NEWS

Tanzania is poised to become Africa’s leading nickel producer.

It will be producing more than 80,000 tonnes of the mineral annually within few years to come. The current nickel producing leader on the continent is South Africa, which accounts for two per cent of the world’s nickel production.

 

It is followed by Botswana with more than one per cent contribution, according to a report by a political and economic advisor of the US Embassy in Tanzania, Mr Patrick Collins. “By 2015 Tanzania could produce a huge amount of nickel to become the leader in Africa. The country has three nickel mines under feasibility studies at Kabanga, Dutwa and Ntaka Hil.”

 

The Kabanga deposit, which is under Barrick Gold and Xstrate, could produce 40,000 tonnes, Dutwa under African Eagle Resources has a deposit capacity of producing 27,000 tonnes and Ntaka Hill under IMX Resources could produce 15,000 tonnes annually.

 

“Rift Valley countries will be producing 130,000 tonnes annually in the near future. It will be seven per cent of 2011 world production,” he said.

 

The US is interested in mining in Tanzania and other Rift Valley countries. Mr Collins was speaking at the Great Rift Valley Mining Summit in Dar es Salaam. With Tanzania being the host, the event drew participants from Zambia, Malawi, Rwanda, Uganda, Ethiopia, Djibouti, DR Congo and Mozambique.

 

Organised by international communications consortium Entico, based in London, the summit was geared to market the huge mining potentials in Rift Valley countries.

 

Addressing the summit participants, the Commissioner for Minerals, Mr Ally Samaje, said the huge nickel production would be accompanied by an expansion of ports and building of reliable roads for exporting the mineral.

 

“Production of more minerals such as nickel will demand an expansion of Dar es Salaam, Mtwara and Tanga ports. The transport and energy infrastructure must also be upgraded,” he said.

 

According to mining engineers, most of the world production of nickel is used for producing alloys: inox steels for the metallurgical and mechanic industry, special steels for the aero-nautical industry, cupro-nickel for the manufacture of coins, chromium-nickel for cutlery, iron-nickel for magnets, copper-nickel-zinc (German silver) for ornamental and domestic objects and others.

 

Another important fraction of this production is used in plating metallic pieces (electroplating) with ornamental purposes as a protection against corrosion.

 

Among the applications are referred to as production of catalysts, especially Raney nickel, and compounds for multipurpose uses.

 

According to a report by exploration experts of Australia’s IMX Resources, with investment of Sh38 billion, the company in 2006 discovered a reserve of 290,000 tonnes at Ntaka Hill in Nachingwea District.

 

IMX Resources says most nickel from Tanzania and other countries of East Africa’s Rift Valley will be exported to China and India where the demand is rising.

 

Huge unprocessed nickel will be exported because there is lack of technology and requisite infrastructure, especially smelting plants as there are only six smelting plants worldwide, including one in South Africa.

 

According to a report by the International Nickel Study Group, the demand for nickel increased from 1.104 million tonnes in 2001 to 1.572 million tonnes in 2011.

 

However, the upward trend has had peaks and valleys. The latest year 2011 saw the greatest demand for nickel but, in 2007 demand declined to 1.323 million tonnes as the global economic crisis unfolded and in 2008 demand dropped again to 1.286 million tonnes, according to the report.

 

“A further decline was encountered in 2009 to 1.241 million tonnes. Demand rapidly increased in 2010 to 1.464 million tonnes, and continued improving to a record level of 1.572 million tonnes in 2011,” the report explains.

 

“Asia is now by far the largest regional market for nickel representing 65 per cent of total world demand. China alone now accounts for close to 44 per cent of world nickel demand compared with 8 per cent ten years earlier,” the report further reads.