Tanzania banks on airborne geophysical survey to reduce risk in financing its mining projects.  

DAR ES SALAAM: THE Tanzanian government said the airborne geophysical survey will play a big role to reduce risks in financing the mining projects.

This has been remarked today, May 5th in Dar es Salaam by the Commissioner of Minerals in the Ministry for Minerals Dr Abdulrahman Mwanga during an impactful Mining Project Finance De-risking Workshop.

Organised by SNL Advisory Limited, the workshop brought together key stakeholders from mining industry and banks as one way to find an amicable solution on how to propel de-risking in mining.

“Our government is very supportive when it comes to promoting the mining sector and has just secured enough funds to carry out the airborne geophysical survey which by 2030, almost 30 percent of the work will be reached,” he said.

He added that the state has put in place different mechanisms on how to make Tanzanians benefit from numerous minerals that the country is endowed with.

Again, he seized the opportunity to urge commercial banks and other money lending institutions to support small and medium scale mining with capital.

“It is true that some commercial banks are reluctant to lend money to mining projects on condition that it is very risky as such, so we have gathered here to try to bridge that gap.

“We have to admit that risk is there but there are applicable ways which we can do to transform such risks into opportunities for the sake of uplifting the mining industry.

“Also, there has to be a shift of mindset through breaking the idea that loaning small scale miners is a risky thing, and instead, banks have to fully understand this mining business which has great potential,” he said.

On her part, Tanzania Bankers Association (TBA) Executive Director Ms Tuse Mwaikasu reiterated the need for banks to fully understand how mining businesses operate in the country.

“I see green light as far as de-risking in mining is concerned…we need to facilitate collaboration with the mining sector, commission of minerals as well as SNL Advisory Limited so that in the end, the regulated challenges should be fully eliminated,” he said.

SNL Advisory Managing Director, Mr Humphrey Simba insisted that they will continue to play an integral part for the sake of propelling growth of mining in the country.

“Through this workshop, we are going to establish long lasting measures all aimed at driving for de-risking in this critical industry,” he said.