Mbeya. Tanzania’s minister for Minerals, Anthony Mavunde, has officially launched mining operations at the Porcupine North site in Makongorosi, Chunya District, Mbeya Region.
The mine, owned by Shanta Gold Mining Limited, is the latest development in the government’s push to enhance revenues from the mining sector through strategic regulatory reforms under the leadership of President Samia Suluhu Hassan.
Speaking at the inauguration ceremony in Mkola Ward on April 3, 2025, Mr Mavunde said Porcupine North was among the areas whose licence had been repossessed by the government.
And after the legal process, as concluded with the previous owner, the mining rights were reallocated to ensure increased national revenue collection.
“This site was part of the retention licences that reverted to the government as per the law. After resolving a court case with the previous investor, a transparent selection process was undertaken to identify a new operator, and Shanta Gold Mining Limited emerged as the successful bidder,” Mr Mavunde said.
The company was mandated to commence mining operations within 18 months, and exploration has so far confirmed gold deposits amounting to 110,000 ounces, with the potential to reach 400,000 ounces upon further exploration,” Mr Mavunde added.
He further noted that the project would significantly contribute to the national economy through royalties, taxes, and other levies.
Additionally, he announced that another mining licence for the Saza area in Songwe Region had been allocated to small-scale miners, granting them access to approximately 200,000 ounces of gold reserves valued at an estimated Sh1.2 trillion based on current market prices.
Beyond economic contributions, Mr Mavunde stressed the importance of local engagement in Tanzania’s mining sector.
“This mine will not only create employment opportunities for Tanzanians but will also support community development through corporate social responsibility (CSR) initiatives and ensure increased participation of local businesses in the value chain as part of the Local Content Policy,” he added.
Tanzania’s mining sector has undergone substantial reforms in recent years, with the government seeking to maximise domestic benefits from mineral resources.
The introduction of stringent licensing conditions and increased local content requirements has been part of broader efforts to ensure that the industry fosters national economic growth while empowering local communities.
The country is one of Africa’s top gold producers, with the mining sector contributing significantly to foreign exchange earnings and government revenue.
Permanent Secretary in the ministry of Minerals, Yahya Samamba, lauded the inauguration of Porcupine North as a testament to Tanzania’s conducive investment climate under President Hassan’s administration.
He noted that the government remains committed to fostering responsible mining operations that prioritise economic growth and social development.
Local government officials also expressed their support for the project.
Chunya District Commissioner, Mbaraka Batenga, representing the Mbeya Regional Commissioner, and Songwe District Commissioner, Solomon Itunda, representing the Songwe Regional Commissioner, commended residents of Mkola Ward for their cooperation in facilitating the project.
“We congratulate you, honourable minister, for ensuring that dormant licences are repossessed and reallocated efficiently. By doing so, you are not only strengthening the mining sector but also empowering small-scale miners,” said Batenga.
Shanta Gold Mining Limited’s managing director, Honest Mrema, and the manager of New Luika Gold Mine, Exeuper Lyimo, expressed their gratitude to the government for granting the licences.
They reiterated the company’s commitment to contributing to Tanzania’s mining sector and economic development.
“With this mine, our company has extended the operational lifespan of its mines in Tanzania from 2031 to 2034, and through ongoing exploration, we anticipate further extension. Additionally, all mining activities at this site will be carried out exclusively by Tanzanian companies,” Mr Mrema said.
New Luika Gold Mine currently employs 1,140 workers, 40 per cent of whom are from surrounding communities.
The launch of Porcupine North will create an additional 100 jobs, with 60 percent of them reserved for young people from this region.
As Tanzania continues to implement reforms aimed at optimising the benefits of its vast mineral resources, projects like Porcupine North serve as critical milestones in ensuring sustainable and inclusive economic growth in the mining sector.
