Mahenge. Tanzania is set to reap significant economic and social gains from the newly launched $300 million graphite mining project, which is expected to boost the country’s position as a major global supplier of critical minerals.
The project, led by Faru Graphite Corporation in partnership with Australia’s Black Rock Mining, will operate for more than 26 years. It is expected to create around 900 direct jobs and 4,000 indirect jobs, while also stimulating infrastructure development in the host communities.
Speaking during the official launch here on Thursday, October 9, 2025, Minister for Minerals Antony Mavunde said the Mahenge project is a joint venture between the Tanzanian government, which holds a 16 percent non-dilutable stake, and private investors, who hold the remaining 84 percent. “This structure protects national interests while benefiting from private sector expertise,” he said.
Until recently, Tanzania contributed just 0.6 percent of the global graphite supply, lagging behind regional producers such as Madagascar and Mozambique.
“The Mahenge project is set to change that dynamic. With large-scale mining licences granted in 2022, full-scale operations have begun, positioning Tanzania as a rising graphite producer,” he added.
Graphite is crucial for electric vehicle batteries and renewable energy storage. The high quality of Mahenge’s graphite, combined with Tanzania’s access to hydropower and deep-water ports, makes the project especially valuable globally.
The government has ensured that residents displaced by mining operations have received new homes, part of Faru Graphite’s social responsibility programme.
Chief Finance Officer Paul Sims said the mine will generate over 900 full-time jobs across four development phases, with 400 positions already filled in Phase 1.
The project also stimulates the local economy through procurement from Tanzanian suppliers, supporting SMEs in accommodation, catering, logistics, and retail.
Infrastructure development is a key component. Faru is funding a 70-kilometre electricity transmission line from Ifakara to Mahenge to power the mine and surrounding communities.
Roads and bridges, including the Farujon Access Road, will also be improved in partnership with Tanroads, enhancing transport safety and local economic opportunities.
The $300 million project is financed through a blended model, with $150 million in debt provided by CRDB Bank, the Development Bank of Southern Africa, and South Africa’s Industrial Development Corporation. The remainder is being raised through equity markets in Australia.
Faru CEO John de Vries said construction has already started, with Phase 1 expected to produce 90,000 tonnes of graphite per year.
Treasurer Nehemiah Mchechu noted that revenue from taxes, royalties and social contributions will support education, healthcare and infrastructure nationwide.
The Ambassador of South Korea, Eun Ju, praised the project as a strategic collaboration that reflects shared goals under Tanzania’s development aspirations as outlined in the Dira 2050, aimed at using mining to drive GDP growth and industrial transformation.
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