Hassan Magulumali
Tanzania is seeking to expand domestic mineral processing by encouraging small-scale miners and local investors to establish gold and copper plants, as the government steps up efforts to retain more economic value from the country’s mineral resources.
Minister for Minerals Anthony Mavunde made the call on November 12 during a visit to inspect the construction of a gold and copper processing plant owned by Just Gold Solution Limited in Mtisi, Nsimbo District, Katavi Region.
Mavunde said investment in mineral processing offered small-scale miners an opportunity to benefit more directly from the country’s mineral wealth, urging them to pool resources and establish processing facilities rather than relying solely on the extraction and sale of raw minerals.
He said adding value to minerals was part of President Samia Suluhu Hassan’s development agenda, aimed at increasing national revenue, creating employment and strengthening the mining sector.
The minister also urged investors and small-scale miners to identify reliable international buyers for processed products, arguing that access to markets would help stimulate demand, encourage higher production and support the growth of domestic mineral industries.
His remarks highlight a central challenge facing Tanzania’s mining sector: expanding processing infrastructure while ensuring that local producers, particularly small-scale miners, can participate in and benefit from the resulting value chains.
A March 2026 performance audit by Tanzania’s National Audit Office found that local processing accounted for 53.8 per cent of metallic mineral production during the 2020/21–2024/25 period, while 46.2 per cent was exported for processing. For gemstones, local value addition stood at 38.7 per cent, with 61.3 per cent exported for further processing.
The audit said improving domestic value addition required continued investment in processing infrastructure, technology transfer and skills development. It also identified weak coordination between the Ministry of Minerals, research institutions and other stakeholders as factors limiting progress in the sector.
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The findings underline why investments such as the Katavi plant are important to the government’s industrial ambitions, while also showing that the construction of facilities alone will not resolve the sector’s wider capacity and coordination challenges.
A separate study published by the UONGOZI Institute in December 2024, examining Tanzania’s strategic mineral value chains, identified copper among minerals with potential to support domestic industrial development. It recommended investment in advanced processing technologies, infrastructure and workforce skills, alongside stronger regional cooperation to achieve economies of scale.
The study also cautioned that mineral-rich countries could miss broader economic benefits when extraction activities are not sufficiently connected to domestic manufacturing and other sectors of the economy.
Mavunde further reiterated the government’s intention to review and revoke inactive mineral exploration licences, saying the move would open opportunities for other investors, including local groups, to develop mineral areas that are not being actively utilised.
Tanzania has pursued similar measures in recent years. In April 2026, the government announced the revocation of 40 mineral exploration licences over issues including non-compliance and failure to meet regulatory obligations. The government said the reclaimed areas could be made available to capable investors and small-scale miners.
However, the success of the wider value-addition drive will depend on whether local investors can secure financing, appropriate technology, sufficient mineral supplies and commercially viable markets. Processing plants must also operate in compliance with environmental and safety requirements.
The government has not disclosed the construction cost, processing capacity, expected completion date or projected employment figures for the Just Gold Solution facility in the information available about the minister’s visit.
Those details will be important in assessing the project’s potential contribution to Katavi’s economy and Tanzania’s wider mineral-processing ambitions.
For now, the Katavi investment adds to the country’s efforts to move beyond mineral extraction towards greater domestic processing, with the ultimate test being whether the expansion translates into measurable benefits for miners, workers and the national economy.
