Tanzania Finalizes Permit for First Rare Earth Mine

Tanzania is in the final stages of approving a right for the country’s first rare earths mine to Australian company Peak Resources Ltd - a mineral exploration company, which is focused on gold, base metal, and uranium prospects within Western Australia, as the government seeks a bigger share of the revenue from natural resources.

rare earth mining image

In addition, the state is finalizing a gold-mining license for another Australian company, OreCorp Ltd. at the Nyanzaga project in the northwest of the country.

Tanzania is Africa’s fourth-biggest producer of the precious metal and plans to increase mineral earnings by at least a third during the next three years. It also has vast deposits of coal, rare earth metals, iron ore and gemstones.

Tanzania finalizing permit for rare-earth metals mine image

Doto Biteko, Minister of Mines of Tanzania, revealed that The government is in the final stages of awarding a special mining license to PR NG Minerals for its Ngualla Rare Earth Project. The company is a subsidiary of Australia-listed Peak Resources.

Rare earths are used in components for electric vehicles, smart phones, renewable energy equipment and defense applications. Gold mining, now Tanzania’s leading foreign-exchange earner, is recovering following a slump after a crackdown on smuggling and a drawn-out dispute between the government and a unit of Barrick Gold Corp. froze exports.

The government intends to increase the mine mining revenue to 701.1 billion shillings in 2023-24, from a projected 526.7 billion shillings in the current fiscal period. The country will “increase revenues from the mining sector by 33%” by boosting production and exports, curbing smuggling and ensuring closer supervision of the industry, Biteko said.

First rare-earth mine right in Tanzania image

Last month the government received its first cash dividend of $40 million from a 16% stake in a joint venture with Barrick for rare earth mine project. Tanzania plans to use the Barrick partnership as a model when negotiating joint-ownership deals with all major mining companies, including with AngloGold Ashanti Ltd., in line with mining laws passed in 2017, he said.

 

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