Tanzania establishes mining and industrial equipment parts factory | African Mining Market

Nov 02, 2024

Tanzania has made a significant stride in the manufacturing of mining and industrial equipment parts, with the establishment of the modern East Africa Conveyor Supplies Limited (EACS) factory in Kahama District, Shinyanga Region.

This development is a direct result of the government’s efforts to create a conducive investment climate and promote local participation in the mining sector.

Speaking at the factory at the Buzwagi Special Economic Zone, EACS Managing Director Peter Kumalilwa said the factory specialises in the provision of high-quality conveyor equipment and solutions tailored to the mining industry, including conveyor belts, rollers and splicing materials.

“The 50-50 joint venture between Tanzanians and foreign investors commenced operations in May 2023, and we play a vital role in improving the efficiency and safety of mining operations throughout Tanzania,” he said during the Tanzania Mining Commission visit at the factory on Thursday.

Mr Kumalilwa further said the factory currently produces a range of components including steel conveyor frames, drop brackets, steel, impact conveyor rollers, plastic and steel caps for conveyor rollers.

He said the products are supplied to various mines in Tanzania such as Barrick North Mara, Barrick Bulyanhulu, and Buckreef, as well as to mines in neighbouring countries like the Democratic Republic of Congo and Zambia.

Located in the former Buzwagi gold mine, which is now being transformed into a Special Economic Zone, the factory employs state-of-the-art technology to ensure its products meet international quality standards, according to Mr Kumalilwa.

He further said that the majority of raw materials used in the factory, such as steel and rebars, are sourced from local industries, thereby contributing to the growth of Tanzania’s manufacturing sector and reducing the country’s reliance on imported parts.

“The high quality of EACS products has attracted a wide range of customers and the company is eyeing expansion into West African markets. Beyond the mining sector, our products are also used in cement factories and airports,” he said.

Mr Kumalilwa called on financial institutions to support local manufacturers by providing affordable loans, enabling Tanzanians to compete effectively with foreign investors.

Encouraging Tanzanians to seize opportunities in the mining sector, Mr Kumalilwa, who is also the Chairperson of the Tanzania Mining Industry Suppliers Association, said that the sector offers significant economic potential.

He said that approximately 3.1tril/- circulate annually within the mining value chain, calling upon Tanzanians to cease the opportunity to establish more industries to supply the sector’s needs.

Kahama District Mining Officer, Winnifrida Mrema said the factory would contribute to the development of the former Buzwagi mine.

She said that the factory would create job opportunities and facilitate knowledge transfer to Tanzanians.

Resident Mining Officer for the Kahama Mining District, Winnifrida Mrema, said that it is one of the projects that will support the development of the Buzwagi mine site, which is currently undergoing closure after gold production ceased.

“The factory will facilitate easy acquisition of spare parts that were previously imported but with EACS factory, Tanzanians will have the opportunity to learn new skills and technologies.” She said

Ms Mrema said the factory investment is one of the largest in the country and will create economic opportunities and jobs for Tanzanians.

“The establishment of the EACS factory represents a significant step in adding value to Tanzania’s mining and industrial sector and opening doors for Tanzanians to seize investment opportunities in the Special Economic Zone,” Ms Mrema said.

Representative from Buzwagi Mine, Zonnastraal Mumbi said that as part of the mine closure plans, the establishment of a Special Economic Zone is one of the strategies for the area’s development.

“Various industries will be established in this zone to optimise land use and safeguard jobs for the benefit of the entire economic value chain in Kahama town, I extend invitation to investors to invest in this area,” Mumbi said.

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