Dar es Salaam. Tanzania’s strategic and critical minerals are increasingly shaping the country’s economic direction and international engagement, as senior industry players, policy advisers and diplomats argue that the sector offers a sustainable pathway towards growth, infrastructure development and reduced dependence on foreign aid.
Speaking during a wide-ranging discussion organised by Azam Tv on the contribution of strategic minerals to economic growth and social wellbeing, stakeholders stressed that Tanzania’s mineral wealth must be leveraged beyond extraction, with deliberate focus on value addition, infrastructure, local participation and long-term national interest.
Mining sector consultant Mr Humphrey Simba said Tanzania’s strategic minerals should be viewed within a global geopolitical context, noting that interest in projects such as Kabanga Nickel reflects intensifying competition for critical raw materials.
“People often ask why the Kabanga project is mentioned repeatedly in high-level engagements. The answer is simple: nickel is a strategic mineral, and countries that need it are positioning themselves early,” Mr Simba said.
He explained that the United States’ interest in Tanzania’s strategic minerals is linked to its membership in the Minerals Security Partnership (MSP), a global framework aimed at securing supply chains for critical minerals.
“When the US talks about Kabanga, it is not by coincidence. They have openly said they are interested in the nickel project because nickel is critical to their industries,” he said, referring to engagements involving senior US officials.
However, Mr Simba cautioned against viewing the interest as exclusive. He pointed out that China remains a major global controller of critical raw materials, while South Korea has emerged as a key offtaker, particularly in graphite.
“If you look at graphite, for example, South Korea, through companies like POSCO, has shown strong interest. At the same time, China is already a dominant player in critical raw materials globally,” he said.
According to Mr Simba, this diversity of interest places Tanzania in a strong position to negotiate.
He argued that the country should not rush to align itself with any single geopolitical bloc, but should instead prioritise mutual benefit.
“Our position should be clear: we listen to everyone, we work with everyone, but we choose partnerships that bring value to Tanzania,” he said.
He further linked strategic minerals diplomacy to infrastructure development, noting that global powers are investing heavily in transport corridors to secure the movement of raw materials.
“The US has invested heavily in the Lobito Corridor, which runs from Angola through Congo to Zambia. On the other hand, China has invested in Tazara, and we have recently seen agreements to revive that railway,” Mr Simba said.
He noted that Tanzania’s involvement in both corridors strengthens its strategic relevance.
“On the western side we are part of the Lobito discussions, and on the eastern side we are central to Tazara. That puts Tanzania in a very important position,” he added.
Echoing this view, Tanzania’s High Commissioner to Zambia, Hassan Yahya, also accredited to Angola, Sao Tome and Principe, said Tanzania’s mineral wealth offers the country an opportunity to redefine how it engages with international partners.
“We should stop approaching the world as if we are only seeking aid. We have resources. What we need are partners who come to invest, to produce and to create value together with us,” Yahya said.
He warned that global competition for strategic minerals is intensifying, with some countries beginning to restrict access to certain resources to advance their own interests.
“Some countries are now using strategic minerals as economic weapons. Those who do not have them are under pressure, and that is why Tanzania must be very careful and very strategic,” he said.
The ambassador strongly supported President Samia Suluhu Hassan’s position that Tanzania should not be tied to any geopolitical camp.
“We must trade with everyone, big economies, emerging economies and even smaller ones, as long as it is a win-win situation and our sovereignty is protected,” he said.
Turning to domestic policy, General Manager of Godmwanga Gems Limited, Mr Henry Joseph reflected on the evolution of Tanzania’s mining laws, drawing on nearly 20 years of experience in the sector.
“There has been a clear evolution in our mining laws and policies. The most significant changes came in 2017, and they completely transformed how the sector operates,” Mr Joseph said.
He explained that the reforms introduced strong provisions on value addition and local content, ensuring that Tanzanians participate more directly in mining projects.
“Today, local content is no longer a suggestion; it is a requirement. Tanzanians must participate, whether as suppliers, service providers or shareholders,” he said.
Mr Joseph noted that procurement patterns have already shifted, with a growing share of goods and services now supplied by Tanzanian companies.
“In the past, almost everything used in mining was imported. Today, a significant portion of procurement is done by Tanzanian firms or companies with Tanzanian participation,” he said.
However, he acknowledged that many inputs used in mining are still not produced locally, limiting the sector’s broader economic impact.
He also raised concerns about the government’s participation through free carried interest, under which the State holds at least 16 percent in projects with special mining licences.
“Free carried interest guarantees ownership, but it does not always guarantee influence or transparency. Sometimes it becomes difficult to monitor real returns,” Mr Joseph said.
He suggested that direct government investment could strengthen Tanzania’s negotiating power.
“If the government comes to the table with capital, even a smaller share can give stronger control and better outcomes,” he added.
Providing a project-level perspective, Mr Benedict Busunzu, Chief Executive Officer of Tembo Nickel, outlined plans to ensure value addition within Tanzania, particularly through the Kabanga nickel project.
“Our plan is not just to mine nickel, but to process it here in Tanzania,” Mr Busunzu said.
He explained that initial processing will take place at Kabanga using hydrometallurgical technology, with longer-term plans to establish a multi-metals refinery at Kahama.
“Kabanga will handle mining and processing, but the bigger picture is the refinery at Kahama. It is strategically located and can serve many mineral-rich areas, not just Kabanga,” he said.
According to Mr Busunzu, the refinery is envisioned as a regional hub that could also serve neighbouring countries.
“This facility is not only for Kabanga. It can process minerals from Shinyanga, Geita and even neighbouring countries like Burundi,” he said.
He added that such investments would create jobs, support technology transfer and strengthen regional integration, but noted that challenges such as infrastructure, energy supply and transport costs must be addressed.
“All these plans require coordination. Infrastructure, power and transport must move together with mining investment,” he said.
Across all speakers, there was consensus that Tanzania’s strategic minerals represent a historic opportunity.
However, they stressed that success will depend on disciplined policymaking, strong institutions and a firm commitment to ensuring that ordinary Tanzanians benefit from the country’s natural wealth.
As global demand for critical minerals continues to rise, the speakers agreed that Tanzania is well placed to play a significant role, provided the country remains strategic, inclusive and focused on long-term national interest.
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