Tanzania could emerge as a regional hub for processing heavy mineral sands after Chinese mining company Shenghe Resources started construction of a mineral separation plant in Pangani District, Tanga Region.
The facility, being built at Tajiri, is part of Shenghe’s mineral sands investment in the area and is expected to process minerals produced locally as well as raw materials sourced from other African countries.
Shenghe Resources Board chairman Xie Bing said the company had deliberately chosen Tanzania as its processing base despite having heavy mineral sands projects in Mozambique, South Africa and Madagascar.
“We have projects in Mozambique, South Africa and Madagascar, but we have chosen Tanzania as the centre for processing these minerals in Africa,” Mr Xie said.
He was speaking during a visit by Minerals Minister Anthony Mavunde to Shenghe’s operations in Chengdu, China, where the minister was briefed on the company’s mineral processing activities.
Mr Xie said construction of the mineral separation plant in Pangani had already started and that the company expected to complete it within a short period.
Once operational, the facility will provide a processing point for heavy mineral sands from different African countries, potentially allowing Tanzania to capture a larger share of the value generated from the continent’s mineral resources.
The development is also in line with the government’s push to promote mineral beneficiation and reduce reliance on the export of unprocessed minerals.
Mr Mavunde welcomed the investment, saying the decision to establish a processing plant in Tanzania was consistent with the country’s mining policy and legal requirement to add value to minerals locally.
“This decision will contribute to job creation, increased revenue and the development of technology in mineral processing,” he said.
He directed Shenghe to speed up construction and ensure the plant is completed within the agreed timeframe.
The minister also urged the company to complete compensation payments for the few remaining areas affected by the project.
For Tanzania, the investment offers an opportunity to expand beyond mineral extraction into processing, an area the government considers important for increasing the economic benefits derived from the mining sector.
The establishment of a facility capable of receiving mineral sands from other African countries could further strengthen Tanzania’s position in regional mineral value chains, while creating demand for supporting services and technical skills.
Mr Xie also credited President Samia Suluhu Hassan’s administration for what he described as a favourable investment environment, saying it had encouraged Shenghe to expand its activities in Tanzania.
The government has been promoting investments that support local processing, technology transfer, employment and higher revenues from the mining sector.
The Pangani project adds to those efforts by positioning Tanzania not only as a producer of minerals but also as a potential processing centre for resources from across Africa.