Dodoma — In a bold move aimed at strengthening Tanzania’s mining sector, the Minister of Minerals, Anthony Mavunde, has announced a comprehensive reform to the royalty payment system for base metals.
Starting July 1, 2025, royalties will no longer be calculated at the point of extraction, but instead at the point where minerals are received particularly those sent to local industries for processing.
The revised system will base royalties on market purchase prices, marking a significant shift designed to benefit miners and improve government revenue collection.
"This change is about fairness and productivity," said Minister Mavunde during a special meeting with leaders of the Tanzania Base Metals Association (TBMA) held in Dodoma on April 23, 2024.
"By charging royalties at the point where minerals are actually utilized, we are aligning the system with industrial realities and reducing pressure on small-scale miners."
The reform is part of the government’s broader strategy to support small-scale miners, helping them graduate to medium and eventually large-scale operations.
“We are committed to creating a conducive environment for all Tanzanians to benefit from the mining sector,” Mavunde emphasized.
“Our goal is to ensure that mining becomes not just a source of income, but a true driver of economic transformation.”
To ensure effective implementation, the Minister has directed the Commissioner of Minerals to work closely with other key agencies such as the Tanzania Revenue Authority (TRA) and the National Environment Management Council (NEMC).
The goal is to streamline service delivery and make it easier for small-scale miners to access government support.
"We cannot build a strong mining sector without empowering the small-scale players," said Mavunde. “They are the foundation of this industry, and we must walk with them every step of the way.”
In addition to the royalty reform, Minister Mavunde reiterated the government’s commitment to value addition and industrialization within the mining sector.
“We want minerals to be processed here in Tanzania,” he said. “That’s how we create jobs, increase revenues, and ensure that the benefits of our resources are felt by our people.”
He further noted that for minerals which currently lack local processing capacity, the government will explore alternative measures to support compliant extraction and facilitate access to domestic markets.
“Where technology is lacking, we won’t punish the miners we’ll find solutions together, within the framework of the law,” he stated.
Minister Mavunde also highlighted the government's ambitious Vision 2030 strategy, which aims to increase the country’s mineral exploration coverage from 16% to 50% by the end of the decade.
He described this as a “critical investment in the future,” one that will help unlock the full potential of Tanzania’s mineral wealth.
The mining sector remains a key pillar of Tanzania’s economy, contributing 10.1% to the national GDP in 2024.
These reforms, Minister Mavunde noted, are part of a deliberate effort to ensure that no one is left behind in the country’s journey toward sustainable development.
“This is not just about policy,” he concluded. “It’s about people and our commitment to a mining sector that works for everyone.”
