Mining, Oil&Gas

Tanzanian PM launches Sh12.41bn drilling rigs to empower small-scale miners

The state-funded equipment, procured through the State Mining Corporation (STAMICO), is part of broader government efforts to modernise the artisanal mining sector, enhance mineral exploration, and facilitate access to formal markets

Dodoma. Prime Minister Kassim Majaliwa on Tuesday June 24 launched 10 modern drilling rigs worth Sh12.41 billion, aimed at boosting the productivity and economic well-being of small-scale miners in Tanzania.

The state-funded equipment, procured through the State Mining Corporation (STAMICO), is part of broader government efforts to modernise the artisanal mining sector, enhance mineral exploration, and facilitate access to formal markets.

Addressing stakeholders, Mr Majaliwa said empowering small-scale miners is a key pillar in achieving inclusive economic growth.

He noted that the government recognises the strategic contribution of artisanal mining to both household incomes and national GDP.

“The CCM Election Manifesto 2020–2025 outlines clear directives to support small-scale miners by allocating them land, providing modern equipment and enhancing their access to geological research,” said the Prime Minister.

He said the new rigs—two of which are reserved for women miners—are a continuation of government efforts to promote equity in economic opportunities.

They complement five similar machines launched by President Samia Suluhu Hassan in October 2023, which are already in use and contributing significantly to improving miners’ access to credit and formal financing channels.

Mr Majaliwa also presided over the signing of a cooperation agreement between STAMICO and the Vocational Education and Training Authority (VETA), which will facilitate specialised training for operators of the new equipment to ensure safe and efficient usage.

He urged miners to sell their gold and other minerals through official markets and refineries, warning against illegal trade and smuggling.

The government, he said, continues to strengthen oversight of the 43 mineral trading centres and 109 buying posts across the country to ensure reliable and transparent markets.

The Minister for Minerals, Mr Anthony Mavunde, praised STAMICO’s transformation, noting its growing capacity to operate independently and contribute dividends to the Treasury.

“Besides acquiring these rigs, STAMICO is currently constructing a large salt processing plant in Kilwa, Lindi Region, which is expected to benefit local salt producers through guaranteed markets and better prices,” Mr Mavunde said.

On his part, STAMICO Managing Director Dr Venance Mwasse said the initiative aligns with the government’s agenda to ensure that STAMICO operates more efficiently and benefits small-scale miners more directly.

“These drilling rigs will significantly enhance mineral exploration by allowing miners to obtain accurate subsurface data before extraction. This reduces speculative digging and helps identify commercially viable deposits, thus improving returns and operational safety,” he explained.

Also speaking at the event, the acting Permanent Secretary in the ministry of Minerals, Mr Terence Ngole, said the rigs would enable miners to drill deeper, faster and more safely.

The equipment handover reflects President Samia’s broader vision to formalise and professionalise the small-scale mining sector, which plays a vital role in job creation, poverty reduction, and rural economic development.

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