Mega gold project breaks ground
MWANZA: THE launch of the Nyanzaga Gold project in Sengerema District, Mwanza Region, is set to become a key driver of Tanzania’s economic growth, creating thousands of jobs and expanding the country’s mining revenues, the government has said.
Speaking on Wednesday in Sotta Village, Minister for Minerals Mr Anthony Mavunde officiated the signing ceremony of an addendum agreement between the government and Nyanzaga Mining Company Ltd, a joint venture between the government and Perseus Mining Limited, through a newly formed entity, Sotta Mining Corporation Ltd, saying it is a milestone.
As part of the agreement, the government has increased its shareholding in the joint venture from 16 per cent to 20 per cent, further cementing its commitment to ensuring Tanzanians benefit from large-scale mining operations.
“Over 1.4tri/- is expected to be invested in this project, opening up major economic and social opportunities for the people of Sengerema, Mwanza and the nation at large,” said Mavunde.
Minister Mavunde outlined the wide-ranging benefits the project will bring, including, job creation, where thousands of direct and indirect employment opportunities for Tanzanians as well as local participation, in which emphasis will be placed on sourcing goods and services from Tanzanian businesses.
Other benefits include increased earnings through taxes, levies and dividends from the government’s 20 per cent free carried interest as well as the Corporate Social Responsibility (CSR), where the company will support local development by investing in healthcare, education, water supply, infrastructure and economic empowerment projects.
He said that the Ministry of Minerals will closely oversee the project to ensure maximum national benefit.
In a related move, the minister revealed that Sotta Mining Company had voluntarily returned one of its mining licenses to the government.
The ministry will redistribute the license to smallscale miners in Sengerema and State Mining Corporation (STAMICO) has been directed to deploy a drilling rig to assist them in improving their productivity.
“We are committed to uplifting small-scale miners through access to land, technology and technical support,” Mavunde said.
Minister Mavunde assured Perseus Mining Limited that Tanzania offers a stable, investor-friendly environment, backed by sound policies and a government dedicated to ensuring the mining sector benefits all citizens.
Managing Director of Perseus Mining, Ms LeeAnne de Bruin thanked the government for its cooperation, noting that the agreement allows production to begin once construction is completed by early 2027.
“This is a milestone for both our company and Tanzania. We appreciate President Samia Suluhu Hassan’s leadership and the diplomatic support that made this possible,” she said.
On his part, Mwanza Regional Commissioner Mr Said Mtanda welcomed the investment, noting that the 500 million US dollars (about 1.2tri/-) allocated for project construction will transform Mwanza’s economy and increase government revenue.
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Treasury Registrar Mr Nehemia Mchechu described the project as one of Tanzania’s most significant mining ventures, projected to generate over 400bn/- in revenue, while boosting job creation and strengthening the national economy.
“Amid global economMega gold project breaks ground ic uncertainty, the mining sector continues to be a key pillar of Tanzania’s economy. It remains one of our largest sources of foreign exchange,” Mr Mchechu said.
