Sengerema. The Nyanzaga Gold Project, a joint venture between the government of Tanzania and Perseus Mining Limited through Nyanzaga Mining Company Ltd, is set to become a key catalyst for economic growth and community development, the minister for Minerals, Anthony Mavunde, has said.
Speaking on August 20, 2025 at Sotta Village in Sengerema District, Mwanza, during the signing ceremony of an additional agreement between the government and Nyanzaga Mining Company Ltd for large-scale gold extraction through Sotta Mining Corporation Ltd, Mr Mavunde said the project has the potential to deliver both national and local benefits.
The government increased its stake in the joint venture from 16 to 20 percent as part of the agreement, which anticipates investments exceeding Sh1 trillion.
Mr Mavunde said the initiative will create new economic and social opportunities for Tanzanians, particularly residents of Sengerema District and Mwanza Region.
“The project will provide direct and indirect employment for thousands of people, addressing unemployment challenges, while ensuring active participation of local communities through provision of goods and services required by the project,” he said.
Other expected benefits include substantial government revenue through taxes, levies, and the 20 per cent free carried interest, which will be channelled into national development projects.
The company is also obliged to engage in corporate social responsibility initiatives, including improvements in education, healthcare, water, infrastructure, and other economic development programmes for local communities.
Mr Mavunde stressed that the ministry of Minerals will closely monitor the project to ensure maximum benefits to the country and its citizens.
He also noted that Sotta Mining had returned its licence to the government, which will now be reallocated to local miners, while technical support will continue, including deployment of a drilling rig by the National Mining Corporation (Stamico) to boost productivity of small-scale miners.
Perseus Mining Company’s Managing Director, Lee-Anne de Bruin, expressed appreciation to the government for facilitating the agreement, which allows production to begin once construction is completed in early 2027.
She acknowledged President Samia Suluhu Hassan for fostering diplomatic relations that supported the investment process.
Mwanza Regional Commissioner, Said Mtanda, said the $500 million investment will transform Mwanza and increase government revenue in the region.
Registrar of the Treasury, Mr Nehemia Mchechu, added that the project will deliver sustainable development, generate Sh400 billion in government revenue, and strengthen Tanzania’s economy through foreign earnings from mineral exports.
“Gold remains a critical resource that supports our economy, especially amid global economic fluctuations,” Mchechu emphasised.
