STAMICO hails State for revamps in mining sector

DAR ES SALAAM: The State Mining Corporation (STAMICO) Managing Director Dr. Venance Mwasse, has commended the government for introducing major reforms in Tanzania’s mining sector, enabling greater participation of the locals in resource extraction.

Speaking during a virtual forum via Zoom, Dr. Mwasse noted that the government has created a conducive environment for foreign investors, which has led to improved performance in many mining operations and fostered harmony between large-scale and small-scale miners—bringing balance to the sector.

“The success of the sector is measured by what has been done to empower local miners, as well as the involvement of domestic institutions in the value chain of the mining sector,” he pointed out.

He further added that while the government continues to attract foreign investors to generate tax and non-tax revenues, it is also creating favourable environment for the locals to participate in mining activities.

“I’m not saying foreign investors shouldn’t be allowed, but it is equally important to empower local players to benefit from the sector,” he added.

Dr. Mwasse highlighted the significant shift in job creation, noting that previously, jobs related to the processing of Tanzania’s natural resources were mostly conducted abroad.

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However, with the establishment of local industries such as gold refining plants employment opportunities are now being generated within the country.

This development has been crucial in ensuring that Tanzanians benefit directly from their own resources.

Dr. Mwesse also mentioned that the government has purchased specialized drilling machines for small-scale miners, which help them conduct reliable extraction activities. This reliability enhances their credibility and enables them to secure loans from banks.

Regarding STAMICO’s achievements, Dr. Mwasse said the corporation has made significant strides during the sixth phase of government, transforming its projects into revenue-generating ventures rather than merely being cost centers.

This transformation has resulted in the corporation’s revenue increasing from 1.3bn/-to 86bn/-.

“STAMICO was on the verge of closure, but we have completely reformed. We now operate independently, even paying salaries, and we contribute dividends to the government,” Dr. Mwasse revealed.

He also mentioned that STAMICO has employed many youths through its drilling projects, ensuring they are not left behind in taking advantage of the opportunities in the mining sector.