Shenghe Resources Deepens Tanzanian Rare Earth Ties, Eyes Africa Operations Hub: Buying Ngualla Rare Earth Project

Highlights

  • Shenghe Resources welcomes Tanzanian delegation, signaling deepening Sino-African cooperation in critical mineral development
  • Company plans to establish Africa Operations Center in Tanzania, focusing on responsible resource development and local economic empowerment
  • Strategic projects include Nyati zircon-titanium sands and Ngualla Rare Earth Project, with emphasis on ESG principles and technology transfer

China’s Shenghe Resources welcomed a high-level delegation from Tanzania, led by Minister Adolf Mkenda (opens in a new tab) of the Ministry of Education, Science and Technology, along with Amos Nungu (opens in a new tab), Director General of the Tanzania Commission for Science and Technology. The visit, which took place during the Belt and Road Technology Exchange Conference, underscores the intensification of Sino-African cooperation in critical mineral development.

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China Belt and Road to Tanzania

During the talks, Shenghe Chairman Xie Bing emphasized the long-standing friendship between China and Tanzania and reaffirmed shared strategic interests in education, technology, and economic development. He confirmed Shenghe’s intent to establish an Africa Operations Center in Tanzania to coordinate the company’s broader regional ambitions. This move would consolidate Shenghe’s position across Africa’s mineral supply chains, promoting a “responsible development” model that includes community engagement, environmental stewardship, and local talent training.

Projects

Vice Chairman and General Manager Huang Ping (opens in a new tab) outlined the company’s growing Tanzanian portfolio. The Nyati zircon-titanium sands project has entered Phase I production and is ramping up capacity, while Phase II is being fast-tracked.

Meanwhile, Shenghe has signed a formal acquisition agreement for the Ngualla Rare Earth Project, with regulatory approvals and development planning now underway.

Shenghe claims its Tanzanian expansion will align with ESG principles—deepening supply chain localization, integrating local resources and workforce development, and maximizing long-term resource returns. The company aims to serve both global demand and local economic empowerment in a coordinated model.

Minister Mkenda praised Shenghe’s rapid project execution and innovation capacity. He invited the company to partner more deeply with Tanzanian schools, universities, and research institutes—especially in vocational training, technical education, and student exchange programs. He emphasized that scientific collaboration between China and Tanzania should serve as a foundation for long-term growth in both human capital and industrial capacity.

Implications for the West:

Shenghe’s deepening roots in Tanzania—and its potential control of the Ngualla project—signal a tightening grip by Chinese firms on Africa’s rare earth production base. As the U.S. and EU scramble to diversify away from Chinese supply chains, Shenghe’s creation of a regional hub may harden China’s strategic position, particularly in the supply of NdPr oxides, heavy rare earths, and titanium-bearing byproducts. Western stakeholders must accelerate alternative sourcing, financing, and diplomatic partnerships or risk being shut out of Africa’s rare earth future.

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Source: Shenghe Resources Co. Ltd., June 13, 2025

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One response to “Shenghe Resources Deepens Tanzanian Rare Earth Ties, Eyes Africa Operations Hub: Buying Ngualla Rare Earth Project”

  1. Rare Earths Investor Avatar
    Rare Earths Investor

    Question here related to Vital Metals and TAN/Shenghe. What is the present legal standing for VM and its TAN Wigu RE project? Montero just settled its RE expropriation claim against TAN, so now with Shenghe also invested in VM will the TAN Wigu project impact the Chinese entities’ moves regarding VM? Clearly, Shenghe can’t buy into VMs CAD RE project (it got stopped trying to buy past CAD VM mined). Therefore, will Shenghe make a move to increase its mined output by combining Peaks with a potential VM resource? We will see. GLTA – REI

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