East African Mining News Unearthing Mining Opportunities in East Africa
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Dar es Salaam, Tanzania – As the world races towards a greener future, Tanzania is poised to become a key player in the global energy transition. The East African nation, rich in critical minerals essential for clean technologies, is experiencing a surge in mining investment. Experts predict that the sector’s value will soar to $6.6 billion by 2027, driven by the insatiable global demand for these coveted resources.
Tanzania’s mineral wealth is vast and diverse, encompassing gold, copper, silver, nickel, lead, cobalt, graphite, manganese, uranium, and an astonishing 24 rare earth elements. It’s also the sole global source of the exquisite tanzanite gemstones, found in the foothills of Mount Kilimanjaro.
Among the most sought-after critical minerals in Tanzania are graphite, nickel, and lithium. The country boasts an estimated 70 million tonnes of graphite, a vital component in batteries, fuel cells, supercapacitors, nuclear reactors, and solar panels. Meanwhile, significant nickel ore deposits have been discovered in the Kagera region, and lithium, a key ingredient in electric vehicle batteries, is abundant.
The surge in mining activity has ignited a wave of optimism. “Tanzania is experiencing a new dawn,” declared Mines and Minerals Minister Anthony Mavunde. “We are redefining the script, not with empty promises but with groundbreaking action.”
However, the path to prosperity is not without its challenges. While critical minerals offer immense opportunities, they also pose significant risks. “These include policy gaps, supply chain governance risks, the geopolitics of consumer nations, and investment and revenue management risks,” warned Moses Kulaba of the Governance Analysis Centre at the Natural Resources and Governance Institute.
The environmental and social costs of mining can be substantial. The African Climate Foundation warned the Tanzanian government to amend existing mining regulations to mitigate these negative impacts. “The dark side of the energy transition has become visible with the pollution of soils, air, water contamination, toxic residuals, intensive consumption of water and power, workplace and environmental risks, child labor, sexual abuse, corruption, and armed conflict in the mining areas,” the foundation stated.
The United Nations Environment Programme (UNEP) echoed these concerns, highlighting the high environmental, social, economic, and geopolitical costs for producer countries. “The production and processing of these minerals can lead to a myriad of negative consequences, including significant greenhouse gas emissions, biodiversity loss, pollution, and human rights abuses,” the UNEP warned.
Tanzania’s government is aware of these challenges and is taking steps to address them. The government is crafting a comprehensive strategy to guide investments in the critical minerals sector, promote value addition, and create more jobs. Additionally, it is working to streamline mining permits, ensure regulatory clarity, and promote transparent governance.
The geopolitical landscape also plays a significant role. The United States, seeking to counter Chinese dominance in the critical minerals sector, has been actively investing in Tanzania. Tom Sheehy, a research fellow at the United States Institute of Peace, emphasized the importance of responsible mining partnerships that contribute to African economic development and social stability.
While Tanzania’s mining industry is on the cusp of a new era, the country must navigate the delicate balance between economic growth and environmental sustainability. By addressing the challenges and seizing the opportunities, Tanzania can position itself as a responsible and reliable supplier of critical minerals to the world.
