Mining

Tanzania: Perseus to Fund Construction of Nyanzaga Gold Mine with $523M

Tanzania: Perseus to Fund Construction of Nyanzaga Gold Mine with $523M
Friday, 02 May 2025 14:19

In 2024, Perseus Mining took over Tanzania’s future Nyanzaga gold mine through its OreCorp acquisition. The company delayed the project’s final investment decision (FID) to January 2025 before greenlighting development on April 28, 2025.

Perseus Mining committed $523 million to construct the Nyanzaga gold operation, targeting first production by Q1 2027. The budget allocates $472 million for plant and infrastructure alongside $51 million in pre-production capital. The miner will self-fund the project using its $801 million cash reserves as of March 31, 2025.

The project promises a 19% after-tax internal rate of return at $2,100/oz gold, generating a $202 million after-tax net present value. A $2,700/oz gold price scenario boosts returns to 34% IRR and $617 million NPV.

Perseus Mining aims to operate 3-4 African gold mines producing 500,000-600,000 ounces annually. Nyanzaga will yield 2 million ounces over 11 years, averaging 200,000 ounces yearly. The company currently runs Ghana’s Edikan mine and Côte d’Ivoire’s Yaouré and Sissingué operations.

Gold’s 2024 30% price surge continues into 2025, hitting a record $3,490/oz on April 22. JP Morgan predicts $4,000/oz by Q2 2026, potentially elevating Nyanzaga’s profitability.

Perseus Mining launched exploration drilling to upgrade resources and extend Nyanzaga’s lifespan. The company retains an 80% project stake while Tanzania holds a 20% free interest.

Aurel Sèdjro Houenou

On the same topic
Fuel imports cost African economies 2-6% of GDP EV adoption could cut fuel use 30-40% by 2030s Infrastructure gaps and high costs slow electric...
ICAO audit cites reforms after 2023 below-standard rating New 20-year aviation master plan targets infrastructure, regulation improvements Nigeria’s...
Chad and Algeria sign agreement to study a 20,000 bpd refinery project Chad continues to import large volumes of refined products despite crude output...
South Africa plans to invest $121 billion in rail modernization by 2050. Freight demand exceeds current rail capacity by over 100 million tonnes...
Most Read
01

Enko Capital acquires Servair’s fast-food unit in Côte d’Ivoire, including the Burger King franchi...

Enko Capital Buys Burger King Côte d’Ivoire in Servair Restructuring
02

(EBID) - EBID aims to allocate nearly 41% of its commitments to projects with environmental and...

EBID makes giant strides for a green transition in west africa
03

As the Japanese automaker faces global headwinds, it is doubling down on its operations in Egypt, ai...

From South Africa to Egypt: Why Nissan is reshaping its African strategy
04

Mobile phones have become essential tools for work, education, payments and staying connected across...

EU Mandates Removable Phone Batteries. What It Means for Africa’s Device Market 
05

Africa produces what it doesn’t consume, and consumes what it doesn’t produce. That stark line captu...

“Private Investors Are Not Philanthropists: Risk Must Be Shared” — Tarek Toko Chabi, BOAD
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.