EXPANSION OF PORCUPINE NORTH EXTENDS THE LIFE OF NEW LUIKA MINE – SHANTA






Mine employs 99% Tanzanians

70% of suppliers are Tanzanian companies


Chunya


The expansion of mining operations at the Porcupine North area has extended the life of Shanta Gold’s New Luika Mine by an additional five years — from 2029 to 2034. Ongoing exploration activities are also expected to further increase gold production capacity at the mine.


This was revealed on October 7, 2025, by the Acting General Manager of Shanta Gold – New Luika Mine in Chunya, Engineer Ladislaus Kwesigabo, during an exclusive interview with the Madini Diary team, which visited the mine to witness firsthand the progress of its operations and its socio-economic contributions to Chunya District and the nation at large.


Engineer Kwesigabo stated that following the expansion of Porcupine North, production activities are progressing well, and the company plans to continue exploration in other licensed areas it owns to further extend the mine’s lifespan.


On April 3, 2025, the Minister for Minerals, Hon. Anthony Mavunde, officially launched mining operations at the Porcupine North site located in Mkola Makongolosi Ward, Chunya District. The site originated from retention licenses that were reverted to the Government by law after the conclusion of a court case with the former investor. Subsequently, the Government initiated a transparent process to find a new investor, through which Shanta Mining Company Limited was awarded the license to operate.


New Luika Mine is owned by the Tanzanian company Shanta Mining Company Limited, established in 2001. The company began mineral exploration in 2004 and commenced mining in 2010, with first gold production achieved in 2012. Since then, Shanta has continued operations and currently produces an average of 55,000 to 60,000 ounces of gold annually.


The mine employs 99% Tanzanians, with 40% coming from surrounding communities and 60% from other parts of the country. Additionally, 70% of companies providing goods and services to the mine are Tanzanian-owned, covering areas such as drilling, transportation, and various support services.


> “We have many opportunities for local service providers, but to work with Shanta, one must be registered and operate legally. Our procurement processes are transparent,” said Engineer Kwesigabo.




On women’s employment, he highlighted that the mine promotes gender inclusion, employing women in various fields including research, engineering, and heavy machinery operation.


Regarding community development, Engineer Kwesigabo said the mine continues to invest in health, education, water, agriculture, and livelihood programs to ensure sustainable benefits for the community even after mine closure.


He further noted that small-scale mining activities in Chunya have grown significantly compared to five years ago, largely driven by the rising global price of gold.


However, he pointed out challenges, such as encroachment by some small-scale miners into licensed areas belonging to companies or other miners, urging them to respect legal boundaries and adhere to mining regulations.


The presence of the New Luika Mine continues to generate socio-economic benefits through employment, government revenues, and community development projects under the Corporate Social Responsibility (CSR) program, impacting both Songwe and Mbeya Regions.


Shanta operates in interconnected sites — with its gold processing plant located in Songwe Region, while the new Porcupine North expansion site lies within Chunya District — allowing both regions to benefit from the mine’s activities. Besides New Luika, the company also owns Singida Gold Mine located in Singida Region.


#Vision2030: Minerals for Life and Prosperity


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