TANZANIA'S mining sector is steadily growing spouting significant earnings to the economy and increased benefits to the people, despite setbacks of falling gold price in the global market. The sector recorded an impressive growth of 10.4 per cent up to the third quarter of last year compared to 1.3 per cent in the same period the previous year, according to the National Bureau of Statistics (NBS). The NBS' Director for Economic Statistics, Morice Oyuge said in Dar es Salaam last week that 10,189 kilogrammes of gold was produced in the third quarter of last year up from 9,150 kilogrammes in the third quarter of 2012. He said tanzanite production increased to 5,140 kilogrammes in the third quarter of 2013 compared to 3,913 kilogrammes in the corresponding period of the previous year. "The growth rate is attributed to the increase in mining and production of gold and tanzanites as well as variations of prices in the global market," he said. Available data show the mining sector recorded an impressive growth rate of 7.8 per cent in 2012, up from just 2.2 per cent in 2011. The growth is attributed to increased investments in the capitalintensive industry. The growth in the sector led to an increase in its contribution to the national economic output. Official statistics show the contribution of the sector to the economy increased from 3.3 per cent to 3.5 per cent year-on-year from 2011 to 2012. It is estimated that the contribution of mining to GDP will reach 10 per cent by 2025. Increased production of gold in Tanzania reflects the global picture. Despite plummeting gold prices, global production of the precious metal reached a record in 2013 for the fourth consecutive year. Thomson Reuters GFMS survey estimates that total gold mine supply reached 2,982 tonnes last year, up 4.1 per cent from 2012. In the view of Thomson Reuters GFMS analysts, the rise in global gold production is not surprising. Many mines boosted their output. In some cases, miners processed greater quantities of ore in order to maintain revenue and contain costs at lower gold prices. To put it simple; gold mining companies focused on boosting production to bring operating costs down to profitable levels at the lower gold prices. Secondly, major new gold mining project developments that were already under way had come on stream, adding to the global total. Gold ended 2013 at $1,202 , per ounce, 28pc lower than at the beginning of the year. It is estimated that the prices of the precious metals will average $1,219 an ounce in 2014. A report compiled by the London Bullion Market Association (LBMA) suggests that gold prices will range between $1,067 and $1,379 this year. Tanzania is the 4th largest gold producer in Africa after South Africa , Ghana and Mali .
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