Mining, Oil&Gas

Tanzania breaks ground on major graphite mine to harness critical minerals

The project is being developed by Faru Graphite Corporation, a joint venture between the Government of Tanzania, which holds 16 percent shares, and Australia’s Black Rock Mining Limited, which owns 84 percent

Mahenge, Morogoro. Tanzania has officially broken ground on the construction of the Kinywe Graphite Mine in Mahenge, a flagship project aimed at strengthening the country’s position in the global market for critical minerals used in clean energy technologies.

The project is being developed by Faru Graphite Corporation, a joint venture between the Government of Tanzania, which holds 16 percent shares, and Australia’s Black Rock Mining Limited, which owns 84 percent.

It marks a key milestone in the implementation of the government’s strategic mining agenda.

Officiating the launch on October 9, 2025, the Minister for Minerals, Mr Anthony Peter Mavunde, said the project underscores Tanzania’s renewed commitment to accelerating large-scale mineral development in line with the country’s vision for a modern, inclusive mining sector.

“This project is not merely an exercise in resource extraction. It is an engine of growth that will stimulate industrial development, commerce, employment, and social transformation for the Mahenge community at large,” Mr Mavunde said.

According to him, the Mahenge project is valued at approximately $510 million (equivalent to over Sh1.3 trillion).

The Treasury Registrar Mr Nehemiah Mchechu, who also serves as a board member of Faru Graphite Corporation, said the government’s participation in the joint venture safeguards national interests, ensuring tangible benefits through equity, taxation, employment, and broader economic circulation.

Meanwhile, the Chairman of the Board and representative of Black Rock Mining Limited, Mr Richard Crookes, reaffirmed his company’s commitment to implementing the project in accordance with international standards of safety and environmental protection.

“The firm will deploy modern, eco-friendly technologies and expressed gratitude to President Dr Samia Suluhu Hassan for fostering an enabling investment climate that has attracted such a major undertaking to Morogoro,” he said.

It is expected to generate over 400 jobs during the construction phase and more than 900 permanent positions once full-scale production begins.

In addition, around 4,500 indirect jobs will be created through the value chain involving traders, farmers, suppliers, and service providers.

Mr Mavunde further said the government expects to earn more than $3.2 billion (over Sh7 trillion) throughout the lifespan of the mine through taxes, royalties, dividends, and other levies.

Explaining the global significance of graphite, the minister noted that it is one of the critical minerals used in the manufacture of electric vehicle batteries, electronic devices, and solar energy panels.

Through this and other ongoing projects, Tanzania is positioning itself as a global hub for clean technology minerals.

He also urged Faru Graphite Corporation to adhere to the principles of local content and corporate social responsibility (CSR) by prioritising employment opportunities for Tanzanians, especially residents of surrounding villages—and by ensuring that local companies participate in the supply chain.

Speaking during the same event, Morogoro Regional Commissioner Mr Adam Malima commended Mr Mavunde for his strong leadership and oversight in the mining sector.

He observed that Morogoro Region has been privileged to host major national development projects, including the Faru Graphite venture worth about TSh 1.3 trillion.

“This is the largest single investment ever implemented in Morogoro Region,” said Mr Malima, adding that regional experts would organise public sensitisation seminars to educate residents on the economic and social opportunities arising from the project.

Representing the Permanent Secretary of the Ministry of Minerals, the Commissioner for Minerals, Dr AbdulRahman Mwanga, said the government issued the large-scale mining licence in 2024, and compensation totalling over Sh13 billion has already been paid to 254 project-affected persons, who will also be provided with new houses.

He added that work has begun on establishing a 220-kilovolt power transmission line to ensure reliable electricity for the mine.

Parallel to this, community development projects focusing on education, health, and water are being rolled out under the CSR framework.

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