Hope as Helium drilling enters crucial stage

The drilling stage holds the promise of making Tanzania a key player in the global helium market and securing the future of the vital gas used in medical diagnostics, among other critical applications.

Minister for Minerals Anthony Mavunde conveyed the significance of the historic moment during the closing of a two-day Mining and Investment Forum in Dar es Salaam on Thursday evening.

“For the first time in the history of Tanzania in the mining sector, the Noble Helium Company has sent down their rig to start the work of research and excavation of helium mines in the Rukwa region,” he told a gathering of more than 1,000 participants from across the globe. Noble Helium’s CEO and Co-Founder, Justyn Wood, expressed his appreciation for the collaborative efforts that have brought them to this juncture in a statement.

“This operation is a testament to the dedication and collaborative efforts of Noble Helium’s team, the Marriott Group, SLB Services, local suppliers and workers, and the Tanzanian government. It is an absolute milestone moment in the company’s history.”

Notably, this endeavour follows a remarkable track record of success in the East African Rift System (EARS). According to Mr Wood, since 2006, fourteen Benthic Microbial Fuel Cells (BMFCs) have been drilled for oil and gas in the rift basins.

He notes that the development has boasted an extraordinary 100 percent success rate, with 14 discoveries from 14 wells. Now, they are leveraging this expertise to seek a new resource: helium.

Mr Wood also emphasised the far-reaching implications of their success, stating, “Success has the potential to propel the company and Tanzania into key players in the supply of this extraordinary critical gas and secure the future of helium and all the technologies it enables present and future.” The milestone marks a crucial juncture as Tanzania gears up to commence actual helium production in 2025, provided all goes according to plan. The numbers are staggering, with Tanzania’s primary helium project in Rukwa estimated to contain a prospective recoverable helium resource (2U/P50) of 138 billion cubic feet (bcf), making it the largest known primary helium deposit in the world.

This surpasses the 54 billion cubic feet of helium discovered in Lake Rukwa in 2016, which had the potential to alleviate global shortages of this crucial gas, essential for applications like magnetic resonance imaging (MRI) scanners.

The global helium market has long been dominated by the US, which held approximately 60 percent (24 bcf) of the global supply in 2015, followed by Qatar with 24 percent. Algeria, Australia, Canada, Poland, and Russia contribute to global helium production.

However, with the significant reserves in Tanzania, experts in the mining sector believe the nation is poised to become the world’s largest helium supplier.

With the world already depending on 40 to 50 percent of its helium supply from Russia, the ongoing crisis has only intensified the need for alternative sources.

Speaking on the significance of the ongoing exploration, the country manager at Noble Helium Limited, Mr Joseph Uisso, stated, “We have launched a very important stage that will prove the existence of the helium. We believe the results will be as expected.”

To gain further insights into the expectations surrounding the crucial exploration stage, a geologist with expertise in rare gases, Dr Angela Mbogo, remarked that the initiation of drilling was a watershed moment for Tanzania.

“The presence of such vast helium reserves places the country on the global helium map and offers a unique opportunity to diversify its resource-based economy,” she said.

A senior economist specialising in mineral resources, Dr John Kitomari, said, “The successful extraction and export of helium could significantly boost Tanzania’s economy and contribute to the country’s long-term financial stability.”

Furthermore, he noted, it would reduce global dependence on a few key suppliers, promoting stability in the helium market.

“The world watches with bated breath, eager to see if this crucial stage of exploration will usher in a new era for Tanzania as a major helium producer, fundamentally transforming the dynamics of the global helium market,” he said.