Tanzania backs Nyanzaga gold project rollout
DODOMA: THE government has welcomed the decision by Perseus Mining Limited to proceed with the development of the long-awaited Nyanzaga Gold Mine project in Sengerema, Mwanza Region, calling it a positive step for the country’s mining sector.
Minister for Minerals, Anthony Mavunde, said yesterday the move reflects growing confidence in the country’s stable investment environment.
“The project is expected to generate employment, increase government revenue and deliver wider economic benefits to both the district and the nation,” Mr Mavunde said in statement issued yesterday.
Residents of Sengerema, who have waited years for the project’s commencement, now see tangible signs of progress.
Perseus Mining announced on Monday that it had taken the final investment decision to develop the Nyanzaga project, following an update of its feasibility study.
The company has committed to invest approximately 1.4tri/-, including contingency costs, with the first gold production expected in the first quarter of 2027.
According to a statement issued by Perseus, funding for the project will come entirely from the company itself through interest-free, intercompany loans. These loans will be financed from Perseus’s existing cash and bullion balance, which stood at 801 million US dollars as of 31 March.
Perseus Managing Director and CEO Jeff Quartermaine said the company looked forward to working alongside the government to deliver a world-class mining operation.
“Perseus is very excited by its decision to proceed with the development of the Nyanzaga gold project and is looking forward to working alongside the government of Tanzania to deliver a world class mining operation,” Perseus Managing Director and CEO Jeff Quartermaine said.
Though final investment approval is still pending from Perseus’ senior leadership, early groundwork is already underway. The company has spent around 27.5 million US dollars on preparatory work at the site, including infrastructure development, earthworks, construction of a workers’ camp and implementation of a Resettlement Action Plan. New homes are being built for those displaced by the project.
The Ministry of Minerals has pledged to continue supporting investors in the mining sector to promote growth that benefits local communities and the broader economy.
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As of April 2025, the Nyanzaga Gold Project is owned by Perseus Mining Limited, an Australianbased mining company. The firm acquired full ownership through its takeover of OreCorp Limited, completed in May 2024.
The Nyanzaga mine will be the first major gold project developed in Tanzania in 17 years. The government believes its progress marks an important step forward in strengthening the country’s position as an attractive destination for foreign investment.
