Friday , July 12 2024

Tanzania Aims to Become Africa’s Leading Mining Destination with Focus on Value Addition and Sustainability

The Tanzanian Ministry of Minerals unveiled a bold initiative today at the 2024 Mining Indaba, positioning the country as Africa’s premier mining destination of choice. This strategic move, championed by President Samia Suluhu Hassan, recognizes Tanzania’s immense mineral wealth, spanning critical minerals, rare earth elements, precious metals, energy, and industrial minerals.

“Beyond Extraction: Transforming Tanzania’s Mining Sector” is the rallying cry, a clear departure from the traditional narrative of resource extraction. Minister of Minerals, Anthony Mavunde, emphasized this shift at the Indaba, stating, “Our vision isn’t simply to dig up minerals, it’s to ignite the engines of prosperity.”

Tanzania is actively rewriting the script for African mining, eschewing empty promises for concrete action. The focus lies on forging transformative partnerships that prioritize investment, economic growth, value addition, and responsible mining practices.

Kheri Mahimbali, Permanent Secretary of the Ministry of Minerals, highlighted the tangible results of Tanzania’s commitment to responsible mining. He noted that in 2023, “the mining sector contributed to around 10% of our GDP, generating nearly 60% of the country’s foreign exchange, with responsible practices attracting over USD 2 billion in new investments, led by global mining companies.”

This momentum is set to continue, with planned investments exceeding USD 1 billion in the next 2-3 years. The focus will be on critical and rare earth minerals like graphite, lithium, nickel, and neodymium, as Tanzania embarks on beneficiation of its mineral wealth.

Investors are drawn to Tanzania’s conducive environment. The country boasts an investor-friendly atmosphere with attractive fiscal, regulatory, and legal frameworks, consistently ranking among the most competitive and enabling in the mining sector. Political stability, anchored by strong democratic processes and institutions, further enhances its appeal.

Adding another first to its achievements, Tanzania is currently developing a critical mineral policy, a pioneering initiative in Sub-Saharan Africa. This policy aims to ensure supply chain reliability and resilience, promote exploration, production, and innovation, and incentivize sustainable and responsible practices.

With its ambitious vision and concrete actions, Tanzania is making a strong case for its position as Africa’s leading mining destination. Investors and partners who align with responsible and sustainable practices will find fertile ground in the East African nation’s mineral-rich landscape.

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