The expansion of mining activities at Porcupine North has extended the life of Shanta Gold’s New Luika Mine in Chunya District by five years, moving its projected closure from 2029 to 2034. Ongoing exploration is also expected to boost gold production further.
Speaking to Madini Diary during a visit to the mine on October 7, 2025, Acting General Manager Engineer Ladislaus Kwesigabo said operations at the expanded site are progressing smoothly. He noted that further exploration under additional licenses will continue to enhance the mine’s longevity.
The Porcupine North Mine was officially launched on April 3, 2025, by the Minister of Minerals, Anthony Mavunde.
The site, located in Mkola Makongolosi Ward, became available after the government reclaimed dormant licenses following a legal dispute with a previous investor. Shanta Mining Company Limited successfully secured the area through a transparent selection process.
Shanta Mining, a Tanzanian-owned company established in 2001, began exploration in 2004, started mining in 2010, and produced its first gold in 2012. Today, the company averages 55,000 to 60,000 ounces of gold annually.
The mine employs 99 percent Tanzanians, including 40 percent from nearby communities. About 70 percent of local service providers supplying the mine are Tanzanian companies, covering machinery, transport, and other services.
Engineer Kwesigabo emphasized that Shanta offers employment opportunities for women in roles ranging from researchers and engineers to equipment operators.
The mine has also invested heavily in community development projects, including healthcare, education, water supply, agriculture, and programs that continue to benefit local residents even after mining ends.
Small-scale mining in Chunya has grown significantly over the past five years, fueled by rising gold prices. However, the company has raised concerns over some small-scale miners encroaching on licensed areas, urging adherence to the law.
The New Luika Mine continues to provide substantial economic and social benefits through job creation, government revenue, and regional development projects in Songwe and Mbeya-Chunya, driven by Shanta’s corporate social responsibility programs.
Shanta operates across connected areas, with its mineral processing plant in Songwe Region and the expanded Porcupine North site in Chunya. In addition to New Luika, Shanta also owns Singida Gold Mine in Singida Region.