Rare Earth Elements

Tanzania hosts an estimated reserve of 890,000 tonnes of rare earth elements (REE)^[3], including neodymium and praseodymium metals, positioning the country to become a top-five global producer once the flagship Ngualla project reaches full output.

Rare earth elements sit at the heart of Tanzania's critical minerals strategy, alongside graphite, uranium, copper, nickel, cobalt, lithium, and helium.

These minerals are essential inputs for high-tech manufacturing, permanent magnets, electric vehicles, wind turbines, and other green technologies driving global energy transition demand.

Tanzania is still in the early stages of harnessing these resources, with several exploration and mining projects underway, and the Government has committed to ensuring that REE extraction is coupled with domestic value addition rather than raw exports.

Rare Earth Elements Reserves and Resource Base

Tanzania's estimated REE reserve base stands at 890,000 tonnes^[3], spanning multiple deposits across the country.

The reserves include Nd-Pr metals, specifically neodymium and praseodymium, which are the most commercially valuable rare earths used in permanent magnets for electric motors and wind turbines.

Additional deposits contain lanthanum and cerium, broadening the basket of marketable oxides.

The resource endowment places Tanzania among the strategically significant REE jurisdictions in Africa, at a time when global supply chains are actively diversifying away from concentrated sources.

Ngualla Rare Earths Project

The Ngualla Rare Earths Project is Tanzania's most advanced REE development and the flagship of the country's rare earths pipeline.

Ngualla is projected to produce 37,000 tonnes of REE metals annually once in full production.

At that output, Tanzania is positioned to become a top-five global producer of rare earth elements.

The project's scale and grade profile make it a cornerstone of Tanzania's ambition to move up the value chain from exploration to processing and refining.

Wigu Hill and Songwe REE Projects

The Wigu Hill REE project, located in Kilosa District, is another significant development in Tanzania's rare earths portfolio.

Wigu Hill deposits include lanthanum, cerium, neodymium, and praseodymium, providing a diversified rare earth basket suited to both light and magnet-grade applications.

In addition, the 2023 pipeline of critical mineral projects included one rare earth elements project in the Songwe region and one niobium project also in Songwe, reflecting a regional cluster of strategic mineral opportunities^[2].

Together, these projects reinforce Tanzania's positioning across multiple REE deposit types and geographies.

Critical Minerals Context

Rare earth elements are classified within Tanzania's critical minerals group, which also includes graphite, uranium, copper, nickel, cobalt, lithium, and helium.

In 2023, there were 11 advanced projects for critical minerals ready for development in Tanzania^[2], spanning graphite, nickel, heavy mineral sands, rare earth elements, niobium, and uranium.

This portfolio is central to Tanzania's alignment with global green technology supply chains.

Rare earths sit alongside graphite, nickel, iron, copper, and cobalt as the six critical minerals identified as having the highest potential for domestic value addition.

Value Addition Policy and Government Stance

The Government has taken a firm stance that no medium-scale (ML) or large-scale (SML) mining licenses will be issued for critical or strategic minerals, including rare earth elements, unless the investor has a clear plan for domestic value addition through local processing or refining^[1].

This policy ensures that Tanzania does not merely export raw REE concentrates but captures greater economic value and creates jobs within the country.

The 11 minerals with the highest value-addition potential comprise six critical minerals (graphite, rare earth elements, nickel, iron, copper, and cobalt) and five strategic minerals (gold, limestone, phosphate, potash, and synergistic minerals).

For REE investors, this means project feasibility studies must integrate downstream processing components as a prerequisite for licensing.

Investment Opportunities

Mineral exploration in new prospective REE areas remains open, particularly beyond the currently identified Songwe and Kilosa clusters.

Establishment of mineral processing plants for ore preparation and concentration of rare earth ores before smelting or refining is a priority area, aligned with the Government's value-addition mandate.

Establishment of refining facilities capable of separating individual rare earth oxides, including neodymium and praseodymium, offers a strategic entry point into the global magnet supply chain.

Mining and processing of REE deposits under joint venture structures with domestic or international partners is encouraged, particularly for advanced projects such as Ngualla and Wigu Hill.

Mineral beneficiation and downstream value addition tied to REE by-products, including niobium co-located in the Songwe region, broadens the commercial envelope of any single investment.

Last Update: May 2026

References

1. https://www.madini.go.tz/media/HOTUBA_YA_WIZARA_YA_MADINI.pdf (Guide reference #138)
2. https://eiti.org/sites/default/files/TEITI%2015TH%20EITI%20REPORT.pdf (Guide reference #147)
3. https://pubs.usgs.gov/periodicals/mcs2024/mcs2024-rare-earths.pdf (Guide reference #149)