Tanzania’s strategic entry into the rare mineral economy could redefine the nation’s industrial landscape and boost its position on the global mineral map.
In a rare glimpse into the future of Tanzanian industry, the government has announced plans to begin niobium production a venture that promises to elevate Tanzania’s global standing in critical mineral supply chains. Niobium, a mineral central to industries from aerospace to oil and gas, has always been rare and highly coveted, but Tanzania’s upcoming Panda Hill project aims to make it more accessible and economically impactful, positioning the nation among the few global niobium producers.
Dr. Steven Kiruswa, Deputy Minister for Minerals, shared this milestone development with Parliament, explaining that Panda Hill Tanzania Limited (PHTL) will spearhead this groundbreaking project in the Panda Hill area, located in Mbeya. More than a simple extraction site, the project is expected to produce specialized niobium derivatives, including ferroniobium, which is vital to creating materials that withstand high temperatures and stresses—qualities indispensable to rocket engines, aircraft construction, and high-performance drilling tools.
In its move toward production, the Tanzanian government has carefully navigated both community and economic interests. Discussions with Panda Hill are already underway, focusing on finalizing a framework agreement that would secure the government’s stake in the project. As per the Mining Act, Chapter 123, all medium and large-scale mining ventures are required to grant the government a 16% non-dilutable, free-carried interest share, ensuring that Tanzanian citizens will benefit from the project’s success.
The benefits of Tanzania’s investment in niobium production extend far beyond national boundaries. Globally, the mineral plays a key role in the tech, defense, and energy sectors, underscoring Tanzania’s emerging role as a strategic player in these industries. Once the processing plant is operational, it will be the first of its kind in Tanzania and the fourth globally, marking an achievement that could bring transformative economic opportunities to Mbeya and beyond.
Yet, the path to niobium production has not been without challenges. Compensation processes for those affected by the project are currently underway, aiming to protect the livelihoods of local communities. This consideration of local communities remains central to the government’s approach, according to Dr. Kiruswa, who emphasized the importance of inclusive economic progress and social responsibility.
Further, Tanzanian officials are working to secure an Export Processing Zone (EPZ) license to facilitate the rapid establishment of the niobium plant, which, when achieved, will enable Tanzania to process, export, and fully integrate into the global supply chain for critical minerals.
During a recent Parliamentary session, Mbeya Rural MP Oran Njeza pressed the government on these initiatives, expressing optimism about Tanzania’s foray into niobium production but also urging action. The time is ripe, he argued, for the government to clarify its role, expedite regulatory procedures, and swiftly finalize agreements to bring this pioneering project to fruition.
Tanzania’s niobium project represents a bold commitment to diversifying the nation’s industrial potential and leveraging its rich mineral resources for economic growth. With its strategic planning, responsible policies, and steadfast commitment to economic sovereignty, Tanzania may soon be celebrated not just as a source of minerals but as an industry leader—fueling the innovations of tomorrow, from advanced aviation to green technology.
