Volume 1 - Issue 4, November - December 2025

This study assessed the economic impact of mineral extraction of New Luika Gold Mine (NLGM) on the livelihoods of local communities living close to the mine in Songwe District. Its specific focus was on how mineral activities stimulated economic growth in the locality. Both qualitative and quantitative research methods were employed to collect information from a sample size of 216 respondents. Data were analyzed by using Statistics Packages for Social Science (IBM SPSS Statistics 20) and content analysis for qualitative data. The findings revealed notable positive and negative influences on the livelihoods of the surrounding communities. Positive influences were registered on employment, education, health, and business improvements while the negative influences were connected to problems like pollution of all sorts and land degradation in nearby villages. As a way of maximizing the positive impacts through minimizing the negative impacts, the study concludes by suggesting the use of bottom-up approach in order to ensure that the investments done in the mining sector improves the livelihoods of the surrounding communities who are the custodian of the resources in question.