TANZANIA STRENGTHENS STATE PARTICIPATION IN STRATEGIC GRAPHITE PROJECT

Minister for Minerals, Hon. Anthony Mavunde (second left), poses for a photo with, from left, Lindi Jumbo Director, Andrew Cunningham; Lindi Jumbo Legal Advisor and Company Secretary, Ephraim Mrawa; and Gemcorp Representative, William Binedell, after the official signing ceremony of agreements between the Government of the United Republic of Tanzania and Lindi Jumbo Limited regarding the government’s participation in the mining company’s Graphite Project through the joint venture company, Ndovu Graphite Limited, held at Matambarale Village in Ruangwa District, Lindi Region, yesterday.

Minister for Minerals, Hon. Anthony Mavunde, delivers his keynote address during the official signing ceremony of agreements between the Government of the United Republic of Tanzania and Lindi Jumbo Limited regarding the government’s participation in the mining company’s Graphite Project through the joint venture company, Ndovu Graphite Limited.

Lindi, Tanzania - 29 May 2026: The Government of Tanzania has taken another major step in strengthening state participation in the mining sector after signing agreements with Lindi Jumbo Limited to formalise the Government’s stake in the Lindi Jumbo Graphite Project.

The agreements, signed yesterday in Matambarale Village, Ruangwa District in Lindi Region, establish a joint venture company known as Ndovu Graphite Limited through which the Government will hold a 16 percent non-dilutable free carried interest in the project. Lindi Jumbo Limited will retain the remaining 84 percent shareholding.

The signing marks a significant milestone in Tanzania’s strategic minerals agenda as the country seeks to secure greater benefits from its natural resources while positioning itself within the rapidly growing global critical minerals market.

Speaking during the ceremony, Tanzania’s Minister for Minerals, Hon. Anthony Mavunde, described the agreement as a historic achievement that demonstrates the Government’s commitment to ensuring Tanzanians directly benefit from mining investments.

Under the arrangement, the Government will participate in the project without bearing initial capital investment costs while still gaining access to dividends, participation in strategic decision-making, and enhanced oversight of mineral revenues.

Hon. Mavunde said the agreement reflects Tanzania’s evolving approach to mineral resource governance, where the country is moving beyond simply exporting raw minerals toward becoming an active participant in the global minerals value chain.

“The Government under the leadership of President Samia Suluhu Hassan has continued to strengthen Tanzania’s reputation as a stable and investment-friendly destination,” said Hon. Mavunde.

“With clear laws, growing institutions, and a long-term economic vision, investors increasingly view Tanzania not only as a source of minerals but as a reliable economic partner committed to fair and sustainable investment frameworks.”

Graphite’s Strategic Importance

The Minister highlighted graphite’s growing global importance, describing it as one of the world’s most strategic critical minerals due to its essential role in electric vehicle batteries, clean energy technologies, and the global energy transition.

He referred to graphite as the “black gold” of the modern economy, noting that future industrial growth and technological transformation will increasingly depend on minerals that support renewable energy systems and advanced manufacturing.

According to Hon. Mavunde, the Lindi Jumbo Project ranks among the world’s highest-grade graphite projects, with ore reserves averaging 17.9 percent Total Graphitic Carbon (TGC), making it one of Africa’s richest graphite deposits.

Once fully operational, the mine is expected to produce approximately 40,000 tonnes of graphite annually over an estimated mine life of 24 years.

The Minister also reiterated the Government’s commitment to industrialisation and value addition, emphasizing that Tanzania aims to move beyond exporting raw minerals by attracting investments into mineral processing, battery manufacturing, and downstream industries linked to graphite and other strategic minerals.

Addressing stakeholders at the event, Hon. Mavunde said the agreements represent a new era of cooperation between the Government, investors, and citizens.

“Tanzania’s mineral wealth must be transformed into jobs, industries, knowledge, and hope for future generations,” he said.

Lindi Jumbo’s Long-Term Vision

Lindi Jumbo Director Andrew Cunningham described the signing of the agreements as both a reflection on the project’s long development journey and the beginning of a new phase of partnership and growth in Tanzania’s graphite industry.

Cunningham said exploration activities for the project began in 2015 as part of efforts to unlock Tanzania’s graphite potential. Since then, the project has progressed through exploration, technical studies, financing, construction, and production to become what he described as a “truly exceptional graphite deposit.”

“Lindi Jumbo has an estimated mine life of 24 years, with strong exploration potential that could extend operations beyond 50 years,” Cunningham said.

“The value of the project lies not only in its long lifespan but also in the high quality of its graphite, which positions it strongly within the global critical minerals market.”

He noted that graphite has become increasingly strategic because of its importance in industrial applications, advanced technologies, and emerging energy systems.

Production and Economic Contribution

Cunningham revealed that during 2025, the mine processed nearly 170,000 dry tonnes of ore and produced 16,421 tonnes of graphite concentrate with grades ranging between 94 percent and 96 percent TGC.

During the same period, the project mined more than 500,000 tonnes of material, while confirmed sales orders exceeded 27,800 tonnes.

Beyond production performance, the project has also made a substantial contribution to the Tanzanian economy.

According to Cunningham, the company spent TZS 57.5 billion on local suppliers between 2024 and 2025, with 91 percent of procurement directed to Tanzanian businesses.

In addition, the company contributed more than TZS 11.3 billion in royalties, taxes, and statutory payments to the Government.

The project and its contractors currently employ 280 people, more than 95 percent of whom are Tanzanian nationals. More than half of the workforce comes from surrounding villages in Ruangwa District.

Community Development Initiatives

Lindi Jumbo has also continued investing in community development initiatives aimed at improving the welfare of surrounding communities.

Cunningham said the company has allocated more than TZS 162 million toward corporate social responsibility programmes focused on healthcare, education, and community development.

Among the initiatives is the construction of a health clinic in Namilema Village, which is expected to improve access to essential healthcare services for nearby communities.

The agreements signed this week are expected to further strengthen Tanzania’s position as an emerging strategic minerals hub while supporting the Government’s broader industrialisation and economic transformation agenda.