Why Mineral Beneficiation Should Be Tanzania’s Priority

"By investing in mineral beneficiation, Tanzania can transform its natural wealth into lasting prosperity, creating jobs, fostering local industries, and securing economic stability for generations to come."

Tanzania stands at a pivotal point in its mining sector’s development. Rich in resources such as gold, tanzanite, graphite, and rare earth elements, Tanzania has long exported its minerals in raw form, leaving much of the economic potential unrealized. Mineral beneficiation—the process of adding value to raw minerals before they leave the country—is an opportunity Tanzania can no longer afford to overlook. As the global demand for finished mineral products rises, prioritizing beneficiation could transform Tanzania’s economic landscape, create sustainable jobs, and foster self-sufficiency.

First and foremost, mineral beneficiation keeps more value within Tanzania’s borders. Currently, Tanzania exports most of its mined minerals in its raw state, where they are processed in foreign facilities and reintroduced to the global market with significant markup. By investing in processing facilities and refining capabilities, Tanzania can retain this added value and move up the value chain. This would not only increase the revenue generated from exports but also support local industries and promote economic growth.

Jobs and skill development are other crucial benefits. By advancing mineral beneficiation, Tanzania would create a broad spectrum of employment opportunities across mining, refining, and even manufacturing sectors. For a nation with a youthful population and high unemployment rates, establishing domestic beneficiation plants would bring job opportunities, reduce unemployment, and offer skill-building programs that develop a capable and competitive workforce. These skilled workers, in turn, contribute to a thriving knowledge economy and help the nation diversify beyond raw material extraction.

Furthermore, prioritizing mineral beneficiation can shield Tanzania from global commodity price volatility. When exporting raw minerals, Tanzania is at the mercy of international prices, which fluctuate based on external factors beyond the country’s control. Finished products, however, are less vulnerable to these fluctuations and generally command stable prices, insulating Tanzania’s economy from the adverse effects of market volatility. This stability would benefit not only the mining sector but the wider economy, creating a more predictable revenue stream for the government.

The environmental argument for beneficiation is equally compelling. Exporting raw minerals means that Tanzania bears most of the environmental cost of extraction, while the environmental benefits of using finished products to foster industries and green technologies occur elsewhere. Beneficiation allows Tanzania to control processing and refining practices, ensuring that they meet environmental standards that align with the country’s sustainability goals. It also opens up new opportunities for recycling and waste management industries, minimizing the ecological footprint of mineral extraction.

The government’s active role is essential to achieving these goals. While Tanzania has taken positive steps, such as passing the Mining Act and prioritizing local participation in the mining industry, there is still room for policy improvement. Tanzania needs incentives for investors to establish beneficiation facilities, including favorable tax policies, simplified licensing processes, and investment in energy infrastructure to support industrial demands. Additionally, partnerships with educational institutions to train a workforce skilled in beneficiation and processing will be pivotal in making this vision a reality.

Regional collaborations can also advance beneficiation. Working with neighboring countries to harmonize beneficiation policies and share infrastructure, such as transport corridors and processing facilities, could create a mutually beneficial environment for value-added mining products. This regional approach would make Tanzania a strategic beneficiation hub in East Africa and strengthen the country’s position as a mineral leader on the continent.

Finally, mineral beneficiation aligns with Tanzania’s broader goal of industrialization and economic transformation. To make beneficiation successful, the government, private sector, and citizens must work together to establish policies that benefit the entire value chain. The time has come for Tanzania to prioritize mineral beneficiation, capturing the full value of its resources and building a sustainable, diversified, and resilient economy.