Private Investment
Since independence, the Government has taken several steps to develop the mineral sector. After 1967, the Government adopted state-directed development strategies and thus there were limited private owned investments directed to the mining industry. With the changes in macro-economic policy of the country to adopt free market policies in early 1990's, many foreign and local investors have returned to the mining scene. In 1992 there were only 10 Prospecting Licenses and 9 Mining Licenses. Today there are over 3,000 Prospecting Licenses and over 190 Mining Licenses.
Gold Opportunities
Gold has the spotlight as Tanzania's principal mineral product since the early 1900's. During the mid 20th Century, Tanzania experienced a notable yield of gold from mechanized mines until 1966 when the last mine at Geita was closed down. After that, gold production was mainly from artisanal miners and production records were uncertain and subject to great variations. Recent economic reforms have given an impetus to gold output where new modern mechanized mining is (growing rapidly.)
Investment Guarantees - Protected Against Nationalization
The thrust of the country's current policies emphasize the importance of the private sector. Foreign and local investors, including investors in mining are protected against nationalization. Property guarantees are provided under the Multilateral Investment Guarantee Agency (MIGA) of which Tanzania is a member. Tanzania is also a member of the International Centre for Settlements of Investment Disputes (ICSID), a body affiliated with the World Bank.
The new open-door policy has added Tanzania onto the list of countries that earned improved treatment by international insurance agencies. Investment insurance coverage for approved projects can normally be obtained from specialized government-charted organizations in the investor's home country.
Tanzania Offers Investors
- Over 800,000 square km of varied geological terrains with potential mineral resources
- Ongoing exploration work, which has resulted in discovery of resources in excess of 45 million ounces of gold
- An Achaean shield environment with of number of classical Canadian and Australian-type greenstone gold lode deposits, many capped by tropically weathered enrichment zones
- An extensive Proterozoic terrain containing lode and near-surface gold deposit types
- Potential for epithermal gold deposits in the faulted younger rocks on the coastal plain
- A history of precious and base metals mining, with opportunities for revival in the new economic era
- Ample inventory of unexplored mineral ground
- A comprehensive, systematically archived data base on geoscientific information and mineral resources
- Minimal competition at present from large multinational mining firms
- An atmosphere of political stability and economic re-awakening
- Changed role of the Government to become facilitator, regulator, promoter and service provider
- Globally competitive tax and regulatory regime for mining investors
- Accelerated and simplified handling of investment proposals
- Guaranteed access to foreign exchange for repatriation of profits
- Technical staff trained in various disciplines associated with mining
- An abundant supply of labour
- A peaceful working environment free of ideological confrontations, ethnic strife and labour disputes
- Well established supporting services to the mining industry
