Tanzania’s long-delayed Mkuju River uranium project has gained renewed political and investment momentum following President Samia Suluhu Hassan’s visit to Russia, with officials signalling that implementation is moving closer to full-scale development.

The project, which has been stalled for more than a decade, is being developed in Tanzania's Ruvuma region by Mantra Tanzania Limited, a subsidiary of Uranium One Group, which is wholly owned by Russia's state nuclear corporation Rosatom.

Uranium One was formerly a publicly traded Canadian uranium company, but it was acquired by Rosatom through its subsidiary Atomredmetzoloto (ARMZ) and taken private in 2013. According to the company, Mkuju River is a “world-class uranium development project” with the Nyota deposit among the largest uranium projects globally with a resource reserve of 152 million tonnes of ore.

Last year, Hassan signed a deal with Rosatom to build a $400mn uranium processing plant as part of a $1.2bn, 20-year plan to extract and process 300,000 tonnes of Tanzania’s massive reserves.

The newly revived Mkuju River project was effectively put on hold after the 2011 Fukushima nuclear accident triggered a prolonged downturn in uranium prices, making many planned uranium developments commercially unviable.

Improving uranium market fundamentals and renewed global interest in nuclear power, including across Africa, have since revived investor interest in the project.

Speaking to The Citizen, Minister for Minerals Anthony Mavunde said talks held in Moscow reinforced commitments between Tanzanian and Russian stakeholders involved in the project, which is central to the East African country’s ambitions to become a significant uranium producer.

“The visit has added significant momentum to the project,” the minister said, adding that key preparatory stages were already complete and that implementation was expected to accelerate.

Mantra Tanzania has previously commissioned a pilot uranium-processing facility to test extraction technology and support the design of the main industrial plant. The company has also issued tenders for infrastructure works at the site.

"Rosatom offers its cutting-edge uranium processing technologies to develop the distinctive geological potential of Tanzania. As with all our partners, we intend to advance cooperation with the country on the basis of equality and mutual understanding," Alexey Likhachev, Director General of Rosatom, said in a statement in July 2025.

"In doing so, Rosatom consistently adheres to the principles of sustainable development while strictly upholding high environmental and social standards. We are delighted to assist Tanzania in taking a pivotal step toward integrating into the global nuclear energy landscape."

Financing discussions are ongoing with Russian and Tanzanian lenders as developers seek capital for construction. Questions remain over long-term funding as the project’s special mining licence approaches expiry in 2028. Officials say renewal is possible under existing legal provisions.

As IntelliNews reported, Tanzania and Russia in June also agreed to expand cooperation in geological research, technical training and mining capacity building, building on long-standing Soviet-era ties.

Tanzania’s renewed focus on uranium comes amid a global shift towards low-emission energy sources, with the International Atomic Energy Agency recognising the country’s development potential and the World Nuclear Association listing it among countries with viable uranium resources.

According to project feasibility studies, Mkuju River could produce more than 4,000 tonnes of uranium annually, potentially positioning Tanzania as one of Africa’s leading producers.

Africa is an important source of uranium for the global nuclear industry, with mines in Namibia, Niger and South Africa accounting for about 14% of world uranium production, according to the World Nuclear Association.

Namibia remains the continent's largest producer, producing 8,000 tonnes annually, and the world's third-largest uranium supplier after Kazakhstan and Canada.

New uranium projects advance across the continent

Meanwhile, Aura Energy (ASX: AEE, AIM: AURA) is targeting a final investment decision (FID) for its Tiris uranium project in Mauritania by the end of 2026 after signing a memorandum of understanding (MOU) with a “major international nuclear utility” and advancing multiple funding options.

The Australian miner said in an update on June 2 that the non-binding MOU covers potential investment, uranium offtake and technical collaboration linked to the Tiris project, which would become Mauritania’s first uranium mine and the country’s first new mine in two decades.

Canada-based uranium developer Global Atomic Corporation (TSX: GLO, OTCQX: GLATF, FRANKFURT: G12) said last month it had secured renewed political backing from Niger’s military-led government for the Dasa uranium project, as the West African state seeks to strengthen mining investment and expand trade links following its post-coup diplomatic realignment.

Global Atomic said on May 26 that members of its executive team, led by chief executive Stephen Roman, met Niger President General Abdourahamane Tiani, Prime Minister Ali Lamine Zeine and Mines Minister Ousmane Abarchi during a visit to Niamey and the Dasa project site.

Niger's uranium mining sector had historically been dominated by French nuclear fuel company Orano S.A. (EPA: ORA), formerly Areva. But the country has continued to reposition its mining and foreign investment relationships since a July 2023 military coup, which triggered tensions with Western governments and regional bloc ECOWAS.

In December 2025, a Memorandum of Cooperation was signed between the Nigerien state company Timersoi National Uranium Company (TNUC) and Uranium One, intended to develop Russian cooperation in uranium mining. Under this partnership, the parties plan to obtain the necessary permits, conduct geological exploration of prospective deposits, and ultimately establish new uranium mining operations at those sites.

Issoufou Tsalhatou, Secretary General of TNUC, stated: "Niger has large-scale plans for developing its uranium mineral resource base and is interested in attracting Russian partners who have reference experience and competencies in managing mining projects based on safety principles. This approach establishes a solid foundation for the successful implementation of projects to develop the country's strategic resources."

Nuclear expansion underpins uranium demand outlook

Egypt's El Dabaa nuclear project, being built by Russia's Rosatom, is expected to become Africa's second operational nuclear power programme and reflects broader interest in nuclear energy as a low-carbon source of baseload electricity. This trend has contributed to stronger long-term demand expectations for uranium and renewed interest in new mining projects such as Mkuju River.

The renewed investment push comes as utilities in Europe, Asia and North America seek to secure future uranium supply outside traditional markets following geopolitical disruptions and tightening global inventories. Uranium prices have strengthened sharply since 2021, supporting new project development across Africa’s mining sector.

Spot uranium prices climbed from below $30 per pound in 2020 to above $100/lb in early 2024 — the highest levels in more than 15 years — before easing back into the $70–80/lb range during 2025 and 2026. The rally has been driven by growing reactor demand, supply disruptions in major producing countries such as Niger and Kazakhstan, and increased long-term contracting activity by utilities seeking to secure future fuel supply.