Dar es Salaam. The Australian High Commission said yesterday that mining contracts signed with Australian companies in the past two years are valued at over Sh10 trillion ($3.6 billion), according to a recent estimate from the Tanzanian government.
The Australian High Commission’s Trade Commissioner for Africa, Mr Scott Morriss, made this statement during the Australian Tanzania Mining Breakfast panel discussion event held in the city.
He acknowledged that while the number of Australian mining companies and the volume of investment may fluctuate over time, this investment reflects Australia’s strong commitment to connecting its world-leading technology, equipment, and expertise in mining with Tanzanian companies.
“In practice, this investment demonstrates Australia’s dedication to supporting Tanzania’s mining sector, making it safer, more efficient, and more profitable,” Mr Morriss said.
According to Austrade’s 2024 research, 12 Australian companies have committed over $26 million towards exploration activities in Tanzania, showcasing Australia’s confidence in the future of Tanzania’s mining industry.
“Australian companies are also deeply involved in education and skills training for local communities near mining operations. This includes everything from K-12 Africa-focused digital education to postgraduate engineering qualifications earned online, as well as specialized training in mine site safety and machinery operations,” Morriss explained.
He further emphasized that Australian mining companies are actively helping transform African mining operations into world leaders. Over 65 percent of Australian Mining, Equipment, Technology, and Services (METS) companies export to overseas mining destinations, with approximately one-third of these exports directed to Africa.
In 2020, Australian METS companies earned $114 billion AUD globally, operating with resilient supply chains that are adaptable to customer needs worldwide.
Australian METS companies are renowned for solving some of the toughest challenges in harsh mining environments, ranging from large-scale open-pit mines in the Kalahari Copper Belt to underground gold mining in Northern Canada’s sub-zero temperatures.
These companies have been at the forefront of innovative technologies and approaches, including improved water management practices and post-life-of-mine industries that benefit local communities long after mines close.
“However, Australia’s rise as a global leader in sustainable METS didn’t happen overnight. It was the result of decades of experience, trial and error, sound investment policies, and government stability in areas such as taxes, regulations, and overall governance. This consistent, long-term collaborative approach from Australian governments, regardless of political affiliation, has fostered an environment where Australian companies can thrive and lead in sustainable mining practices,” Morriss said.
Meanwhile, Deputy minister for Minerals Steven Kiruswa emphasised the country’s ambition of becoming a mining hub in Africa, highlighting its strategic location and vast reserves of both metallic and non-metallic minerals.
“The Tanzanian government is investing heavily in infrastructure, such as launching the Standard Gauge Railway (SGR), upgrading airports and roads, and enhancing electricity access, ensuring a conducive environment for investors,” he said.
He also pointed to reforms in Tanzania’s mining laws, notably in 2017 and 2019, aimed at creating a more investor-friendly environment.
These reforms, coupled with political stability, investment incentives, and standard agreements that guarantee investor security, have made Tanzania an attractive investment destination.
With the goal of achieving a 10 percent contribution to GDP from the mining sector by next June, up from the current 9 percent, the government is also focused on boosting local content.
“This includes enabling Tanzanians not directly involved in mining to benefit from the sector. Local content regulations have led to significant contributions from Tanzanian companies, with $1.5 billion spent over the past four years in partnerships with foreign companies, further driving the growth of Tanzania’s mining industry,” he said.
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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
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The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
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