DAR ES SALAAM: GOVERNMENT efforts to attract strategic investment into Tanzania’s critical minerals sector are gaining momentum, with projects worth about 100 million US dollars (265 bn/-) currently in the pipeline.
The planned investments will focus on the extraction and processing of heavy sand minerals in Dar es Salaam and Tanga, strengthening Tanzania’s position in the growing global critical minerals market.
The projects are expected to increase mineral value addition, attract foreign and domestic investment, create jobs and boost government revenues.
One of the major investments is the Nyati Heavy Sand Mineral Project in Kigamboni, Dar es Salaam, valued at more than 30 million US dollars (79bn/-).
The government has made local value addition a key requirement for the project, insisting that minerals extracted in Tanzania be processed locally before export.
Nyati Mineral Sands Limited has been granted a two-year licence on condition that it completes construction of a mineral separation plant in Tajiri, Tanga.
Deputy Minister for Minerals Dr Steven Kiruswa said the investment was in line with Tanzania’s Development Vision 2050, which seeks to position mining as a major driver of economic transformation while ensuring citizens benefit through employment and value addition.
Speaking during a working tour of the project in Kisarawe II, Kigamboni, on Tuesday, Dr Kiruswa commended the investor for complying with local content requirements and urged it to accelerate construction of the Tanga plant.
He said the two projects had already created more than 300 jobs for Tanzanians, representing about 99 per cent of the company’s workforce in the country.
Dr Kiruswa said the processing plant was expected to be completed by March 2027, enabling Tanzania to retain more value from its mineral resources while generating additional government revenue through taxes, royalties and other charges.
He said domestic processing would also support local industries, particularly manufacturers of tiles and paints that currently import some of their raw materials.
“The government’s position is clear: All minerals must be value added in the country before they are exported,” said Dr Kiruswa .
He warned that failure to complete the processing plant could lead to suspension of operations unless the investor had a genuine reason for the delay.
Heavy sand minerals are important raw materials used in the manufacture of paints, tiles and aircraft components.
Dar es Salaam and Coast Regional Mining Officer Lameck Masanja said about 70,000 tonnes of minerals had been extracted since operations began in 2024, generating more than 9bn/- in revenue, including 438m/- in government royalties.
He said the company had shipped more than 470 containers of heavy sand minerals overseas for processing.
Under the four-year mineral project agreement, the government holds a 16 per cent stake, while the investor owns 84 per cent under a public-private partnership arrangement.
Nyati Mineral Sands Chief Executive Officer Wei Huang assured the government that the US15 million US dollars processing plant would be completed on schedule, saying construction had progressed beyond the foundation stage.
He said the facility would eventually serve as a mineral processing hub for Africa, including projects operated by the company’s parent firm, Shenghe Resources Holding Co Ltd, in Madagascar.
Mr Huang said the company was also committed to transferring skills to Tanzanians, particularly in geology, plant operations and mineral processing.
“We are not only investors; we want to build a team here,” he said.
Dr Kiruswa also urged the company to ensure its corporate social responsibility projects addressed community priorities, including roads and health facilities.
He said the government would continue supporting investment while ensuring that mineral wealth generated tangible benefits for communities and the wider economy.