Tanzania – Loan to boost country’s small-scale mining sector

By on May 22, 2015 in Mining with 0 Comments
The World Bank has approved a US$45m loan for Tanzania, Africa’s fourth-biggest gold producer, to help improve its mining sector especially among small-scale producers. Reuters Africa reports that according to Philippe Dongier, the bank’s country director for Tanzania, the funds will help to create a viable domestic mining industry in poor, rural areas where unregulated artisanal and small-scale mining takes place. The project will train small-scale miners in jewellery-making and help them access markets and financing, the bank said. Tanzania also has deposits of coal, uranium, diamond and precious stones. Dozens of small scale miners are killed each year in collapsing mines in Tanzania where unsafe and unregulated illegal mining is widespread, in the country ranked Africa’s fourth-largest gold producer after SA, Ghana and Mali.

Nigeria’s Dangote Cement said it will begin production in Tanzania in August, as sub-Saharan Africa’s leading cement producer eyes new markets on the continent, reports Reuters. A $500m factory it is building in southern Tanzania, with an annual capacity of 3m tonnes, will double the country’s annual output of cement to 6m tonnes. However, Dangote faces challenges in accessing coal and natural gas as sources of cheap power to run the factory, its owner, Aliko Dangote, Africa’s richest man, said. Dangote’s factory is being built in the Mtwara region but there is no infrastructure to connect the plant to gas from nearby offshore natural gas fields. Dangote applied last year for a licence to build a 75 megawatt coal-fired plant in Tanzania that would power the cement factory. Its Tanzanian plant will supply the domestic market and export to landlocked countries in the region.

Source: Reuters

Tags: , , , , ,

About the Author

About the Author: Eugene Obiero is the founder of The Africa Resources Post and its predecessor The East African Energy Blog. Eugene has been writing and blogging on energy and extractives in Africa since June 2012. He is based in Nairobi, Kenya and works for Camco Clean Energy (http://www.camcocleanenergy.com/ ) as Senior Manager Africa Projects. He specializes in market entry strategy, research, financial advisory and project management. Eugene has an MBA from The Warwick Business School, University of Warwick (UK). The posts on this blogsite are Eugene's and do not necessary reflect the thinking of his employer, Camco Clean Energy. .


If you enjoyed this article, subscribe now to receive more just like it.

Post a Comment

Your email address will not be published. Required fields are marked *