Tanzania positions strategic minerals as a pillar of industrial growth

By Peter Nyanje

Tanzania is steadily emerging as one of Africa’s most promising sources of strategic minerals, as the government intensifies reforms, upgrades geological data and promotes value addition to attract long-term investment across the mining value chain.

With a diverse endowment ranging from gold and diamonds to rare earth elements, graphite, nickel and industrial minerals, Tanzania is repositioning its mining sector as a driver of industrialisation, export earnings and energy security – aligned with the country’s broader development ambitions.

Speaking recently at an international minerals and metals forum, Tanzanian officials underscored that the country’s mining sector is no longer defined solely by traditional gold exports, but by a deliberate shift towards strategic and industrial minerals critical for global supply chains, including energy transition technologies.

Policy reforms underpin investor confidence

Over the past two decades, Tanzania has undertaken extensive legal and regulatory reforms to modernise its mining sector. The Mining Policy of 1997 and Mining Act of 1998 opened the door to large-scale exploration, leading to major discoveries across the country.

These frameworks have since evolved, with the Mineral Policy of 2009 and the Mining Act of 2010 – strengthened by amendments in 2017 – seeking to balance investor returns with national economic interests.

Under the current regime, the government positions itself as a facilitator and promoter of investment, while retaining strategic oversight through state institutions such as the Mining Commission, the Geological Survey of Tanzania (GST), and the State Mining Corporation (STAMICO).

A key focus has been increasing local participation through Primary Mining Licences reserved for Tanzanians, strengthening small-scale mining, and improving transparency through the Tanzania Extractive Industries Transparency Initiative (TEITI).

Vast untapped geological potential

Tanzania remains significantly underexplored compared to its mineral potential. High-resolution airborne geophysical surveys currently cover about 15 percent of the country, while low-resolution surveys cover the entire territory. Geological maps now cover 94 percent of Tanzania, offering investors access to one of East Africa’s most comprehensive geological databases.

The country hosts a wide array of mineral deposits, including gold, silver, iron ore, nickel, cobalt, copper, platinum group metals, rare earth elements such as niobium, coal, uranium, diamonds and coloured gemstones. Industrial minerals – including limestone, graphite, gypsum, phosphate and kaolin – add to the breadth of investment opportunities.

There are very few countries around the world with such deposit of assortment of minerals and gems.

Gold and gemstones remain anchors

Gold continues to anchor Tanzania’s mining sector, particularly in the Lake Victoria greenstone belt, which stretches across Geita, Mara, Shinyanga, Singida and Tabora regions. Additional prospects in Chunya, Mpanda, Dodoma, Iringa and Handeni remain largely underdeveloped, offering scope for new exploration.

Diamonds are another strategic asset. Tanzania hosts more than 300 known kimberlite pipes, around 20 percent of which are diamondiferous. The Shinyanga region – home to the historic Mwadui mine – remains central, while Tabora and Singida offer promising exploration potential.

Tanzania also holds a unique position globally as the sole commercial source of tanzanite. At the Mirerani mine, existing resources are sufficient to support operations for nearly three decades at current production rates, extending potentially beyond 2040 with further exploration.

Strategic and industrial minerals gain momentum

Beyond precious minerals, attention is increasingly turning to ferrous and non-ferrous metals critical for industrialisation and the global energy transition. Advanced projects such as Kabanga Nickel highlight Tanzania’s potential in battery minerals, while iron ore deposits at Liganga and coal reserves at Mchuchuma and Ngaka position the country for integrated steel and power generation development.

Coal resources in southern Tanzania alone exceed 700 million tonnes across several basins, with projects such as Kiwira and Ngaka already in operation. The proximity of coal to iron ore at Liganga strengthens prospects for downstream steel production.

Graphite, essential for lithium-ion batteries, is another emerging opportunity. At Mirerani, advanced graphite resources coexist alongside gemstone mining, illustrating the multi-mineral potential of Tanzania’s geology.

Industrial minerals support domestic manufacturing

Industrial minerals underpin Tanzania’s construction, fertiliser and manufacturing sectors. Extensive limestone deposits along the coast from Tanga to Mtwara supply cement producers such as Tanga Cement and Wazo Hill, while additional deposits across Mbeya, Kigoma, Morogoro and Njombe remain underutilised.

Gypsum, phosphate, kaolin and bentonite resources support fertiliser production, ceramics and industrial processing, aligning with Tanzania’s push for import substitution and agro-industrial development.

State-led partnerships and infrastructure

Through STAMICO, the government is directly involved in exploration, joint ventures and the revival of legacy mines. Flagship projects include the Kiwira Coal Mine, Buhemba Gold Mine and phosphate exploration in Mbeya and Dodoma. These initiatives aim to de-risk early-stage projects and crowd in private capital.

Infrastructure investment – spanning power generation, railways, ports and roads – has further strengthened the mining investment climate. Projects such as the modernisation of the Tanzania–Zambia Railway Authority (TAZARA) are expected to lower logistics costs for bulk minerals and improve access to export markets.

A strategic minerals future

With global demand rising for battery metals, clean energy inputs and industrial minerals, Tanzania is positioning itself as a competitive and politically stable supplier. Its challenge now lies in accelerating exploration, scaling processing capacity and ensuring that mineral wealth translates into sustainable economic transformation. For investors seeking long-term exposure to Africa’s strategic minerals, Tanzania’s combination of policy reform, geological diversity and infrastructure development is increasingly difficult to ignore.