Tanzania boasts substantial reserves of gold, diamonds, tanzanite, and various industrial minerals. The legal framework governing this sector, primarily the Mining Act No. 14 of 2010 (as amended), mandates the acquisition of specific licenses not only for extraction but also for the buying, selling, and brokering of minerals. This extended article provides comprehensive details on both extraction and trade licenses, aiming to be a key SEO resource for investors and operators.
Part 1: Mining and Prospecting Licenses (Extraction)
These licenses grant the right to explore for or extract minerals from a specific area and are managed by the Mining Commission through the Mining Cadastre Portal.
| License Type | Scope & Purpose | Size & Duration | Key Holder Requirement |
| Prospecting License (PL) | Exclusive right to explore for minerals. | Max 1,000 km$^2$; initial term 4 years, renewable twice for 3 years each. | Must satisfy work program commitments and technical/financial capability. |
| Retention License (RL) | Retains rights over an identified, but currently uneconomic, deposit. | Area defined by the original PL; 5 years, renewable for a further 5 years. | Must demonstrate the deposit is mineable but currently uneconomic. |
| Special Mining License (SML) | Required for large-scale mining operations. | Area defined by feasibility study; up to 25 years, renewable. | Requires a comprehensive feasibility study, environmental compliance, and specific local content plans. |
| Mining License (ML) | For medium-scale mining. | Max 10 km; up to 10 years, renewable. | Requires an approved development plan and environmental clearance. |
| Primary Mining License (PML) | For small-scale mining (Artisanal). | Max 10 hectares; 7 years, renewable. | Must be held by a Tanzanian citizen or an entity wholly owned by Tanzanian citizens. |
Part 2: Mineral Dealing and Trading Licenses
These licenses are mandatory for any person or entity involved in the commercial transaction of minerals after they are extracted. The goal is to ensure all minerals are traded legally and royalties/fees are paid to the government.
1. Dealer License
A Mineral Dealer License permits the licensee to purchase, sell, or otherwise deal in minerals within Tanzania.
- Who Needs It: Large-scale buyers, export houses, and companies that acquire minerals directly from mines for processing or export.
- Requirements: Applicants must demonstrate financial standing, have a designated and secure business premise, and comply with anti-money laundering regulations.
- Obligations: Dealers must maintain accurate records of all purchases and sales, including the source (mine/license holder) of the minerals, and pay the relevant statutory fees and taxes.
2. Broker License
A Mineral Broker License permits the licensee to act as an intermediary in the sale or purchase of minerals on behalf of a dealer or a mine owner, but without taking physical possession of the minerals themselves.
- Who Needs It: Individuals or companies that facilitate trade between mine owners/producers and dealers/exporters.
- Role: Brokers earn a commission for connecting buyers and sellers.
- Obligations: Brokers must also be licensed, maintain transparent records of their transactions, and ensure all dealings involve licensed producers or dealers.
3. Primary Mining License Holder (PML) Mineral Trade
Holders of a Primary Mining License (PML) are entitled to sell the minerals they extract directly to licensed dealers or at designated Mineral and Gemstone Auction Centers (often referred to as ‘Mineral Markets’) without needing a separate Dealer License. However, they cannot act as a general dealer for minerals sourced from other mines.
Key Regulatory and Fiscal Environment
- Royalties: Miners must pay royalties on the gross value of all minerals produced. Rates vary, but for key minerals like gold, copper, and silver, the rate is generally 6%. For diamonds and coloured gemstones, the rate is 6%.
- Inspection Fees: An inspection fee is charged on the value of minerals being exported.
- Local Content: A major focus of the current regulatory environment is local content—the requirement that mining companies prioritize the use of Tanzanian goods, services, and workforce. This is a crucial consideration for SML and ML applications.
- Value Addition: The government strongly encourages and, in some cases, mandates local value addition (e.g., cutting, polishing, smelting) before mineral export.
Disclaimer
The information contained in this article is for general informational purposes only and does not constitute legal or professional advice. Mining and trade regulations in Tanzania are complex, frequently updated, and subject to interpretation by the Mining Commission and other relevant government authorities. Prospective investors, miners, dealers, and brokers should always seek independent, specialized legal and financial counsel familiar with the Tanzanian Mining Act and its subsidiary regulations before undertaking any activities, applying for licenses, or making investment decisions. The author, Sunday Ndamugoba, and the platform hosting this content, are not liable for any actions taken or not taken based on the contents of this article.
Author Details
The author is Sunday Ndamugoba , Partner, RIVE&Co he can be reached at sunday@rive.co.tz