FUNDS have been allocated by the governments for the procurement of 15 drilling rigs that will be leased to major mining companies and small-scale miners, Minerals deputy minister Dr. Steven Kiruswa has stated.

Participating in a roundtable discussion at the 10th edition of the Mozambican mining and energy conference and exhibition at the weekend, he said that this measure is aligned with Vision 2030 Agenda on the mining sector.

President Filipe Nyusi opened the conference which brings on board over 1,000 participants from around the world, with the deputy minister explaining how Tanzania was poised to rapidly lift the mining sector’s role in the economy.

He said Tanzania expects to establish itself as a leading mining investment destination in Africa, “leveraging strategic and tactical measures that provide investors with favorable conditions and incentives.” 

The mining sector is experiencing rapid growth, “with an impressive annual rate of 10.9 percent, contributing a substantial 9.1 percent to the gross domestic product,” he said, stressing the role of investor-friendly laws and regulations.

Assuring the audience of the country's ability to attract even more investors in the coming months, he said that the government has adopted a local content policy that ensures active local participation of in the mining supply chain.

It requires local sourcing of services and products, where local firms currently account for 97 percent of services and product provision in the sector, with an online entry saying local content is recognised as goods or services of a company that has at least 20 per cent of its equity owned by a citizen or citizens of Tanzania.

Tanzanian citizens similarly need to be holding up to 80per cent of executive and senior managerial positions meanwhile as the government is seeking to enhance the role of the State Mining Corporation (Stamico) in the sector, he said. 

The corporate entity is now actively engaged in joint ventures with international companies, leveraging their technological advancement and capital, he said, elaborating that the government also plans to have Stamico operating large and medium-scale mines.

He said Stamico has played a vital part in supporting small-scale miners with field surveys and drilling services, enabling small-scale miners to witness better outcomes and profits greater financial success compared to previous years.

Similarly, the Geological Survey of Tanzania (GST), a unit within the ministry, now disposes of state-of-the-art technology to map the entire country and generate real-time data on mining deposits, he said.

“In line with this focus, Tanzania is collaborating with other African countries through the African Minerals Strategy Group to promote processing industries for strategic and critical minerals, ensuring added value and the sale of finished products,’ he said.

To cement moves to enhancing the mining sector, the government has established a multimetal processing facility in Kahama, Shinyanga Region, set to augment the value of nickel and other critical mineral mined in the country, he added.