Shenghe holds interest in multiple rare earth projects worldwide already, including in Tanzania.
Australian critical mineral developer Strandline Resources has agreed to sell its stake in four Tanzanian mineral sands projects to a subsidiary of Chinese rare earth company Shenghe Resources. According to the company (PDF), Strandline will receive roughly $28.6 million for the transaction. The four projects in Tanzania, namely Fungoni, Tajiri, Sudi, and Bagamoyo, are mineral sands deposits containing zirconium, titanium, and rare earth feedstocks. According to the Institut fédéral allemand des géosciences et des ressources naturelles, this form of deposit occurs predominantly on dunes, rivers, and coastal locations. China is the main export destination for raw materials from mineral sands, which are then processed in refining plants in the country’s south.
Shenghe Continues to Expand Around the World
The purchase of the Tanzanian projects marks Shenghe’s latest move to enter foreign markets. The company holds shares in several international companies in the rare earths industry, including MP Materials, the operator of the Mine de Mountain Pass en Californie. In 2023, Shenghe entered the Tanzanian market when it acquired a 19.9 percent stake in Peak Rare Earths and secured all of the rare earth concentrate for seven years from its Ngualla project, as well as at least 50 percent of the intermediate and final products from the venture.
In December last year, Shenghe made major headlines when it acquired shares of ailing Canadian rare earth miner Vital Metals. Under the deal, Vital agreed to sell its entire raw material to the Chinese company, a setback for Western supply chain emancipation efforts. Shenghe also received a 50 percent interest in Vital’s Wigu Hill rare earth project in Tanzania, with the possibility to increase the position to 75 percent.
Photo : iStock/jasonbennee
