How heavy mineral sands in Dar, Tanga elevate Tanzania as strategic mining hub in Africa?

DAR ES SALAAM: THE government’s efforts to attract strategic investment in critical minerals continue to bear fruit with about 100 million US dollars (265bn/-) in pipeline for the extraction and processing of heavy mineral sands in Dar es Salaam and Tanga.

Among the ongoing landmark investments is the Nyati Heavy Mineral Sands Project at Fungoni, Kigamboni in Dar es Salaam worth more than 30 million US dollars (over 79bn/-), with value addition at the core of the government’s strategy to ensure that only processed mineral products are exported.

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As part of the initiative, Nyati Mineral Sands Limited has been granted a twoyear licence by the government on the condition that it completes construction of a Mineral Separation Plant in Tanga to facilitate domestic value addition. Heavy mineral sands are a class of metals or unrefined rocks deposit which is an important source of zirconium, titanium, thorium and tungsten.

These deposits are most usually formed in beach environments and are critical raw materials used in the manufacture of paints and tiles as well as aircraft spare parts.

Speaking recently during his working tour at the Nyati Heavy Mineral Sand Project site in Kisarawe II, Kigamboni, Deputy Minister for Minerals, Dr Steven Kiruswa said the investment aligns with the country’s Dira 2050 aspirations of positioning the mining sector as a key contributor to attaining a trillion-dollar economy while ensuring citizens benefit from value addition and job creation.

Dr Kiruswa who expressed satisfaction with the investor’s commitment to meeting local content requirements, urged the company to fast-track construction of the processing plant in Tanga.

“In the mining sector, what we are mostly interested in is to see investors who are willing and able to come and help this country which is partially exploited to the high resolution level do mineral exploration, mineral mining, processing and value addition,” Dr Kiruswa said.

Adding “I want also to appreciate so much the government of the people of China for the friendship that has existed between our two nations since the time of our independence which has also seen so much done in partnerships,” He said the heavy sand project in Kigamboni and the processing plant in Tajiri, Tanga had already created jobs for more than 300 Tanzanians, accounting for about 99 per cent of the company’s workforce in the country.

He said following recent engagements with the investor, construction of the processing plant in Tanga is expected to be completed by March next year (2027), generating revenue for the government through taxes and other charges.

Dr Kiruswa said domestic value addition of critical minerals would also support the growth of local industries that currently import raw materials, particularly those involved in tile and paint manufacturing, amid the growing real estate sector.

He also reminded the investor to ensure that its Corporate Social Responsibility (CSR) initiatives respond to actual community needs including the construction of roads and dispensaries. He said the government was promoting local value addition to ensure that the project benefits all citizens, particularly communities in Dar es Salaam.

The heavy sand mineral deposits in Kigamboni are estimated at more than 12 million metric tonnes, while operations at the project commenced in 2024. Dr Kiruswa said the investor was initially granted a licence on the condition that it commences extraction while constructing the processing plant in Tanga within two years.

“I have come here to see the progress of the project and to catalyse its pace so that all minerals can be refined domestically,” Dr Kiruswa said. “I want to overemphasise that all minerals have to be value added in the country before they are exported,” he added.

He warned that failure to complete the processing plant could result in the suspension of the investor’s operations unless there was a genuine reason for the delay. Currently, the investor has been extracting and shipping the minerals overseas for processing and trading.

Dar es Salaam and Coast Region Regional Mining Officer, Mr Lameck Masanja said about 70,000 metric tonnes had been extracted since the project began. He said the investor had shipped more than 470 containers of heavy sand overseas for value addition generating more than 9bn/- in revenue of which the government received 438m/- through charges including taxes.

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He said under the fouryear mineral project agreement, the government holds a 16 per cent stake while the investor owns the remaining 84 per cent under a PublicPrivate Partnership (PPP) arrangement. Mr Masanja said the Dar es Salaam and the Coast Region have other nine exploration licenses which after being commissioned as mining licenses will further position the country as the critical mineral hub in East Africa and Africa at large.

He said Kigamboni became the second area to extract the heavy mineral sands in Tanzania after Mkulanga. In the country, the Nyati Mineral Sands Limited has been also granted a license to extract heavy mineral sands in the Tajiri area, Pangani district, Tanga region which hold approximately 268 million tonnes of heavy mineral sands including 74 million tonnes of proven reserves.

For his part, Nyati Mineral Sands Limited Chief Executive Officer (CEO), Mr Wei Huang assured the Deputy Minister that the 15 million US dollar (about 40bn/-) separation plant would be completed on schedule saying construction had already passed the foundation stage.

Mr Huang said upon completion, the processing plant in Tanzania would serve as a mineral processing hub for Africa, serving other countries including Madagascar where Nyati Mineral Sands’ parent company, Sheinghe Resources Holding Co Ltd, operates.

On skills transfer and job creation, he said the Chinabased company was committed to exchanging knowledge and providing more opportunities for Tanzanians to work as geologists, plant operators and mineral processing technicians.

“We are not only investors, we want to build a local team here,” Mr Huang said.

He added that the company’s heavy sand mineral investments would provide raw materials to local manufacturers, including Goodwill Tanzania, which produces tiles.

The hosting community in Kisarawe II regards the project as the blessings given the fact that beyond creating job opportunities for the youth it catalyses expansion of social services through construction of new roads, schools and dispensaries under Corporate Social Responsibility (CSR).

Kisarawe II’s Ward Executive Officer, Ms Theophlida Christopher said the current priorities of the Kisarawe II residents as part of Nyati Heavy Sand Minerals Project’s CSR in their locality include construction of dispensaries and roads, the demands that have been welcomed by the investor.

“We have tabled our projects to the Deputy Minister for Minerals and he has submitted to the investor who has welcomed them,” Ms Christopher said. She invited more other investors to tap investment opportunities in Kisarawe II.