Buckreef Gold Mine Expansion: A Game-Changer for Residents of Geita

An in-depth interview with Gaston Mjwahuzi, General Manager of Buckreef Gold Company

The expansion of Buckreef Gold Mine, located in the Geita region, marks a significant milestone in Tanzania’s mining sector. This project aims to elevate the mine’s production, contributing significantly to the nation’s economy and enhancing the lives of local communities. 

Buckreef Gold Company is a joint venture between TRX Gold Corporation through its subsidiary, TRX Gold Tanzania and  the State Mining Corporation (STAMICO) which holds a 45% stake and the investor, TRX Gold holding a 55% stake. TRX Gold Corporation is a Canadian based gold mining investor listed on the Toronto and New York stock exchange. 

In an exclusive interview, Gaston Mjwahuzi, the General Manager of Buckreef Gold Mine, outlines the scope of the expansion, the role of investors, and the future of the mining industry in Tanzania.

Expansion and Investment

At the core of the mine’s expansion is an ambitious plan to increase production capacity, allowing the mine to process more gold annually.This expansion will not only boost production but also enhance operational efficiency.

“Our expansion includes the addition of cutting-edge machinery such as crushers and mills, alongside the construction of new tanks to meet the growing demand for gold processing. The new infrastructure will significantly increase our production capacity from 20,000 ounces to 30,000 ounces per year,” says Mjwahuzi.

This increase in capacity means that the mine can now process a higher volume of ore, leading to greater gold output. But the expansion isn’t just about machines—it’s also about people. The project will create new employment opportunities, both for skilled workers and those in the local communities. 

“We are hiring new employees to help us manage the increased production and ensure everything runs smoothly. With this growth comes the responsibility to train our workforce and equip them with the skills they need to operate this new machinery efficiently,” Mjwahuzi explains.

To bring this vision to life, TRX Gold Corporation has committed a substantial investment of TZS 12.8 billion, which will fund both the expansion and necessary upgrades. “TRX Gold has been instrumental in making this project a reality, providing not only financial investment but also technical expertise and support,” he adds.

Economic Impact

The increased production at Buckreef is expected to translate into greater revenue for both the company and the Tanzanian government. Before the expansion, the mine generated approximately TZS 7.2 billion in royalties annually. With the increased output, this figure is expected to rise to TZS over 14 billion annually.

“This expansion doesn’t just benefit us as a company—it directly benefits the Tanzanian government, as the increased production will lead to higher royalties and taxes, which can be used to fund public services and infrastructure projects,” Mjwahuzi emphasizes.

Future Prospects

Looking ahead, Buckreef Gold Mine has even more ambitious plans. Over the next five to ten years, the company aims to double its production capacity. This goal will be achieved by conducting extensive exploration in licensed areas, identifying new mining zones, and expanding operations to cover a broader area.

“Our long-term vision is to continue growing. We plan to explore additional areas within our licenses to identify new gold deposits. As we discover new zones, we will be able to increase production and solidify our position as one of Tanzania’s leading gold producers,” Mjwahuzi shares.

To realize this vision, the mine will need ongoing investment, both in terms of capital and expertise. TRX Gold Corporation has expressed its commitment to supporting these future plans, demonstrating a long-term interest in the growth of the Tanzanian mining sector.

Investor’s Role

TRX Gold Corporation, the mine’s key investor, has been a driving force behind the expansion. Beyond financial contributions, TRX has provided technical support that has been critical to the success of the project.

“TRX’s involvement goes far beyond monetary investment. They have played an active role in offering technical advice, ensuring that we have the best equipment and processes in place to meet our expansion goals. Their commitment to our success is unwavering,” says Mjwahuzi.

As the expansion progresses, TRX has also expressed its intention to continue investing in Buckreef’s future. The goal is to help the mine reach its full potential and become a major player in Tanzania’s gold mining industry.

Local Content

The project has created significant employment opportunities, with 721 new jobs generated during the expansion phase. Of these, 130 are permanent or temporary jobs directly linked to the mine, while 579 are jobs created through local contractors.

“We are not only creating jobs but also providing training and development opportunities for local workers. Many of the people we hire have no prior experience in the mining sector, but through our contractor, Paulando, we offer training programs that equip them with the skills they need to succeed,” Mjwahuzi explains.

Corporate Social Responsibility

Buckreef Gold Mine is committed to being a responsible corporate citizen. As part of its corporate social responsibility (CSR) efforts, the company has set aside over TZS 420 million for community projects during the 2023/24 financial year. These projects focus on improving infrastructure, healthcare, and education in the areas surrounding the mine.

“As our production increases, so will our contributions to the community. We want to ensure that the communities around us benefit from our success. That’s why we’ve made a commitment to invest in initiatives that improve the quality of life for the people living in these areas,” says Mjwahuzi.

The company’s CSR efforts are aligned with its broader mission of fostering sustainable development. As Buckreef grows, so too does its impact on the local economy, with more opportunities for local businesses and residents to thrive.

As the company looks to the future, its focus remains on sustainable growth and continued investment in the Tanzanian economy. With the support of TRX Gold Corporation and a dedicated local workforce, the sky’s the limit for Buckreef.

“We’re excited about what the future holds. Buckreef is growing, and with it, so is the potential for positive change in our industry and our communities,” Mjwahuzi concludes.