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Sunday, March 3, 2024

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    US and Australia ink mineral deal worth $ 1 billion with Tanzania

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    Somali Magazine-As demand for green energy and transition minerals soars, Tanzania has drawn global interest in the extraction and exploitation of its critical mineral resources, supporting its goal to increase mining sector contributions to GDP by 10% by 2025.
    In 2022 the government signed contracts totaling $667 million with three Australian companies to mine graphite and rare earths and is seeking to strengthen engagement with Australian service firms in the provision of mining, machinery, and technology services.
    Meanwhile, the US announced plans last March to boost bilateral trade and investment with Tanzania, recently signing a $500-million trade deal to enable the export of goods and services in infrastructure, energy security, and power generation, among other strategic sectors. The US is also supporting the construction of a mineral processing plant in Tanzania by LifeZone Metals, which will process and export battery-grade nickel to the US using low-emission technology from 2026.
    Home to vast deposits of critical and industrial minerals, metallics, coal, uranium, and gemstones (including the indigenous tanzanite), Tanzania is an established mining market and the third-largest gold producer on the continent. The mining sector accounts for more than half of the country’s total exports, a significant portion of which comes from gold, owing to world-class deposits around Lake Victoria. As a result, opportunities for mining investors span the entire value chain, from resource extraction to the processing of precious metals and gemstones, production of iron ore and steel, and increased electrification of mining regions.

    In addition to its mineral abundance, Tanzania features a geostrategic location with direct trade routes to Asia and six landlocked East African countries, along with a stable operating environment supported by its admission to the Extractive Industries Transparency Initiative. CMA 2023 will explore the potential of Tanzania to become a regional leader in the critical minerals market and connect investors and project developers with the country’s top prospects.

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