Tanzania signs deals for mining projects
The government of Tanzania led by the Head of State has sealed deals set to boost mining projects in the country as it strives to position itself as a reliable source for critical raw materials and promote a more sustainable economy.
The agreements, were signed with three Australian mining companies, Peak Rare Earths, Evolution Energy Minerals, and EcoGraf, to mine bastnaesite and graphite, minerals used in high-technology applications and lithium-ion battery manufacturing, respectively. The mining projects are expected to create jobs and stimulate investment, with Tanzania having a 16% stake in each of the jointly established companies.
Under Tanzania’s agreement with Peak Rare Earths, bastnaesite (used to create magnets for high-technology applications) will be mined in the south-west of the country in Ngualla, in the Songwe region. According to Peak Rare Earths, construction of the Ngualla project is expected to cost about $320 million and create up to 3 000 indirect jobs during construction and up to 1 000 jobs when operational.
Sealed deals
Under the agreement with Evolution Energy Minerals, mining will take place at the Chilalo Graphite Project in the south-east. The details of the agreement were worked out in March after the company announced that its feasibility study confirmed the project would have low capital costs, could provide high margins and deliver sustainably sourced graphite to the rapidly growing battery market over the 17-year life of the mine.
Additionally, the US has announced plans to support the development of a critical minerals processing facility in Tanzania, which will deliver battery-grade nickel to the global market. These developments come at a time when the global energy transition is accelerating, and Africa is strengthening its position to take full advantage of the boom in demand for critical metals.
“These minerals are promoting Tanzania’s name worldwide and even the world’s powerful countries are looking at Tanzania. In the future, our country will be a production hub of these minerals which will stimulate investment,” said President Samia Suluhu Hassan.
