The Tanzania State Mining Corporation (STAMICO) has officially been granted a large-scale exploration and mining license for Rare Earth Elements (REE) at the Wigu Hills site in Morogoro, marking a major milestone in the country’s efforts to harness its strategic mineral resources for national development.
The license was handed over by the Minister of Minerals, Anthony Mavunde, during a well-attended public ceremony in Sesenga village, Mgazi Ward, July 24, 2025. The move follows the conclusion of an investment dispute at the International Centre for Settlement of Investment Disputes (ICSID) after the Tanzanian government revoked the license of Wigu Hill Mining Company Limited.
In November 2024, Canadian company Montero Mining and Exploration Ltd announced it had reached a settlement worth US$27 million with the Government of Tanzania regarding the expropriation of its Wigu Hill REE project. According to Montero, the agreed settlement was to be paid in three tranches, beginning with US$12 million received by November 20, 2024, followed by US$8 million to be paid in January 2025 and a final installment of US$7 million to be paid in February 2025.
Addressing the crowd during the license handover event, Minister Mavunde highlighted the critical role of Rare Earth Elements in modern technology and global industry. He noted that these minerals are essential for manufacturing defense equipment, smartphones, computers, electric vehicle batteries, medical devices, and a range of other advanced technologies.
“Rare Earth Elements are now in high demand worldwide due to their indispensable role in modern tech,” Mavunde said. “This is a golden opportunity not only for the people of Sesenga and Morogoro District, but for the nation as a whole to benefit from the responsible and strategic development of these resources.”
Mavunde emphasized that the project will enhance government and local authority revenues while opening doors to employment and business opportunities for surrounding communities. He also reaffirmed the government’s commitment to promoting local content and ensuring companies operating in the area fulfill their corporate social responsibility obligations.
STAMICO, which is wholly owned by the government under the Ministry of Minerals, was established under the Public Corporations Act through Government Order No. 163 of 1972, and later amended in 2014. The awarding of this license marks STAMICO’s entrance into large-scale mining operations, with a focus on ensuring the benefits of mineral wealth are broadly shared among Tanzanians.
