Rare earth and graphite: Tanzania signs USD 667 million deals

Tanzania has signed $667m worth of agreements with three Australian companies for the extraction of rare earth minerals and graphite, as part of the President’s initiative to accelerate negotiations on long-running mining and energy projects.

Under the agreements with Evolution Energy Minerals, Ecograf Ltd and Peak Rare Earths, Tanzania will each hold a 16% stake in companies jointly formed to manage the projects. The US government and its allies, including Australia, which has some of the world’s largest producers of rare earths outside China, are trying to reduce their dependence on China.

Rare earths are a group of 17 minerals used in consumer electronics, electric vehicles, smartphones, renewable energy and military equipment.

Under Tanzania’s agreement with Peak Rare Earths, the minerals will be mined in the south-west of the country, in Ngualla. Kabudi said Evolution Energy Minerals and Ecograf will mine graphite in the south and east of Tanzania. Ecograf will also mine the mineral in the north of the country.

Graphite is a mineral used for the negative end of a lithium ion battery, known as an anode. About 70 per cent of all graphite comes from China and there are few viable alternatives for batteries.

Graphite euro/ton

Rare Earth Oxide euro/ton

Rare Earth Metal euro/ton