Tanzania signs $667 mln deals for rare earth and graphite projects

Peak Rare Earths

17/04/2023 15:28

DAR ES SALAAM, April 17 (Reuters) - Tanzania on Monday
signed agreements worth $667 million with three Australian
companies to mine rare earth minerals and graphite, part of the
president's drive to fast-track negotiations on long-pending
mining and energy projects.
    Under the deals with Evolution Energy Minerals  EV1.AX ,
Ecograf Ltd  EGR.AX  and Peak Rare Earths  PEK.AX , Tanzania
will have a 16% stake each in jointly established companies to
operate the projects, said Palamagamba Kabudi, the chairman of
the government's negotiating team.
    The U.S. government and allies including Australia, which
has some of the world's largest rare earths producers outside of
China, are scrambling to reduce their reliance on China.
    Rare earths are a group of 17 minerals used in consumer
electronics, electric vehicles, smart phones, renewable energy
and military equipment.
    Under Tanzania's agreement with Peak Rare Earths, the
minerals will be mined in the southwest of the country in
Ngualla. 
    Kabudi said Evolution Energy Minerals and Ecograf would mine
graphite in southern and eastern Tanzania. Ecograf will also
mine for the mineral in the north.
    Graphite is a mineral used for the negative end of a
lithium-ion battery, known as the anode. Around 70% of all
graphite comes from China, and there are few viable alternatives
for batteries.

 (Reporting by Nuzulack Dausen; Editing by Bhargav Acharya and
Alexander Winning, Grant McCool)
 ((Bhargav.Acharya@thomsonreuters.com;))