DAR ES SALAAM: AUSTRALIAN investors have injected 3.6 billion US dollar (about 10tri/-) into the mining sector in the past two years, with the government projecting that their investments value would more than double in the next two years.
Deputy Minister for Minerals, Dr Steven Kiruswa told reporters in Dar es Salaam on Wednesday that it is projected the Australian investments value in the mining sector would climb to between 20tri/- and 30tri/- in the next two years.
“Most of these Australian mining projects are still in exploration stages, we expect that in the next two years they would be operational and their value would reach between 20tri/- and 30tri/-,” the Deputy Minister expressed shortly after breakfast and panel discussion as part of celebrating Australian mining investment in Tanzania.
Dr Kiruswa expressed optimism that Australian investments will propel the mining sector’s contribution to the Gross Domestic Product (GDP) to 30 per cent within the next decade.
The sector has already made substantial strides, growing from 4.8 per cent to 9.1 per cent of GDP between 2018 and 2022. The government aims to further increase this contribution to 10 per cent by 2025.
He said mining investments from Australian companies would boost the sector’s contribution to the Gross Domestic Product (GDP) to 30 per cent in 10 years to come.
During the meeting Dr Kiluswa assured the Australian investors of the government’s commitment to create a more conducive environment for investors in the country.
He said President Samia Suluhu Hassan has given directives to relevant government institutions to open doors for investments. “The country is also politically stable and offers incentives to investors,” the Deputy Minister informed, stressing that the government is working on addressing delays in issuing exploration permits to investors.
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Earlier, Australian Deputy High Commissioner Chris Ellinger said currently, 35 Australian companies have invested in Tanzania’s mineral exploration, mining, value addition and geohazard management while adhering to the highest Environmental, Social and Governance (ESG) standards.
Australia-Africa ties are expanding with Australian companies investing over 60 billion US dollar in mining projects across Africa. Commenting, Australian Trade and Investment Commissioner to Africa, Mr Scott Morriss, promised that companies from his country would bring in modern mining technologies to assist Tanzania.
One of panelists, Mamba Minerals Country Manager, Ismail Diwani backed the introduced free carried interest in mining sector because it ensures that the government gets shares in a company.
As delineated under Regulation 7, the government shall be entitled to not less than 16 per cent non-dilutable free carried interest shares in the equity capital of any mining interest.
“For us we have embraced the concept since it provides for participation of the government in the mining investment, the 16 per cent is acceptable but when other things are added into it would slow down the development of most of projects,” he argued.
The Associate Director of PricewaterhouseCoopers Tanzania (PWC) and tax advisor, Ms Redempta Maira echoed that the free carried interest is good for the government to partner with investors, but suggested that no other taxes should be added into it.
