Dar es Salaam. Tanzania’s ambitious quest to join the ranks of uranium-producing nations has entered a defining phase, as the long-delayed Mkuju River project edges closer to industrial production amid growing pressure to secure financing and meet critical regulatory milestones.
Valued at approximately $1 billion (Sh2.6 trillion), the Mkuju River uranium project in Namtumbo District, Ruvuma Region, is increasingly being viewed by both government officials and investors as one of the most strategically important mining ventures in the country’s modern history.
For nearly 13 years, the project remained largely dormant after a collapse in global uranium prices forced investors to shelve plans for commercial extraction despite extensive exploration work and regulatory approvals.
Today, however, a combination of rising demand for nuclear energy, stronger uranium market fundamentals and renewed investor confidence has revived hopes that Tanzania could soon emerge as one of Africa’s newest uranium producers.
Yet even as preparations gather pace on the ground, the project faces a crucial challenge: securing long-term financing and advancing construction before the current special mining licence expires in April 2028.
Developers of the project, Mantra Tanzania Limited—a subsidiary of Uranium One Group under Russia’s Rosatom State Corporation—have acknowledged that the remaining duration of the licence has become a key consideration for some financial institutions assessing the project.
Speaking during a recent meeting with government officials in Dodoma, Mantra Tanzania chief executive officer Ilya Shchukin said the company was in the final stages of negotiating financing arrangements with Russian financial institutions as well as Tanzanian banks, including CRDB and NMB.
According to him, the company is seeking capital to finance construction of both the uranium mine and the large-scale processing plant expected to anchor industrial operations in Namtumbo.
“The challenge is that some financial institutions are hesitant to provide long-term loans when the licence is expected to expire in April 2028,” he said.
However, Mantra Tanzania says discussions with lenders remain active and investor interest has not diminished.
Speaking with The Citizen, the company’s Sustainability Manager, Mr Majani Moremi, said financing for the project was being structured in phases to support the approved work programme, including preparations for the construction of the main processing facilities.
He said the company was advancing discussions with a consortium of Russian and Tanzanian banks and had already reached preliminary agreements in that area.
“The project is viewed by the company and its shareholders as a long-term strategic investment for Tanzania, with priority placed on the consistent delivery of key milestones within the current licence period,” he said.
Despite concerns among some financiers, the government has moved to reassure investors that it remains fully committed to the project.
Deputy Minister for Minerals Steven Kiruswa said the government had no intention of revoking the company’s licence and urged Mantra Tanzania to accelerate preparations to ensure uranium production begins within the anticipated timeframe.
Dr Kiruswa said the project carries significant economic importance because of its potential contribution to employment, infrastructure development and industrial growth.
“This is a strategic project for the nation. Tanzanians are expecting to benefit from the economic opportunities that will come with its implementation,” he said.
The renewed momentum surrounding the Mkuju River project follows the commissioning of a pilot uranium processing plant by President Samia Suluhu Hassan in July 2025, a milestone widely regarded as the most significant breakthrough since the deposit was discovered.
The pilot facility was established to test processing technologies under actual operating conditions while generating technical data needed to design the future industrial complex.
According to Mantra Tanzania, the pilot phase has already yielded encouraging results.
Mr Moremi said the pilot plant had enabled engineers to test technological solutions under real deposit conditions, helping to reduce risks associated with the design and construction of the main production facilities.
He noted that confidence in the project had been strengthened by improved global uranium market conditions, geological exploration results confirming the deposit’s substantial resource potential and the successful implementation of the pilot phase.
“The pilot plant has produced positive results so far and has enabled the validation of key technological parameters needed for full-scale development,” he said.
The company’s implementation programme envisages a two-stage approach comprising the pilot phase and the construction of a main processing complex with a design capacity of 3,000 tonnes of uranium per year, scheduled for commissioning in 2029.
To date, approximately 2,500 tonnes of ore have been mined and processed through the pilot facility, with more than 4,000 samples collected for analysis.
The pilot programme has also become an important platform for skills development. Ten specialists have completed training, a further 36 are nearing completion and up to 150 personnel are expected to be trained by the end of the year.
Construction preparations are already underway, including infrastructure works required to support future mining and processing operations.
Construction preparations are already underway at the site, including infrastructure works required to support future mining and processing operations. Both the government and Mantra Tanzania have repeatedly described the project as strategic because of its expected contribution to employment, industrialisation and economic growth.
The Mkuju River deposit is estimated to contain about 139 million tonnes of uranium ore and is expected to sustain operations for more than two decades.
Once operational, the project is projected to contribute more than one percent of Tanzania’s gross domestic product over the long term—a significant contribution for a single mining investment.
Government estimates indicate that more than 4,000 direct jobs could be created during operations, while more than 100,000 indirect employment opportunities may emerge through construction, transport, logistics and associated supply chains.
Mantra Tanzania estimates that at least 21,000 households in Namtumbo and neighbouring communities stand to benefit economically through various value-chain activities linked to the project.
The company has also intensified efforts to develop a skilled local workforce capable of meeting the specialised technical requirements of uranium mining.
Mr Moremi said workforce localisation remained one of the company’s long-term priorities.
“The project is intended not only to produce uranium but also to build local technical expertise and create sustainable economic opportunities for communities around the mine,” he said.
Beyond employment, the company says it has maintained a strong focus on community development.
According to Mr Moremi, Mantra Tanzania has implemented a wide range of social initiatives since 2011, including support for healthcare facilities, construction of a medical centre serving the Likuyu area, development of maternity and paediatric services, establishment of school libraries, support for Selous Secondary School and drilling of water wells in Namtumbo.
“These social programmes will continue as part of our long-term commitment to communities hosting the project,” he said.
The project is also expected to accelerate infrastructure development in one of Tanzania’s least industrialised regions.
Road networks linking remote parts of Namtumbo are already being upgraded to facilitate the transportation of construction materials and future mining equipment.
He said such investments could deliver broader economic benefits by improving connectivity, expanding trade opportunities and enhancing access to social services across southern Tanzania.
For the government, the project aligns closely with President Samia Suluhu Hassan’s industrialisation and value-addition agenda.
During a visit to the project site last year, Minerals minister Anthony Mavunde said uranium development formed part of a broader strategy aimed at maximising value from Tanzania’s mineral resources.
“One of the priorities of the Sixth Phase Government is value addition to minerals,” he said.
“The commencement of this project demonstrates the government’s commitment to ensuring Tanzania benefits more from its mineral resources.”
Beyond mining exports, discussions have also begun on the possibility of establishing a uranium-powered electricity generation facility in the future.
Although still at a preliminary stage, the proposal reflects Tanzania’s growing interest in diversifying its long-term energy mix as industrial demand for electricity continues to rise.
If realised, such a development would place Tanzania among a small group of African countries exploring nuclear-related energy solutions.
Even so, the project continues to attract scrutiny from environmental groups because of its proximity to the Selous ecosystem.
The Mkuju River project is located within an area that was formerly part of the Selous Game Reserve, now known as Nyerere National Park.
In 2012, UNESCO approved Tanzania’s request to excise part of the protected area to allow uranium extraction activities, a decision that drew criticism from conservation organisations concerned about potential environmental impacts.
Mantra Tanzania insists the project complies with international environmental and radiation safety standards and says lessons learned during the pilot phase have strengthened environmental management plans ahead of commercial production.
Meanwhile, local leaders in Ruvuma continue to express optimism about the project’s potential contribution to regional development.
Ruvuma Regional Commissioner Colonel Ahmed Abbas has previously praised the government for creating what he described as a favourable investment environment that enabled the project to move forward after years of delays.
He said local authorities remained committed to working with investors to ensure surrounding communities benefit from opportunities generated by the uranium industry.
