East African Mining News Unearthing Mining Opportunities in East Africa
Related Articles
Perseus Mining’s Nyanzaga Gold Project hasn’t produced a single ounce of commercial gold yet but it has already injected 457.7bn/- into Tanzania’s economy, a pre-production dividend that underscores how much value a modern mining project can generate before the pour even starts.
The Sengerema-based project in Mwanza Region, operated by Perseus subsidiary Sotta Mining Corporation Limited, is on track for commercial gold production in the first quarter of 2027. Between July 2024 and March 2026, the project spent 371.6bn/- procuring from Tanzanian suppliers, paid 60.7bn/- in taxes and statutory obligations, distributed 25.1bn/- in wages and employee benefits, and channelled 305m/- into community development.
Sotta Mining Corporation Country Manager Isaac Lupokela framed the spending as evidence of intent rather than a one-off gesture. He said, “As part of our commitment to responsible and sustainable mining, we are focused on creating lasting value for local communities and the Tanzanian economy. The benefits of the Nyanzaga Gold Project extend well beyond future gold production,” said Lupokela.
Construction has already generated substantial employment, with more than 3,600 people currently working at the project site including 281 direct employees, the majority of them Tanzanian nationals, many recruited from host communities. Lupokela said the company has backed that hiring with workforce development, providing 202 training opportunities over the past year and establishing a Community Employment Committee to improve transparency and local participation in recruitment.
Community infrastructure investment has moved in parallel. “We have completed water supply infrastructure in Sotta East and Sotta West villages, while also expanding health, safety and environmental awareness programmes,” said Lupokela. Longer-term commitments include a replacement primary school already completed, a second school under construction, a new dispensary and ongoing work on the Ngoma Bypass Road, intended to improve road safety for residents and other road users.
Nyanzaga is estimated to hold about four million ounces of gold reserves, with an expected mine life of at least 16 years once production begins, positioning it as a long-term contributor to employment, government revenue and business opportunity and a direct input into Tanzania’s Development Vision 2050, which identifies mining as a key driver of economic transformation. Perseus Mining holds an 80% stake in the project, with the Government of Tanzania holding the remaining 20% through its partnership in Sotta Mining Corporation Limited.
Construction is roughly halfway complete, with approximately US$250 million already invested. For a government watching mining’s contribution to GDP and job creation closely, Nyanzaga’s pre-production numbers offer an early proof point of what the sector can deliver, well before the first gold bar leaves site.
