The recent announcement from the Australian High Commission regarding mining contracts worth over Sh10 trillion ($3.6 billion) signed with Australian companies in Tanzania is a game-changer for the sector. This investment, highlighted by Trade Commissioner for Africa Mr. Scott Morriss during the Australian Tanzania Mining Breakfast, underscores a robust partnership between the two countries. While the specifics of these contracts may ebb and flow, the sheer volume indicates a steadfast commitment from Australia to leverage its mining expertise and technological prowess to enhance Tanzania’s mining landscape.
Morriss’s remarks about the 12 Australian companies investing over $26 million in exploration activities bring to light a growing trust in Tanzania’s mining potential. This isn’t just about dollars and cents; it’s about building a foundation for sustainable growth. The emphasis on education and skills training for local communities reveals a deeper commitment to not just mining, but to the people who live and work around these operations. Initiatives ranging from K-12 digital education to specialized training in mine safety are vital. They ensure that local communities are not left behind in the rush for resource extraction, but rather are equipped to participate meaningfully in the industry.
The figures are impressive. Over 65 percent of Australian Mining, Equipment, Technology, and Services (METS) companies export to international markets, with a significant chunk directed towards Africa. This isn’t merely about exporting machinery; it’s about exporting knowledge and best practices. The Australian METS sector, which raked in $114 billion AUD globally in 2020, has honed its ability to tackle challenges in diverse environments, from the arid expanses of the Kalahari Copper Belt to the frigid conditions of Northern Canada. This adaptability is crucial for the African mining landscape, where conditions can be as varied as the minerals being extracted.
Morriss also shed light on the long road that has led to Australia’s current status as a leader in sustainable METS. It’s not just about technology; it’s about a history of sound policies, stability, and a collaborative approach across political lines that has nurtured an environment conducive to innovation. This is a lesson for Tanzania as it seeks to carve out its own niche in the global mining arena.
Deputy Minister for Minerals Steven Kiruswa echoed these sentiments, emphasizing Tanzania’s ambition to become a mining hub in Africa. With significant investments in infrastructure, such as the Standard Gauge Railway and upgraded airports, the government is laying the groundwork for a thriving mining ecosystem. The reforms in mining laws since 2017 have aimed to create a more inviting atmosphere for investors, which, combined with political stability and robust investment incentives, positions Tanzania as a prime destination for mining investment.
The government’s goal of increasing the mining sector’s contribution to GDP from 9 percent to 10 percent by next June is ambitious but achievable. Focus on local content is crucial, ensuring that Tanzanians benefit from this burgeoning industry. The reported $1.5 billion spent in partnerships with foreign companies over the past four years is a testament to the potential for growth when local firms are involved.
As these developments unfold, the mining sector in Tanzania stands at a pivotal crossroads. With Australian investment pouring in and local reforms taking shape, the future looks promising. The question remains: will Tanzania harness this momentum to become a true leader in African mining, or will it falter under the weight of its ambitions? The stakes are high, and the eyes of the mining world are watching closely.
