Law and Practice Relating to Exportation of Minerals in Tanzania

Exportation refers to the movement of goods produced in one country to another for trade or commercial use. In Tanzania, mineral exports form a critical pillar of the national economy and are subject to strict legal control due to their high value, strategic importance, and contribution to public revenue.

Unlike ordinary goods, minerals are classified as strategic natural resources, and their exportation is regulated to ensure transparency, accountability, and compliance with national development objectives. Any person intending to export minerals from Tanzania must therefore strictly comply with the applicable legal framework.

Legal Framework Governing Mineral Exportation

The export of minerals from Mainland Tanzania is governed principally by:

• The Mining Act, 2010 (Cap. 123), Revised Edition 2019
• The Mining (Minerals and Mineral Concentrates Trading) Regulations, 2018
• Other applicable subsidiary legislation, directives of the Mining Commission, and fiscal laws

The Revised Edition 2019 consolidated all amendments introduced up to 2019 and remains the current principal statute governing mineral exportation, with subsequent operational adjustments introduced through Finance Acts and regulatory practice.

Who Is Legally Permitted to Export Minerals

a. Holders of Mineral Rights

The Mining Act permits the exportation of minerals by holders of valid mineral rights, including:

• Special Mining Licences
• Mining Licences
• Primary Mining Licences
• Processing, Smelting, or Refining Licences

Such holders may export mineral products derived from their licensed operations, provided all statutory obligations including royalty payments and inspection requirements have been satisfied.

b. Licensed Mineral Dealers

Licensed mineral dealers are authorised to:

• Purchase minerals from licensed miners
• Sell and export minerals in accordance with their dealer licences

Where minerals are exported by a licensed dealer (rather than the original miner), the dealer is responsible for payment of royalties or provisional payments in lieu of royalty prior to export.

c. Non-Residents and Special Permit Holders

Non-residents may export minerals only under specific and limited circumstances, including:

• Exportation under a special export permit issued by the Mining Commission
• Export of minerals purchased at authorised Gem Trade Fairs
• Export by tourists of minerals not exceeding prescribed value thresholds and frequency limits

Importantly, a broker licence does not confer export rights. Any export conducted outside the scope of a valid permit constitutes an offence.

Export Permits and Regulatory Procedure

a. Mandatory Export Permit

Every mineral export consignment must be supported by a valid Export Permit issued by the Mining Commission or an authorised officer.

An application for an export permit typically requires:

• Description, quantity, and value of minerals
• Proof of royalty and inspection fee payment
• Destination details and importer information
• Physical inspection, weighing, sealing, and certification of the minerals

Minerals are examined under official supervision to ensure accurate valuation and prevent smuggling or misrepresentation.

Royalty and Statutory Payments

Under the Mining Act, all exported minerals are subject to royalty payments calculated on the gross value of the minerals.

Payment of royalty is a pre-condition to export approval.

Failure to settle royalty or statutory fees results in denial of export clearance and may expose the exporter to penalties.

Where minerals are exported by dealers, the law allows for provisional payments to facilitate compliance before final reconciliation.

Restrictions on Raw Mineral Exportation and Local Beneficiation

Tanzania’s mining policy strongly promotes local value addition.

Accordingly:

• Export of raw minerals is restricted
• Minerals are generally required to be processed, smelted, or refined locally, unless specific exemption is granted
• Raw minerals must be stored, verified, and released from Government Minerals Warehouses before export

These provisions reflect Tanzania’s objective of maximising domestic economic benefit from mineral resources.

Compliance Risks and Precautionary Considerations

a. Dealing with Unlicensed or Fraudulent Traders

A major risk for foreign buyers and investors is engaging with persons who lack valid licences. Common issues include:

• Fake dealer licences
• Forged export permits
• Misrepresentation of mineral origin

Such transactions may result in confiscation of minerals, financial loss, and criminal liability.

b. Importance of Legal Due Diligence

Before entering into any mineral export transaction, investors should:

• Verify licences with the Mining Commission
• Confirm royalty and fee compliance
• Ensure permits are processed through official channels
• Engage local legal counsel familiar with Tanzanian mining law

Legal due diligence is not optional, it is a commercial necessity.

Offences and Penalties

Exporting minerals without lawful authority is a criminal offence under the Mining Act.

Penalties include:

• Individuals: fines and/or imprisonment
• Corporate entities: substantial monetary fines
• Possible confiscation of minerals and cancellation of licences

The law adopts a zero-tolerance approach to illegal mineral trading and exportation.

Practical Guidance for Foreign Investors

Foreign investors intending to export minerals from Tanzania should:

1. Ensure they fall within a legally recognised export category
2. Obtain all required permits before shipment
3. Comply fully with royalty and inspection obligations
4. Avoid informal or undocumented transactions
5. Seek professional legal and regulatory advice at every stage

Final Words

Exportation of minerals from Tanzania is a lawful and viable commercial activity but only when conducted within the strict boundaries of the law.

The Mining Act, Cap. 123, Revised Edition 2019, together with the applicable regulations, establishes a clear framework that balances investor participation with national resource protection.

MAK Africa Legal advises investors, traders, and mining companies on licensing, export permits, compliance strategy, and dispute avoidance across the Tanzanian mining value chain.

Legal Disclaimer

This article is provided for general informational purposes and does not constitute legal advice. Investors should seek specific professional legal guidance tailored to their circumstances before acting. Mak Africa Legal and its representatives accept no liability for decisions made solely on the basis of this article.

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