Africa-Press – Tanzania. PRESIDENT Samia Suluhu Hassan on Monday witnessed the signing of four mining contracts between Tanzania and Australian Joint venture Companies worth over 1.75trn/-.
The contract guarantees the state to set up a joint venture with the foreign investors to manage all mining activities between the government and Australian firms.
In a ceremony held at the Julius Nyerere Convention Centre in Dar es Salaam the Head of State said the joint venture companies will be responsible for supervising mining in the various areas where mining licenses have been issued for the best interests of the country.
“The government’s aim is to see that the country benefits from its mineral resources and to see investors benefit from their investment as well.
Through these projects the government will benefit in various areas including taxes, levies, employment, dividends…It is our responsibility to ensure that mining, refining and processing activities are properly managed so that we can benefit from our minerals,” President Samia said.
In addition President Samia said the government’s goal is to ensure that by 2025 the mining sector contribute 10 percent of the country’s Gross domestic product (GDP)
However the President directed the Ministry of Minerals to invest more in the value addition of the country’s minerals–the area that is crucial for the country’s economic transformation.
She instructed the ministry in charge to immediately resolve problems facing the State Mining Corporation (STAMICO).
“We will do mining here, refinery and everything and add value to our minerals here in the country…but we are also open to investors who want to do mining and go with the value chain until adding value to our minerals. We welcome them but they should know that the joint ventures will also including the value addition of minerals,” she added
On his part the minister for Minerals, Dotto Biteko said that the sector has grown massively in a short period of time where within six months they have managed to collect over 4tr/- from minerals.
“We were given a task to collect 600bn/- per year from 580bn/- but from what I see we will surpass the target,” Minister for Minerals, Dotto Biteko said.
Mr Biteko added that the ministry has already issued more than 20,277 mining licenses to various investors in the country where a large number is from the small mining investors.
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