Defying STAMICO’s Closure? No Way! How Historic Awards and Strategic Excellence Fuel Tanzania’s Mining Renaissance

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STAMICO is the State Mining Corporation in Tanzania that was established in 1972. The mining industry is one of the most significant sectors of Tanzania’s economy. The country is rich in mineral deposits, including gold, diamond, iron ore, nickel, and tanzanite, to name a few. The Tanzanian government recognizes the importance of the mining industry and has embarked on an ambitious plan to increase investment in the sector. The State Mining Corporation (STAMICO) is at the forefront of these efforts, tasked with regulating and developing Tanzania’s mining industry sustainably.

STAMICO has identified several areas for growth and sustainability in Tanzania’s mining industry. The corporation aims to provide a conducive environment for investments in the sector and promote local content development to create job opportunities for Tanzanians. STAMICO also intends to collaborate with other stakeholders, including mining companies, to promote sustainable practices that mitigate adverse environmental impacts.

In its quest for growth and sustainability in Tanzania’s mining industry, STAMICO has developed a clear strategy to achieve its objectives. The corporation plans to facilitate exploration and the development of new mining projects, especially in areas with untapped mineral potential. With support from the government, STAMICO will provide incentives for investors interested in investing in the sector and streamline the regulatory framework to reduce bureaucracy and promote transparency.

Another critical aspect of STAMICO’s strategy is capacity building. The corporation recognizes that investing in human capital is paramount for the growth and sustainability of Tanzania’s mining industry. STAMICO, therefore, plans to train its staff and other stakeholders in the sector on the latest mining technologies, techniques, and best practices. Furthermore, STAMICO intends to establish partnerships with local universities and research institutions to promote research and innovation in the mining sector.

STAMICO’s Greatest & Remarkable Achievement

On August 2023, In its latest achievement, the State Mining Corporation (STAMICO) of Tanzania shone brightly at the workshop for Chairpersons and Executives of Public Corporations, clinching the top spot as the most significantly transformed public institution regarding operational and financial performance for 2023. (Turn Around Company in Financial and Operational Performance as of June 2023)

Additionally, STAMICO secured the second prize in the category of public corporations that have made substantial dividend contributions to the Government’s Consolidated Fund. (Outstanding Dividends Payment SOE Category as of June 2023)

These awards were presented in Arusha by President Dr. Samia Suluhu Hassan, who opened the workshop. Furthermore, the corporation triumphed as the ‘Mining Company of the Year 2023’ in Africa (Mining Company of the Year Award 2023). This prestigious award was presented at an event held in Mlimani City, Dar es Salaam, on August 4, 2023.

The year 2023 marked the inaugural presentation of these awards in Tanzania, known as the Africa Company of the Year Awards (ACOYA). Participation extended to over 15 African countries in this competition, with STAMICO emerging as the continent’s top mining company.

Overview of Tanzania’s Mining Industry

Tanzania is rich in mineral resources, with deposits ranging from precious metals such as gold and diamonds to base metals such as copper and nickel. The mining industry in Tanzania is one of the country’s most important sectors, contributing significantly to the economy. According to the National Bureau of Statistics (NBS) data, the mining sector’s contribution to GDP increased from 2.9% in 2011 to 6.7% in 2018. Furthermore, the sector’s employment rate increased from 37,119 workers in 2017 to 39,449 in 2018.

The Tanzanian government has recently implemented policies to increase the mining sector’s productivity and competitiveness while ensuring the country benefits from exploiting resources. Some of these policies include the 2017 Natural Wealth and Resources (Permanent Sovereignty) Act and the 2017 Mining Regulations, which impose stricter regulations on mining companies, requiring them to abide by the local content policy and ensure adequate compensation for affected communities.

STAMICO’s Future Plans for Tanzania’s Mining Industry Growth and Sustainability

  • Exploration and Mining

One of STAMICO’s core mandates is to conduct geological surveys and exploration activities to identify and assess the mineral potential in the country. In line with this, STAMICO plans to invest in modern technology and equipment to aid in the exploration and mining of mineral resources. Additionally, the corporation will collaborate with other mineral companies and stakeholders to leverage their expertise and resources to exploit the resources fully.

  • Diversification of Minerals

Tanzania’s mining industry relies heavily on gold, which accounts for over 90% of the country’s mineral exports. STAMICO plans to diversify the country’s mineral portfolio by exploring and exploiting other mineral resources such as nickel, copper, and coal. This will boost the economy and provide alternative sources of foreign exchange earnings, reducing the country’s reliance on a single mineral.

  • Developing Local Content

The 2017 Mining Regulations require mining companies to have a local content plan promoting Tanzanian citizens’ participation in the mining sector. STAMICO plans to work closely with local communities and entrepreneurs to identify business opportunities in the mining sector and facilitate their participation by providing training, technical assistance, and access to funding from financial institutions.

  • Environmental Management

Mining activities can potentially cause environmental degradation, leading to negative impacts on local communities and ecosystems. STAMICO plans to promote sustainable mining practices by adhering to environmental regulations and investing in modern mining and processing technologies that are environmentally friendly. Additionally, the corporation will partner with other stakeholders, such as the National Environment Management Council (NEMC), to develop and implement environmental management plans to mitigate the environmental impacts of mining activities.

  • Corporate Social Responsibility

Mining activities can significantly impact local communities both positively and negatively. STAMICO recognizes the importance of corporate social responsibility (CSR) and will work towards ensuring that mining activities benefit local communities. The corporation plans to engage with communities and develop CSR programs addressing their socio-economic needs, such as education, health care, and infrastructure.

  • Promotion of Artisanal and Small Scale Mining

Artisanal and small-scale mining (ASM) is an essential source of livelihood for many Tanzanians, with an estimated 2 million people involved in the sector. However, ASM activities are often unregulated and have negative environmental and social impacts. STAMICO plans to promote responsible ASM activities by providing technical assistance, training, and access to finance and modern equipment to ASM operators. Additionally, the corporation will support the formalization of the sector by registering and licensing ASM operators, enabling the government to regulate their activities better.

STAMICO’s plans for Tanzania’s mining industry growth and sustainability demonstrate the corporation’s commitment to promoting sustainable mining practices, local content, and corporate social responsibility. By diversifying Tanzania’s mineral portfolio, investing in modern technology and equipment, and collaborating with other mineral stakeholders, STAMICO aims to increase the sector’s competitiveness and productivity.

Additionally, the corporation plans to promote responsible artisanal and small-scale mining, mitigate the environmental impact of mining activities, and develop CSR programs that benefit local communities. Overall, STAMICO’s plans are aligned with Tanzania’s vision of becoming a middle-income country and further promoting economic growth, job creation, and poverty reduction through the mining sector.

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