‘Equip locals with necessary skills to maximise local content’

TANZANIA: THE government’s push for greater local participation in the mining sector has yielded remarkable results, thanks to the Mining Act of 2017/2018 and its subsequent amendments in 2019.

The Minister for Minerals, Mr Anthony Mavunde, said 3.1tri/- will be retained locally in annual mining sector procurement by more explicit requirements relating to local content.

“I know levies exist and have their procedures, but our priority is more focused on this area—the local content,” he said during the 3rd Local Content Compliance Forum in Arusha recently.

He further added that interpreting Vision 2030 includes the need for 30 per cent of the surface area in Tanzania to be put to in-depth surveys, as currently there is expertise to identify areas with minerals “but we are yet to know the quantity for easier planning: “So far only 16 per cent of the total area has been researched, while local content in the mining sector created a total of 18,853 jobs last year, an increase of 2,391 jobs over the previous survey, a 14.5 per cent increase.”

For instance, the Geita Gold Mining Limited (GGML) local businesses contracting with the company increased from 73 in January 2020 to 96 last December and the value of business awarded to the local suppliers went up from 7.0 per cent of local spending in the quarter one of 2020 to 9.4 per cent in Q4 last year.

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Additionally, in the first quarter of 2024 alone, a remarkable 95 per cent of the company’s budget was allocated to the procurement of goods and services from domestic companies.

Additionally, GGML has entered into a partnership with local businesses to provide fuel transport services valued at over 25bn/- to Blue Coast Investment Limited.

Another local company that has benefited from GGML’s commitment to local content is AKO Group—a Tanzanian facilities management company that has been providing catering and hotel management services to the mining company since 2010.

“This landmark legislation prioritises the involvement of local companies and individuals, paving the way for a more inclusive and sustainable mining industry,” David Nzaligo, Senior Legal Counsel at GGML, said.

The mine’s workforce is currently 97 per cent locals while 80 per cent of the senior management team are Tanzanians.

“Another area is the transfer of technology and skills to take up positions that were held by non-Tanzanians,” Mr Nzaligo, said.

Deputy Minister for Minerals Dr Steven Kiruswa said to maximise local content there are need to equip locals with the necessary skills on all fronts.

“The construction of industries in mines requires more than just starting up. It necessitates equipping Tanzanians with the necessary skills,” Dr Kiruswa said.

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