.: MINERAL RESOURCES’ ENDOWMENTS. Coal
So far, exploitation of coal for energy purpose has been minimal. The present national electricity generation from coal is only 6 MW at Kiwira Coal Mine with a reserve of 140 million tones.
According to studies, there is a total deposit of 1.2 billion tones in the following areas (million tones); Mbalawala 98, Mbuyula 15, Mchuchuma 199, Songwe Kiwira 140, Mhukuru 150, Njuga 23, Muze 10, Namwele Mkando 7.5 and Galula 2. MINERAL RESOURCES’ ENDOWMENTS: MINERAL RESOURCES’ ENDOWMENTS Important gas discoveries in Tanzania are found at Songo Songo Island in Lindi Region with prove reserves of 968 billion ft3, and Mnazi Bay in Mtwara Region estimated reserves 484 billion ft3. Songo Songo Gas to Electricity Project was commissioned on 4th October, 2004. The gas is used for electricity production and industrial use. Development of Mnazi Bay is at the early stage. MINERAL RESOURCES’ ENDOWMENTS: MINERAL RESOURCES’ ENDOWMENTS Other Minerals that are Found in Tanzania
There are several other minerals of economic importance that are found in Tanzania, but mining is yet to take place or are mined in small quantities. These include:
Base metal and Platinum Group Minerals (PGM):
Barrick Exploration evaluated resources during diamond drillingand outlined resources of more than 500,000 tones nickel, 75,000 tones copper and 45,000 tones cobalt, so far. MINERAL RESOURCES’ ENDOWMENTS: MINERAL RESOURCES’ ENDOWMENTS Ferrous Metals:
At Liganga South West Tanzania shallow drilling established a resource of 45 million tones grading 53 per cent Fe. The Titanium resources are also known in beach sands along the coast.
Tin and Tungsten have been produced from both lode, alluvial and eluvial deposits from the Karagwe tin-fields in the extreme Northwest Tanzania. MINERAL RESOURCES’ ENDOWMENTS: MINERAL RESOURCES’ ENDOWMENTS Other Gemstones (besides tanzanite)
There are several other gemstones which are found in Tanzania. These include: alexandrite, ruby, rhodolite, sapphire, emerald, peridot, tourmaline, chrysoberyl, spinel, sapphire, garnets, zircons, sunstone, opal, citrine, moonstone, amazonite, kyanite, calcite, scapolite, aquamarine, topaz, appatite, agate, kunzite, spessartine, lazurate, epidot, iolite, malachite, enclase, pyrite, quartz, amethyst, chrysoprase and volcanic glass MINERAL RESOURCES’ ENDOWMENTS: MINERAL RESOURCES’ ENDOWMENTS Carbonatites
Well over 20 carbonatites associated with Mesozoic-Cainozoic volcanics have been identified in the country, which could prove to be useful source of phosphate and Rare Earth Elements (REE) which includes columbite, tantalite and niobium.
Limestone and Dolomite
Good resources of high purity marble deposit occur in various places in the country. MINERAL RESOURCES’ ENDOWMENTS.: MINERAL RESOURCES’ ENDOWMENTS. Varieties of Clay – Bentonite, Kaolin and Fullers Earth
Sizeable deposits have been identified and are only scantly exploited. The Pugu kaolin deposit has a great potential for development.
Evaporates and Saline
Deposits of economic significance are associated with the rift valley lakes. Investigations of the soda ash deposits at Lake Natron revealed a potential recovery of over one million tones a year. MINERAL RESOURCES’ ENDOWMENTS: MINERAL RESOURCES’ ENDOWMENTS Graphite
Graphite of 97-98% purity occurs in high-grade gneisses mainly in the Usagaran system. Sufficient reserves have been identified at Merelani, northern Tanzania.
Deposits have been exploited at Minjingu in Arusha region at around 48,000 tonnes per year.