Dar es Salaam. Helium One Global has received an offer letter from Tanzania’s Mining Commission for the grant of a mining licence for the Southern Rukwa Helium Project.
The proposed licence covers approximately 480 square kilometres, encompassing the entire Southern Rukwa Helium Project in Momba and Sumbawanga districts within the Rukwa Basin.
This offer aligns with the miner’s original application.
Largest helium mining licence in Tanzania
The licence offer follows approval from the Ministry of Minerals, which has authorised the Mining Commission to grant a larger-than-standard licence.
This expanded coverage is intended to support the full development of the Southern Rukwa Helium Project, reflecting the government’s recognition of the project’s potential.
Helium One is currently reviewing the offer letter and its terms.
Chief executive officer, Lorna Blaisse, described the development as a significant milestone for both the company and Tanzania.
“This marks a historic moment as the first mining licence to be offered for helium in Tanzania, and its size underscores the strategic importance of our project,” she said.
The offer follows Helium One’s helium discovery at Itumbula West-1 in 2023.
The company submitted its licence application in September 2024, accompanied by a feasibility study outlining the commercial viability of the helium resource in Southern Rukwa.
Government recognition of helium potential
The approval of the full 480-square-kilometre licence highlights the government’s recognition of the unique geological characteristics of the Southern Rukwa helium deposit.
Helium One has identified extensive faulting mechanisms and fracture networks in the area, which are critical for maximising helium recovery.
The company is now conducting a detailed review of the offer letter and its terms, with further announcements expected in due course.
Helium one shares surge
Helium One’s stock has responded positively to the development.
Over the past 30 days, the company’s shares have gained 20.45 percent, recovering most of the losses incurred in the previous six months.
At market opening in London, the stock surged by 20 percent and remained up 16 percent at the time of reporting.
Tanzania’s emerging role in the global helium market
Tanzania’s decision to grant its first helium mining licence marks a significant step in the global helium industry.
The Rukwa Helium Project, spanning 480 square kilometres, strengthens the country’s position as a potential key player in the international helium supply chain.
Helium is a critical resource used in medical, industrial, and technological applications, including MRI cooling, space exploration, and advanced electronics manufacturing.
Demand for helium has been rising globally, traditionally met by suppliers in the US, Qatar, and Russia.
With evolving geopolitical and economic conditions, there is an increasing need to diversify helium sources, making Tanzania’s reserves strategically important.
Studies indicate that the Rukwa Basin, part of the western branch of the East African Rift Valley, contains surface helium seeps with concentrations as high as 10.4 percent.
These seeps have minimal hydrocarbons and carbon dioxide, with nitrogen as the carrier gas, providing a high-purity helium source.
Initial assessments suggest that the North Rukwa region alone could hold up to 138 billion cubic feet of recoverable helium.
If fully realised, this could have long-term economic implications for Tanzania and solidify its place in the global helium market.
