The Government of Tanzania has made a significant milestone in the mining sector by granting a Special Mining License (SML) for the extraction of graphite to EcoGraf Limited through its Epanko Graphite Mine located in the Epanko village of Mahenge District, Morogoro Region, on March 3, 2025.
This move is part of the long-term strategy to enhance the country's mining sector while adding value to its natural resources, including minerals.
The project is expected to bring major transformations to the economy, industries, job creation, and Tanzania's role in the global clean energy market.
In a public statement, EcoGraf’s CEO, Andrew Spinks, noted that the Tanzanian government had conducted a thorough assessment of the Epanko project’s progress.
He expressed heartfelt gratitude to President Samia Suluhu Hassan and the Minister for Minerals, Anthony Mavunde, for their support and for approving the issuance of the license.
The government of Tanzania stands to benefit from various taxes and fees generated by the Epanko mine operations.
These revenues will be channeled into developmental projects such as building schools, hospitals, roads, and other community-driven initiatives.
In addition to the expected $850 million (equivalent to TZS 2.1 trillion) to be paid by the company in taxes, royalties, dividends, and payments for services and products during the operation period, it is projected that the project will contribute more than $2.5 billion (about TZS 5.6 trillion) to the national GDP.
The Epanko Graphite project, described as the largest graphite mining project in Africa, has a reserve estimated at 290.8 million tons, ensuring a secure future for its development and providing high-quality minerals for processing, which are crucial for determining market prices.
EcoGraf plans to ensure that the processing of the graphite will take place in Tanzania before being exported, positioning the country to become a hub for producing this valuable mineral, essential for manufacturing electric vehicle batteries and renewable energy storage systems.
The grant of the Special Mining License is a significant step in the development of the Epanko project and a key prerequisite for financing, enabling the first phase of development, which includes the construction of a processing plant with an annual production capacity of 73,000 tons.
Tanzania's role in the global clean energy sector is also set to grow as the world transitions from fossil fuels to renewable energy.
Electric vehicles and renewable energy storage systems require high-quality batteries with substantial charge retention.
Graphite is a vital raw material in the production of these batteries, and the Epanko project will place Tanzania in a strategic position as a supplier to major markets in Europe, Asia, and North America.
Given the high quality of Tanzania’s graphite, the country could become one of the leading producers globally, strengthening its position in the electric vehicle battery market.
In a short time, this could boost Tanzania’s economic diplomacy, particularly with developed countries that have a growing demand for these materials.
One of the major benefits of the Epanko project is the creation of thousands of jobs for Tanzanians. The project will involve not just mining but also processing, transportation, and support services such as food, transport, and security.
This means that mining professionals, engineers, drivers, technicians, miners, and service providers will directly benefit from the project.
As the mine expands from 9.6 km² to 18.9 km², more job opportunities will be created for many Tanzanians, especially those from surrounding communities.
Furthermore, EcoGraf plans to provide training to Tanzanian youth, enabling them to actively participate in mining operations using modern technologies.
Additionally, local businesses will benefit from increased demand for goods and services such as accommodation, food, construction materials, and mining equipment. This will bolster the local economy and drive development across various sectors.
The Epanko Graphite project is not only an economic opportunity for Tanzania but also a critical step toward transforming the mining and industrial sectors.
Through job creation, industrial development, high-value product sales, and positioning Tanzania as a key player in the global clean energy sector, the country is strengthening its competitiveness in the global graphite market.