DODOMA: TANZANIA is set to begin producing niobium, a rare mineral essential in various industries, including the manufacturing of aircraft and rocket engines.
Deputy Minister for Minerals, Dr Steven Kiruswa informed the House on Friday while responding to a question from Mbeya Rural MP Oran Njeza, who inquired about the start of niobium production and the establishment of a ferroniobium plant in the Mbeya District Council.
Dr Kiruswa said that the niobium mining project in the Panda Hill area is owned by Panda Hill Tanzania Limited (PHTL), which will produce niobium-derived products, including ferroniobium.
He further said that the government has initiated discussions with Panda Hill to formalise an agreement that will enable the government to acquire shares in the project and secure additional economic benefits.
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Regarding government shares in the project, Dr Kiruswa said that, according to the Mining Act, Chapter 123, holders of medium and large-scale mining licences are required to allocate at least 16 per cent non-dilutable free-carried interest shares to the government.
Dr Kiruswa also indicated that compensation payments to those affected by the project are progressing well.
“Once this process is finalised, construction of the niobium processing plant is set to commence. Beyond applications in science and technology, niobium is also vital for drilling machinery used in oil and gas exploration and is employed in vehicle manufacturing,” he said.
In response to a follow-up question from MP Njeza, Dr Kiruswa said that discussions are ongoing to finalise a framework agreement.
“A meeting is scheduled for today (Friday) in Arusha to conclude aspects of the agreement, which include the government’s role in niobium production, its participation in the processing facility and the formation of a subsidiary company as per legal requirements.
MP Njeza further sought clarity on the government’s measures to expedite the issuance of an Export Processing Zone (EPZ) licence to investors, allowing immediate construction of the plant, which would be the first of its kind in Tanzania and the fourth globally.
He also inquired about the timeline for the government to sign an agreement with the investor to allow operations to begin in areas inhabited by local communities.
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