Ngwala, Songwe. Mamba Minerals Ltd, a company investing in rare earth minerals, has unveiled plans to establish a value-addition and processing plant in Ngwala Village, Songwe Region, instead of exporting the raw minerals directly.
The announcement was made on June 4 during the official launch of a compensation exercise for approximately 192 project-affected residents in Ngwala.
The event was officiated by the minister for Minerals, Mr Anthony Mavunde.
In his introductory remarks, the chief executive officer of Mamba Minerals Ltd, Mr Ismail Diwani, said the compensation process would cost Sh5.3 billion, targeting 192 individuals whose properties are affected by the project.
He noted that 116 of them have already received their payments.
“These are preparatory steps towards actual implementation of the project, with full-scale construction expected to begin in December 2025. This will include building a rare earth minerals processing plant and a 12-megawatt power generation unit,” Mr Diwani said.
Mr Mavunde commended Mamba Minerals Ltd for responding to the government’s call to add value to minerals locally before export, echoing President Dr Samia Suluhu Hassan’s directive on mineral beneficiation.
“This project, apart from generating jobs, royalties, and local government levies, will contribute direct revenue of more than Sh12 trillion to the government over the lifespan of the mine,” Mr Mavunde noted.
“We shall ensure that the people of Ngwala benefit meaningfully from this large-scale project through local content provisions, thereby transforming the project into a catalyst for socio-economic development for both the local community and the nation at large,” he added.
The project sits atop an estimated 18.5 million tonnes of rare earth mineral reserves, making it one of the largest of its kind in the world.
Once operational, it is expected to position Tanzania as a key supplier of raw materials for medical devices, electronics, and wind power generation technologies.
On his part, the Songwe District Commissioner, Mr Solomon Itunda, said the project is expected to significantly accelerate the growth of the mining sector in Songwe Region, elevating its contribution to the national economy through mineral development.
