Helium One Global has received Tanzania’s first helium mining license for its Rukwa project, covering 480 sq km. Following the announcement, the company’s shares rose by 17%. The Rukwa basin shows significant helium potential, while discussions point to Asia as the key market for Tanzanian production amid rising global demand.
Helium One Global, which specializes in helium exploration, has received the first mining license for its Rukwa Helium Project in Tanzania. This license encompasses approximately 480 square kilometers in the Momba and Sumbawanga Districts within the southern Rukwa Basin. Lorna Blaisse, CEO of Helium One, confirmed that this marks a significant milestone for helium mining in Tanzania.
Following the announcement of the license, Helium One saw a notable surge in share prices on the London Stock Exchange, with a reported increase of 17% in recent trading. The Rukwa geological basin, part of the East Africa Rift System, features surface helium seeps containing concentrations reaching 10.4%, primarily associated with nitrogen.
Geological assessments in the North Rukwa region suggest it may hold recoverable helium resources potentially amounting to 138 billion cubic feet. During a recent discussion with gas world, Ms. Blaisse addressed the challenges faced by helium exploration companies operating in Tanzania, along with Helium One’s future extraction timelines.
In an online seminar, Phil Kornbluth, the Founder and President of Kornbluth Helium Consulting, indicated that Asia is expected to be the primary commercial market for Tanzanian helium. He noted the necessity of large-scale projects to justify the costs of infrastructure, stating, “They need to be big or not at all.”
While the United States, Qatar, and Russia dominate helium production, the industry is witnessing an escalating demand which necessitates expanded capacity and a more diversified market, particularly in light of recent geopolitical events. In regard to the Galactica project, Helium One Global announced successful drilling of the Jackson-31 well, reaching a depth of 1,210 feet, with samples for helium and carbon dioxide testing sent out for analysis.
In conclusion, the issuance of the first helium mining license in Tanzania to Helium One Global marks a significant advancement for the helium sector in the region. As the company embarks on its extraction plans, it faces both opportunities and challenges in navigating the infrastructure demands of a potential Asian market. The rising demand for helium globally further emphasizes the need for increased production capabilities.
Original Source: www.gasworld.com
