Tanzania eyes to reap 7tri/- from graphite mining
MOROGORO: THE Minister for Minerals, Anthony Mavunde, has officially launched the construction activities at the Kinywe graphite mine, operated by the Faru Graphite Corporation from which the Tanzanian government will collect over 7tri/- through taxes, levies, dividends, and mining royalties.
The factory has been built in partnership between the Tanzanian government (16 percent stake) and Black Rock Mining Limited (84percent stake) as a major step in the implementation of strategic projects in the mining sector in the country.
Speaking at the launch event in Mahenge, Ulanga District, Morogoro Region, Mavunde said the launch is a sign of a new pace of development of major strategic projects in the Mining Sector, due to the instructions of President Samia Suluhu Hassan.
“This project is not just a resource extraction project, but a development engine that will stimulate industrial growth, trade, employment, and social welfare in the Mahenge area in general,” he said.
According to Mavunde, the Mahenge project is expected to cost approximately 1.3tri/- and will generate more than 400 jobs during construction and more than 900 permanent jobs when the mine begins full production.
“Outside the mine, approximately 4,500 indirect jobs will be created through the value chain of traders, farmers, distributors and service providers.
Explaining the importance of graphite minerals, he said that the minerals are among the key minerals in the production of electric vehicle batteries, electronic devices, and solar panels and that through this project and others in Tanzania, it is positioning itself as a hub for clean technology raw materials in the world.
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Also, Mr Mavunde has called on Faru Graphite Corporation to consider the requirements of Local Content and Corporate Social Responsibility (CSR) by prioritizing employment for Tanzanians, especially the people of the villages surrounding the mine, and providing opportunities for local companies to participate in the supply chain.
The Morogoro Regional Commissioner, Adam Malima, has thanked the Minister for his strong leadership and management in the Mining Sector, noting that Morogoro Region is fortunate to host major development projects including this Faru Graphite worth approximately 1.3tri/-.
“This is the largest project ever implemented in Morogoro Region,” said Malima, while directing regional experts to organize special seminars that will educate citizens about the economic and social opportunities that will arise from the project.
Speaking on behalf of the Permanent Secretary of the Ministry of Minerals, the Commissioner for Minerals Dr Abdulrahman Mwanga said the Government issued a large-scale mining license in 2024, and already compensation of more than 13bn/- has been paid to 254 citizens who leased the project area, who will also be built new houses.
He added that the 220 kilovolt electricity infrastructure from Mahenge has begun to be prepared to ensure the mine receives reliable electricity, in parallel with the establishment of social projects (CSR) targeting education, health and water.
