The Tanzanian government has signed contracts worth $667 million with three Australian companies for the mining of graphite and rare earths. The agreements were signed at a ceremony in the capital, Dodoma, with Evolution Energy Minerals, EcoGraf Ltd, and Peak Rare Earths. Tanzania will hold a 16% stake in each project, according to Palamagamba Kabudi, the head of the government’s negotiating team.
Boosting Tanzania’s Mining Sector
The deals are part of a push by Tanzanian President Samia Suluhu Hassan to increase the mining sector’s contribution to the nation’s economy to at least 10% by 2025. Tanzanians hope that the implementation of these projects will begin soon and contribute to the economy. Tanzania’s Mining Commission Executive Secretary Yahya Samamba announced last year that the sector contributed 7.3% to the state’s economy in 2021, up from 4.8% in 2018.
Projects to Mine Rare Earths and Graphite
Peak Rare Earths is involved in the $439 million Ngualla rare earths project in southwestern Tanzania. It said that Ngualla is one of the world’s largest and highest-grade deposits of neodymium and praseodymium, key components of high-strength permanent magnets used in the production of electric vehicles and wind turbines. “This signals the long journey of partnership between Peak and the government of Tanzania in developing a world-class project,” said the company’s executive chairman, Russell Scrimshaw. He added that the project will play a role in addressing climate change.
Evolution Minerals and EcoGraf will mine graphite used in lithium-ion batteries, in projects worth $100 million and $128 million, respectively. “The signing of these agreements today sends a positive message to the global mining sector,” said Evolution Managing Director Phil Hoskins.
Reducing Dependence on China for Rare Earths
Western nations are seeking to decrease their reliance on China for rare earths, 17 heavy metals crucial for electronics such as smartphones, computers, and batteries, as well as cutting-edge technologies that could reduce reliance on fossil fuels. The signing of these agreements with Australian companies could contribute to that goal.
The Tanzanian government’s signing of mining contracts worth $667 million with three Australian companies is expected to boost the country’s economy and increase its mining sector’s contribution.
