Why Tanzania is wooing global mining giants

Dar es Salaam. The Minerals ministry is eyeing the development of at least four new mines by 2030, according to a senior government official.

The large-scale mines are expected to attract considerable investment to Tanzania and further grow the sector’s contribution to the economy.

Minerals permanent secretary Kheri Mahimbali told participants at The London Conference, which was hosted by Chatham House in the UK capital at the weekend, that the ministry will particularly focus on completing negotiations with major global players in the mining sector.

“Our resolve also extends to establishing at least four new major mines by 2030 by attracting major players such as Rio Tinto, BHP, Vale, Glencore, Anglo-American, and Zijin and aiming to position Tanzania as a critical minerals hub,” he said in his presentation at the conference.

Conclusion of the deals is expected to pave the way for a significant increase in the mining industry’s contribution to GDP.

Speaking during a function to unveil the Sh9.2 billion equipment of the State Mining Corporation (Stamico) in Dodoma last October, President Samia Suluhu Hassan said the mining sector was on track after hitting a contribution of about ten percent even before the targeted year.

The sector’s GDP contribution stood at 7.2 percent in 2020/21.

All the six multinational companies are in various stages of their operations in Tanzania.

Headquartered in London, Rio Tinto Group is a British-Australian multinational company which is currently regarded as the world’s second largest metals and mining corporation. It has interests in the Buckreef Project is located in Geita Region.

Meanwhile, BHP has interest in nickel which is used in the manufacture of electric vehicles and batteries among others. It also helps vehicle manufacturers to use less cobalt.

The company owns stakes in Kabanga nickel and cobalt mine and refinery in north-west Tanzania.

In June, 2021 Kabanga Nickel inked a framework agreement with the government to develop the world’s largest battery-grade nickel sulphide deposit in Tanzania.

As part of the deal, the parties created a joint company called Tembo Nickel Corp, which will mine, process and refine Class 1 nickel with cobalt and copper co-products.

As for the Chinese group Zijin Mining, the company has already announced it was considering Tanzania on the list of its investment destinations as part of its Africa expansion plan.

Mr Mahimbali said in London that Tanzania would further expand its focus on the diamond business by partnering with industry leaders and strengthening the country’s niche in the helium industry within Africa.

Asked by participants during The London Conference about what keeps him awake at night, Mr Mahimbali said it was the pursuit to obtain ISO certifications for the State Mining Corporation (Stamico), the Mining Commission and the Geological Survey of Tanzania (GST).

“It’s our vision to elevate Stamico through strategic partnerships with the private sector that extend beyond the borders of Tanzania. This journey involves forming alliances with industry leaders like S&P Global and the Fraser Institute, actively participating in crucial events such as Chatham House London Conference, Africa Down Under, Investing in Africa Mining Indaba, and the FT Mining Summit,” he said.

On the sidelines of the Conference, Mr Mahimbali and members of his delegation met and held talks with Helium One chief executive Lorna Blaisse.

“Alongside my team, we received updates on the commendable work being done by her company to advance the helium gas sector. We congratulated them and assured them of our continued support in their endeavours,” said Mr Mahimbali who returned home on Sunday.

He commended Tanzania’s High Commissioner to the United Kingdom, Mr Mbelwa Kairuki, saying he has been an exemplary leader in bridging the gap between the private sector and the government.

“The Minerals minerals will continue to collaborate with both domestic and international development partners. Minerals are our livelihood and wealth,” he said.