As the global focus shifts toward greener technologies and digitalization, Tanzania is rolling out a series of initiatives to develop its critical minerals. These efforts aim to leverage the country’s rich mineral resources for sustainable economic growth and enhance its position in the global supply chain.
Tanzania is rich in critical minerals such as graphite, rare earth elements, lithium, cobalt and nickel, all of which are vital for high-tech and green technologies. The country is making notable progress in harnessing these resources, reflecting its growing significance in the global mining sector.
At the recent MINExpo International 2024 in Las Vegas, Deputy Minister for Minerals Dr. Steven Kiruswa highlighted these advancements. “Tanzania is making significant strides in developing its critical mineral resources, driven by promising exploration and projects that showcase the country’s wealth. These developments are set to enhance Tanzania’s role in the global critical minerals market,” he stated.
Strategic framework for development
The government is currently formulating The Tanzania Critical and Strategic Minerals Strategy, which is in the consultation phase with stakeholders. Dr. Kiruswa emphasized that this strategy is vital for managing and optimizing mineral resources, attracting investment, and fostering economic growth while ensuring sustainable practices. It will provide a clear framework for exploration, mining, beneficiation, and supply chain management of critical minerals.
The strategy aims to:
- Strengthen Tanzania’s position in the global minerals market.
- Reduce reliance on imports.
- Create high-value jobs.
- Address environmental and social impacts.
- Promote technological advancements and support economic diversification.
Ongoing reforms and initiatives
To improve the investment climate and governance in the mining sector, the Tanzanian government is implementing legal reforms. Dr. Kiruswa noted the importance of comprehensive geological surveys, with the Geological Survey of Tanzania planning a High-Resolution Airborne Geophysical Survey to cover over 50% of the country by 2030, up from the current 16%. This initiative will generate detailed geographical maps and valuable resource data for prospective investors.
Local content and capacity building are also priorities, with investments in education and training programs to cultivate a skilled workforce tailored to the mining sector’s needs. Infrastructure development is crucial as well; the government is upgrading roads, railways, and port facilities to ensure efficient transportation of minerals from mines to markets. Additionally, efforts are underway to stabilize and expand the national energy grid to meet the growing energy demands of the mining industry.
Investment incentives
To attract investors, the government is offering a range of incentives, including tax exemptions for mining companies, investment guarantees, and support for essential infrastructure development. The regulatory and licensing processes have been streamlined to reduce bureaucratic hurdles, allowing for quicker project approvals. A one-stop center at the Tanzania Investment Centre has been established to simplify administrative procedures for mining companies.
Dr. Kiruswa announced that Tanzania has twelve advanced projects for various critical minerals ready for development, including:
- Six graphite projects in Ulanga, Nachingwea, and Lindi districts.
- One nickel project in Ngara District.
- Two heavy mineral sands projects in Pangani and Kigamboni districts.
- One rare earth elements project in the Songwe region.
- Projects for niobium in Songwe and uranium in Namtumbo.
Additionally, three graphite projects are already in production: Lindi Jumbo in Lindi District, Permanent Minerals in Mirerani (Simanjiro District), and GodMwanga in Handeni District.
“The government is proactively attracting both local and international investors to develop these resources, and we are seeing a surge in investment interest in critical minerals,” Dr. Kiruswa concluded.
