Tanzania Rare Earth and Critical Minerals

In Tanzania, a new dawn that’s ready to fuel the global energy transition. Mining is a leading industrial sector in Tanzania, consistently increasing the value of its mineral exports. The contribution of the Tanzanian mining sector to the country’s GDP grew by 2.5% from 2018 to 2021, jumping to 7.3% from 4.8%. It generates over $2.5 billion annually and accounts for approximately 50% of exports by value. Tanzania’s natural resources include gold, silver, tanzanite, iron ore, copper, nickel, cobalt, graphite, and uranium. Tanzania is also home to a wide expanse of approximately 24 rare earth elements and critical minerals currently in exploration.

As the energy transition takes hold, the demand for rare earth elements and critical minerals is ever-increasing. Working to meet this demand, mineral exploration in several parts of Tanzania has increased substantially in recent years. The sector has attracted new foreign direct investment in mineral development exploration, and local investment has surpassed $1 billion.

The government of Tanzania intends to increase mineral earnings by 33% over the next three years, marking a revenue increase of up to $302 million between 2023 and 2024. With such ambitious plans, the foundation has been established for Tanzania to see a boom in its mining fortunes. It is estimated that the sector will reach $6.6 billion in value by 2027. In addition to mining the minerals, this emerging sector provides opportunities to capture more value from critical minerals before exporting, by establishing mineral processing centers within the country.

Potential opportunities for U.S. firms include key mining infrastructure, services and equipment such as excavators, bulldozers, crushers and minerals scanning/imaging technology. For additional business insights and to analyze your company’s prospects in this emerging sector, contact Commercial Specialist Andrew Mahiga, at the U.S Commercial Service, U.S Embassy, Dar es Salaam at andrew.mahiga@trade.gov.