MINERAL RIGHTS IN THE UNITED REPUBLIC OF TANZANIA.

Published by Kemilembe Barongo

Mineral rights in the United Republic of Tanzania are subject to the control of the state of the United Republic of Tanzania. Any entity or individual interested in the mining business is required to obtain permits and licenses from the licensing authority (mining commission) and resident mining officers for prospecting, mining, and trading in minerals.

The following mineral rights are granted under the Mining Act:

Prospecting licenses; retention licenses; special mining licenses; mining licenses;  primary mining licenses; processing licenses; smelting licenses and refining license.

Holders of primary mining licenses; mining licenses and special mining licenses have the right to mine and engage in the extraction and production of minerals for the period granted in their license. Whilst Holders of dealer licenses and broker licenses have the right to buy, acquire, sell or dispose minerals for the period outlined in the licenses.

Primary Mining Licenses (PML’s) are issued for areas that are not larger than 10 hectares. The Primary Mining License entitles the license holder to erect buildings on the mining land, to explore and mine for gold, and do whatever is necessary to have minerals produced. It is issued for an initial period of 4 years to individual, company at the area where the applicant applied and can be renewed for a 3-year term and later a 2-year term. After its expiry, it is either reverted to the Government or proceeded with the application of Mining License (MLs) or Special Mining License (SMLs) before expiry.

The unique aspect of the PMLs is that they can only be granted to Tanzanian citizens or companies composed exclusively of Tanzanians and not to foreigners.

Mining licenses (MLs) and special mining licenses (SMLs) may be granted to eligible individual persons, groups of persons or corporate entities. Both Tanzanian and non-Tanzanian nationals and entities are eligible for the grant of mining licenses. Once the mining licenses and special mining licenses have been issued to an individual or an entity, mining operations can commence, and the individual or entity becomes the owner of the minerals extracted (it should be noted that a royalty is payable to the government upon operating under this sector.