Gold rush beckons in Tanzania

• Nyanzaga to start gold production in first quarter of 2027

DODOMA: PRESIDENT Samia Suluhu Hassan has said the 523 million US dollars (about 1.36tri/-) investment in the Nyanzaga Gold Project marks a significant milestone in strengthening Tanzania’s mining sector and advancing national economic transformation.

The President made the remarks yesterday at State House Chamwino in Dodoma during a meeting with senior officials of Perseus Mining Limited, led by Chairman Rick Menell, alongside board member of Sotta Mining Corporation Limited, Professor Raphael Chibunda.

She said the project reflects growing investor confidence in Tanzania and the progress made in improving the business environment.

“This investment reflects the confidence investors have in Tanzania and the reforms we are undertaking to enhance the business environment,” she said.

President Samia received an update on the progress of the Nyanzaga Gold Mine in Sengerema District, Mwanza Region, which is currently under full-scale construction and expected to begin production in the first quarter of 2027.

Officials informed her that mineral reserves at the project have increased significantly to 4.0 million ounces as of February 2026, up from 2.3 million ounces previously, representing a 73 per cent increase.

The revised estimate extends the mine’s lifespan to about 16 years. Once operational, the mine is expected to produce an average of 200,000 ounces of gold annually, with peak production projected at 250,000 ounces in 2028.

The Nyanzaga Gold Project is being developed under Sotta Mining Corporation Limited, a joint venture in which Perseus Mining holds an 80 per cent stake while the government of Tanzania owns the remaining 20 per cent.

President Samia stressed that the investment must deliver direct benefits to Tanzanians, particularly communities surrounding the project area.

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“We expect this investment to create jobs, support local businesses, and improve livelihoods in the surrounding communities,” she said.

She further stressed the need for greater Tanzanian participation in the mining value chain, noting that the government is keen to ensure citizens fully benefit from the country’s natural resources.

Construction works at the mine are progressing alongside development of a permanent workers’ camp, expected to be completed by mid-2026.

Meanwhile, housing units for residents affected by the project under the resettlement and compensation programme are nearing completion, with about half already finalised.

On their part, representatives of Perseus Mining Limited commended the government for maintaining a favourable investment climate and pledged continued cooperation in advancing infrastructure and technology within Tanzania’s gold production value chain.

The Nyanzaga Gold Project is among the largest new mining investments in the country in nearly two decades and is expected to significantly boost gold output, export earnings, and government revenues once production begins.