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Highlights
- Helium One Global receives an offer letter from Tanzania’s Mining Commission for a Mining Licence (ML) covering 480km².
- The ML area encompasses the entire southern Rukwa Helium Project, aligning with the original application.
- The Ministry of Minerals approved a larger-than-standard ML to facilitate full project development.
Helium One Global (LSE:HE1), a leading helium exploration company in Tanzania, has received a crucial offer letter from the country’s Mining Commission (MC) for the grant of a Mining Licence (ML) covering its southern Rukwa Helium Project. The proposed ML spans approximately 480km², encompassing the entire project area in the Momba and Sumbawanga Districts of the southern Rukwa Basin.
This development follows approval from Tanzania’s Ministry of Minerals (MoM), which has sanctioned a larger-than-standard ML, allowing Helium One Global to develop the project to its full potential. The company is currently reviewing the terms outlined in the offer letter.
Strategic Expansion for Helium One Global
The offer for an ML represents a significant milestone for Helium One Global, following its discovery at the Itumbula West-1 site last year. The company had submitted its ML application in September 2024, accompanied by a feasibility study that outlined the region's helium potential.
Unlike conventional mining licenses, which cover smaller areas, the approved 480km² ML acknowledges the geological uniqueness of the southern Rukwa Helium Project. The Ministry of Minerals and the MC have recognized that the region's helium resources are linked to a distinctive gas-in-solution play. The company has also identified extensive faulting mechanisms and fracture networks, critical for unlocking the full helium potential.
Boost for Tanzania’s Emerging Helium Industry
The grant of a larger-than-usual ML signals strong government support for helium exploration and development in Tanzania. With global helium supply facing growing constraints, projects like southern Rukwa have the potential to establish Tanzania as a significant player in the helium market.
Helium One Global remains optimistic about the next steps and will continue engaging with Tanzanian authorities to finalize the ML terms. The successful issuance of the licence will pave the way for further exploration and development activities, reinforcing the company’s position as a key helium producer in Africa.
