Tanzanite

Tanzanite is a blue-violet gemstone found exclusively in Tanzania, a thousand times rarer than diamond, with 50 million carats of discovered reserves at Mererani Hills near Mount Kilimanjaro.

Tanzanite is one of Tanzania's flagship industrial minerals and a unique national resource, sourced from a single geological location worldwide.

The gemstone sits within a broader mining portfolio that ranks Tanzania third in Africa for mineral potential^[1], alongside gold, diamonds, and a diverse set of coloured gemstones.

Tanzanite Reserves and Geography

Mererani Hills, located near Mount Kilimanjaro, is the sole source of tanzanite in the world.

Exploration works have confirmed the discovery of 50 million carats of tanzanite in this deposit.

The gemstone's rarity is estimated at a thousand times that of diamond, giving it an exceptional value proposition in the global coloured gemstone market.

Tanzanite is classified among Tanzania's industrial minerals alongside diamonds, rubies, garnets, and pearls, and it is explicitly noted as unique to Tanzania.

Production in 2024

In 2024, production of rough and bead tanzanite reached 83,014 kg.

This output is anchored by two large-scale gemstone mines, part of Tanzania's eight large-scale mining operations (six for gold and two for gemstones)^[2].

Production is complemented by medium-scale mines and a substantial base of small-scale miners active in coloured gemstone extraction.

Exports and Market Value

Tanzanite exports reached USD 19.4 million in 2024.

The stone is primarily used in the production of high-value jewelry, including rings, earrings, necklaces, and bracelets.

Its uniqueness to Tanzania supports premium positioning in international gemstone markets, particularly in luxury retail segments.

Position Within the Wider Gemstone Sector

Beyond tanzanite, Tanzania hosts over 100 identified gemstone types, of which about 25 are actively mined.

Key stones extracted alongside tanzanite include ruby, sapphire, garnet, emerald, spinel, tourmaline, alexandrite, tsavorite, as well as the highly prized Winza ruby and Mahenge spinel.

These gemstones, together with tanzanite, are primarily found in the Mozambique geological belt, spanning Arusha, Mirerani, Tanga, and Morogoro.

For comparison, in the first nine months of 2025 Tanzania produced approximately 284,000 carats of diamonds valued at USD 47.5 million^[3], with the Williamson mine in Shinyanga holding an estimated reserve of 37 million carats.

Role of Small-Scale Miners

Small-scale miners are central to tanzanite and coloured gemstone production, alongside their role in gold extraction.

Their share of mining sector revenues rose from about 5% before the 2017 amendments to the Mining Act to nearly 40% in FY 2022/23^[5].

Small-scale operators provide employment to thousands of Tanzanians in areas with limited alternative job opportunities, and their activities support local community development through contributions to schools, health centres, and other basic infrastructure.

Persistent challenges include limited access to capital and modern technology, which the Government is addressing through targeted programmes.

Between July 2023 and March 2024, TZS 187 billion was disbursed to small-scale miners via partnerships between the Ministry of Mines and financial institutions offering low-interest loan products^[4].

Support has also been extended through the acquisition of five drilling rig machines, with a further ten expected, to reduce operational time and production costs.

Policy and Regulatory Framework

The 2017 amendments to the Mining Act reshaped the sector, notably lifting the small-scale mining share of sector revenues from about 5% to nearly 40% by FY 2022/23^[5].

Sector oversight was strengthened by splitting the former Ministry of Energy and Minerals into the Ministry of Energy and the Ministry of Minerals in 2017.

In 2025, the Ministry enacted the Mining (Technical Support to Small Scale Miners) Regulations, establishing a dedicated framework to improve productivity, technology use, and formalisation among small-scale operators, who are key producers of tanzanite.

Investment Opportunities

Tanzanite offers a rare, single-source gemstone proposition, with 50 million carats of confirmed reserves concentrated at Mererani Hills and no competing global supply.

Value addition presents a major opening: with 2024 production at 83,014 kg but exports valued at USD 19.4 million, expansion into cutting, polishing, certification, and branded jewelry manufacturing can capture margin currently realised offshore.

Partnerships with small-scale miners, who now generate nearly 40% of mining sector revenues^[5], offer entry points through equipment leasing, drilling services, and financing, building on the TZS 187 billion already channelled to the segment between July 2023 and March 2024^[4].

Complementary opportunities exist across Tanzania's wider coloured gemstone portfolio, including rubies, sapphires, garnets, emeralds, spinels, tourmalines, alexandrites, tsavorites, Winza ruby, and Mahenge spinel, all sourced from the Mozambique belt regions of Arusha, Mirerani, Tanga, and Morogoro.

Last Update: May 2026

References

1. https://www.fraserinstitute.org/sites/default/files/2026-02/annual-survey-of-mining-companies-2025.pdf (Guide reference #140)
2. https://www.madini.go.tz/media/United_Republic_of_Tanzania_Investor_Guide..pdf (Guide reference #141)
3. https://www.bot.go.tz/Publications/Regular/Quarterly%20statistical%20Bulletin/en/2025110513234194.pdf (Guide reference #145)
4. https://www.madini.go.tz/page/03cef72a-bdd3-41dc-ba84-40954095b835/ (Guide reference #156)
5. http://madini.go.tz/page/60cc4e29-40e0-415c-b088-0cc95996a557/ (Guide reference #159)