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Foreign Investors Spark Protests at Busulwangili Mine in Shinyanga Amid Growing Takeover Concerns

Across Tanzania’s gold-rich Shinyanga and Geita regions, artisanal mining—responsible for 30–35% of national gold output—is increasingly coming under foreign control.

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Shinyanga – Hundreds of artisanal miners at the Busulwangili mine in Kakola, Kahama district, have staged protests against an impending eviction order that would hand over the site to a Chinese investor. 

The miners, who say they discovered the gold deposits and have invested heavily in the site for over a decade, are appealing to President Samia Suluhu Hassan to intervene as the March 27, 2026, deadline to vacate the premises has expired.

The dispute centres on the transfer of mining rights. The protesting miners told ITV that the local license holders, a group known as Isunda, sold the mining rights to an alleged Chinese investor. 

The miners argue this violates the Mining Act of 2010 (amended in 2017), which explicitly reserves small-scale mining licenses for citizens. However, foreign investors frequently bypass this restriction by entering into Technical Support Agreements with local license holders, a loophole that allows them to gain de facto control over operations.

“Born into poverty, I sold my chickens, my goats, everything to reach this moment — only to be ordered off my find in Busulwangiri. I ask President Samia, a mother like me, to look again: why am I being treated this way, now that I’ve finally struck something sweet?” said one small-scale miner, overcome with emotion, nearly in tears.

READ MORE: Chinese Investors’ Takeover of Small-Scale Mining in Tanzania Raises Concerns Over Employment, Revenue Loss, and Environment 

The Busulwangili mine currently employs approximately 2,000 people, many of whom have sold personal assets, including homes and livestock, to fund their operations. Local landowners also report that they have not received compensation for their property. 

When contacted by local media, a representative for the license holders declined to comment on the allegations, directing inquiries to the Ministry of Minerals and the local council.

“I disagree completely,” another small-scale miner said. “Madam President, hear me: other miners pay their royalties and work undisturbed, but we — who have sold our homes and spent years here — are now, just as God helps us find something, being thrown out like dogs. Told to ‘move along.’ Move where? We are on government land. I beg you, listen to this people’s cry.”

This conflict is part of a broader trend across the gold-rich Shinyanga and Geita regions, where the artisanal and small-scale gold mining sector—which produces 30 to 35 per cent of the nation’s gold—is increasingly falling under foreign influence. 

In nearby Mwakitolyo, tensions previously escalated into violence when small-scale miners clashed with Chinese investors over similar takeovers, resulting in the destruction of mine offices.

READ MORE: CRDB Bank, Ministry of Minerals Ink Landmark Deal to Empower Artisanal Miners

The displacement of local miners carries significant economic implications. The artisanal mining sector provides livelihoods for an estimated 1 to 2 million people nationwide. 

Lawmakers have warned that replacing thousands of local workers with single foreign entities operating under small-scale licenses results in substantial revenue losses for local councils and the central government, as these operators avoid the stringent taxes required of large-scale mines.

Environmental concerns have also been raised in communities where foreign investors have taken over small-scale operations. Residents in areas such as Nyamahuna have reported severe water contamination from mining chemicals and structural damage to homes caused by unregulated explosions.

The government has recently attempted to formalise and support the artisanal sector. In February 2026, the Ministry of Minerals signed a memorandum of understanding with CRDB Bank to provide affordable credit to small-scale miners, aiming to reduce their reliance on foreign pre-financing deals that often result in exploitative terms.

Journalism in its raw form.

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