Introduction
A Prospecting Mining License (PL) allows one to enter a prospecting mining area favouring the minerals to which the license applies and carry out operations and such work as necessary for that purpose, including the removal and excavation of soil. It may be applied for and issued for minerals falling under groups as specified under the Mining Act i.e. (metallic minerals, energy minerals, gemstones, kimberlite diamond, kimberlitic diamond, industrial minerals or building materials).
Eligibility Criteria
To apply for a Prospecting Licence (PL) in Tanzania, the applicant must meet specific eligibility criteria to include.
- For Individuals: Must be a Tanzanian citizen or a Company incorporated in Tanzania.
- For Foreign Companies: Must incorporate a subsidiary in Tanzania and register the local entity with the Tanzania Investment Centre (TIC).
Application Procedures
- Preliminary Steps
Before submitting an application, the following steps are essential:
- Identify the Area: The applicant must identify the area of interest for prospecting. The area should be free from any conflicting mineral rights, meaning no other active prospecting or mining licences exist over the intended area.
- Conduct Due Diligence: It is advisable to conduct thorough due diligence to ensure the area is viable for prospecting and free from environmental or community disputes.
- Preparation of the Application
Once the preliminary steps are completed, the applicant must prepare the application in a prescribed application form (MRF 1) which must be completed in full. The form requires detailed information about the applicant including personal details for individuals or company details for entities and be accompanied in triplicate by the following,
- Prospecting Programme: This programme outlines the intended exploration activities, timelines and expected outcomes. It should also include a budget, demonstrating the financial capability to carry out the programme.
- Location and Area Map: The application must include a map showing the location and boundaries of the area to be covered by the prospecting licence.
- Environmental Management Plan: This must be submitted, detailing how the prospecting activities will comply with environmental regulations.
- Evidence on financial capability: this must be submitted to prove financial capacity to carry out intended operations.
- Particulars of the Company: including the Memorandum and Articles of Association of a Company, Certificate of Incorporation and the Latest audited Accounts of the Company.
- Submission of Application
The completed application, along with the necessary attachments must be submitted to the Mining Commission including payments of application fee, full name and citizenship, postal and physical address, recent passport size, copy of identity card in case of Foreigner attach with a resident permit and work permit.
- Evaluation of the Application
Once the application is submitted, the Mining Commission will review it. The review process involves:
- Verification of Information: The Mining Commission will verify the information provided including the applicant’s eligibility, financial capability, the proposed area, technical expertise and the prospecting programme.
- Consultation with Relevant Authorities: The Commission may consult with other government authorities such as the National Environment Management Council (NEMC), to ensure compliance with environmental laws and regulations.
- Public Notice: The application may be published in public notices to allow any objections or comments from the public or other stakeholders.
- Grant of Offer Letter/ Rejection Letter
After reviewing the application, the Mining Commission will decide to either grant or refuse the prospecting licence. If granted, Commissioner for Minerals issues an Offer Letter to applicant with prescribed fees. If refused, the applicant will be provided with a Rejection Letter carrying reasons for such rejection.
- Recommendation to the Commissioner for Minerals
After an applicant receives an Offer Letter, the Registrar of Mineral Rights sends a recommendation to the Commissioner for Minerals to grant Mineral Right to Applicant. Such recommendation shall be accompanied by an Offer Letter and payment of fees stated in the Offer Letter.
- Grant of Mineral Licence
When the Commissioner receives a recommendation from the Registrar of Mineral Rights; the Commissioner reviews such recommendation and grants the Mineral Licence to the Applicant.
Fees of Prospective Licences (PL’s)
Fees are categorised in different groups as follows;
- Application Fees: USD 300 for prospecting licence (metallic minerals, energy minerals and kimberlitic diamond
- Renewal Fees: USD 300 for renewal of prospecting licence (metallic minerals, energy minerals and kimberlitic diamond)
- Annual Rent Fees: Prospecting Licence for metallic minerals, energy minerals and kimberlitic diamond is USD 100 for initial period of 1-4 years per square kilometre per year. All prospecting licences are USD 150 for first renewal period up to 5 -7 years per square kilometre per year and USD 200 for the second renewal period up to 8-9 years per square kilometre per year for all prospecting licences.
Duration and Renewal of Prospecting Licence
A Prospecting Licence (PL) in Tanzania is typically granted for an initial period of four years. The licence holder may apply for renewal for three (3) years and thereafter a further two (2) years making a total of only nine (9) years. The renewal application must be submitted before the licence expires and must include reasons for the extension, along with a revised prospecting programme.
Rights and Obligations of the Licence Holder
Upon being granted a prospecting licence, the holder has the following rights and obligations:
- Exclusive Prospecting Rights: The holder has the exclusive right to prospect for the specified minerals within the licensed area including its employees and agents.
- Compliance with Laws: The licence holder must comply with all relevant laws and regulations including those related to environmental protection, health and safety and community engagement.
- Reporting Requirements: The holder is required to submit regular reports to the Mining Commission, detailing the progress of prospecting activities, findings and any challenges encountered.
- Relinquishment of Area: The licence holder may relinquish part of the licensed area if it is deemed non-viable for further exploration.
Transfer and Assignment of Prospecting Licence
A prospecting licence may be transferred or assigned to another party, subject to the approval of the Mining Commission. The transfer process involves:
- Application for Transfer: The current licence holder must submit an application for transfer to the Mining Commission, along with the details of the new party.
- Due Diligence by the Commission: The Commission will conduct due diligence on the proposed transferee to ensure they meet the eligibility criteria and have the capability to continue the prospecting activities.
- Approval and Registration: If approved, the transfer is registered, and the new party assumes all rights and obligations under the licence.
Conclusion
In Tanzania, Rights for prospecting licences are granted in the form of mineral rights evidenced by licences issued under the Mining Act. Therefore, the application for a Prospecting Licence (PL) in Tanzania is a structured process that requires careful planning, compliance with legal requirements and thorough documentation. Further to that, a prospecting licence will not be granted to an individual, partnership, body corporate who owns more than twenty (20) valid prospecting licences, unless the cumulative prospecting areas of such other prospecting licences does not exceed 2,000 square kilometres. Hence, by following the outlined procedures, prospective applicants can increase their chances of securing a licence and embarking on successful exploration activities.
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