Tanzania to reap the benefits of critical minerals

In response to global shifts towards greener technologies and digitalization, the government has introduced a number of measures to develop its critical minerals.

In addition to enhancing the country’s role in the global supply chain, these initiatives are designed to leverage the country’s mineral wealth for sustainable economic growth.

In addition to graphite, rare earth elements, lithium, cobalt, and nickel, Tanzania contains a variety of critical minerals.

Despite its growing importance in the global mining industry, the country is making significant strides in harnessing these resources.

At MINExpo International 2024, held in Las Vegas, United States, Deputy Minister for Minerals, Dr Steven Kiruswa highlighted these developments.

“Tanzania is making significant advances in developing its critical mineral resources, largely due to promising exploration and projects showcasing the country’s mineral wealth.  Tanzania is poised to play a larger role in the global critical minerals market as a result of these developments,” Dr Kiruswa said.

As part of the stakeholder consultation process, the government is currently developing ‘The Tanzania Critical and Strategic Minerals Strategy.’

Managing and optimizing the country’s mineral resources, attracting investment and boosting economic growth while ensuring sustainable practices are key to this strategy, he said.

As part of the strategy, a clear framework will be established for exploration, mining, beneficiation, and supply chain management of critical minerals.

In addition to enhancing Tanzania’s position on the global minerals market, this project will reduce reliance on imports, create high-value jobs, reduce environmental and social impacts, promote technological advancements, and contribute to Tanzania’s economic diversification and development.

He also noted that the government is working towards improving sector governance and creating a more attractive investment climate through ongoing legal reforms.

Dr Kiruswa stated that the government prioritizes comprehensive geological mapping and resource assessment in areas rich in critical minerals.

A high-resolution airborne geophysical survey will be conducted by the Geological Survey of Tanzania (GST) by 2030, aiming to cover over 50 percent of the country.

“This initiative will provide valuable resource data and detailed geographical maps to potential investors,” he said.

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He also mentioned local content and capacity building, with the government investing in education and training programmes to create skilled labor tailored to the mining industry.

Transport and logistics are also crucial for mining operations, so infrastructure development is essential.

In order to facilitate the efficient transport of minerals from mines to markets, the government is upgrading road networks, railways, and ports.

The national energy grid is also being stabilized and expanded to meet the mining industry’s growing energy demands.

The government offers several incentives to attract investors, including tax breaks for mining companies, investment guarantees, and infrastructure development for mineral extraction and transportation.

As a result of streamlined regulatory and licensing processes, faster project approvals have been achieved. A one-stop centre for mining services has been established at the Tanzania Investment Centre (TIC) to simplify administrative procedures for mining companies.

Dr Kiruswa further revealed that Tanzania has twelve advanced projects for various critical minerals ready for development into mines, including six graphite projects in Ulanga, Nachingwea and Lindi districts, one nickel project in Ngara district, two heavy mineral sand projects in Pangani and Kigamboni districts, and one rare earth element project in Songwe.

One niobium project is being developed in the Songwe region, and another uranium project is being developed in the Namtumbo district.

Also, three graphite projects are already in production in Lindi District, Mirerani (Simanjiro District) and Handeni District: Lindi Jumbo graphite, Permanent Minerals, and GodMwanga graphite.

Our government has been proactive in attracting local and international investors to develop these resources. “Critical minerals are currently experiencing an increase in investment interest,” said Dr Kiruswa.