The Government of Tanzania signed a production agreement with Helium One Global Limited on May 2 through joint-venture company Songwe Helium Limited, taking a 17 percent equity stake in a project the partners expect to enter production within 18 months.

The agreement covers approximately 480 square kilometres across Momba District in Songwe Region and part of Rukwa Region, where Helium One has reported helium concentrations of up to 5.5 percent at surface level and as high as 7.6 percent in fractured rock formations. Over USD 60 million has already been invested in the project to date. Tanzania's 17 percent stake is structured to allow direct participation in decision-making and a share of project profits.

The deal positions Tanzania to enter a global helium market currently dominated by the United States and Qatar, which together account for more than 75 percent of supply, with Russia, Algeria, Canada, China and Poland making up most of the remainder. Annual global demand sits above 6 billion cubic feet today and is projected to exceed 8.5 billion cubic feet by 2030.

For Tanzania's mining sector, the signing extends a critical-minerals push that already covers lithium, graphite, niobium, nickel and rare earth elements under the country's Critical and Strategic Minerals Strategy. Helium is included in that strategy alongside other strategic gases. The Songwe project is the first major helium concession in Tanzania to reach a production-stage agreement, and the 17 percent government equity establishes a participation model the country has applied in prior mining joint ventures, including the Panda Hill niobium development signed in March 2026.

Deputy Minister for Minerals Dr Steven Kiruswa, who oversaw the agreement alongside Songwe Regional Commissioner Jabiri Makame and government negotiation committee chairman Professor Sifuni Mchome, said helium production "will also be developed alongside associated gases such as hydrogen, with separate systems" for revenue management — signalling that the project's commercial framework will treat each gas stream as a distinct revenue line.

If the 18-month timeline holds, first commercial output would arrive in late 2027, subject to commissioning of processing infrastructure on the concession. The pace of Helium One's continued capital commitments and the government's coordination with the Songwe regional administration will determine whether the project meets that schedule.