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Australian firm commits $523 million to develop gold project in Tanzania
What you need to know:
- First gold production from the Nyanzaga project is expected in the first quarter of 2027, the company said in the statement.
Dar es Salaam. Australian company Perseus Mining Limited has confirmed a final investment decision (FID) to proceed with the development of the Nyanzaga Gold Project (NGP) in Tanzania, committing approximately $523 million (about Sh1.4 trillion) to bring the project into production.
The project had stalled for months to wait for negotiations between the company and the government.
The Australian-listed company announced in a statement on Monday April 28, 2026 that the investment will be funded entirely through interest-free, intercompany loans, drawn from Perseus’s cash and bullion reserves of $801 million as at March 31, 2025.
Perseus’s managing director and chief executive officer, Mr Jeff Quartermaine, said the company is “very excited” to move ahead with the project, marking the first major gold mine development in Tanzania in 17 years.
“We look forward to working alongside the government of Tanzania to deliver a world-class mining operation," Mr Quartermaine said.
He noted that the addition of Nyanzaga will strengthen Perseus’s African portfolio, which currently includes the Yaouré, Sissingué, and Edikan gold mines. Perseus aims to build a diversified, Africa-focused gold business producing between 500,000 and 600,000 ounces of gold annually.
“With the development of the Nyanzaga Gold Project, Perseus continues to strengthen its claim to be recognised as one of the leading gold producers operating on the African continent,” he added.
First gold production from the Nyanzaga project is expected in the first quarter of 2027, the company said in the statement.
In preparation for the FID, Perseus has already spent around $27.5 million on early-stage activities, including site establishment, construction of temporary accommodation, and the implementation of the Relocation Action Plan to support communities affected by the project.
The updated feasibility study for the project incorporates several technical assessments, leading Perseus to opt for a large-scale, wholly open-pit mining operation during the initial phase of development, rather than the smaller combined open-pit and underground model previously envisaged.
According to the company, the mine is expected to produce a total of 2.01 million ounces of gold over an initial 11-year life span, averaging over 200,000 ounces annually from financial year 2028 to 2035.
Peak production is anticipated to reach 246,000 ounces in FY28, the company satated, adding that the project’s estimated average All-In Site Cost (AISC) is $1,211 per ounce over the life of the mine.
At a gold price assumption of $2,100 per ounce, Perseus forecasts an undiscounted pre-tax free cashflow of $1.13 billion and a post-tax free cashflow of $706 million. The project's Net Present Value (NPV) stands at $404 million pre-tax and $202 million post-tax, with internal rates of return (IRR) of 26 percent and 19 percent respectively.
The Nyanzaga project was acquired in May 2024 following Perseus’s successful takeover of OreCorp Limited. Perseus holds an 80 percent interest in the NGP, with the government of Tanzania retaining a 20 percent non-contributing stake.
Meanwhile, a second phase of resource definition drilling is underway at Nyanzaga, aiming to upgrade Inferred Mineral Resources to Indicated status. This could potentially expand the Ore Reserve and extend the mine’s life beyond the current 11-year estimate.
Perseus’s move follows extensive engagement with the Tanzanian government to finalise the Framework and Shareholders' Agreements governing the project’s development and operations.
