Tanzania is actively promoting the in-country processing and refining of graphite as a key component of its National Development Vision 2050, which aims to transition the country from exporting raw minerals to value-added commodities. This strategic shift is designed to foster rapid industrialization, generate high-skill employment opportunities, and significantly increase foreign exchange earnings. The government is pressuring mining conglomerates to establish processing and refining facilities within Tanzania, rather than shipping raw concentrate abroad.
A significant example of this initiative is the Lindi Jumbo Graphite Project, a joint venture between the Tanzanian government and Lindi Jumbo Limited. The government has secured a 16% non-dilutable free carried interest in the project, without bearing initial capital costs, while Lindi Jumbo Limited retains an 84% stake. This project, expected to have a 24-year mine life, projects an annual production of over 40,000 tonnes of graphite concentrate with an average grade of 88%, making it one of Africa’s richest deposits with ore reserves averaging 17.9% Total Graphitic Carbon (TGC). The initial capital cost for the project is estimated at approximately $27.8 million, with total production valued at about $816 million over its lifetime.
Government revenues from this project, including royalties, inspection fees, service levies, corporate income tax, dividends, and withholding tax on dividends, are projected to reach approximately $233 million, with dividend payments alone estimated at $41.8 million. The partners are expected to earn more than $219 million over the same period. The project currently employs 280 people, with over 95% being Tanzanian nationals, and 91% of procurement spending ($57.5 billion TZS in 2024-2025) directed to Tanzanian businesses. Tanzania is also accelerating the Mahenge graphite project and supporting facilities like EcoGraf Limited's TanzGraphite Mechanical Shaping Facility, which will value-add 20,000 tonnes per annum of flake graphite into spherical graphite for lithium-ion battery production.
Tanzania currently ranks sixth globally in graphite production, with an annual output of 25,000 tonnes from two major producers, Lindi Jumbo Limited and God Mwanga. The country aims to significantly increase its competitiveness against global leaders like China. The Minister for Minerals, Anthony Mavunde, highlighted graphite's critical role in electric vehicle batteries and clean energy technologies. The government is also engaging with the EU Commission for support, particularly for value-addition projects like EcoGraf's facility, which is projected to have a Stage 1 construction cost of $58.6 million and an operating cost of $419 per tonne, benefiting from Tanzania’s hydro-energy and efficient logistics as an export hub.
