Speaking during the signing of a joint venture agreement between the government and Lindi Jumbo Limited in Ruangwa district, Lindi region, Mavunde said Tanzania aimed to challenge dominant global producers, including China, through the development of large-scale graphite projects across the country.
China currently leads global graphite production with around 1.2 million tonnes annually.
“Tanzania is preparing itself to become one of the world’s major graphite producers through more than 30 medium and large-scale mining licences issued for graphite projects,” Mavunde said.
He said the launch of large-scale graphite mining projects placed Tanzania on the global strategic minerals map at a time when demand for graphite was rising sharply due to the global transition to clean energy and electric vehicles.
Graphite is a key component in lithium-ion batteries used in electric cars and energy storage technologies.
Mavunde credited President Samia Suluhu Hassan’s administration for creating a stable investment environment and strengthening resource governance policies that have attracted foreign investors into the mining sector.
“President Samia Suluhu Hassan has continued to build Tanzania into a nation with a clear economic vision, investor-friendly policies and strong management of natural resources,” he said.
According to the minister, Tanzania currently ranks sixth globally in graphite production, producing about 25,000 tonnes annually from two operating projects — Lindi Jumbo in Lindi region and God Mwanga in Tanga region.
He said another 28 licence holders were at different stages of project development and warned companies delaying production risked losing their licences under Tanzanian mining laws.
“I urge all holders of graphite mining licences to commence production within the required timelines to avoid cancellation of their licences,” Mavunde said.
The Lindi Jumbo graphite project, valued at more than $82 million, is expected to produce 40,000 tonnes of graphite annually over an estimated mine life of 24 years.
More than 300 jobs have already been created through the project, officials said.
Professor Sifuni Mchome, chairman of the government negotiating team in the mining sector, said the agreement would guarantee the state greater oversight of revenues and financial flows generated by the investment.
Under the agreement, the Tanzanian government will hold a 16% non-dilutable free carried interest stake in the joint venture company, while Lindi Jumbo Limited will own the remaining 84%.
Lindi Jumbo Limited Chief Executive Andrew Cunningham said the company planned to continue geological exploration alongside the mine expansion programme in order to identify additional deposits and extend the life of the project.
Regional authorities in Lindi welcomed the investment, saying it would stimulate economic growth, create employment opportunities and support broader development in southern Tanzania.
Tanzania has increasingly focused on developing its reserves of strategic and battery minerals, including graphite, nickel and rare earth elements, as countries worldwide intensify efforts to secure supply chains for the clean energy transition.
Notes to Editors
– This is more than a mining story; it is fundamentally about Tanzania's role in the global energy transition economy.
– Graphite is one of the most critical raw materials used in lithium-ion batteries, making the project strategically significant.
– The government's 16% non-dilutable stake reflects ongoing efforts to secure greater national benefits from extractive industries.
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