Tanzania is one of the African Countries endowed with abundant natural resources, the country is rich with mineral deposits ranging from gold, diamonds, platinum and various types of gemstones among others.
We provide professional advice on all stages of mining activities from exploration, application/ renewal of mining licences, Joint Venture Arrangements, Environmental and related matters. For a company to carry mining activities in Tanzania must be Incorporated in Tanzania. Governments mandatory participation requirement of not less than 16% free carried interest. Government can also participate through conversion of tax expenditure (tax exemptions) to equity of not more than 50%. There is also a Local content requirement including banking. Licences which are required include Primary license, Special Mining licence and Mining License. Associated licences include Prospecting licence, Broker licence and Processing licence. Mining is regulated by the Mining Commission which is under the Ministry of Minerals.
The Firm has had the opportunity of working for some of the participants in the mining industry in disputes concerning mining rights. It has also carried out due diligence on behalf of some mining companies thereby facilitating transfer of mining rights or formation of Joint Venture companies.
All those activities are obviously regulated by the Mining Act Cap. 123, R. E. 2002 which is considered to be more business friendly. The Firm has also delved in understanding the current legal and regulatory framework in the mining sector following the enactment of the Natural Wealth and Resources Contracts (Review and Renegotiation of Unconscionable Terms) Act, 2017 and The Natural Wealth and Resources (Permanent Sovereignty) Act, 2017. In January 2018 the Government also passed regulations, Mining (Mineral Rights) Regulations of 2018 which among other issues intends to audit and review various mining licenses. All the legislations have some impact to the current licenses and agreements.
Mining in Tanzania
Mining in Tanzania is regulated by the following legislations which in one way or another touch or affect the carrying of mining activities in Tanzania, these are;
- Mining Act 2010 R.E 2018
- Land Act of 1999
- Village land Act of 1999
- Natural Wealth & Resource Act, 2017
- The Companies Act, 2002
- The Explosive Act, 1963
- The Environmental Management Act, 2004
- The Investment Act
- The Law of the Child Act, (Child Employment Regulations)
- The Mining (Diamond Trading) Regulation 2019
- The Mining (Local Contents) Regulation, 2019
- The Explosive Act, 1963
- The Mining (Mirerani Controlled Area) Regulations, 2019
- The Mining (Beneficiation) Amendments) Regulations 2019
- TEITA Regulations, 2019
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