TPSF: Create graphite value-addition industries

TANZANIA has been advised to take advantage of its huge graphite deposits and create value addition industries to maximise returns, while fending off competition.

Experts further advised that instead of exporting raw graphite the country can add value and create a manufacturing hub for batteries and other accessories for computers and phones.

Tanzania Private Sector Foundation (TPSF) Chairman (Service Cluster), Octavian Mshiu said the country stands a chance of taking advantage of the current global geo-economic-political and providing a solution out of the previous monopoly.

“I banked on the creation of internal or regional consumption of these rare minerals through the attraction of manufacturing hub for batteries and other accessories for computers and phones…

“And we can become exporters of these products. This will guarantee us of the market and create spill effects not only in Tanzanian economy, but regionally at large,” Mr Mshiu, who is also a TPSF board member, told ‘Daily News’, on Wednesday.

He said the risk in these markets with many mergers and acquisitions happening in international markets, the competitors may simply strive to acquire these new developments and stall them to enjoy market controls and differential advantages in competition.

“…That is the risk that we may encounter,” Mr Mshiu said.

The country recently signed 667 million US dollars graphite mining project with three Australian companies, Peak Rare Earth with a big chunky of 439 million US dollars, and Evolution Energy and EcoGraft sharing the remaining sum.

However, the country is expected to gain several new developments including a 16 per cent stake in all three graphite companies, plus taxes for both local and central government, technological transfer, and an opportunity to push for the establishment of processing and technological factories.

Additionally, the country is believed to hold one of the largest world deposits of graphite, and rare earth minerals which have become so important due to their use in the technological revolution, mostly used in making computers, smartphones and other high-end products and accessories.

In 2020, the country’s estimated graphite reserves were at 17 million tonnes, ranking 6th in the world after Turkey’s 90 million tonnes, China’s 73 million tonnes, Brazil’s 70 million tonnes, Madagascar’s 26 million tonnes, and Mozambique’s 25 million tonnes.

Total global reserves of graphite were estimated to be 323.8 million tonnes, with Tanzania accounting for about 5.0 per cent.

Graphite is the most commonly used to serve as the anode material in lithium-ion battery manufacturing due to its relatively low cost and its energy density.

Mr Mshiu said TPSF can work with the government to study the requirements of the value and supply chain of similar industries from experience in other countries and align the country to participate actively.

The participation is from the area of skills preparedness, supporting industries and relevant friendly legal and regulatory frameworks, just like how we are doing in sensitizing the public for the East African Crude Oil Pipeline Project (EACOP), liquefied natural gas and other strategic projects.

“We must know our competitors and smartly make sure we safeguard our interests,” Mr Mshiu said.

The largest graphite deposits in the country are located in the central and southeast regions. Active graphite projects include Bagamoyo, Bunyu, Chilalo, Epanko, Nachu, and Lindi Jumbo.