Tanzania eyes economic boost as $1.2bn uranium project commences

“According to government estimates, the project will generate over 4,000 jobs during its lifecycle, including 750 permanent roles and trigger thousands more in supporting industries such as logistics, services and local supply chains,” she said.

The Head of State revealed that the government stands to collect $373 million in royalties, $26 million in tree taxes, $15.7 million in withholding tax, $20.8 million in licence fees and $1.01 billion in corporate income tax over the lifespan of the project.

“With a 20 percent ownership stake, Tanzania also expects to earn at least $40 million annually in dividends,” President Hassan added, describing the investor’s commitment and preparedness as commendable. She called for strict adherence to local content laws and corporate social responsibility (CSR) frameworks to ensure that ordinary Tanzanians benefit directly from the country’s natural wealth.

The pilot plant is operated by Mantra Tanzania Limited, a subsidiary of Uranium One Group under Russia’s State Atomic Energy Corporation (ROSATOM). The company is developing the Mkuju River uranium project, which holds an estimated 182.1 million tonnes of ore at a uranium grade of 0.025 percent.

 Uranium One Group head Pavel Larionov said the pilot plant lays a solid foundation for industrial-scale mining and processing, marking the beginning of a long-term partnership built on mutual trust and shared development.

“Construction of the main plant is expected to begin in early 2026, with full operations targeting up to 3,000 tonnes of uranium per year,” he said.

Minerals minister Anthony Mavunde said the project is expected to directly accelerate socio-economic development in Namtumbo District and across Ruvuma Region. He emphasised the government’s policy of mandatory community contributions from resource firms to finance local infrastructure, education and healthcare.

“This project will bridge development gaps and ensure that those living closest to the mine are among the first to benefit.”

President Hassan earlier in the year directed the Energy ministry and Tanzania Electric Supply Company Limited (Tanesco) to support uranium extraction as part of a broader national strategy to diversify the energy mix, including the future development of nuclear power.

Despite receiving environmental clearance in 2012, the Mkuju River project has faced delays caused by fluctuating uranium prices, infrastructure constraints and ecological sensitivities, given its location within Mwalimu Nyerere National Park, formerly part of the Selous Game Reserve.

Minerals permanent secretary Yahya Samamba told The Citizen in June that the Strategic Environmental Assessment (SEA) had been completed, granting Mantra Tanzania the green light to proceed with early-stage implementation.

“There are critical environmental, biodiversity and public health considerations that must be addressed. Technical guidelines will be issued to ensure compliance throughout the project lifecycle,” he said.

Mantra Tanzania sustainability manager Majani Wambura confirmed that construction of the pilot plant is ongoing and expected to be completed by the end of July. Preparations for the main processing facility are also underway, with full completion projected within two to three years.

With an estimated 139 million tonnes of uranium deposits and a projected mine life of 22 years, Tanzania is set to become one of the top 10 global uranium producers.

The role of nuclear energy in economic development is already evident in other African nations. South Africa’s Koeberg Nuclear Power Station has played a vital role in ensuring the country’s energy stability, supporting industrial growth and maintaining investor confidence. Similarly, Egypt is making significant progress in nuclear power development with the construction of the El-Dabaa Nuclear Power Plant.

This project is expected to provide the country with additional energy capacity while creating thousands of jobs in both the construction and operational phases.