Tanzania has introduced a major reform in its mining sector through the Mining (Technical Support for Primary Mining License Holders) Regulations, 2025. These new regulations establish Technical Support Agreements (TSAs) as a legal framework to support Primary Mining License (PML) holders—especially small-scale miners—by connecting them with qualified technical and financial partners.
This development marks a significant shift toward modernizing Tanzania’s mining industry and improving productivity, compliance, and investment opportunities.
Why the TSA Framework Was Introduced
For years, small-scale miners in Tanzania have faced several challenges, including:
- Limited access to modern mining equipment
- Lack of technical expertise in exploration and processing
- Difficulty accessing financing
- Poor compliance with environmental and safety regulations
These barriers reduced efficiency and profitability. The 2025 Regulations directly address these issues by allowing structured partnerships between PML holders and professional facilitators.
How Technical Support Agreements Work
A Technical Support Agreement (TSA) is a legally binding contract between a PML holder and a facilitator. The facilitator provides:
- Modern equipment and infrastructure
- Technical expertise
- Financial support
- Training and knowledge transfer
Before approval, the Mining Commission of Tanzania conducts inspections to ensure compliance and eligibility.
Key Features of TSAs:
- A PML holder can include up to 10 licenses in one agreement
- Agreements are valid for up to 3 years and are renewable
- Mandatory registration with the Mining Commission
- Clear provisions on profit sharing, reporting, and dispute resolution
Guaranteed Benefits for PML Holders
One of the most important provisions under the 2025 regulations is:
Minimum 30% profit share for PML holders
This ensures that small-scale miners retain a fair portion of revenue, even when external facilitators are involved.
Other key benefits include:
- Access to advanced mining technology
- Improved operational efficiency
- Mandatory knowledge and skills transfer
- Better environmental and legal compliance
- Increased investment opportunities in Tanzania’s mining sector
Obligations for Both Parties
Facilitators Must:
- Provide modern mining technology
- Ensure environmental compliance
- Deliver training and capacity building
- Submit operational reports
PML Holders Must:
- Comply with mining laws
- Avoid overlapping agreements
- Pay all statutory fees and taxes
- Cooperate with regulatory authorities
Risks and Implementation Challenges
Despite its advantages, the TSA framework presents some risks:
- Weak enforcement of knowledge transfer obligations
- Unclear asset ownership after agreement expiry
- Compliance burden for small-scale miners
- Potential misuse by opportunistic facilitators
Strong oversight by the Mining Commission is essential to ensure transparency and fairness.
Conclusion
The introduction of Technical Support Agreements in Tanzania represents a transformative step in mining law. It creates a structured pathway for collaboration between local miners and investors, boosting productivity and sustainability.
However, success depends on proper implementation, legal compliance, and well-drafted agreements.
Should you require assistance, kindly reach out to our team directly at www.gerpatsolutions.co.tz info@gerpatsolutions.co.tz, Mob: +244 742 826 955