The country's miners have raised more than Sh2.8 billion to set up their own bank that will enable them to provide them with capital to extract minerals productively in the country's mines.

Tanzania Miners Association (FEMATA) President John Bina made the remarks in Arusha at a meeting of mining traders from various regions who met to discuss the establishment of the bank.

Among the miners who contributed include businessman Emmanuel Wado, known as 'Sunda' who donated Sh1 billion and another businessman named Baraka Ezekiel Nyandu who contributed Sh500 million.

A similar meeting was held for the first time in Mwanza where miners raised more than Sh700 million, however they will continue to raise in other regions to achieve a capital of Sh15 billion in accordance with the Bank of Tanzania (BOT) regulations.

Bina said the establishment of the bank would respond to the various challenges of miners and all stakeholders benefiting from the mining value chain.

He identified the beneficiaries as miners, including license holders, mine-holders, circles, miners, Tanzanite buyers, large and medium-sized mining buyers and vendors.

"The banking establishment process requires feedback, experience and expertise to get ready to buy shares once the bank starts," Bina said.

National Mining Corporation (Stamico) Executive Director Dr Venance Mwasse said the bank's presence is a significant development and especially important for small miners as many of them are challenging capital. Dr Mwasse said the idea of a bank establishment is good as even other foreign nations will emulate.

Geita rural MP Joseph Mu Push (CCM) who has represented lawmakers from the mining areas said the establishment of the bank is a good idea and will advise President Samia Suluhu Hassan to support the plan and lead a fundraiser.

"Today we have met 102 mining stakeholders and we have raised Sh2.8 billion and I believe it is a good start and this bank will be very large we expect to do the harambee and we will ask President Samia to lead the harambee and this is a salute to the banks that have had a monopoly on lending and stringent conditions." Said

Tanzanite miner Saniniu Laizer said the bank's presence would be a great opportunity for many small miners without capital to dig.

National Chairman of the Mining Trades Association (TAMIDA), Sammy Mollel, said TAMIDA was relieved by the idea of the establishment of the bank as it would be a comfort to miners and they would be rid of the bureaucracy in the banks at the moment.

"We know the huge benefits for mining industry, miners will use it to store money they will take interest-free loans and we will be out of the bureaucracy," Mollel said.