Tanzania boosts mineral value addition — what this means for Europe’s industrial and energy transition

[PRESSWIRE] Dar Es Salaam, Tanzania – 1 February 2026 — Tanzania is accelerating a transformation in its mining sector that could strengthen its role as a strategic supplier of minerals crucial to Europe—s industrial and clean energy transition.

Under its National Development Vision 2050, the East African nation is shifting focus from raw mineral exports to domestic processing, creating new avenues for investment and industrial growth.

Tanzania is endowed with significant deposits of gold, diamonds, tanzanite, graphite, lithium, nickel, cobalt, and rare earth minerals. These materials are increasingly critical for Europe—s energy transition, electric mobility, and advanced manufacturing sectors.

Lithium and graphite, for example, are key inputs for lithium-ion batteries that power electric vehicles (EVs) and energy storage systems, while nickel and cobalt feed into battery cathode production.

Gold continues to serve traditional roles in investment, jewelry, and financial reserves, whereas tanzanite, sapphire, and ruby support high-value gemstone markets. Historically, however, much of Tanzania—s mineral wealth was exported in raw form, limiting domestic value creation, industrial diversification, and traceability.

That paradigm is now changing. The government has implemented a series of policy and regulatory reforms aimed at promoting domestic beneficiation. These measures include export controls on unprocessed minerals, levies to incentivize in-country processing, and strengthened oversight by the Mining Commission. The goal, officials say, is to ensure that mineral extraction contributes to long-term development while improving governance, accountability, and revenue retention.

—The focus is no longer just extraction,— the government states in its Vision 2050 framework. —It is about building industries around our minerals and creating sustainable economic value.—

To support these reforms, Tanzania is investing heavily in geoscientific infrastructure. A flagship mineral analysis laboratory in Dodoma, costing 14.3 billion shillings and covering more than 8,200 square meters, is expected to improve verification of mineral quality and value before export.

Regional laboratories in Geita and Chunya complement this network. Between July and December 2025, government labs analyzed nearly 19,700 mineral samples, highlighting the scale of the initiative.

Such investments are particularly important for European companies increasingly operating under strict environmental, social, and governance (ESG) standards. Improved traceability and certification reduce supply chain risks, enhance compliance, and build confidence in responsibly sourced minerals.

The reforms have opened new opportunities across the downstream mining ecosystem, from gold refining and gemstone cutting and polishing to the manufacture of intermediate and finished mineral-based products. By encouraging local processing of minerals like lithium and graphite, Tanzania aims to position itself as a supplier of battery-grade materials—a market of growing interest for Europe and other regions transitioning to renewable energy and EV technologies.

Officials also emphasize the importance of linking mining to manufacturing, a sector that currently contributes 8.1% of GDP and grows at an average of 8% per year. Greater integration can reduce reliance on imported industrial inputs, stabilize export earnings, and insulate the economy from volatile global commodity prices.

Transparent markets and governance

Transparency in mineral trading is another key pillar of Tanzania—s strategy. The government has expanded formal gemstone auctions in partnership with the Tanzania Mercantile Exchange.

By December 2025, three auctions generated sales of 2.74 billion shillings, with government revenues exceeding 247 million shillings. This model draws on lessons from Botswana and South Africa, where structured mineral markets and domestic processing have strengthened accountability and maximized national returns.

In January 2026, Minister of Minerals Antony Mavunde highlighted several initiatives underpinning Tanzania—s broader strategy: the completion of the Dodoma laboratory, construction of renewable energy briquette plants in Tabora and Dodoma, expanded geological surveys, and installation of 32 seismic monitoring stations to enhance safety and sustainability.

Together, these measures aim to create a more predictable and responsible mining environment, a factor that increasingly matters to global investors.

The focus on battery and technology minerals reflects the strategic potential of Tanzania—s mining sector.

Lithium, graphite, and nickel deposits are attracting growing interest from international companies seeking reliable, ethically sourced inputs for electric vehicles, renewable energy storage systems, and advanced manufacturing.

By offering local processing capacity, Tanzania can move beyond being a raw materials exporter to becoming a hub for value-added mineral products, supporting industrial development while meeting international supply chain standards.

Tanzania—s downstream ambitions align closely with Europe—s green transition goals. By processing minerals domestically, the country can help reduce Europe—s dependence on distant or politically sensitive suppliers, improve supply chain transparency, and promote sustainable sourcing. At the same time, domestic beneficiation creates jobs, builds local expertise, and generates higher returns from existing resources.

Looking ahead, Tanzania—s strategy could serve as a model for resource-rich countries seeking to balance extraction with industrial development and responsible governance.

With a combination of policy reforms, investment in geoscience infrastructure, strengthened oversight, and promotion of downstream industries, the country is poised to play a growing role in global mineral supply chains. For Europe, this represents an opportunity to secure reliable, traceable, and value-added sources of minerals critical to its industrial and energy transformation.

———— A14.3-billion-shilling mineral analysis laboratory in Dodoma, spanning more than8,200 square meters, alongside regional labs inGeita and Chunya, is strengthening mineral verification and valuation.

———— BetweenJuly and December 2025, government laboratories analyzed nearly19,700 mineral samples, enhancing quality assurance, traceability, and market confidence.

———— Improved traceability and certification addressenvironmental, social, and governance (ESG)requirements increasingly demanded by European investors and manufacturers.

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