Nyanzaga mine spurs economic growth
MWANZA: THE Nyanzaga Gold Project has generated nearly half a trillion shillings in economic activity before producing its first ounce of gold, underscoring the substantial economic contribution of large-scale mining investments during the construction phase.
The project, being developed by Sotta Mining Corporation Limited—a joint venture between Australia’s Perseus Mining and the Tanzanian government—in Sengerema District, Mwanza Region, is among the country’s largest new mining investments in nearly two decades.
Construction is well advanced, with commercial gold production expected to begin in the first quarter of 2027. Company figures show that between July 2024 and March this year, the project generated 457.7bn/- in direct economic activity, including 371.6bn/- spent on goods and services sourced from Tanzanian suppliers, 60.7bn/- paid in taxes and statutory levies, 25.1bn/- in salaries and employee benefits, and 305m/- invested in community development programmes.
The figures were released ahead of the 5th Local Content Compliance Forum (LCCF), which opened in Mwanza yesterday, bringing together government officials, mining companies, regulators and development partners to discuss strategies for increasing Tanzanian participation in the extractive industry.
Sotta Mining Country Manager, Mr Isaac Lupokela said the project currently employs more than 3,600 workers at the Nyanzaga site in Sengerema District, including 281 direct employees, the majority recruited from host communities, reflecting the company’s commitment to local employment.
ALSO READ: PPPs to drive agriculture investment, growth prospects
Construction of the mine is now about halfway complete, with approximately 250 million US dollars invested so far, he said. Once operational, Nyanzaga is expected to become Tanzania’s first major new gold mine to commence production in nearly 20 years.
The mine is estimated to contain around four million ounces of gold reserves and is projected to operate for at least 16 years, supporting employment, government revenues and business opportunities for local suppliers.
The project is also expected to contribute to the implementation of Tanzania Development Vision 2050, which identifies mining as a strategic sector for industrialisation, economic diversification and sustainable growth. Lupokela said participation in the Local Content Compliance Forum reflects the company’s commitment to transparency and collaboration with the government and other stakeholders.
“Nyanzaga is being developed as a genuine partnership with Tanzania,” he said, noting that the government’s 20 per cent ownership stake, alongside Perseus Mining’s 80 per cent shareholding, ensures the State directly benefits from the project’s longterm value.
Commercial gold production is scheduled to begin in the first quarter of 2027, marking a significant milestone for mining industry and broader economic development.
