Njombe emerges as new hub for Rare Earth Minerals, key Market in China

By The Respondents Reporter

The Government has announced that Njombe Region is emerging as a new hub for investment in rare earth minerals following the discovery of Rare Earth Elements (REE), specifically Neodymium (Nd) and Praseodymium (Pr), which are in high global demand for modern industrial and technological applications.

Speaking in Mkiu village in Ludewa District, Njombe Region, the Resident Mining Officer for Njombe, Engineer Lucas Mlekwa, said exploration activities are ongoing under Hongji Mining Co. Ltd in collaboration with local stakeholders. 

He noted that the global market for these minerals is largely driven by China due to its rapid expansion in manufacturing and advanced technology industries.

Engineer Mlekwa explained that rare earth elements are essential in the production of electric vehicle batteries, wind power generation systems, and a wide range of electronic devices used globally. He said the discovery places Njombe in a strategic position in supporting the global transition toward green energy technologies.

He added that the region is entering a new phase of economic transformation driven by these strategic resources, stressing that proper development of the project could significantly boost local and national economic growth. 

According to him, Hongji Mining Co. Ltd has completed the first phase of exploration and is now conducting detailed geological studies in the second phase before full-scale production begins. The project area covers approximately 280 square kilometres.

More than TZS 1 billion has already been paid as compensation to residents who were required to vacate the project area. 

Authorities also confirmed that the Environmental Impact Assessment (EIA) process is in its final stages, a key requirement before production activities commence.

The Resident Mining Office emphasized that all procedures are being implemented in accordance with national mining regulations to ensure both economic benefits and environmental protection are achieved.

On project implementation, the Managing Director of Hongji Mining Co. Ltd, Yahya Mohamed, said the company has adopted In Situ Leaching technology, which is designed to minimize environmental impact by avoiding large open pits and underground mining structures.

He said the technology enables more controlled and sustainable extraction while reducing land disturbance and protecting surrounding ecosystems. 

The company reaffirmed its commitment to ensuring that environmental conservation and community welfare remain central to the project.

The project is expected to generate significant economic benefits for local communities through job creation, business opportunities, and increased economic activity in the surrounding areas. 

It is also anticipated to attract new investors into Njombe Region, strengthening Tanzania’s position in the global rare earth minerals market.

With global demand for rare earth elements continuing to grow, particularly in green energy and high-tech industries, the development is expected to boost the mining sector’s contribution to Njombe’s economy and support national efforts to diversify mineral exports.

If fully developed, the project is expected to position Njombe as one of Tanzania’s key strategic mineral hubs, supporting long-term industrial development and enhancing the country’s role in supplying critical minerals to the global market.

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