Bright prospects as mining giant BHP considers return to Tanzania

Dar es Salaam. Tanzania is poised for a major boost in its mining sector as Australia’s mining giant BHP considers returning to the country after a 15-year hiatus.

This development comes as the country prepares to host the International Mining Investment Conference 2024, which aims to showcase Tanzania as a prime destination for mining investment.

The conference, set to be officiated by President Samia Suluhu Hassan on November 19, 2024, is expected to attract over 1,500 participants, including policymakers, investors and industry experts from around the world.

With the theme: Adding Value to Minerals for Economic and Social Development, the four-day event will focus on fostering partnerships, boosting production, and maximising the socio-economic benefits of Tanzania’s vast mineral resources.

BHP’s potential return has already sparked optimism within the industry.

Speaking to The Citizen, minister for Minerals, Anthony Mavunde, highlighted the significance of the company’s decision, calling it “a testament to Tanzania’s improved investment climate.”

“BHP is a major mining company from Australia that ceased operations in Africa 15 years ago but is now considering returning to Tanzania. This is a significant honour for us as a nation because they see Tanzania as a safe place for their investment once again,” said Mr Mavunde.

Experts believe that BHP’s comeback could signal a new chapter for Tanzania’s mining industry.

An economist specialising in resource-based development, Mr Charles Munira, said BHP’s interest reflects Tanzania’s strategic positioning in global mineral markets.

“BHP’s re-entry would not only reaffirm Tanzania’s credibility as a mining destination but also bring advanced technology, expertise, and investment.

This could catalyse value addition and industrialisation in the country, aligning with the government’s goals for economic transformation,” he said.

According to Mr Munira, BHP’s potential operations in Tanzania could attract other high-profile investors, further solidifying the country’s standing as a regional mining hub.

Meanwhile, mining consultant and geologist, Ms Esther Mlenge, noted that BHP’s return could also help address challenges in Tanzania’s mining sector, including the need for more exploration activities and infrastructure development.

“BHP’s involvement can bridge the technological and operational gaps we currently face, especially in large-scale exploration and extraction. Their expertise in sustainable mining practices would also be beneficial in ensuring our resources are utilised responsibly,” she stated.

Mr Mavunde emphasised that the conference will provide a platform to discuss legal and economic frameworks, share innovations, and promote partnerships.

“This conference is not just about attracting investment; it is about laying a strong foundation for collaboration among stakeholders, improving mineral production, and ensuring that these resources economically and socially benefit Tanzanians and investors,” he said.

The conference will feature eight thematic sessions, with 20 international speakers and 37 local experts sharing insights on topics ranging from value addition to legal reforms.

Key highlights include the Mineral Night Gala to recognise outstanding contributors to the sector and an exhibition showcasing gemstones, industrial minerals, and construction materials.

The mining sector continues to make a significant contribution to Tanzania’s economy.

In the 2022/23 financial year, mineral products accounted for over 56 percent of export earnings and contributed 15 percent of domestic taxes, equivalent to Sh2.1 trillion.

Ms Mlenge said that with the government targeting a 10 percent contribution to GDP by 2025, hosting such a high-profile conference and attracting companies like BHP will play a pivotal role in achieving this milestone.

“BHP’s return is symbolic. It shows that Tanzania’s reforms are yielding results. It also signals to other investors that Tanzania is ready for serious business,” she said.

The conference’s overarching theme emphasises the importance of value addition.

Mr Mavunde reiterated the government’s commitment to processing minerals locally before export, a move aimed at creating jobs, spurring industrialisation, and generating more revenue.

“We aim to enhance the value of minerals produced domestically before they are exported. This will stimulate the establishment of industries that will benefit the country, neighbouring nations, and the global market,” he said.