On April 3, 2025, the Minister for Minerals, Anthony Mavunde, officially launched mining activities at the Porcupine North Mine located in Makongorosi, Chunya District, Mbeya Region.
The mine, owned by Shanta Gold Mining Limited, marks a significant milestone following the government’s decision to return the mining licenses after resolving legal disputes with the previous investors.
Minister Mavunde explained that the launch is a result of the government’s strategic approach under President Dr. Samia Suluhu Hassan’s leadership to enhance national revenue through the mining sector.
"This development is part of our ongoing efforts to create a robust system for improving the country’s revenues, with the mining sector playing a key role," he remarked.
Minister Mavunde further stated that the licenses had been returned to the government in accordance with the law, following the resolution of the legal case with the previous investor.
"After the dispute was settled, the government ensured a transparent process to select a new investor. Shanta Gold Mining Limited emerged as the successful bidder with the obligation to commence mining operations within 18 months," Mavunde added.
Currently, the proven gold reserves at the site are estimated at 110,000 ounces, with the potential to increase to 400,000 ounces through further exploration.
"This increase will contribute to government revenue through royalties, taxes, and various fees," Mavunde explained.
In addition, Minister Mavunde revealed that one mining license, previously held in the Saza area of Songwe Region, has been transferred to small-scale miners to ensure their participation in the country’s mineral wealth.
The Saza area is estimated to have 200,000 ounces of gold, valued at approximately 1.2 trillion Tanzanian shillings at current market prices.
"We are committed to ensuring that small-scale miners benefit from these resources, and we believe this transfer will empower them to contribute meaningfully to the country’s economy," said Mavunde.
The minister also emphasized that the new mining activities at Porcupine North will generate employment opportunities for Tanzanians, contribute to community development through the Corporate Social Responsibility (CSR) program, and ensure local involvement through the Local Content policy.
"This mine will create job opportunities, and we are committed to ensuring local communities benefit from this development," Mavunde added.
The Permanent Secretary of the Ministry of Minerals, Engineer Yahya Samamba, lauded the launch of mining activities as a testament to Tanzania’s favorable investment climate under the leadership of President Samia Suluhu Hassan.
"The launch of these mining activities reflects the positive environment for investment in Tanzania, and this mine will serve as a unique example of successful collaboration between the government and the private sector," said Engineer Samamba.
At the event, Chunya District Commissioner, Alhaji Mbaraka Batenga, representing the Mbeya Regional Commissioner, and Songwe District Commissioner, Solomon Itunda, extended their congratulations to the residents of Mkola Ward for their cooperation in making this initiative a reality.
"We commend the residents of Mkola for their support, which will benefit both the current and future generations of the ward and the country as a whole," said Alhaji Batenga.
The Managing Director of Shanta Gold Mining, Engineer Honest Mrema, and the Manager of New Luika Gold Mine, Engineer Exeuper Lyimo, expressed their gratitude to the government for granting the mining licenses, enabling the commencement of operations.
"Through this mine, we have extended the life of our mines in Tanzania from 2031 to 2034, and ongoing exploration may further extend this lifespan," Engineer Mrema stated.
He also highlighted that 100% of the mining operations at Porcupine North will be conducted by Tanzanian companies.
"The New Luika Mine currently employs 1,140 people, 40% of whom are from surrounding communities. The commencement of operations at Porcupine North will create more than 100 new jobs, with 60% of those jobs going to young people from these local communities," Mrema concluded.