Goverment gains stake in Lindi graphite project
RUANGWA: THE government has formalised its stake in the Lindi Jumbo Graphite Project after signing agreements with Lindi Jumbo Limited, securing a 16 per cent non-dilutable free carried interest through the newly established joint venture company, Ndovu Graphite Limited.
The agreements, signed in Matambarale Village in Ruangwa District, Lindi Region, leave Lindi Jumbo Limited with an 84 per cent shareholding and mark a key step in the state’s participation in one of Tanzania’s flagship graphite mining projects.
The Minister for Minerals, Mr Anthony Mavunde, said recently the agreement marks a historic step for the country to benefit directly from natural resources through government participation in mining investments without upfront capital costs, while gaining dividends, strategic input and oversight.
He described graphite as a strategic ‘black gold’ essential for electric vehicle batteries and clean energy.
The Lindi Jumbo Project is among the world’s highest-grade deposits, with 17.9 per cent Total Graphitic Carbon (TGC) reserves, expected to produce about 40,000 tonnes annually over a 24-year mine life.
Lindi Jumbo Director, Mr Andrew Cunningham described the signing of the agreements as both a reflection on a long development journey and the beginning of a new phase of partnership and growth in the country’s graphite sector.
He said the Lindi Jumbo Project, launched with exploration in 2015, has evolved into a world-class graphite operation through extensive studies, financing, construction and production.
With an estimated mine life of 24 years and potential to exceed 50 years, the project’s value lies in its high-quality graphite, a critical mineral increasingly important for industrial, technological and clean energy applications.
On operational performance, Cunningham said that last year the mine processed nearly 170,000 dry tonnes of ore and produced 16,421 tonnes of graphite concentrate with grades ranging between 94 per cent and 96 per cent TGC.
He added that the project mined more than 500,000 tonnes of material during the same period, while confirmed sales orders exceeded 27,800 tonnes.
Mr Cunningham also highlighted the project’s economic contribution to the country, saying the company spent 57.5bn/- on local suppliers between 2024 and 2025, with 91 per cent of procurement directed to domestic businesses.
In addition, the company contributed more than 11.3bn/- in royalties, taxes and statutory payments to the government.
The project and its contractors currently employ 280 people, more than 95 per cent of whom are Tanzanian nationals, according to Cunningham. More than half of the workforce comes from surrounding villages in Ruangwa District.
He also said the company has invested more than 162m/- in healthcare, education and community development projects through its community investment initiatives.
