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Tanzania in a position to reap from critical minerals

As the world shifts towards greener technologies and digitalisation, Tanzania has unveiled a range of measures aimed at developing its critical minerals.

These initiatives seek to leverage the country’s mineral wealth for sustainable economic growth while enhancing its role in the global supply chain.

Tanzania is endowed with a variety of critical minerals, including graphite, rare earth elements, lithium, cobalt and nickel, which are essential for high-tech and green technologies.

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The country is making significant strides in harnessing these resources, reflecting its growing importance in the global mining sector.

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

“Tanzania is making notable advances in the development of its critical mineral resources, driven by promising exploration and projects that showcase the country’s significant mineral wealth. These developments are poised to enhance Tanzania’s role in the global critical minerals market,” said Dr Kiruswa.

Dr Kiruswa stated that the government is currently developing ‘The Tanzania Critical and Strategic Minerals Strategy,’ which is in the stakeholder consultation phase.

He emphasised that this strategy is crucial for effectively managing and optimising the country’s mineral resources, attracting investment and boosting economic growth while ensuring sustainable practices.

Furthermore, the strategy will establish a clear framework for exploration, mining, beneficiation and supply chain management of critical minerals.

It aims to enhance Tanzania’s position in the global minerals market, reduce reliance on imports, create high-value jobs, address environmental and social impacts, promote technological advancement and support broader economic diversification and development goals.

The Deputy Minister also noted the government’s ongoing legal reforms designed to create a more attractive investment climate and improve sector governance.

Regarding geological surveys, Dr Kiruswa stated that the government priorities comprehensive geological mapping and resource assessment in areas rich in critical minerals.

He said the Geological Survey of Tanzania plans to conduct a High-Resolution Airborne Geophysical Survey, aiming to cover over 50% of the country by 2030, up from the current 16%.

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

Other key strategies he noted include local content and capacity building, with the government investing in education and training programmes to develop a skilled workforce tailored to the mining sector’s needs.

Infrastructure development is also critical, as efficient transport and logistics are essential for mining operations.

He said the government is upgrading road networks, railways and port facilities to facilitate the efficient transport of minerals from mines to markets.

Additionally, efforts are underway to stabilise and expand the national energy grid to meet the growing energy demands of the mining industry and reduce operational costs.

To attract investors, he said the government is offering several incentives, including tax exemptions for mining companies, investment guarantees and support for infrastructure development essential for mineral extraction and transportation.

The regulatory and licensing process has been streamlined to reduce bureaucratic hurdles, facilitating quicker project approvals, including the establishment of a one-stop centre at the Tanzania Investment Centre, which provides mining services 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 projects for graphite in Ulanga, Nachingwea and Lindi districts, one project for nickel in Ngara District, two projects for heavy mineral sands in Pangani and Kigamboni districts and one project for rare earth elements in the Songwe region.

He said others include one project for niobium in the Songwe region and one project for uranium in Namtumbo district.

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

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

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Staff Writer

The African Mining Market is a source of insightful information on mining & industrial markets, and developments in Africa.
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