The Government of Tanzania has signed an addendum agreement with Nyanzaga Mining Company Limited, raising its free carried interest in the Nyanzaga Gold Project from 16 to 20 percent.
The move is seen as a major milestone in strengthening the country’s stake in large-scale mining and ensuring that Tanzanians benefit more from natural resource wealth.
The signing ceremony, held on August 20 in Sotta Village, Sengerema District, Mwanza Region, was officiated by Minister for Minerals Anthony Mavunde.
He said the Nyanzaga project, a joint venture between the government and Australia’s Perseus Mining Limited through Sotta Mining Corporation Limited, represents the largest gold mine to be developed in Tanzania since 2009.
According to the minister, the investment will exceed TZS1 trillion (about US$500 million) and is expected to generate broad economic and social benefits.
“This project will create thousands of jobs, stimulate local businesses, and expand government revenues through taxes, royalties, and dividends from the government’s 20 percent stake,” said Mr Mavunde.
He noted that the project would also require Tanzanians to play a central role in supplying goods and services.
In addition, Perseus Mining will implement corporate social responsibility programmes aimed at improving education, healthcare, water supply, and infrastructure for surrounding communities.
Mr Mavunde further revealed that Sotta Mining has voluntarily surrendered one of its exploration licences to the government.
He directed that the licence be allocated to small-scale miners in Sengerema, while instructing the State Mining Corporation (Stamico) to provide technical assistance, including a drilling rig, to help artisanal miners raise productivity.
The minister assured Perseus Mining of the government’s commitment to maintaining a stable investment climate, citing supportive policies under President Samia Suluhu Hassan.
“You will not regret your decision to invest in Tanzania. Our mining sector is guided by clear laws, favourable policies, and the determination to ensure that mineral wealth benefits all Tanzanians,” he said.
Perseus Mining’s Chief Financial Officer, Lee-Anne de Bruin, welcomed the agreement and confirmed that construction works would soon commence, with production expected to begin in early 2027.
“This project will deliver significant benefits once it becomes operational. We thank President Samia Suluhu Hassan for fostering the diplomatic relations and policy stability that made this possible,” she said.
Mwanza Regional Commissioner Said Mtanda said the US$500 million investment would transform the region’s economy.
“The project will not only boost government revenues but also accelerate socio-economic growth for the people of Mwanza,” he noted.
Treasury Registrar Nehemia Mchechu described Nyanzaga as one of the largest mining projects in Tanzania, predicting that the government could earn at least TZS400 billion from dividends, royalties, and taxes.
“At a time when global economic shocks remain a challenge, mining has been a stabiliser for Tanzania’s economy. This project will strengthen our foreign exchange reserves and overall growth,” he said.
The Nyanzaga Gold Project is set to become a flagship mine in Tanzania, reaffirming the country’s position as one of Africa’s top mining investment destinations.
