How hidden treasure connects the world

DAR ES SALAAM: THE newly launched Mahenge Graphite Project has significantly contributed to the establishment of a four-nation economic diplomacy involving hosts Tanzania, Australia (owners), Korea (market) and United States of America.

This is another essential milestone set to cement the already existing cordial political diplomacy that the quadruple enjoys, though this time the connection is through the wealth (graphite) hidden underground.

Slowly but steadily, Tanzania which is blessed with numerous minerals continue to make strides in mining sector, thanks to enabling environment put in place by the government to accelerate speedy growth.

However, a new page in mining industry has since been opened, as the government on Thursday, October 9th flagged off the official launching of the Mahenge Graphite Project worth around $300m whose life-span is pegged for 26 years.

Minister for Minerals, Mr Antony Mavunde, steered the colourful launching ceremony held at Mahenge in Ulanga District, Morogoro alongside other key stakeholders in mining sector from within and outside the country.

The project covering 324 square kilometres is primarily owned by Australia’s Black Rock Mining Limited which holds 84 percent stake while government owns 16 percent stake.

This transformative project has been bankrolled by three leading African financial institutions including Tanzania’s CRDB Bank, Development Bank of Southern Africa (DBSA) and the Industrial Development Corporation (IDC).

Mr Mavunde, in his keynote address noted that the project has come timely and is set to contribute heavily in the growth of the country’s economy basing on the fact that graphite is on high demand worldwide.

He further pointed out that through this initiative, Tanzania is on the verge to be one of the top producers of graphite in Africa and the world at large revealing that currently, Tanzania occupies third position in Africa behind Madagascar and Mozambique which are the leading graphite producers on the continent.

“As you know, graphite is one of the much-needed minerals in the world hence we are blessed to have these minerals in our country and we just have to make good use of them in order to feel the positive changes,” Mr Mavunde said.

“When mining sector is growing, obviously, we expect nothing less other than growth in the national economy and this has direct impact on the lives of people especially those in mining sector. I am sure that in short period of time, this mining sector will turn out to be the backbone of our economy as such, we must use every means on our disposal to scale up this industry.

“Let me take this platform to encourage mining stakeholders not only those from Morogoro but the country at large to fully take advantage of this mine because several benefits are set to be unleashed once it starts to operate.”

On his part, Black Rock Mining Chairman, Mr Richard Crookes, underscored three main pillars of opportunities to be emitted once the project kicks off.

In infrastructure and Local Content, he said to power the mine, Faru has partnered with TANESCO to construct a critical new transmission line from Ifakara to Mahenge and that beyond powering operations at the project site, this line will provide reliable high voltage power, unlocking growth opportunities for industries, entrepreneurs and communities.

“In constructing the mine, over 75 percent of the inputs will come from the SADC region, with over 50 percent originating in Tanzania. While we will prioritise the local Morogoro market, this will also be an opportunity for Tanzania wide industrial participation and value addition.

“To ensure safety and connectivity to the Project, a new access route called Faru John Road, that bypasses the escarpment terrain, will be constructed to safeguard lives and ease travel and access for all,” he said.

He also introduced Korean firm POSCO International as their esteemed partner and market saying the attendance of POSCO representatives at the function highlighted a strong collaboration with shared opportunities and potential.

On financing and replication, he said being a dependable supplier with reliable customers, makes the project attractive to their lending institutions insisting that Faru has established a unique financing structure, accessing funds from CRDB Bank, DBSA and IDC.

“This blended model demonstrates that with transparency, sound governance, and strong partnerships, major projects can be successfully financed and delivered in Tanzania. We believe the lessons learned from Faru’s experience will serve as a model for other investments across the country,” Mr Crookes said.

Commenting on employment opportunities, he noted that the project is structured across four phases whereby direct employment will expand from approximately 400 full-time positions in Phase 1 to over 900 upon completion of Phase 4.

“These roles, in turn, will generate multiplier effects throughout the community, as our employees channel their earnings into local businesses and services, creating indirect opportunities and stimulating broader economic vitality.

“The Mahenge Graphite Project represents more than just a mining mining investment, it is a partnership for transformation, one that will contribute to Tanzania’s industrialisation agenda.

“At Faru, we are deeply honoured to play a role in this journey, standing alongside the Government, our development partners, the people of Ulanga, and our project communities,” he said.

Korean Ambassador to Tanzania Ms Ahn Eun Ju, revealed that her government has been very cooperative to this project given that Korea is the chair of Mineral Security Partnership (MSP), Korea and will play a leading role.

She insisted that her country will continue to support MSP’s goals of creating a diverse, secure and sustainable supply chain for critical minerals.

“This is very important given the fact that her excellency President Samia Suluhu Hassan vision expressed in DIRA 2050 which states that mining industry will play a critical and increasingly important role in bringing Tanzania’s GDP to 1 trillion dollars by 2050,” she said.

However, the exercise of mineral extraction will be executed by Taifa Mining and Civils Limited whose Chief Operating Officer, Mr John Kiiza said they are ready to engage.

“We are truly honoured to be given this opportunity to extract minerals here and being a Tanzanian company, we will ensure that we work well with members of the community.

“This is part of our policy, we usually prioritise on cooperating well with local people and integrate them when necessary, in executing our responsibilities,” he said.

ALSO READ: Tanzania eyes to reap 7tri/- from graphite mining

Also, the Tanzania Chamber of Mines Board Chairman Engineer Philbert Rweyemamu lauded the government for its remarkable role of putting conducive environment to support mining sector.

“What we are witnessing now is a result of massive work being done by our government…they are aware that the only way to scale this industry up is to attract potential investors like what has happened in Mahenge Graphite Project