The government has announced plans to revoke 95 mining licenses owned by medium and large-scale investors who have failed to meet legal obligations, warning that action will be taken after May 13 if no valid explanations are submitted.
Minister of Minerals Anthony Mavunde said on Monday that the decision comes after license holders ignored repeated warnings and failed to initiate mining activities or submit required documents.
according to him, only seven of the 95 investments have a combined estimated value of over TZS 15 trillion, raising concerns over how much economic opportunity is being lost due to inactive projects.
“These are licenses that were supposed to be active. Some have been held since 2011 with no development at all. This is unacceptable,” Mavunde told reporters in Dar es Salaam.
The Mining Commission, which oversees the issuing and revoking of licenses under the Mining Act, Chapter 123, has followed all legal procedures including issuing notices of breach and offering a 30-day window for correction.
However, most of the companies either failed to respond or submitted explanations deemed inadequate.
Among the common violations are failure to commence mining activities within the legally required 18 months after license issuance, failure to submit mining and closure plans, and providing false information during license applications—especially regarding financial capacity.
Some companies have also failed to submit quarterly progress reports or comply with local participation requirements.
“Having a license doesn’t give you the freedom to sit on it while looking for money. The law requires you to have capital in place before applying,” Mavunde said.
“If these projects had taken off, the government would be earning significant revenue, and thousands of jobs would have been created,” he explained.
He cautioned against investors who attempt to delay enforcement by engaging in talks with government institutions or filing court cases.
“There’s no clause in the license that allows you to avoid implementation through court battles or negotiations,” he said.
The Ministry initially gave defaulters 30 days from April 14 this year to submit their justifications. Those who failed to respond or whose explanations do not meet legal standards will lose their licenses without further delay.
Mavunde insisted the government will not tolerate license hoarding while the country continues to miss out on development opportunities.
“The law is clear. If you don’t meet the conditions, you lose the license. There will be no second chances,” he stressed.
