About a month ago, the Tanzania government signed contracts worth approximately $1 billion (USD$667 million) with three Australian companies to mine graphite and rare earths.
The deal, which was signed with Evolution Energy Minerals
(ASX:EV1), Ecograf
(ASX:EGR) and Peak Rare Earths
(ASX:PEK) , constitute a part of Tanzania's endeavours to progress negotiations on mining and energy projects that have experienced significant delays.
The agreement outlines that the Tanzanian government will have a 16 per cent stake in each of the projects.
Shortly after this, further efforts were made to strengthen the relationship between the two countries when the Australian Commercial Commissioner for Africa, Mr. Scott Morriss, and the Minerals Minister of Tanzania, Dr. Doto Biteko, co-hosted a reception for Australian companies operating in Tanzania that offer mining, machinery, technology, and services.
“Tanzania is always ready to welcome more Australian companies and other investors from all corners of the globe to come and invest in the mining sector,” Doto Biteko disclosed.
USA has also looked to get involved.
On her visit to Tanzania, Vice President Kamala Harris, announced plans to enhance trade and investment with Tanzania, with the goal of strengthening connections with a continent where China and Russia exert growing influence.
"Working together, it is our shared goal to increase economic investment in Tanzania and strengthen our economic ties," Harris stated.
These efforts are also a part of the broader strategy to hit Tanzania’s President Samia Suluhu Hassan's goal of increasing the mining sector's contribution to the country's GDP to at least 10% by 2025.
“The government will continue to raise its investment in the sector, including improving the speed of electrification of areas operated by artisanal miners so they can use modern mining equipment and improve their efficiency and productivity,” she said.
And Tanzania is in a prime position to do so.
- The country has an abundance of rich resources. These include metals (gold, iron ore, nickel, copper, cobalt, silver and rare earths), industrial minerals (diamonds, tanzanite, ruby, garnet, limestone, soda ash, gypsum, salt, phosphate, gravel, sand, dimension stones and graphite), and fuel minerals (coal and uranium).
- Tanzania strives to uphold international mining standards. Currently, there are approximately 16 Australian enterprises providing their expertise and know-how to Tanzanian mining operations, assisting them in adhering to globally recognised standards and procedures.
- Tanzania's participates in regional trade agreements, such as the East African Community (EAC). The EAC is an intergovernmental organisation composed of seven countries in the Great Lakes region of East Africa: The Democratic Republic of the Congo, the United Republic of Tanzania, the Republics of Kenya, Burundi, Rwanda, South Sudan, and Uganda. On 16 October 2014, The East African Community (Burundi, Kenya, Rwanda, Tanzania, and Uganda) finalised the negotiations for an Economic Partnership Agreement (EPA) with the EU on 16 October 2014. On July 16, 2008, the United States and the East African Community (EAC) signed a United States-EAC TIFA in Washington, DC. Trade ministers and other senior officials from the five EAC. These deals enhance the trade and investment relationship between the United States, and the EU and Tanzania. It seeks to promote the growth of bilateral trade, diversify trade opportunities, and foster a favourable business environment for the EU, USA and Tanzania.
The strengthening of ties with Australia, as well as efforts to enhance trade and investment with the United States, showcases Tanzania's commitment to attracting global investors and expanding economic opportunities.
Supported by abundant resources, adherence to international mining standards, and participation in regional trade agreements, Tanzania is well-positioned to achieve its aspirations and foster sustainable growth in the mining sector.
