Procedure for Obtaining a Mineral Licence in Tanzania

Tanzania is one of Africa’s most mineral-rich jurisdictions, hosting significant deposits of gold, diamonds, tanzanite, base metals, industrial minerals, and rare gemstones. However, all minerals on, in, or under land in mainland Tanzania are vested in the United Republic of Tanzania.

As a result, no person may prospect, mine, process, trade, or export minerals without a valid mineral right or permit issued by the competent licensing authority.

This article provides a clear, up-to-date legal roadmap for obtaining mineral licences in Tanzania, explains who may trade and export minerals, and highlights compliance issues investors must address before entering the sector.

Legal Framework Governing Mineral Licensing

Mineral rights in Tanzania are governed primarily by:

• The Mining Act, 2010 (as amended)
• Mining Regulations, including:
  • Mining (Mineral Trading) Regulations
  • Mining (Licensing) Regulations
  • Mining (Environmental Management and Protection) Regulations

Section 6 of the Mining Act expressly prohibits prospecting or mining without a valid mineral right granted under the Act. Any activity conducted without such licence is unlawful and subject to penalties.

Types of Mineral Rights Available in Tanzania

The Mining Act provides for several categories of mineral rights, each tailored to different stages of mineral development and business models.

Mineral Licences Issued Under the Act

The following mineral rights may be granted:

• Prospecting Licence
• Gemstone Prospecting Licence
• Retention Licence
• Special Mining Licence (SML)
• Mining Licence (ML)
• Primary Mining Licence (PML)
• Processing Licence
• Smelting Licence
• Refining Licence

Each licence type carries different eligibility requirements, capital thresholds, local participation rules, and operational obligations.

Who May Trade, Sell, or Export Minerals?

Mineral Right Holders

The following licence holders may trade or dispose of minerals recovered from their licensed areas:

• Special Mining Licence holders
• Mining Licence holders
• Primary Mining Licence holders
• Processing, smelting, and refining licence holders

Dealers and Brokers

In addition, the Act recognises:

• Dealer Licences – allowing purchase and sale of minerals
• Broker Licences – allowing facilitation of mineral transactions

However, holders of broker licences are not authorised to export minerals.

Mineral Trading and Export by Non-Residents

Tanzanian law permits non-residents to legally acquire and export minerals, subject to strict regulatory control.

Export by Non-Residents

A non-resident may export minerals if they were lawfully acquired from:

• An authorised miner
• A licensed mineral dealer
• A Gem Trade Fair held in Tanzania

In all cases, the exporter must apply to the Commissioner for Minerals for the appropriate export permit and provide proof of royalty payment.

Export Permits Required for Minerals

Minerals or mineral samples may only be exported upon issuance of the following permits (as applicable):

Export Permit

Issued by the licensing authority and states:

• Licence holder name and number
• Type, weight, and value of minerals
• Certification of royalty payment
• Validity period

Export Permit for Minerals from a Gem Trade Fair

Issued to non-residents who purchase minerals at a recognised Gem Trade Fair in Tanzania.

Certificate of Origin for Tanzanite

Every export of tanzanite must be accompanied by a Certificate of Origin, confirming lawful extraction and traceability.

Tanzania Kimberley Process Certificate

Required for diamond exports, issued under the Kimberley Process Certification Scheme to prevent trade in conflict diamonds.

Special Export Permit (Non-Residents)

A Special Export Permit is required where a non-resident exports minerals acquired locally.

• Tourists may export minerals not exceeding USD 1,000 in value, not more than twice per year
• Higher export values attract higher fees and stricter scrutiny
• Proof of royalty payment is mandatory in all cases

Mandatory Compliance at Points of Exit

Every export permit must be:

• Accompanied by authentic invoices and Government Exchequer Receipt Vouchers (ERVs)
• Surrendered to Customs or authorised officers at the point of exit
• Returned to the issuing authority for record-keeping

Failure to comply may result in seizure of minerals and enforcement action.

Mineral Investment Opportunities in Tanzania

Tanzania offers extensive mineral investment opportunities, including:

Precious and Gemstones

• Gold
• Diamonds
• Tanzanite (exclusive to Tanzania)
• Ruby, sapphire, emerald, garnet, tourmaline, alexandrite

Key gemstone zones include:

• Mererani (Arusha) – tanzanite
• Mahenge & Matombo (Morogoro) – ruby
• Tunduru & Songea – sapphire and alluvial gemstones
• Umba River (Tanga) – green garnets

Industrial and Strategic Minerals

• Nickel, cobalt, copper
• Coal
• Phosphates
• Gypsum
• Limestone
• Graphite and rare earths

Most gemstone mining remains dominated by artisanal and small-scale miners, creating significant opportunities for joint ventures, financing, and technology partnerships.

Setting Up a Mining Business in Tanzania

Company Incorporation

Investors typically establish a Tanzanian company, which becomes the licence applicant. Local content, shareholding, and board composition rules may apply depending on licence type.

Business Licensing

Each mineral activity requires its own licence. Prospecting, mining, processing, and trading cannot be bundled under a single licence.

Tax Registration

Once incorporated, the company must:

• Register with the Tanzania Revenue Authority (TRA)
• Obtain a Tax Identification Number (TIN)
• Register for VAT (where applicable)
• File provisional tax returns
• Obtain an Income Tax Clearance Certificate

A general business licence is also required under business licensing laws.

Export Permit Fees

Permit Type	Fee (USD)
Export permit (minerals/samples)	100
Special export permit – non-resident (> USD 1,000)	2,000
Tourist export permit (≤ USD 1,000)	200
Export permit – Gem Trade Fair	200

Fees are subject to regulatory updates and official schedules.

Key Legal Risks and Compliance Considerations

• Operating without a valid mineral right is a criminal offence
• Exporting minerals without proper permits may result in forfeiture
• Royalty payment is strictly enforced
• Foreign investors must comply with local content and State participation rules (where applicable)

Early legal structuring is essential to avoid costly regulatory disputes.

Why Legal Guidance Is Critical

Mining in Tanzania presents substantial commercial opportunity, but it is also one of the most regulated sectors of the economy. Mineral rights, trading, and export are tightly controlled, and non-compliance can derail even well-funded projects.

At Mak Africa Legal, we advise investors, mining companies, traders, and financiers on:

• Mineral licence applications
• Regulatory compliance
• Joint ventures with local miners
• Export permits and royalty structures
• Mining-related disputes and enforcement

Legal Disclaimer

This publication is provided for general information purposes only and does not constitute legal advice. Mak Africa Legal accepts no liability for reliance placed on this publication. Specific legal advice should be sought before acting on the information contained herein.

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