Tanzania has been the major focus of Africa’s gold exploration and development over the past five years. As a result, the mining industry in Tanzania grew 27% in 1999, a major increase from the previous years’ 17%. Up to 15% of Africa’s exploration expenditure has been spent in Tanzania, thought to have Africa’s largest gold reserves, after South Africa. Diamonds, gold, nickel and gemstones play key roles in Tanzania’s growing minerals industry. However, nearly all major developments have been seen in the gold sector.
2003 and 2004 have continued to see growth in Tanzania’s mining industry, with gold mining exploration and gold production, gem stones mining and trading, as well as, small and artisanal mining activities experiencing a considerable increase. In 2004 the mining sector contribution to GDP rose to 3,2% from 3% in 2003 and the value of mineral exports rose to 17% in 2004 to US$ 672,5 million from US$ 554,1 million in 2003. As is stands, minerals make up over 52% of the country’s exports, of which, a large part comes from gold.
Minerals Legislation Overview
Administration of the Mining Act 1998 is by the Minister responsible for mineral affairs and Commissioner of Mineral Resources. Under the Act, Mineral Rights concern large scale and small-scale operations.
- A Reconnaissance License is issued for one year and renewed for a period not exceeding a year. License preparation fee is US$250, annual rent is US$10/km2 and renewal fee is US$200. The license may be either exclusive or non-exclusive. Applications should provide a work programme. Half yearly reports must be submitted and on expiry of the period, all data, maps and reports under license must be surrendered to Government. The license holder may apply for a prospecting license covering all or part of the area.
- A Prospecting License is issued for a period of up to three years and renewable two times for a period up to two years each. At each renewal at least 50% of the area is relinquished. License preparation fee is US$400, annual rental is US$30/km2 and renewal fee is US$200. Applicants must submit particulars of financial and technical capabilities, work programme and budget, and proposals for employment and training Tanzanians. License holders must submit quarterly reports, including copies of all data, maps, logs, interpretations, etc.
- A Mining License will only be granted to the holder of a Prospecting License over the area. The license is granted for a period of 25 years or the life of the mine. It is renewable for a period not exceeding 15 years. License preparation fee is US$600, annual rent is US$1500/km2 and renewal fee is US$200. The applicant must submit a feasibility report including environmental and health safeguards, plans for local sourcing of goods and services and employment and training of Tanzanians. The license holder must submit regular reports according to regulations.
- Under section 15 of the Mining Act the Minister may enter into a mineral agreement (not inconsistent with the Act) for the purpose of granting a Prospecting or Mining License in order to define terms and conditions to be included in the license.
- Agreement should be made with the lawful occupiers of land and their written consent obtained to carry out mining or prospecting operations. Compensation may be payable. The Minister may intervene if consent is withheld unreasonably.
- There are prospecting rights and mining claims for small-scale operations by Tanzanian citizens, companies or cooperatives. These rights are available only in designated areas for prescribed minerals. Prospecting rights are granted for a period of 12 months and are renewable. The holder can peg a claim and register with the Commissioner. The claim holder can prospect and mine this claim. It is valid for one year and renewed as long as mining operations continue. Claim holders must pay royalties and submit returns. Non compliance leads to cancellation of rights. Claim preparation and annual fees are TSh5000 and TSh6000 per annum respectively.
- There is no state obligation to participate in mining ventures nor requirement for local equity.
- A mineral right may be transferred upon application and approval by the Minister.
- Tanzania has established a National Environment Management Council. The Government is drafting a general environmental legislation. Sector specific requirements are addressed in mineral titles.
Lakota Resources (T) Ltd, Stanley Mining Services (Tanzania) Ltd, Unified Resources Development Limited, ALS Chemex Tanzania, AngloGold Ashanti (Tanzania), Anmercosa Exploration, Bulk Mining Explosives (Tanzania), Corstor (Tanzania), East Africa Gold Corporation, East African Gold Mines (Tanzania) Ltd, El Hillal Minerals, Engineering Associates, Exploration and Mining Association, Gaily & Roberts Ltd, Geological Survey of Tanzania, Kabanga Nickel Company, Kilmanjaro Mines Ltd, LTA Construction Ltd, Major Drilling International, Mansoons Mines Logistics
Afrika Mashariki Gold Mine, Buhemba, Bulyanhulu, Chocolate Ridge, Geita, Golden Pride, Golden Ridge, Kabanga, Kahama, Kukuluma, Lone Cone, Mobrama, Mwadui mine, North Mara, Nyabirama, Tulawaka Gold Mine, Williamson