Australia invests Sh10 trillion in Tanzania mining industry

Australia invests Sh10 trillion in Tanzania mining industry

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.

Original Media Source

Share this news

Facebook
Twitter
LinkedIn
WhatsApp

This Year's Most Read News Stories

Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
Tanzania Foreign Investment News
Chief Editor

Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms

President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.

Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).

Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.

While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.

“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”

Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.

Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.

“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”

ALSO READ: NBC participates in TFF 2023/24 awards, promises to enhance competition

On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.

He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:

At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.

There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.

Source: allafrica.com

Continue Reading