Tanzania’s critical minerals sector is experiencing significant expansion, highlighted by a notable $63 million investment from Chinese mining firm Shenghe Resources into the Ngualla Rare Earth Project. This development is part of Tanzania’s broader efforts to strengthen its position in the global critical minerals market and enhance export revenues and economic growth.
Benjamin Mchwampaka, CEO of the Tanzania Chamber of Mines, will discuss these advancements at the upcoming Critical Minerals Africa Summit in Cape Town. The summit, taking place on November 6-7, 2024, will showcase the continent’s top mining investment opportunities alongside the African Energy Week: Invest in African Energy 2024 conference, running from November 4-8. The event will provide a platform for sponsors, exhibitors, and delegates to engage with leaders across energy, mining and finance sectors.
Tanzania has been proactive in its approach to becoming a significant player in the critical minerals market. In February, the country launched a development strategy aimed at advancing its mineral value chain. This strategy includes creating investment-friendly policies and accelerating the development of projects focused on rare earth elements, lithium, graphite, nickel and neodymium. Research firm Benchmark Intelligence projects that Tanzania will account for 10% of China’s imported rare earths by 2029, positioning the country as one of China’s fastest-growing sources of these critical minerals.
Rachelle Kasongo, Conference Director at CMA 2024 organizers Energy Capital & Power, emphasized that Tanzania’s critical minerals sector is well-suited for foreign investment. She highlighted the global surge in demand for transition minerals and recent exploration successes in the region as key factors driving Tanzania’s expansion in mineral exploration, particularly for rare earths and graphite. This growth is expected to create new job opportunities and benefit local communities.
Tanzania, which boasts some of the world’s largest graphite reserves, is advancing its resource exploitation efforts in collaboration with international investors to meet the increasing demand for clean energy technologies. Several significant projects are in the funding and development stages, including:
- Nachu Project operated by Magnis Energy Technologies
- Epanko Mine operated by EcoGraf
- Bunyu Mine operated by Volt Resources
- Mahenge Project operated by Black Rock Mining (Faru Graphite)
- Chilalo Mine operated by Evolution Energy Minerals
- Lindi Jumbo Mine operated by Walkabout Resources
These projects underscore Tanzania’s commitment to expanding its role in the critical minerals industry and addressing the growing global demand for clean energy technology.
