Tanzania is positioning itself to become a regional hub for the processing of heavy mineral sands, with the Government pushing investors to accelerate the construction of a processing plant in Tanga and increase local value addition.
The development is taking shape as mining operations continue at the Fungoni-Kigamboni project in Dar es Salaam, alongside the construction of the Tajiri processing plant in Tanga.
The projects are being implemented by Nyati Mineral Sands Limited, a joint venture in which the Government holds a 16 per cent non-dilutable stake.
Deputy Minister for Minerals, Dr Steven Kiruswa, issued the directive on Tuesday, August 18, 2026, when he inspected mining operations at Fungoni-Kigamboni and received an update on the construction of the Tajiri processing plant.
Dr Kiruswa said the company must speed up construction to enable Tanzania to capture more value from its mineral resources instead of exporting raw materials.
“The Government has given the company a two-year temporary permit to export raw minerals to allow it to complete construction of the processing plant and strengthen its capital base,” he said.
He said the arrangement should be treated as a transition towards domestic processing, with the Government expecting the company to meet its commitments within the agreed timeframe.
Dr Kiruswa also directed the investor to increase technology and skills transfer to Tanzanians, create more opportunities for local employment and continue implementing corporate social responsibility programmes in communities surrounding the projects.
He further stressed the importance of environmental protection, directing the company to implement its Mine Closure Plan by restoring areas affected by mining activities and leaving them in safe and productive condition.
The emphasis on local processing is in line with the Government’s broader drive to ensure Tanzanians benefit more from the country’s mineral wealth through employment, investment, technology transfer, taxes and development of local industries.
Dr Kiruswa said the Dar es Salaam-Pwani Mining Zone continued to perform strongly in government revenue collection.
During the 2025/26 financial year, the zone collected Sh27.07 billion, exceeding its target of Sh24 billion.
For the 2026/27 financial year, the zone has been assigned a target of Sh33 billion.
In July alone, the zone collected Sh4.06 billion, equivalent to 147.5 per cent of its monthly target of Sh2.75 billion.
The figures underline the growing contribution of mining activities to government revenues and the potential for increased collections as investment and production expand.
Nyati Mineral Sands Limited Chief Executive Officer Wei Huang said the company’s parent company, Shenghe Resources Holding Co Ltd, had selected Tanzania as a strategic processing centre for heavy mineral sands.
He said minerals produced from the company’s projects in other countries, including Madagascar, would be processed in Tanzania.
Since 2024, the Kigamboni project has produced about 85,000 tonnes of heavy mineral sands, with 14,793.35 tonnes already exported, according to Mr Wei.
He said the Kigamboni and Tajiri projects have attracted investment of more than US$30 million, while Shenghe’s overall investment in Tanzania has reached about US$600 million, including its rare earth elements mining and processing project in Songwe.
More than 90 per cent of workers employed across the projects are Tanzanians, while 284 residents of Kigamboni have secured jobs through the project.
The Kigamboni mine is expected to operate for about four years, while the Tajiri project in Tanga has an estimated lifespan of 23 years.
Mr Wei said Shenghe had chosen Tanzania because of its investment environment and the longstanding cooperation between Tanzania and China.
“Shenghe has experience in these operations in different countries and has invested in Australia, Canada, Nigeria, the Democratic Republic of Congo and other countries. We chose Tanzania because of its investment environment and the history of cooperation between the two countries,” he said.
Kigamboni Division Officer Augusta Safari, representing the Kigamboni District Commissioner, said the project was already delivering benefits through employment, government revenues and corporate social responsibility initiatives.
She said all residents affected by the project had been compensated, while the district would continue creating a conducive environment for investment.
Heavy mineral sands are used in the production of various products, including paints, floor and wall tiles and aircraft components.
For Tanzania, the projects present an opportunity to move beyond the export of raw minerals and develop a domestic processing industry capable of generating jobs, technology, government revenue and new business opportunities.
The success of the strategy, however, will depend on the timely completion of the processing plant, stronger participation of Tanzanians and effective environmental management throughout the life of the projects.
