DAR ES SALAAM, April 18 (Xinhua) -- Tanzania called for more investment in its mining sector as the nation is exploiting only 10 percent of its mineral resources due to low technical capacity for conducting exploration activities, a senior government official said on Thursday.

Stephen Masele, Deputy Minister for Energy and Minerals, told the Great Rift Valley Mining Summit that recognizing such a challenge, the government of Tanzania is working hard to attract foreign investors for harnessing more mineral resources that are yet to be tapped.

Besides the low exploitation of minerals, preliminary geological studies show that Tanzania has huge potentials of minerals ranging from precious metals, gemstones and hydrocarbons, especially oil and gas.

"We want to attract more investors in the mining sector because we think that exploration activities are still insufficient. The country needs more mining investors," Masele said at the two-day summit ending on Thursday which brought together government representatives from 10 East and Southern African countries and investors.

Paul Masanja, the Chief Executive Officer of Tanzania Minerals Audit Agency (TMAA), said that the contribution of the mining sector to the Gross Domestic Product (GDP) could be in double digit contrary to 3.5 percent recorded in 2012, in case the existing mining potentials were tapped.

"Over 2.5 billion U.S. dollars has been invested in the mining sector, but only 10 percent of known minerals have been exploited leaving 90 percent unexploited," said Masanja.

He said recognizing the need to attract more investments in the mining sector under the national vision, the government has a plan to increase the contribution of the mining sector to GDP up to more than 20 percent.

He however said there are still remaining challenges facing the sector, including low integration between the sector and other socio-economic sectors, low contribution of the sector to the national economic development, public outcry and environmental degradation.

The Commissioner for Minerals Ally Samaje said the existing policy and regulatory frameworks governing the mining sector are conducive to investors, citing a special case of legislation of 2010 Mining Act to replace the 1998 one.

He also cited some of the regulations accompanying the new law as Mining Development Agreement (MDA) or stability agreement that provides a ceiling of 100 million U.S. dollars investment entitled for negotiated arrangement with government and requirement for all mines to have rehabilitation bonds.

Other regulations include economic empowerment of small scale miners, regulations on mineral rights and licenses, exploration and production of radioactive metals, environmental production, occupational safety and health, and regulation of licensing authorities which empowers the six zonal mining officers to offer licenses.

Other issues embodied in the new Mining Act include a requirement for investment to have the composition of initial capital of 30 percent from own source and 70 percent in the form of loan, taxing withholding taxes and the requirement for setting funds for Corporate Social Responsibility (CSR).

Samaje stressed the need to market the attractive mining policy and regulations for attracting more investments in the sector which is set to be one of the pillars of the economy.