Dodoma. Tanzania is tightening oversight of technical assistance agreements in the mining sector, with the Government insisting that Tanzanian holders of primary mining licences must retain a defined share of profits while foreign technical partners operate within strict legal limits.
Under the framework presented to the Parliamentary Standing Committee on Energy and Minerals in Dodoma on Thursday, a Tanzanian licence holder involved in a technical assistance agreement is entitled to 30 percent of profits after government charges, regardless of the operating costs incurred by the technical assistance provider.
The arrangement is part of a regulatory framework aimed at ensuring that technical expertise and investment brought into small-scale mining do not effectively transfer ownership or control of mining rights reserved for Tanzanian citizens.
Mining Commission Director of Legal Services Francis Kayichile, representing the Commission’s Executive Secretary, told the committee that non-Tanzanian citizens cannot apply for or own primary mining licences under the Mining Act, Cap 123.
He said Sections 64 and 9(3) of the law reserve the opportunity to apply for and hold such licences for Tanzanians, although licence holders may enter into technical assistance arrangements with other parties subject to existing laws and regulations.
The distinction is significant as Tanzania seeks to attract capital, technology and expertise into mining while retaining local ownership of mineral rights.
Mr Kayichile said technical assistance agreements initially run for three years and may be renewed, but their total duration cannot exceed 12 years or the remaining life of the mine.
The agreements must also be registered with the Mining Commission, while amendments may be made where changes in legislation affect their terms or when new minerals are discovered within a licensed area.
“The Commission continues to supervise and monitor the implementation of these agreements. Breaching their terms may result in action under Section 74 of the Mining Act, including suspension or cancellation of the mining licence,” he said.
The Government has also introduced safeguards for maduara—investors who had already invested in mining areas before those areas were covered by primary mining licences.
Mr Kayichile said the Mining (Technical Assistance) Regulations, 2025 require a licence holder, before entering into a technical assistance agreement, to reach an agreement with maduara or compensate them for investments made in the licensed area.
The provision is intended to reduce disputes over investments made before the issuance of mining licences and ensure that local investors are not left exposed when new arrangements are entered into.
Beyond the profit-sharing formula, the framework places responsibility for mine management, the importation of equipment and machinery, and security of mining areas and assets on the parties to the agreement.
The Government's approach reflects a broader effort to balance access to technical and financial expertise with its policy of ensuring that Tanzanians retain ownership of mining rights and derive greater economic value from the country’s mineral resources.
The briefing was chaired by the Parliamentary Standing Committee on Energy and Minerals chairperson, Ms Subira Mgalu, and attended by officials from institutions under the Ministry of Minerals.