Mining contribution to GDP increases - Daily News
Dodoma: The mining industry's contribution to the nation's overall economic output (Gross Domestic Product or GDP) has seen a modest rise, going from 7.2 percent during the previous fiscal year of 2021/2022 to 9.1 percent in the most recent financial period.
Providing information to reporters at this location on Friday about the progress made by the Mining Commission in carrying out the plans for 2022/2023, Engineer Ramadhani Lwamo, who is currently holding the position as the Executive Secretary of the Commission, stated that the mining industry experienced a rise in its expansion rate from 9.6 percent in the period of 2021/2022 to 10.9 percent in the duration of 2022/2023.
According to him, it is anticipated that the industry's involvement in the GDP will hit 10 percent or even surpass this percentage by the year 2025, attributing this achievement to numerous actions implemented to enhance the industry's performance.
He explained that the commission's partnership with the Regional Administration and Local Government Authority (RALGA) resulted in the creation of mineral markets and trading centers, which contributed 157.4 billion Tanzanian shillings, accounting for 23.2% of the commission's total revenue in the fiscal year 2022/2023.
The commission has reported that currently there exist 42 mineral markets and 94 small trading hubs.
Lwamo mentioned that the income generated from the markets and trading centers primarily came from the payment of royalties and charges for mining inspections.
He pointed out that during the financial year 2022/2023, the commission also saw a growth in its revenue, with an increase from 624.6 billion Tanzanian shillings collected in 2021/2022 to 678.04 billion Tanzanian shillings.
"The total sum acquired during the previous fiscal year corresponds to 82.5 percent of the yearly objective, which aimed to collect a total of 822.02 billion rupees. This amount was gathered through the collection of annual license fees, audit fees, geological fees, royalties, fines, penalties, forfeitures, and payments for laboratory services," he mentioned.
According to him, the commission successfully enhanced investments in the mining industry. Additionally, they were able to grant a total of 9,642 licenses, surpassing their initial target of 9,174 licenses for that year. Out of these licenses, 6,511 were specifically issued to small scale miners, accounting for approximately 70.97 percent.
He mentioned that the commission also obtained 656 proposals regarding the inclusion of the mining industry (LCPs) from mining license proprietors, applicants, and service providers. These proposals were carefully scrutinized, and 652 of them fulfilled the requirements and gained approval.
Engineer Lwamo discussed the upcoming initiatives for this fiscal year, stating that the commission's objective is to enhance the mining sector's contribution to the GDP, aiming for a growth of at least 10 percent by 2025. This will be accomplished by further enhancing the management and regulation of construction and industrial minerals.
He mentioned that the strategies involve incorporating additional inspectors to oversee construction minerals (AMSs), operational tools (PoS), and collaborating with different governmental entities responsible for the management and utilization of these resources.
The committee will further ensure that the unlawful trafficking of minerals, particularly the depreciation of mineral value, is effectively monitored. This will be accomplished by endorsing the establishment of mineral markets and trading centers within the nation, bolstering surveillance at key border locations, ports, and airports, and enhancing the administration of mining permits.
He mentioned that the commission would additionally enhance its supervision of mining operations in the mines, while also establishing and reinforcing new Resident Mines Offices (RMOs), laboratories, and Mines Resident Officers (MROs)’ offices in different production locations.
"We will also persist in enhancing the current mineral markets beyond national boundaries to attract enterprises keen on our minerals and enhance the investment climate for prominent and moderate-scale mining companies, as well as reinforce research endeavors focusing on discovering fresh avenues for mineral resources revenue," he stated.
