Tanzania and the United States have advanced negotiations on three major investment projects following talks between President Samia Suluhu Hassan and Acting US Ambassador Andrew Lentz at Chamwino State House, The Citizen reported on December 9.
Tanzania's State House described the meeting as a “defining step” in bilateral economic cooperation, signalling renewed momentum behind long-running project discussions.
Officials cited by the newspaper said negotiations covered Tanzania’s proposed $42bn LNG development, the $942mn Tembo Nickel project Black Rock Mining’s (ASX:BKT) $300mn Mahenge Graphite mine. Collectively, the three schemes represent a significant share of Tanzania’s medium-term investment pipeline, which the government has estimated at over $60bn across energy and strategic minerals.
US commercial engagement has increased in the region, with Tanzania identified by US agencies as a priority East African market for energy investment, infrastructure financing and supply-chain diversification. “The United States is committed to a relationship based not on aid dependency but on shared prosperity,” Lentz, accompanied by senior US officials, is quoted as saying.
While no specific commitments have been made public, future US involvement could centre on development finance, with the US International Development Finance Corporation and EXIM Bank positioned to support LNG-linked infrastructure and mineral-processing facilities through long-tenor loans, guarantees and export financing tied to US equipment.
Given that Washington has identified nickel and graphite as strategic minerals, there is also scope for supply-chain partnerships, offtake arrangements and technical support for downstream processing. Such involvement would align with US efforts to diversify battery material sourcing under recent industrial and climate legislation.
US private-sector engagement may also occur through engineering firms, liquefaction-technology providers, and mining-services companies that supply project equipment and expertise. Investor interest is expected to depend on risk-mitigation tools and clarity on Tanzania’s local-content and beneficiation rules.
President Hassan said Tanzania is prepared to complete the remaining procedural steps to progress the projects. “As a non-aligned country, Tanzania is open, ready and committed to working with all partners who respect our sovereignty and share our vision for prosperity,” she said. Her administration has been revising fiscal and regulatory frameworks since 2021 to attract capital to the energy and mining sectors.
Tanzania holds an estimated 57 trillion cubic feet (1.61 trillion cubic metres) of recoverable natural gas, mostly offshore in blocks operated by majors including Equinor (NYSE:EQNR, OSE:EQNR) and Shell (LSE:SHEL, NYSE:SHEL).
Government documents show LNG exports could deliver multi-billion-dollar annual revenue once operational, depending on market prices and final project configuration. The Paris-based International Energy Agency (IEA) forecasts global LNG demand to rise more than 25% between 2022 and 2030, with Asia expected to account for over 80% of incremental consumption.
Tembo Nickel, operated under a framework with Kabanga Nickel, targets one of the world’s higher-grade undeveloped nickel sulphide deposits. Tanzania has required that downstream processing occur locally, with the project expected to supply feedstock for stainless steel and battery-grade materials. Nickel demand for EV batteries is projected to increase substantially over the next decade, driven by cathode-chemistry trends.
Mahenge Graphite is part of a cluster of graphite assets in the Ulanga area, which has attracted investors due to high ore purity and suitability for anode-grade processing. Tanzania ranks among the world’s largest natural graphite holders, and government policy aims to expand domestic beneficiation to capture more value from global battery-supply chains.
Talks between Hassan and Lentz also addressed maritime security, counter-terrorism cooperation, health partnerships and academic links, The Star reported. The United States has supported Tanzanian port and coastal-surveillance upgrades as part of wider Indian Ocean security initiatives.
US commercial presence in Tanzania has grown, with more than 400 American companies operating in energy, logistics, agri-processing, finance and technology. Improved investment-climate indicators, including streamlined licensing and revised local content rules, have been cited by US businesses as factors boosting confidence.
As bne IntelliNews previously reported, Tanzania is expanding domestic processing as part of its minerals industrialisation agenda. A nickel and copper smelting plant in Bahi District, Dodoma Region, is 85% complete, with commissioning of the first production line due in February 2026. The plant will process 300 tonnes of ore per day and provide upstream support for critical minerals supply chains. bne IntelliNews
