Australian mining company Perseus Mining has announced a $523 million investment to build the Nyanzaga gold mine in northwestern Tanzania. This decision, confirmed by an official company statement, marks a key milestone in the expansion of its African gold operations.
Perseus Mining, already present in Côte d’Ivoire with the Sissingué and Yaouré mines and in Ghana with the Edikan mine, completed its acquisition of OreCorp, owner of the Nyanzaga project, in May 2024. According to an updated feasibility study, the mine is expected to produce an average of 234,000 ounces of gold annually over a 10.7-year life, or approximately 70 tonnes of gold in total. The project will allow Perseus to expand its African footprint, adding Tanzania as a fourth country of operation after acquiring Orca Gold and its Meyas Sand project in Sudan in 2022.
“We are delighted to make the final investment decision for Nyanzaga, a project that strengthens our strategy of geographic diversification and sustainable growth,” said Perseus Mining Chief Executive Jeff Quartermaine. The company plans to begin development work in January 2025, with first gold production expected in the first quarter of 2027.
The $523 million financing will mainly fund construction of mining infrastructure, implementation of the local community resettlement plan and engineering studies to optimize costs. Perseus also launched an additional drilling campaign in August 2024 to refine its mineral resource estimates, with an initial release expected by year-end.
The Nyanzaga project, which obtained a 15-year special mining license in December 2023, is considered a strategic asset for Tanzania, a country seeking to increase mining revenue by 33% by 2023–2024. With estimated annual production of 234,000 ounces, Nyanzaga will contribute significantly to Tanzania’s gold industry, already supported by companies such as AngloGold Ashanti and Barrick Gold.
Despite enthusiasm surrounding the project, Perseus will face several challenges, including a high strip ratio that could affect profitability compared with other first-quartile mines. However, the company is relying on cost optimization and favorable gold market conditions, with the price recently exceeding $3,000 per ounce, to ensure the project’s economic viability.
Perseus is also committed to complying with Tanzania’s local procurement regulations and working closely with communities to ensure equitable resettlement. These efforts form part of a broader determination to strengthen the mining sector’s contribution to the country’s economic development.
Perseus Mining’s announcement comes as Tanzania strengthens its appeal to mining investors through reforms aimed at combating illegal mining and encouraging structured projects. With Nyanzaga, Perseus Mining consolidates its position among gold leaders in West and East Africa while opening a new chapter for Tanzania’s mining industry.
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