Mbeya – The government has signed a historic Large-Scale Mining Agreement with Panda Hill Tanzania Limited to develop the Panda Hill Niobium Project, marking a significant shift in the global supply of strategic minerals.
The deal, which involves the extraction and processing of niobium, is the first of its kind in East and Central Africa.
This agreement signed on March 24, 2026, is expected to transform the Mbeya region into a major hub for the production and processing of strategic minerals. Niobium is a rare, highly sought-after metal crucial to manufacturing high-strength steel alloys used in large-scale infrastructure, electric vehicles, and aircraft engines.
Currently, the global niobium market is heavily concentrated, with Brazil accounting for approximately 80 to 90 per cent of the world’s supply. Another Brazilian producer contributes about 11 per cent, while Canada supplies roughly 6 to 8 per cent.
Through the Panda Hill project, the nation aims to become the world’s fourth-largest producer of niobium. The project targets an annual production of 100,000 tonnes, which would account for approximately four per cent of global demand.
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The initiative aligns with the country’s 2025–2050 development vision and directives from President Samia Suluhu Hassan to prioritise value addition over the export of raw minerals. This strategy is designed to maximise economic benefits for citizens and strengthen the national economy.
According to Pierre Joubert, General Manager of Panda Hill Tanzania Limited, the project is now entering a new implementation phase following extensive negotiations with the government. The next steps include securing a Special Mining Licence, updating feasibility studies, and preparing electrical infrastructure.
The company will also conduct market assessments for ferroniobium, with a particular focus on the United States market. The project will involve the construction of a mine, a processing plant, and a facility dedicated to producing ferroniobium, a high-value product essential for the steel industry.
This ferroniobium plant will be the first of its kind in Africa and one of only a few globally. The processed product is targeted for export to markets across Africa, Asia, Europe, and the United States, positioning the country within crucial international industrial value chains.
The economic implications of the deal are substantial, with domestic procurement estimated to reach US$1.77 billion. The agreement stipulates that 70 per cent of goods and services required for the project will be sourced locally.
Employment opportunities will also see a significant boost. The project is expected to create over 1,600 direct jobs during the construction phase, with an additional 600 permanent positions once operational.
Furthermore, more than 7,000 people are projected to benefit indirectly from the mining operations. The project will be situated in the Songwe Agricultural Prison area, covering approximately 5,434 acres.
This development is part of a broader community initiative that includes investments exceeding Sh16 billion in local infrastructure.
The community development funds will support the construction of 120 housing units for prison staff, schools, worship centres, and sports facilities. These efforts form part of the company’s Corporate Social Responsibility programmes, complementing government initiatives in education and health.
Under the terms of the agreement, the government will hold a 16 per cent free carried interest in the project. This non-dilutable stake ensures national participation in both the decision-making processes and the financial returns of the venture.
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The agreement was officially signed by Deputy Attorney General Samwel Maneno on behalf of the government. Treasury Registrar Nehemiah Mchechu also signed the shareholders’ agreement, formalising the government’s participation and investment structure in the Panda Hill project.
