Tanzania signed agreements worth $667 million with three Australian companies on Monday to extract rare earth minerals and graphite. It is a part of the president’s drive to speed negotiations on long-pending mining and energy projects.
According to Palamagamba Kabudi, the government’s negotiating team head. Tanzania would have a 16% ownership stake in jointly established entities to administer the projects. They are under agreements with Evolution Energy Minerals, Ecograf Ltd, and Peak Rare Earths.
The United States and its allies are moving quickly to reduce their reliance on China as a supply of rare earth. Outside of China, Australia is home to some of the world’s largest producers of rare earth.
The rare earth family has 17 elements that have uses in everything from consumer electronics to electric automobiles to cellphones to renewable energy to weaponry.
Peak Rare Earths will be in charge of mining activities in Tanzania’s southwest area, namely in the town of Ngualla.
According to Kabudi’s remarks, graphite would be collected from southern and eastern Tanzania. Ecograf also intends to mine for the chemical in the Arctic.
A lithium-ion battery’s anode, or negative terminal, is made of graphite. China is the world’s biggest producer and exporter of graphite, and there are no viable replacements for use in batteries at the moment.
