Tanzania+Strategic+Minerals


 * It Is Highly Likely China Will Continue Mineral Investments In Tanzania Over The Next Five Years **

It is highly likely China will continue mineral investments in Tanzania over the next five years. The mining act of 1998 made the investment environment attractive to foreign private sector investors and in September 2011 China signed a deal for USD 3 billion for coal and iron ore projects. On 9 November 2013 the Tanzania Chamber of Minerals and Energy reaffirmed their commitment to maintain a relationship between foreign mining companies and the Tanzanian government.
 * Executive Summary: **


 * Discussion: **

The mining act of 1998 made the mineral sector of Tanzania attractive to foreign investment; in September 2011 Tanzania and China signed a USD 3 billion deal to develop the Mchuchuma coal and Liganga iron project. The agreement was signed between Chrisant Mzindakaya, chairman of the National Development Corporation (NDC), and the Sichuan Hongda Group board of directors and included power production and transmission. The project was concluded in 2012 and exploration studies in 2013 prove that the mining sites will be viable for over 100 years. On 9 November 2013 the Tanzania Chamber of Minerals and Energy (TCME) reaffirmed their commitment to maintain a relationship between mining companies and the government to attract more investments in the industry and increase state revenue.

The map above lists the various minerals throughout Tanzania; according to IHS Global Insight Tanzania tanzanite, gold, coal, diamonds, iron ore, kaolin and nickel phosphate. IHS also states that one-third of the country's exports consist of gold and that gold mines have been developed in the Lupa district near Mbeya and especially in the area around Lake Victoria in Geita in the Mwanza region, and in the Mara and Kagera regions. Tanzania is also a producer of coal; there are reserves of 536 million tons estimated at Mchuchuma and in 2011 Tanzania produced 105 thousand short tons of coal.

** Analytic Confidence: **
Analytic confidence is high. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, worked alone while also collaborating with a group, and did not use a structured analytic method. The subject is moderately complex and the deadline was moderately easy to meet.


 * Analyst: ** James Gibson