Tanzania to begin helium extraction after contract signing

The project is expected to begin official production in November 2027, positioning Tanzania to the global helium market, which is highly valuable and has limited competition.

The signing ceremony took place on Saturday, April 2, 2026, at the Office of the Songwe Regional Commissioner and was witnessed by senior government officials and representatives of citizens, including religious leaders.

Speaking during the ceremony, Deputy Minister for Minerals, Dr Steven Kiruswa, said Tanzania has embarked on a historic journey in helium production.

He said the Southern Rukwa helium project is strategic and will place Tanzania among the world’s key producers of the resource.

“Currently, global helium production is dominated by a few countries, particularly the United States and Qatar, which account for more than 75 percent of total output, while Russia, Algeria, Canada, China, and Poland contribute smaller volumes,” said Dr Kiruswa.

He added that global demand for helium has reached more than six billion cubic feet per year and is expected to rise further by 2030 due to its growing use in technology and the health sector.

Dr Kiruswa also said the government will hold a 17 percent stake in Songwe Helium Limited to ensure the country directly benefits from the resource.

Earlier, the chairman of the Ministry of Minerals negotiation committee, Prof Sifuni Mchome, said the government’s free carried interest model enables it to fully participate in mining projects without making upfront capital investment.

He said that through the arrangement, the government will benefit from dividends, royalties, taxes, and various levies, while ensuring transparency, accountability, and protection of public interests.

For her part, Helium One Global Limited Managing Director, Ms Lorna Blaisse, said the project is ready to move into commercial production following successful exploration results.

She said the success of the Itumbula West-1 well in 2024 confirmed the presence of helium in commercially viable quantities.

Songwe Regional Commissioner, Mr Jabiri Omari Makame, said the project will stimulate economic growth through job creation, improved infrastructure, and increased incomes for residents.