Author: GERPAT Solutions
Category: Tanzania Mining, Licensing & Regulatory Compliance
Jurisdiction: Mainland Tanzania
Introduction
Understanding gold mining licences in Tanzania is essential for investors, mining companies, gold traders and businesses planning to enter the country’s mineral sector. Tanzania does not have one universal gold licence. The authorisation required depends on whether the proposed activity involves exploration, extraction, mineral processing, refining, buying and selling gold, or exporting it.
The principal legal framework is the Mining Act, Chapter 123, together with the applicable mining regulations, government notices and Mining Commission requirements. The Act applies to Mainland Tanzania, so investors must not assume that its licensing framework automatically applies to Zanzibar.
The main licence categories include prospecting licences, primary mining licences, mining licences, special mining licences, processing licences, smelting and refining licences, and dealer or broker licences. Each has distinct eligibility conditions, operational limits and fee requirements.
Important: Government fees and regulatory conditions can change. Before submitting an application, acquiring a licence or signing a gold supply agreement, confirm the applicable requirements with the Mining Commission and review the current legislation.
1. Which gold mining licence do you need?
The correct licence depends on your intended business activity.
- Exploration: A prospecting licence is generally required to explore for gold.
- Small-scale mining: A primary mining licence (PML) is the relevant licence category, subject to Tanzanian citizenship and ownership restrictions.
- Medium-scale mining: A mining licence (ML) is generally applicable where the proposed operation meets the statutory investment criteria.
- Large-scale mining: A special mining licence (SML) is generally required for qualifying large-scale operations.
- Mineral processing: A processing licence may be required for activities such as crushing, washing, separation and other processing operations.
- Smelting and refining: The relevant smelting or refinery licence must be considered according to the proposed activity.
- Gold trading: A dealer or broker licence may be required, depending on the nature and scope of the business.
- Gold exports: Exporting requires compliance with the applicable mineral-trading rules and the Mining Commission’s export-permit requirements.
A company should identify its complete business model before applying. A mining licence does not automatically authorise every separate activity involving the purchase, processing or export of gold.
2. Prospecting licences for gold exploration
A prospecting licence authorises qualifying exploration activities within the licensed area, subject to the Mining Act, the licence conditions and the applicable regulations.
Investors should assess the following matters before applying:
- Whether the proposed area is available in the Mining Cadastre.
- The maximum permitted area and applicable licence duration.
- Minimum exploration expenditure obligations.
- Annual rent and application or preparation fees.
- Work-programme requirements and reporting obligations.
- Renewal deadlines and any relinquishment requirements.
- Environmental, land-access and compensation obligations.
The applicable government charges depend on the relevant fee schedule and the licence stage. The figures in older schedules should be verified against subsequent amendments and the amount generated by the Mining Commission’s payment system.
Before acquiring an existing prospecting licence, review the licence instrument, cadastral boundaries, work programmes, expenditure reports, outstanding fees, renewal status and any disputes or competing claims.
3. Primary mining licences: small-scale gold mining
Who may hold a primary mining licence?
Primary mining licences are subject to statutory eligibility restrictions. Under section 8(2) of the Mining Act, the relevant restrictions concern Tanzanian citizens and companies whose membership, directors and control meet the statutory requirements for exclusive Tanzanian participation.
A foreign investor should not assume that establishing a nominally Tanzanian company, appointing local directors or signing a private side agreement will overcome these restrictions.
Section 8(3) provides for a limited mechanism concerning foreign technical advisers where the relevant expertise is unavailable in Tanzania. This should not be interpreted as a general right for a foreign investor to control a primary mining licence.
What should investors verify?
Before entering into an arrangement with a primary mining licence holder, check:
- The registered licence holder and the company’s ownership.
- The licence boundaries, validity and renewal position.
- Whether the proposed arrangement preserves compliance with the statutory eligibility rules.
- The authority under which gold may be sold.
- The applicable environmental, safety, reporting and local-content requirements.
- Whether any proposed transfer, change of control or corporate restructuring requires prior approval.
A foreign investor should obtain transaction-specific advice before investing in a PML-related business. An agreement that transfers practical control to an ineligible party can create serious regulatory and financial risks.
Primary mining licence fees
The published fee schedule has included application and preparation fees of TZS 50,000 each, a renewal fee of TZS 100,000, and annual gold rent of TZS 90,000 per hectare, subject to the applicable minimum rent.
These figures should be treated as reference amounts, not a substitute for confirmation of the current official charges. Additional fees may apply to transfers, share transactions, amalgamations or other licence changes.
4. Mining licences for medium-scale operations
A mining licence is generally associated with medium-scale mining operations meeting the statutory investment criteria. Under the Mining Act, the investment range for this category is USD 100,000 to USD 100 million, or the equivalent in Tanzanian shillings.
An application may require a feasibility study, environmental approvals, a local-content plan, a community-related plan and other prescribed documents. The applicant must also establish that it has the legal basis to apply over the proposed mining area.
Investors should budget for more than the application and preparation fees. The total project cost may include annual mineral-right rent, environmental compliance, land access, technical studies, infrastructure, employee obligations, local-content compliance and applicable taxes and levies.
The Government’s statutory participation in qualifying mining projects must also be assessed before the project’s financial model is finalised.
5. Special mining licences for large-scale projects
A special mining licence is generally relevant to qualifying large-scale mining operations. Its grant, duration and conditions depend on the Mining Act and the terms approved for the project.
The application should be approached as a major investment process rather than a simple licence filing. Investors should consider:
- Feasibility and technical studies.
- Environmental approvals and management obligations.
- The proposed mining area and the mineral resource.
- Government participation and applicable agreements.
- Local-content and community obligations.
- Project financing and shareholder arrangements.
- Applicable reporting, production and tax requirements.
The Mining Act provides for Government free-carried interest in qualifying mining projects. The minimum participation and any additional state participation should be reviewed against the current legislation and the project’s particular arrangements.
Investors should also examine the rules concerning listing and local shareholding, including the statutory provisions and exceptions that may apply to the relevant project. Do not assume that a rule applicable to one category of mineral right automatically applies in the same way to another.
6. Government participation and local content
Mining investors must assess both state participation and local-content requirements when structuring a project.
The Mining Act provides for Government free-carried interest in qualifying mining licences and special mining licences. The statutory framework also addresses circumstances in which the Government’s total shareholding may increase, including provisions linked to tax expenditure.
The Mining (State Participation) Regulations, 2022, and the Mining (Local Content) Regulations, 2018, should be reviewed alongside the Act and any later amendments.
Local-content obligations can affect procurement, employment, training, technology transfer, ownership structures and the provision of goods and services to mining operations.
Investors should not treat local participation as a paper exercise. The ownership, management and control arrangements must reflect the applicable legal requirements. Nominee structures or arrangements designed to disguise the true controller of a business can expose the parties to regulatory penalties and other consequences.
7. Mineral processing, smelting and refining
Mining, processing, smelting and refining are different activities. The licence required depends on the process being undertaken and the applicable statutory definitions.
A processing operation may involve crushing, washing, gravity separation, flotation or chemical processing. Smelting and refining involve different stages of mineral treatment and may require separate authorisation.
Before establishing a processing or refining facility, an investor should confirm:
- The appropriate licence category.
- Whether the proposed facility requires separate environmental approval.
- The source and legal status of the minerals to be processed.
- Whether agreements with mineral-right holders must be registered or approved.
- Requirements for transporting tailings, concentrates, loaded carbon or other mineral-bearing materials.
- Applicable production declarations, royalty payments and inspection fees.
- Any domestic mineral-processing or refining obligations.
A refinery or processing business may offer an alternative route into Tanzania’s gold sector, but it is not exempt from licensing, traceability, environmental or financial-compliance requirements.
8. Gold dealer and broker licences
A broker licence and a dealer licence do not confer identical rights.
A broker generally operates within the scope and geographical conditions of the licence and may trade gold through the authorised domestic channels. A broker should not assume that the licence grants a general right to export.
A dealer licence may permit wider mineral-trading activities, including qualifying domestic transactions and applications for export permits, subject to the Mining Act and applicable regulations.
Applicants should verify the current eligibility requirements, licence period, renewal conditions, minimum turnover rules where applicable, record-keeping duties and permitted transaction channels.
A gold-trading business should maintain records identifying the source of each consignment, the seller, the quantity, the assay or valuation information, payments and the destination of the minerals. The business should also apply appropriate counterparty due diligence and anti-money-laundering controls.
9. The 20% domestic gold set-aside requirement
The Mining (Minerals and Mineral Concentrates Trading) (Amendment) Regulations, 2024, GN No. 539C of 2024, introduced a requirement for authorised miners and licensed dealers to set aside not less than 20% of gold won or obtained for domestic trade.
The regulations provide for the set-aside gold to be traded within Tanzania through the specified domestic channels, including refineries, smelters, jewellers or the Government through the Bank of Tanzania. The Government has a right of pre-emption under the prescribed framework.
An authorised miner or licensed dealer that has not complied with the requirement may not be issued a gold export permit.
Before planning an export transaction, the business should confirm how the requirement applies to its gold, what evidence of compliance is needed and whether the relevant procedures or directives have changed.
10. Royalties, inspection fees and other taxes
Gold producers and traders must distinguish mineral royalties and inspection fees from other taxes and business charges.
The applicable financial obligations may include:
- Mineral royalty calculated on the prescribed gross value.
- Clearance and inspection fees, where applicable.
- The HIV Response Levy on minerals introduced by the Finance Act, 2025.
- Local government service levy, where applicable.
- Corporate income tax.
- Withholding tax on dividends, interest or other payments where applicable.
- Other statutory fees and compliance costs associated with the operation.
The Mining Act and the Mining Commission’s published guidance set out the relevant royalty and inspection-fee framework. The applicable rates can depend on the mineral and transaction category. Special treatment may apply to qualifying domestic gold sales through refinery centres or the Bank of Tanzania framework.
Do not use a single percentage as the complete tax cost of a mining project. The total burden depends on the transaction, the taxpayer, the relevant tax rules and the treatment of the particular sale. Obtain an up-to-date tax calculation before agreeing a gold sale price or finalising a project feasibility model.
11. Gold export permits and compliance
Gold should not be exported without satisfying the applicable legal and permit requirements.
Depending on the transaction, the export file may require evidence of the relevant licence, assay or valuation documents, origin and transaction records, royalty and inspection-fee payment, a sale agreement, evidence of compliance with the domestic set-aside requirement and other prescribed documents.
The exact requirements should be confirmed with the Mining Commission and the relevant customs authorities before shipment. Export procedures, documentary requirements and processing times can vary according to the circumstances.
Unauthorised mineral trading or export can lead to penalties, forfeiture and regulatory action affecting existing licences. Businesses should verify the legality of the source, ownership and movement of every consignment before paying for or transporting gold.
12. Choosing the appropriate gold licence
| Intended activity | Licence or authorisation to investigate |
|---|---|
| Exploring for gold | Prospecting licence |
| Small-scale gold mining | Primary mining licence, subject to eligibility restrictions |
| Medium-scale gold mining | Mining licence |
| Qualifying large-scale mining | Special mining licence |
| Processing gold-bearing material | Applicable mineral processing licence |
| Smelting or refining gold | Applicable smelting or refinery licence |
| Buying and selling gold | Dealer or broker licence, depending on the activity |
| Exporting gold | Appropriate underlying authority and export permit |
This table is a starting point, not a substitute for checking the precise activity, the proposed ownership structure and the current requirements of the Mining Commission.
13. Investor due-diligence checklist
Before purchasing a mining business, investing in an existing licence or entering a gold supply agreement, investors should:
- Confirm the licence type, registered holder, validity and cadastral boundaries.
- Verify that the holder satisfies the statutory eligibility requirements.
- Review renewals, annual rent, outstanding fees and licence conditions.
- Examine exploration expenditure, production records and technical reports where relevant.
- Check environmental approvals, land access, compensation obligations and any disputes.
- Confirm whether the proposed transfer, shareholding change or change of control requires regulatory approval.
- Assess Government participation, local-content commitments and applicable tax obligations.
- Verify the counterparty’s authority to sell the gold and the legality of the mineral’s origin.
- Confirm the domestic set-aside requirement and export documentation where relevant.
- Obtain independent legal, technical, tax and financial advice before completing the transaction.
A licence should never be valued solely by its stated area or the seller’s projected gold reserves. Its legal status, compliance history, technical viability and ability to support the proposed business activity are equally important.
Frequently asked questions
Can a foreign company hold a gold mining licence in Tanzania?
Foreign participation may be possible for prospecting licences, mining licences and special mining licences, subject to the relevant statutory conditions and regulatory obligations. Primary mining licences are subject to specific Tanzanian citizenship and ownership restrictions.
How much does a gold mining licence cost?
There is no single fee. Government charges depend on the licence category, area, application stage, renewals and other transactions. Professional fees, technical studies, environmental compliance and operating costs are separate.
Can a primary mining licence be used by a foreign investor?
A foreign investor must not assume that a private agreement or nominal local ownership structure permits control of a primary mining licence. The ownership and control arrangements must comply with the Mining Act.
Can a gold broker export gold?
A broker should not assume that its licence permits export. Export rights and permits must be assessed under the applicable law and the particular licence category.
What is the 20% gold set-aside requirement?
The 2024 amendment introduced a requirement for authorised miners and licensed dealers to set aside at least 20% of gold won or obtained for the prescribed domestic channels. Compliance is relevant to gold export permits.
Does the Mining Act apply to Zanzibar?
The Mining Act, Chapter 123, states that it applies to Mainland Tanzania..
How GERPAT Solutions can assist
GERPAT Solutions provides business advisory and corporate compliance support for local and international investors operating in Tanzania and Zanzibar.
For mining-related projects, our support may include regulatory pathway assessment, company formation coordination, licensing and documentation coordination, corporate compliance support, and assistance in identifying the approvals and professional advice required for a proposed investment.
The scope of support depends on the activity, the investor’s ownership structure, and the applicable regulatory requirements.
Should you require assistance, kindly reach out to our team directly at www.gerpatsolutions.co.tz, info@gerpatsolutions.co.tz, Mob: +255 742 826 955
Disclaimer: This article provides general information and does not constitute legal, tax, geological or investment advice. Mining legislation, government fees and administrative requirements may change. Confirm current requirements with the relevant authorities and obtain professional advice before making an investment or undertaking regulated mining or mineral-trading activities.