Mining Licence in Tanzania: Requirements, Application Process and Costs

By Adv. Wyclif Mandele | GERPAT Solutions

Mining Licence in Tanzania is subject to a comprehensive regulatory framework covering mineral rights, corporate structure, technical and financial capacity, environmental approvals, local content and government participation. For investors, understanding these requirements before committing capital is essential to structuring the project correctly and avoiding unnecessary regulatory delays.

Under the Mining Act, Cap. 123, together with applicable regulations and amendments, investors must satisfy the requirements applicable to the relevant mineral right and project. The process involves more than submitting an application: it requires careful coordination of corporate, technical, environmental and regulatory requirements.

GERPAT Solutions assists businesses with corporate establishment, regulatory coordination, licensing and compliance in Tanzania and Zanzibar.

1. Establishing the Right Corporate Structure

Before applying for a mining licence, investors should determine the appropriate legal vehicle and ownership structure for the proposed project.

Companies undertaking mining activities generally need to be incorporated under the Companies Act and satisfy the relevant eligibility, documentation and financial requirements administered by the Mining Commission.

Foreign investors should pay particular attention to the statutory local participation requirements. Under the applicable mining framework, foreign mining companies are subject to requirements concerning equity participation by an indigenous Tanzanian company. The Mining Act also provides for government free-carried interest in companies holding Mining Licences and Special Mining Licences.

The precise ownership structure should be assessed against the relevant legislation, local content requirements, mineral category and project circumstances before incorporation or investment commitments are finalised.

2. Understanding Environmental and Social Requirements

Environmental compliance is a fundamental part of mining project development.

Depending on the proposed project and its environmental classification, the investor may need to undertake an Environmental and Social Impact Assessment (ESIA), obtain the required environmental approval and comply with environmental management conditions.

The National Environment Management Council (NEMC) plays an important role in environmental assessment and regulatory oversight. The applicable assessment and approval process depends on the project and the relevant environmental legislation.

Investors should also consider land access, community engagement, compensation where applicable, rehabilitation obligations and other environmental and social safeguards.

Environmental approval and a mineral right are separate regulatory matters. Obtaining one does not automatically grant the other.

3. Preparing the Mining Licence Application

Applications are submitted to the Mining Commission in accordance with the requirements applicable to the relevant mineral right.

Depending on the licence category and project, the application may require:

• Corporate registration documents and company particulars.
• Details of directors, shareholders and beneficial ownership where required.
• Geological information, area coordinates and site plans.
• Evidence of financial capacity and technical competence.
• Proposed exploration or mining programmes.
• Audited financial statements where required.
• A Local Content Plan and Integrity Pledge.
• Environmental management and other project-specific documentation.
• Evidence of compliance with applicable fees and regulatory conditions.

Applicants should confirm the current forms, supporting documents and procedural requirements with the Mining Commission before submission.

4. Regulatory Assessment and Grant of the Licence

The Mining Commission assesses applications against the applicable statutory criteria, including eligibility, technical and financial capacity, the availability of the proposed area and compliance with relevant requirements.

Where applicable, the process may involve a letter of offer, payment of prescribed preparation or other fees, and fulfilment of additional conditions before the licence is issued.

An application should not be treated as an approved mineral right until the relevant authority has completed the required process and formally granted the licence.

Special Mining Licences are subject to the additional approval requirements prescribed by law, including Cabinet approval under the applicable framework.

Investors should also establish the conditions for accessing the land, obtaining other necessary permits and commencing operations. A mining licence does not, by itself, replace every other regulatory approval.

5. Choosing the Appropriate Mineral Right

Tanzania provides different mineral rights for exploration, mining and related activities. The correct category depends on the proposed activity, investment scale, mineral type and statutory eligibility.

Licence type	Main purpose	General duration or investment threshold
Prospecting Licence (PL)	Exploration and prospecting for minerals	Initial term of 4 years; renewals generally of 3 years and then 2 years, subject to the Act
Primary Mining Licence (PML)	Small-scale mining	Generally 7 years; subject to eligibility and renewal requirements
Mining Licence (ML)	Medium-scale mining	Investment generally from US$100,000 to US$100 million; up to 10 years, subject to the Act
Special Mining Licence (SML)	Large-scale mining	Investment generally of at least US$100 million; duration linked to the estimated life of the ore body or the applicable statutory provisions

These are general descriptions, not a substitute for reviewing the precise statutory eligibility criteria and conditions for a particular project. Primary Mining Licences have specific Tanzanian citizenship restrictions, while Mining Licences and Special Mining Licences involve additional requirements for investors and corporate applicants.

6. Government Participation and Local Content

Investors should incorporate government participation and local content obligations into their financial and operational planning from the outset.

Section 11 of the Mining Act provides for the Government to hold not less than 16% non-dilutable free-carried-interest shares in the capital of a company conducting operations under a Mining Licence or Special Mining Licence, depending on the type of minerals and the level of investment. The Act also provides for possible additional government share acquisition linked to qualifying tax expenditures.

The applicable local participation requirements should be assessed alongside the Local Content Regulations and other relevant legislation. Depending on the activity, investors may need to address procurement, employment, training, service providers and other local content obligations.

Corporate social responsibility arrangements and community engagement should also be planned in accordance with the applicable legal framework and the project’s circumstances.

7. Budgeting for Mining Licence Costs

There is no single fee that applies to every mining project. The total cost depends on the mineral right sought, the area involved, the relevant application and preparation fees, annual rent, environmental assessment, technical studies and other project-specific requirements.

Investors should distinguish between:

• Government application, preparation and licence fees.
• Annual rent and other statutory payments.
• Geological surveys and feasibility studies.
• Environmental and social assessments.
• Corporate establishment and professional advisory fees.
• Additional permits, operational approvals and compliance costs.

Current government fees should be confirmed against the applicable fee schedule before a budget or commercial proposal is finalised.

8. How GERPAT Solutions Can Assist

GERPAT Solutions supports businesses seeking to establish and operate in Tanzania through corporate advisory, licensing coordination and regulatory compliance services.

For mining-related projects, support may include:

• Company incorporation and corporate structuring.
• Preliminary regulatory and licensing assessments.
• Coordination of mining licence application documentation.
• Local content and corporate compliance coordination.
• Assistance coordinating environmental and other regulatory approvals with the relevant specialists and authorities.
• Ongoing corporate and regulatory compliance support.

The scope of assistance depends on the project, the required professional expertise and the relevant regulatory authorities.

Conclusion

Obtaining a mining licence in Tanzania requires more than submitting an application. Investors should understand the applicable mineral rights, corporate ownership rules, government participation, environmental obligations, local content requirements and other approvals before committing substantial capital.

A structured regulatory assessment at the beginning of a project can help identify potential obstacles, improve planning and reduce avoidable compliance risks.

Contact GERPAT Solutions for assistance with corporate establishment, mining-related licensing coordination and regulatory compliance in Tanzania.

www.gerpatsolutions.co.tz, info@gerpatsolutions.co.tz, Mob: +255 742 826 955

Disclaimer: This article is for general information only and does not constitute legal advice. Mining requirements may vary according to the mineral, licence category, ownership structure and project circumstances. Investors should verify current requirements with the relevant authorities and obtain project-specific professional advice.