Tanzania is making strides toward establishing its first niobium production facility, which will play a key role in supporting advanced industries such as aerospace and energy. Deputy Minister for Minerals, Dr. Steven Kiruswa, announced plans to initiate production of the rare mineral in the Panda Hill area, with operations managed by Panda Hill Tanzania Limited (PHTL). This facility will manufacture niobium-derived products, including ferroniobium, crucial in various high-tech applications.
Dr. Kiruswa emphasized the government’s ongoing negotiations with PHTL to formalize a framework that will secure Tanzania’s economic stake in the project, aligning with the Mining Act’s mandate for a 16% free-carried government interest in large-scale mining projects. This move ensures that the country reaps additional benefits from the development.
The Deputy Minister highlighted that compensation efforts for communities affected by the mining project are progressing, with initial steps for building the processing plant set to follow. He noted that niobium’s applications extend beyond high-tech industries, as it is essential for manufacturing drilling tools used in oil and gas exploration, as well as in automotive production.
During a follow-up discussion, Mbeya Rural MP Oran Njeza sought clarification on the timeline for issuing an Export Processing Zone (EPZ) license to expedite the plant’s construction. He pointed out that this facility would be Tanzania’s first niobium processing plant and only the fourth of its kind worldwide. MP Njeza also raised concerns about finalizing the agreement with PHTL, particularly regarding operations in areas where local communities reside.
Dr. Kiruswa responded that negotiations with PHTL are advancing, with an imminent meeting in Arusha aimed at concluding details about government involvement, plant construction, and forming a subsidiary to oversee niobium production in compliance with regulatory frameworks.
