GRAPH: Cobalt price plunge and the EV market
Inflation adjusted cobalt prices are the lowest in 100 years after a deluge of new supply. Stagnating demand from EVs only adds to the bear case.
Tanzania signed a $2.15 billion deal with two Chinese firms to construct a railway linking its main port of Dar es Salaam to a nickel mine in neighboring Burundi.
Tanzania Railways Corp. awarded the contracts to China Railway Engineering Group Ltd. and China Railway Engineering Design and Consulting Group Co. in Dar es Salaam.
“The signing of this contract is the coming into fruition of a bilateral agreement between the governments of Tanzania and Burundi,” Tanzania’s Transport Minister Makame Mbarawa said.
Mbarawa said the main purpose of the 282-kilometer (175-mile) Uvinza-Musongati standard gauge railway line is to facilitate export of the critical mineral and open up cross-border trade between the two East African nations.
The African Development Bank will finance construction through a concessional loan, according to Tanzania’s Finance Minister Mwigulu Nchemba. “This is a very significant moment because it marks the first foray of the AfDB in the financing of Tanzania’s railway projects,” he said.
(By Fumbuka Ng’wanakilala)
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