SONGWE: As global industries grapple with recurring helium shortages and rising demand for critical industrial gases, Tanzania is positioning itself as a potential new player in one of the world’s most strategic and tightly controlled resource markets.
The East African nation has signed a major mining agreement with Helium One Global to develop a large-scale helium project in southwestern Tanzania — a move that could eventually help diversify global helium supply chains currently dominated by a handful of countries.
The agreement, signed through a joint venture known as Songwe Helium Limited in the southwestern Songwe Region, marks Tanzania’s formal entry into the global helium industry at a time when demand for the gas is accelerating across sectors ranging from healthcare and semiconductor manufacturing to aerospace and advanced computing technologies.
Industry analysts say growing pressure on existing helium supplies has increased international interest in discovering new production sources outside traditional producers such as the United States and Qatar, which together dominate much of global production.
Speaking during the signing ceremony, Tanzania’s Deputy Minister for Minerals, Steven Kiruswa, said the project places Tanzania in a strong position to benefit from a rapidly expanding global market with relatively limited competition.
“Helium is a strategic resource for the modern global economy,” Kiruswa said, noting that global demand already exceeds six billion cubic feet annually and is expected to rise sharply by 2030.
Unlike many industrial gases, helium has no practical synthetic substitute for several critical applications. It is widely used in MRI medical imaging systems, semiconductor production, fibre optics, aerospace technologies, scientific research and emerging sectors such as quantum computing.
Supply disruptions in recent years have exposed the vulnerability of global helium markets, particularly as technological industries become increasingly dependent on stable access to the gas.
Officials say Tanzania’s Southern Rukwa helium project could help ease pressure on international supply markets while opening a new high-value export sector for the country.
The project is located near the border with Zambia and spans approximately 480 square kilometres across parts of Songwe and neighbouring Rukwa Region.
Commercial production is expected to begin within the next 18 months, according to officials, with more than 60 million US dollars already invested in exploration and early development activities.
Under the agreement, the Tanzanian government will hold a 17 percent stake in the joint venture through Songwe Helium Limited, allowing the state to participate directly in strategic decisions and future revenues generated by the project.
Government officials say the arrangement reflects broader policy efforts under President Samia Suluhu Hassan aimed at increasing national participation and long-term benefits from extractive industry investments.
“This reflects the government’s commitment to ensuring the country’s natural resources contribute directly to national development and public welfare,” Kiruswa said.
Officials say the project is expected to create employment opportunities, stimulate local businesses and improve infrastructure in surrounding communities through supply chains and support services linked to the mining operation.
According to Helium One Global, drilling conducted in 2024 at the Itambula West-1 exploration well confirmed commercially viable helium concentrations.
Lorna Blaisse, the company’s chief executive officer, described the agreement as an important milestone both for Tanzania and for the wider global helium market.
She said testing at the site recorded helium concentrations reaching up to 7.6 percent in some geological formations — levels considered commercially significant within the industry.
Following the signing of the mining licence, the company plans to move into the next development phase, including environmental and social impact management systems, infrastructure design and procurement of processing and transportation equipment ahead of commercial extraction.
Blaisse also praised Tanzania’s partnership approach, saying the structure of the agreement supports national participation while helping position the country as a future supplier to global markets.
Mining analysts say Tanzania’s entry into helium production could further diversify the country’s extractive sector beyond traditional minerals such as gold and tanzanite while strengthening its role in supplying strategic resources linked to future technologies.
Regional authorities say Songwe is increasingly attracting attention for its broader geological potential, including deposits associated with rare earth minerals and other strategic resources important to modern industrial and technological development.
Jabiri Makame said local authorities would work closely with investors to support implementation of the project and maximise its economic benefits for surrounding communities.
As global competition intensifies over access to strategic minerals and industrial gases essential for advanced technologies, Tanzania’s emerging helium industry could place the country in an increasingly important position within global supply chains serving the medical, scientific and high-tech sectors.