Foreigners barred from owning Tanzania’s primary mining licences

By Our Correspondent, Dodoma

Foreign nationals cannot own primary mining licences in Tanzania, the Mining Commission has told Parliament’s Standing Committee on Energy and Minerals, as the Government moves to tighten oversight of technical support agreements in the sector.

The clarification was made on Thursday, September 3, 2026, during a briefing for the committee, chaired by Subira Mgalu, on the management of technical support agreements and the legal requirements governing ownership of primary mining licences.

Mining Commission Director of Legal Services Francis Kayichile, representing the Commission’s Executive Secretary, said the law reserves primary mining licences for Tanzanian citizens.

“Section 64, read together with Section 9(3) of the Mining Act, Cap 123, provides an opportunity for Tanzanians to apply for and own primary mining licences. A person who is not a Tanzanian citizen cannot benefit from that opportunity,” Mr Kayichile said.

The clarification comes amid continued efforts by the Government to ensure that Tanzanians retain ownership of mining rights while allowing them to access capital, technology and expertise from investors through legally regulated arrangements.

Mr Kayichile said Tanzanian licence holders were allowed to obtain technical support from other parties, provided the agreements complied with the law and regulations governing the mining sector.

Under the regulations, a licence holder who enters into a technical support agreement is entitled to 30 per cent of the profit after government charges have been deducted, regardless of the operating costs incurred by the technical support provider.

The parties to the agreement are jointly responsible for key aspects of mining operations, including management of the mine, bringing in equipment and machinery, and securing the mining area and assets.

Technical support agreements initially run for three years and may be renewed. However, their total duration cannot exceed 12 years or the remaining life of the mine, Mr Kayichile said.

The agreements must also be registered with the Mining Commission.

“The parties have the right to amend the agreements whenever necessary, including where changes in the law affect their terms or where new minerals are discovered within a licensed area covered by a technical support agreement,” he said.

The Mining Commission is responsible for monitoring implementation of the agreements, with Mr Kayichile warning that failure to comply with their terms could lead to enforcement action, including suspension or cancellation of a mining licence under Section 74 of the Mining Act.

The briefing also highlighted new measures aimed at protecting holders of mineral rights whose areas fall within primary mining licences.

Mr Kayichile said the Government had introduced provisions under the Mining (Technical Support) Regulations, 2025, requiring licence holders to address the interests of mineral-rights holders before entering into technical support agreements.

Under Regulation 8(1)(h), a licence holder must reach an agreement with mineral-rights holders or compensate them for investments they have made in the licensed area before entering into a technical support agreement.

The measure is intended to prevent disputes and protect investments made by Tanzanians while creating a clear legal framework for cooperation between licence holders and technical support providers.

The Government's approach effectively separates ownership of mining rights from access to technical and financial support, allowing Tanzanian licence holders to benefit from outside expertise without transferring ownership of the underlying mining rights.

The training brought together members of the parliamentary committee and officials from institutions under the Ministry of Minerals.

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