Tanzania's mining industry is envisaged to double in value of the sector to US$1.28billion from US$0.64billion between 2010 and 2015, thanks to major foreign investors.

A study by Business Monitor International (BMI) forecasted the average annual growth in the sector of 7.7percent between 2011 and 2015.

Tanzania is the 4^th largest gold producer in Africa after South Africa, Ghana and Mali. Gold production currently stands at roughly 40 tons a year, copper at 2,980 tons, silver at 10 tons and diamond at 112,670 carats.

The report said in total, the mining sector contributes 3.0 percent to GDP each year but this could rise considerably in coming years with average annual growth in the sector of 7.7 percent between 2011 and 2015.

Minerals that have been identified in Tanzania include gold, iron ore, nickel, copper, cobalt, silver, diamond, tanzanite, ruby, garnet, limestone, soda ash, gypsum, salt, phosphate, coal, uranium, gravel, sand and dimension stones.

The major pieces of legislation governing the industry today are the 1997 Mineral Policy, 1998 Mineral Act and 2010 Mineral Act.

Tanzanian mining industry is relatively small in terms of value, but its importance is highlighted by the fact that mining earns a significant share of the country's export revenues. The contribution of mining sector to the GDP still very low but Minister for Energy and Minerals, Prof Sospeter Muhongo, says the government wishes to expand this to 10 percent by 2025.