Posted on :Monday , 2nd December 2024

According to a recent Tanzanian government estimate, mining contracts with Australian businesses have been worth over Sh 10 trillion ($3.6 billion) over the last two years, according to the Australian High Commission. This was said by Mr. Scott Morriss, the Trade Commissioner for Africa at the Australian High Commission, at the city's Australian Tanzania Mining Breakfast panel discussion. Although the amount of investment and Australian mining companies may change over time, this investment shows Australia's strong commitment to sharing its cutting-edge mining technology, equipment, and knowledge with Tanzanian businesses. Australia is committed to helping Tanzania's mining industry become safer, more effective, and more lucrative, as this investment shows, Mr. Morriss added. Australia's confidence in Tanzania's mining industry is shown by the fact that 12 Australian businesses have committed over $26 million to research efforts in Tanzania, according to Austrade's 2024 report.

He also underlined how Australian mining firms are actively assisting in the transformation of African mining operations into global leaders. More than 65% of mining, equipment, technology, and services (METS) businesses in Australia export to mining locations abroad, with almost one-third of these exports going to Africa. Australian METS businesses generated $114 billion AUD worldwide in 2020, using robust supply chains that can be adjusted to meet the demands of clients anywhere in the world. From enormous open-pit mines in the Kalahari Copper Belt to underground gold mining in the cold regions of Northern Canada, Australian METS firms are well known for resolving some of the most difficult problems in challenging mining situations. These companies have led advancements in cutting-edge methods and technology, such as better water management techniques and post-life-of-mine industries that help communities long after mines close.

Steven Kiruswa, the deputy minister for minerals, highlighted the nation's goal of becoming an African mining hub by pointing to its advantageous position and abundant supplies of metallic and non-metallic resources. In order to create an atmosphere that is favourable for investors, the Tanzanian government is making significant investments in infrastructure, including the establishment of the Standard Gauge Railway (SGR), the improvement of highways and airports, and the expansion of access to power. He also cited changes made to Tanzania's mining regulations, particularly in 2017 and 2019, with the goal of fostering an atmosphere that is more welcoming to investors. 

Tanzania is now a desirable place to invest thanks to these reforms, political stability, investment incentives, and standard agreements that ensure investor security. The administration is likewise focusing on increasing local content, with the aim of increasing the mining sector's contribution to GDP from the current 9% to 10% by next June. This includes making it possible for Tanzanians who are not directly engaged in mining to profit from the industry. The expansion of Tanzania's mining industry has been further fuelled by the substantial contributions made by Tanzanian businesses as a result of local content rules; over the last four years, $1.5 billion has been spent in partnerships with foreign businesses.