New dawn for minerals sector
DODOMA: IN a landmark move aimed at fostering the beneficiation and value addition of minerals within the country, the government has issued three Special Mining Licenses (SML) for multi-metal refinery and heavy mineral sands, signalling a new era in the country’s mineral sector development.
Minister for Minerals, Mr Anthony Mavunde, presided over the issuance ceremony, granting Lifezone Metals and Tembo Nickel a multi-metal refinery license, while Nyati Mineral Sands Limited received authorisation for heavy mineral sands refinery operations.
Notably, the government holds a stake in both companies it awarded the mining licenses. Minister Mavunde emphasised that beyond the anticipated revenue generation and sector growth, the projects will significantly enhance employment opportunities and promote local content supply of goods and services.
With the addition of these licenses, the total number of SMLs stands at 20, with seven designated for industrial refinery companies.
Nyati Mineral Sands Limited, in which the government holds a 16 per cent share, is slated to operate in Pangani, Tanga Region.
Geological surveys indicate abundant measured resources of 268 million tonnes with a projected operational lifespan of 23 years.
The joint venture will witness an investment of 127.7 million US dollars, with profitability anticipated after four years of production.
The government expects to accrue revenue of approximately 437.96 million US dollars from shares, taxes and other fees.
Moreover, the refining of heavy mineral sands is set to produce essential materials such as zircon, leucoxene, rutile, garnet, monazite and ilmenite, crucial for manufacturing medical equipment, aircraft engines, laptops, and mobile phones.
The minerals are in high demand in the United States, China, Japan, India and South Africa. Tembo Nickel Refining Limited, a subsidiary of Tembo Nickel Corporation Limited, plans to invest nearly 500 million US dollars in a joint venture employing hydrometallurgy instead of traditional smelting methods.
This move is anticipated to provide a solution for miners who previously had to export ore concentrate for processing at lower prices.
Construction of a multi metal refinery, he said, is a solution to miners who had to export ore concentrate for processing at a low price, thus calling for fully utilisation of the refinery when operational.
He expressed the government commitment to have more investors in a number of potential and mineral resources available in the country as they put in place avenues that, apart from attracting investors, the public and country enjoy the socio-economic profit attached to them.
Speaking during the event, Chief Executive Officer of Lifezone Metals, which is Tembo Nickel’s parent Company, Mr Chris Showalter, said the licence marked significant achievement in the visionary and strategic Kabanga Nickel Project.
