Mining, Oil&Gas

Lifespan of Tanzania’s Luika Gold Mine extended by five years

Acting General Manager of Shanta Gold–New Luika, Engineer Ladislaus Kwesigabo, said the expansion has not only prolonged the mine’s productive lifespan but also positioned the company for further exploration and investment in its surrounding lice

Chunya. The expansion of mining operations at the Porcupine North deposit has extended the life of the New Luika Gold Mine, operated by Shanta Mining Company Limited, by an additional five years—from 2029 to 2034—marking a major milestone in Tanzania’s gold sector.

According to the Acting General Manager of Shanta Gold–New Luika, Engineer Ladislaus Kwesigabo, the expansion has not only prolonged the mine’s productive lifespan but also positioned the company for further exploration and investment in its surrounding licences.

He revealed this on October 7, 2025, during an interview with Madini Diary reporters who visited the Chunya-based mine to assess its contribution to the local and national economy.

“The Porcupine North expansion has significantly increased our operational potential,” said Eng Kwesigabo.

“Production continues steadily, and we plan to advance exploration in other licensed areas to sustain and possibly extend the mine’s life beyond 2034.”

The Porcupine North site, located in Mkola–Makongolosi Ward, was officially inaugurated for full-scale mining on April 3, 2025, by the Minister for Minerals, Anthony Mavunde.

The area was previously under dormant ownership but reverted to the government after the conclusion of a legal process with a former investor.

The Ministry of Minerals subsequently opened a transparent bidding process, through which Shanta Mining Company Limited secured the rights to operate the site.

Established in 2001, Shanta Mining Company began mineral exploration in 2004 and commenced full mining operations in 2010, with its first gold pour recorded in 2012.

Since then, the company has continued active gold production, maintaining an annual output ranging between 55,000 and 60,000 ounces.

The mine, one of Tanzania’s most successful medium-scale gold producers, has been lauded for its strong local employment record and economic linkages.

Currently, 99 percent of its workforce are Tanzanian nationals, with 40 percent drawn from surrounding communities in Chunya and 60 percent from other regions of the country.

Additionally, 70 percent of the companies providing goods and services to the mine are locally owned, underscoring Shanta’s commitment to national economic empowerment.

The ongoing exploration and operational activities at Porcupine North are expected to further solidify Chunya’s standing as an emerging hub in Tanzania’s gold belt, while enhancing fiscal contributions through royalties, taxes, and community investments.

Industry analysts view Shanta’s sustained success as a reflection of Tanzania’s improving mining investment climate—anchored in clear legal frameworks, transparency in licensing, and the government’s efforts to ensure Tanzanians benefit directly from the country’s mineral wealth.

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