Dar takes 17pc stake in graphite project

MOROGOR: TANZANIA’S mining sector has attracted over 3.6 billion US dollars (about 9tri/-) in investment during the past four years, positioning the country among Africa’s leading mining investment destinations, Minister for Minerals Anthony Mavunde has said.

Speaking over the weekend in Morogoro Region during the signing of an agreement between the government and Henan Yudi Mining Company for extraction of graphite, Mr Mavunde said 14 major mining agreements have now been signed under the current administration. “

Tanzania is one of the countries attracting mining investment at a rapid pace in Africa. This is driven by policies, plans, laws and a favourable investment environment,” Mr Mavunde said.

He added that President Samia Suluhu Hassan had played a sig – nificant role in drawing major mining investments into the country, with results now becoming visible through rising investment figures and the sector’s growing contribution to the national economy.

“Today, residents of Morogoro, we are writing another chapter in history by signing a major agreement between the government and an investor,” Mr Mavunde said, noting that the government would hold a 17 per cent stake in the project in addition to taxes, fees and other statutory payments.

The signed graphite project has proven graphite deposits estimated at 104.28 million tonnes and is expected to draw about 00 million US dollars (equivalent to 265bn/-) in investment.

Once operational, the project will produce 50,000 tonnes of graphite annually, with processing facilities capable of handling one million tonnes of ore per year.

More than 600 Tanzanians are expected to secure direct employment once the project becomes operational.

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Mr Mavunde said graphite is a critical mineral for modern technologies, including battery anode production, making the graphite project strategically important to Tanzania’s position in the global mineral value chain.

“We are moving beyond simply hosting mining activities to becoming a direct participant in the value generated from our mineral resources,” he said.

Morogoro District Commissioner, Mr Mussa Kilakala said district authorities welcomed the agreement, noting its expected contribution to local employment and economic opportunity.

“This project will open doors for our residents, both in direct employment and in the wider economic activities that come with it,” Mr Kilakala said.

Chinese Ambassador to Tanzania Chen Mingjian commended the parties involved in the negotiations, saying the project would increase commercial investment in Tanzania, stimulate economic growth and strengthen long-term cooperation between the two countries.

“This project will open another area of commercial cooperation between Tanzania and China,” Ambassador Chen said, adding that China remains among the leading sources of foreign direct investment in the country.

The agreement follows recent remarks by President Samia at the 29th St Petersburg International Economic Forum in Russia, where she invited Russian investors to tap into Tanzania’s mineral wealth, citing significant deposits of uranium, nickel, graphite, helium and rare earth minerals.

She said government policy now centres on promoting value addition through industrial development, rather than raw mineral exports alone, to maximise benefits for Tanzanians.