THE government’s mining sector revenue collections in the first quarter of the 2024/25 financial year exceeded expectations, with 287bn/- collected against a target of 247bn/-

Minerals Minister Anthony Mavunde said this yesterday during a virtual discussion about the achievements of the sixth phase government in enhancing the sector.

He outlined various government initiatives to curb mineral smuggling as contributed greatly to a significant increase in revenue from the sector.

“We strengthen revenue collection systems and control mineral smuggling to ensure the country benefits from taxes, fees and royalties. The establishment of mineral markets and purchasing centres has significantly boosted revenue,” he said.

Mavunde further credited the achievements to changes in mining laws that facilitated creation of the centres. In the 2015/16 fiscal year, non-tax revenue from the sector amounted to 161bn/-.

However, following the establishment of mineral markets and stricter anti-smuggling measures, the sector generated 753bn/- in 2023/24, with expectations of reaching 1trn/- in 2024/25.

Regarding the sector’s contribution to the national economy, Minister Mavunde noted that it accounted for 7.2 percent in 2021/22 and has risen to over 9 percent in 2023/24.

“To ensure continued growth, we plan to conduct comprehensive research nationwide to identify mineral indicators and assess the available resources,” he said.

He mentioned that, so far, only 16 percent of the country has undergone extensive research, yet the sector continues to make significant contributions.

In 2022/23, mining was the top contributor to foreign exchange earnings, accounting for 56 percent, with mineral exports valued at $3.5 billion.

Additionally, he noted that during that year, the sector contributed 15 percent of all domestic tax revenue, amounting to 2.1trn/-.

“The mining sector contributed over 648bn/- to the government’s main fund as non-tax revenue, with 1.7trn/- circulating within our 43 markets and 102 purchasing centres,” he said.

Mavunde elaborated that the achievements stem from research conducted on 16 percent of the land, prompting the ministry to introduce further strategies, including the 2030 Minerals Vision, which focuses on making minerals a source of wealth and prosperity.

“Our goal is to ensure that by 2030, we have conducted thorough research covering 50 percent of Tanzania territory. This is our primary strategy: to conduct detailed research across a large area of our country,” he said.

The minister also encouraged Tanzanians to engage in the mining sector through direct employment, providing services or supplying goods to the mines.

“It was once rare for Tanzanian youth to lead mining companies and this is part of our strategy to promote greater participation among Tanzanians,” he said.