Mining Annual Rent Tanzania: What Each Licence Pays, When It Falls Due and What Happens If It Is Late
What is the mining annual rent in Tanzania? Under GN 1 of 2018, as its fee schedule now stands, a prospecting licence pays USD 100 a square kilometre a year for four years, then USD 150 and USD 200 on renewal. A mining licence pays USD 3,000 or USD 2,000 a square kilometre, a special mining licence USD 5,000, and a primary mining licence TZS 90,000 or 45,000 a hectare.
Mining annual rent in Tanzania is the yearly charge a mineral right holder pays to keep its ground. It is separate from royalty, which is paid on minerals sold. This guide covers every Mainland right, the due dates, payment on the cadastre portal, the 90-day penalty, the April 2026 cancellations, Zanzibar and a costed example.
What the law says about mining annual rent
Annual rent on mineral rights rests on one Act and one set of regulations, with a substituted fee schedule.
- The Mining Act, Cap. 123. We read the TanzLII text of the Mining Act as revised to 30 November 2019. Section 2 says the Act "shall apply to Tanzania Mainland." Section 66 sets the penalty when a holder "fails to pay annual rent, royalty or to make payment in lieu of royalty". Section 63 governs suspension and cancellation.
- The Mining (Mineral Rights) Regulations, 2018. These are GN 1 of 2018, published on 10 January 2018. Regulation 11(1) states that the "annual rents payable shall be as specified in the First Schedule". We read the gazetted text of GN 1 of 2018, hosted by a third party.
- The substituted First Schedule. One month after GN 1 was published, the Minister replaced its fee schedule. TanzLII records GN 47 of 2018, the Mining (Mineral Rights) (Revocation of the First Schedule) Regulations, 2018, dated 9 February 2018. Primary mining licence rents were amended again by GN 741 of 2019 and GN 419 of 2022.
The rents in force today are the substituted figures, not the ones printed in January 2018. The gazetted text of GN 1 shows a prospecting licence at USD 40 a square kilometre and a mining licence at USD 1,000. Those numbers still circulate in old guides and are wrong. The current figures below come from the Zatra fee register, which records the substituted schedule with its register IDs.
The Revised Edition 2023 of Cap. 123 renumbered many sections. The fee register shows royalty moving from section 87 to section 111. We quote sections 2, 63, 65 and 66 as numbered in the 2019 text we read; confirm the R.E. 2023 numbers before citing them in a filing.
Who should read this
- Exploration companies holding one or more prospecting licences, especially blocks that have been quiet for a season.
- Mining licence and special mining licence holders budgeting the fixed cost of their licence area.
- Primary mining licence holders, who are Tanzanian citizens or citizen-owned companies, paying rent by the hectare.
- Investors and lenders doing due diligence on a licence before a share deal, farm-in or transfer.
- Finance teams who must show the rent, the penalty exposure and the payment receipts at audit.
For the licences themselves, read our guides to the prospecting licence, the primary mining licence and the mining licence.
How much annual rent does each mineral right pay?
The table sets out the rent each right pays under the First Schedule as it now stands. The schedule prints a US dollar figure and a shilling figure side by side. The control number the Commission issues sets the currency and amount you pay.
| Mineral right | Annual rent | Unit | Register ID |
|---|---|---|---|
| Prospecting licence, initial period (years 1 to 4) | USD 100 (TZS 230,000) | Per km2 | F0616 |
| Prospecting licence, first renewal (3 years) | USD 150 (TZS 340,000) | Per km2 | F0616 |
| Prospecting licence, second renewal (2 years) | USD 200 (TZS 500,000) | Per km2 | F0616 |
| Primary mining licence: gold, kimberlitic diamonds, gemstones | TZS 90,000; minimum TZS 180,000 for an area under 2 ha | Per hectare | F0620 |
| Primary mining licence: other minerals | TZS 45,000; minimum TZS 90,000 for an area under 2 ha | Per hectare | F0620 |
| Mining licence: metallic, energy minerals, gemstones, kimberlitic diamonds | USD 3,000 (TZS 6,800,000) | Per km2 | F0621 |
| Mining licence: building and industrial minerals | USD 2,000 (TZS 4,500,000) | Per km2 | F0621 |
| Special mining licence | USD 5,000 (TZS 11,300,000) | Per km2 | F0621 |
| Processing, smelting or refining licence | Annual fee of half the issue or renewal fee | Per licence | F0631 |
One square kilometre is 100 hectares. A primary mining licence is small, so its rent is set per hectare and in shillings only. The other rights are set per square kilometre. Rive & Co, writing on 31 July 2025, gives the same three prospecting licence rates and periods as the register.
Processing, smelting and refining licences sit under the Mining (Mineral Beneficiation) Regulations, 2018, GN 5 of 2018, not GN 1. The register records an application fee of TZS 150,000 (USD 200) and an annual fee equal to half the issue or renewal fee (F0631). Our mineral processing licence guide covers that file.
When does annual rent fall due?
Regulation 11(1) fixes the amount by reference to the First Schedule. In the texts we could read, neither the Act nor GN 1 of 2018 names a calendar date for payment. The working pattern is set by the licence and the Commission's billing:
- Year one, on grant. Expect the first year's rent to be billed with the preparation fee when the licence is granted. Rive & Co notes that prospecting licence rent "may be paid up-front on grant/renewal".
- Each later year, by the anniversary. Plan on paying each year's rent before the anniversary of the grant date. The rent covers the licence year ahead.
- On renewal. A renewed prospecting licence moves to the higher rate for its new period, so the bill rises in year five and again in year eight.
- On transfer or surrender. Regulation 18 keeps the assignor liable until the assignment completes, "including a requirement for payment of fees and rents". Regulation 15(2) makes a primary mining licence holder "pay all arrears in respect of annual rents and royalty" before surrendering.
The exact due date for your licence is on the statement the cadastre portal shows for it. Treat the grant date printed on the licence as the anchor and diarise each anniversary. Our guide to renewing and transferring a mining licence covers the renewal file.
How is annual rent paid on the Mining Commission portal?
The Mining Commission manages mineral rights through the Online Mining Cadastre Transactional Portal. A Clyde & Co briefing of August 2014 on the portal's launch said holders could submit and track payments online. It also said licensing officers run a legal entity history report that lists "overdue payments and overdue reports".
- Log in to the holder's account. Use the account under which the licence is registered.
- Open the licence and its bill. The portal lists the rent and any other fees outstanding for that licence.
- Generate the control number. Every Mainland government charge is billed through the Government e-Payment Gateway (GePG). The control number carries the amount and currency.
- Pay by bank or mobile money. Pay the exact amount on the control number before it expires.
- Keep the receipt. Download the GePG receipt and check that the portal shows the licence as paid.
If the portal and a paper invoice disagree, ask the Commission in writing which governs. The amount on the GePG control number governs on the day of payment.
What happens if annual rent is not paid?
Late rent exposes the holder to three separate consequences: a cash penalty, a default notice and loss of the licence.
| Stage | Consequence | Basis (2019 text) |
|---|---|---|
| Rent due and unpaid | Rent remains owed; the portal flags the licence as overdue | reg. 11(1); First Schedule |
| 90 days after the due date | Penalty on top of the rent: 25% of the amount due for an individual, 50% for a body corporate | s.66(1) |
| Penalty paid | No exemption from any other liability under the Act | s.66(2) |
| Still unpaid | Unpaid annual rent is a debt recoverable in a court of competent jurisdiction | s.66(3) |
| Default notice served | 30 days from service to remedy the default | s.63(2) |
| Default not remedied | Suspension or cancellation of the mineral right | s.63(1) |
| After cancellation | Rights end; liabilities already incurred survive | s.63(7) |
| Challenge | Judicial review in the High Court within 60 days of the decision | s.65(1) |
Section 63(1)(a) covers a holder who "fails in a material respect to comply with any requirement of this Act or the Regulations". Rent is such a requirement. Section 63(2) bars the licensing authority from acting unless it "has first served on the holder a default notice specifying the grounds". The holder must then have failed to remedy within "thirty days from the date on which the default notice was served".
The 30 days run from service, not from the date on the letter. Record the day the notice reached you. A default notice, a cancellation or a court claim for unpaid rent should go to an advocate the day it arrives. Our guide to appealing a licence refusal or revocation sets out the review route.
What changed in April 2026: 40 licences cancelled and 43 notices
The Mining Commission published a release headed "Serikali yafuta leseni 40 za utafiti wa madini" (Government cancels 40 mineral exploration licences). The Commission's site blocked our reader, so the details below come from two independent reports.
- The cancellations. Mwananchi reported that on 15 April 2026, in Dodoma, the Minister for Minerals, Anthony Mavunde, announced the cancellation of 40 exploration licences covering 188,163 acres.
- The notices. Mwananchi reported that another 43 licences had received default notices (hati za makosa) since 10 April 2026. Holders who fail to correct the faults within 30 days lose their licences, and the areas go to other investors.
- The reasons. The reported grounds were blocks held without development, failure to pay the required fees (ada stahiki), weak Tanzanian participation, missing expenditure records and unmet social responsibility commitments.
- Independent confirmation. African Mining Market reported on 16 April 2026 that the Minister ordered the Commission to cancel the licences, and that 43 more holders had 30 days to resolve outstanding issues.
Neither report names annual rent separately or quotes a section. The Minister urged investors to follow the Mining Act, Cap. 123. The 30-day window matches section 63(2). The lesson is plain: unpaid fees, idle ground and local content gaps are now enforced together. A holder that pays rent but files no expenditure records is still at risk. Our note on local content ownership checks covers the participation side.
Which other recurring charges sit beside annual rent?
Rent keeps the licence alive. These other charges and duties run alongside it and are billed separately.
| Obligation | Rate or amount | Paid to | Register ID |
|---|---|---|---|
| Royalty on gross value | 6%, 5%, 4%, 3% or 1% by mineral | Mining Commission | F0624 |
| Inspection fee | 1% of gross value, before export or domestic use | Mining Commission | F0625 |
| HIV Response Levy | 0.1% of gross value, paid with royalty, from 1 July 2025 | Mining Commission | F0626 |
| Service levy | 0.25% of turnover | Local government authority | F0630 |
| Prospecting licence minimum expenditure | Most minerals USD 500, 2,000 and 6,000 a km2 by period; industrial minerals and building materials USD 100; gemstones USD 250 | Spent on the programme, not paid to Government | F0618 |
| Prospecting licence renewal application | USD 300 (TZS 700,000) | Mining Commission | F0617 |
| Primary mining licence renewal | TZS 100,000 | Mining Commission | F0619 |
| Mining licence renewal application | USD 2,000; special mining licence USD 5,000 | Mining Commission | F0621 |
The HIV Response Levy was added as section 113A by the Finance Act 2025, as Clyde & Co noted on 21 August 2025. Royalty and the inspection fee are explained in our mineral royalty and inspection fee guide. The council's levy is covered in our service levy guide. Inspections of records and sites are covered in our note on Mining Commission inspections.
Does annual rent apply in Zanzibar?
No. Section 2 limits the Mining Act to Tanzania Mainland, so the Mining Commission, GN 1 of 2018 and every rent in this guide are Mainland matters.
- Zanzibar's own law. The Citizen reported on 28 November 2024 on a proposed Zanzibar mining law. We could not read an enacted text.
- What is unknown. The licensing body, the rent and the fees for minerals on Unguja or Pemba are unknown to us at this date.
- What to do. Ask the Revolutionary Government of Zanzibar ministry responsible for minerals before you apply, budget or sign for ground on the islands.
| Point | Mainland Tanzania | Zanzibar |
|---|---|---|
| Governing law | Mining Act, Cap. 123; GN 1 of 2018 | Zanzibar law; enacted text not confirmed |
| Licensing authority | Mining Commission | Unknown |
| Annual rent | Per km2 or per hectare, First Schedule | Unknown |
| Payment channel | Cadastre portal, GePG control number | Unknown |
Worked example: a 10 sq km prospecting licence and a 2 sq km mining licence
A Tanzanian-incorporated company, part foreign-owned, holds two gold rights on the Mainland. We make three stated assumptions:
- Prospecting licence: 10 km2 for gold, granted on 15 November 2025, in its initial period.
- Mining licence: 2 km2 for gold, granted on 1 February 2024.
- Due dates: each year's rent falls due on the anniversary of grant. Confirm the actual date on the portal.
| Item | Register ID | Calculation | USD | TZS as printed |
|---|---|---|---|---|
| Prospecting licence rent, year 2 | F0616 | 10 km2 x USD 100 | 1,000 | 2,300,000 |
| Mining licence rent, year 4 | F0621 | 2 km2 x USD 3,000 | 6,000 | 13,600,000 |
| Annual rent, both licences | 7,000 | 15,900,000 |
The prospecting licence anniversary falls on 15 November 2026, and the mining licence anniversary on 1 February 2027. If the prospecting licence is renewed in 2029 with the full area kept, its rent rises to USD 1,500 (10 x USD 150). If the mining licence were for building materials instead, its rent would be USD 4,000 (2 x USD 2,000).
The primary mining licence equivalent. A citizen holding a 10-hectare gold primary mining licence pays TZS 900,000 a year (10 x TZS 90,000, F0620). A 1.5-hectare licence for other minerals pays the TZS 90,000 minimum, because TZS 67,500 is below it.
The late scenario. The company misses the mining licence rent due on 1 February 2027.
- Day 90. Ninety days after 1 February 2027 is 2 May 2027. Once that period has passed, section 66(1)(b) adds a 50% penalty for a body corporate: USD 3,000.
- The bill. Rent of USD 6,000 plus the penalty of USD 3,000 makes USD 9,000, or TZS 20,400,000 at the printed shilling rates.
- The notice. If the Commission serves a default notice, the company has 30 days from service to pay. If it does not, the licence can be suspended or cancelled.
- The real cost. Losing a mining licence costs far more than USD 9,000. The prospecting licence ground could also go to another investor, as happened to the 40 holders in April 2026.
An individual holder would face a 25% penalty instead, under section 66(1)(a). Zatra's professional fee for managing the calendar or the payment is quoted separately from these government charges.
What to do now
- List every licence. Record each right's number, grant date, area, mineral and holder entity in one schedule.
- Price the rent. Multiply the area by the current First Schedule rate, not the January 2018 figures.
- Diarise the anniversaries. Set reminders 60 and 30 days before each grant anniversary, and note renewal years when the rate rises.
- Check the portal. Log in, confirm nothing is overdue and download the receipts for the last three years.
- Pay against the control number. Generate the GePG control number on the portal and pay the exact amount before it expires.
- Clear arrears first. Pay any overdue rent before day 90 to avoid the 25% or 50% penalty.
- Answer any default notice. Note the date of service, remedy within 30 days and reply in writing with proof of payment.
- Fix the other gaps. File expenditure records and local content plans, and show work on the ground, so rent is not the only thing in order.
- Check rent in any deal. Before buying, farming into or transferring a licence, ask for the portal statement and receipts.
Key dates and deadlines
| Date or trigger | Event | Effect |
|---|---|---|
| 10 January 2018 | GN 1 of 2018 published | Regulation 11 links annual rent to the First Schedule |
| 9 February 2018 | GN 47 of 2018 | First Schedule replaced with the higher rents |
| 18 October 2019 and 2022 | Further amendments to GN 1 | Primary mining licence fees and rents amended (GN 741 of 2019; GN 419 of 2022) |
| 1 July 2025 | HIV Response Levy starts | 0.1% of gross value, paid with royalty (F0626) |
| 10 to 15 April 2026 | Default notices and cancellations | 43 licences given notices; 40 exploration licences cancelled |
| On grant | First year's rent | Billed with the preparation fee; confirm on the portal |
| Each grant anniversary | Annual rent due | Confirm the date on the portal |
| 90 days after the due date | Late penalty | 25% individual, 50% body corporate (s.66(1)) |
| 30 days after a default notice is served | Remedy period ends | Suspension or cancellation possible (s.63(2)) |
| 60 days after a decision | Judicial review deadline | High Court application (s.65(1)) |
How Zatra helps
Zatra's sector business permits service builds the licence schedule, prices each year's rent, tracks anniversaries and renewals, and prepares replies to default notices. Our investment due diligence service checks rent, receipts and expenditure records before a licence deal. See also our Tanzania mining page, the government fees handbook, pricing and contacts.
Annual rent, royalty, levies and renewal fees are paid by the client to the Mining Commission or the council at the official rate against a GePG control number. They are separate from Zatra's professional fee and are never marked up.
The Mining Commission and the Minister decide every grant, renewal, suspension and cancellation. Zatra prepares and coordinates the file; it does not decide or guarantee any authority's outcome. Default notices that may end in cancellation, court claims for unpaid rent, judicial review and formal legal opinions go to Zatra's advocate.
Sources and status
Accurate as at 20 October 2026. Fees are from the Zatra fee register at 26 September 2026.
- Mining Act, Cap. 123: TanzLII, text as at 30 Nov 2019, ss.2, 63, 65 and 66.
- Mining (Mineral Rights) Regulations, 2018, GN 1 of 2018: TanzLII record and amendment list to 17 May 2022.
- GN 1 of 2018, gazetted text: Special Supplement, 10 Jan 2018, regs. 11, 15 and 18, third-party copy.
- GN 47 of 2018, revocation of the First Schedule: TanzLII record, 9 Feb 2018.
- Serikali yafuta leseni 40 za utafiti wa madini: Mining Commission release, April 2026, title only read.
- Mining Commission and Online Mining Cadastre Transactional Portal: official websites, live 2026.
- Serikali yafuta leseni 40 za madini, yatoa onyo: Mwananchi, 15 Apr 2026.
- Tanzania revokes 40 mineral exploration licences: African Mining Market, 16 Apr 2026.
- Prospecting licence procedures: Rive & Co, 31 Jul 2025.
- Launch of the online mining cadastre transactional portal: Clyde & Co, Aug 2014.
- Key Mining Act amendments, Finance Act 2025: Clyde & Co, 21 Aug 2025.
- Zanzibar mining law: The Citizen, 28 Nov 2024, summary only.
- Zatra fee register lines F0616 to F0621, F0624 to F0626, F0630 and F0631: Tanzania Government Fees 2026, fees at 26 Sep 2026. Accessed 20 Oct 2026, as were all sources above.
Figures to confirm before you act
- Due date: the exact payment date for each licence on the cadastre portal; no text we read fixes it
- Currency: whether your control number is issued in US dollars or the printed shilling amount
- Part areas: how rent is charged on a fraction of a square kilometre
- R.E. 2023 section numbers: we read the 2019 text for ss.2, 63, 65 and 66
- April 2026 actions: the Commission's own list of the 40 cancelled licences and 43 notices
- Zanzibar: enacted mining law, licensing body and rent
This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.
Frequently asked questions
Is annual rent refunded if a licence is surrendered part way through the year?
We found no refund rule in GN 1 of 2018. Regulation 15(2) requires a primary mining licence holder to clear arrears of rent and royalty before surrender, which points the other way. Budget on the basis that rent paid for a licence year is not returned, and ask the Commission in writing if the sum is large.
Does relinquishing part of a prospecting licence area reduce the rent?
Rent is charged per square kilometre, so a smaller retained area should mean a smaller bill from the next licence year. The reduction applies once the Commission records the new area on the cadastre. Check that the portal shows the reduced area before you pay the next year's rent.
Can a holder pay several years of rent in advance?
The regulations speak of annual rent, payable year by year. We found no rule allowing or barring advance payment. A holder that wants certainty should pay each year on time and keep the receipts, rather than rely on an informal credit.
Who pays the rent when a licence is being transferred?
Regulation 18 keeps the assignor liable for fees and rents until the assignment is complete. In the sale agreement, require the seller to show a clean portal statement at signing and at completion. Agree who pays any rent falling due in between, and hold back part of the price to cover it.
Is annual rent deductible for income tax?
Rent paid to keep a mineral right is a cost of the mining or exploration business. How it is treated, and whether it is ring-fenced to a licence area, depends on the Income Tax Act rules for mining. Ask a tax adviser or Zatra's tax desk before filing the return.
Can the Commission cancel a licence for late rent without any warning?
Not under section 63 as we read it. The licensing authority must first serve a default notice stating the grounds, and the holder has 30 days from service to remedy. Cancellation for ineligibility under section 63(3) follows a different route, so read any notice closely.
Does a mineral dealer or broker pay annual rent?
No. Dealers and brokers hold trading licences, not mineral rights over land. They pay yearly licence fees instead: for a dealer, USD 1,000 for gold, metallic minerals and coloured gemstones (F0622); for a broker, TZS 200,000 (F0623).
What if the payment was made but the portal still shows the licence overdue?
Keep the GePG receipt and the control number. Write to the Commission's cadastre office with both, and ask for the record to be corrected. Do this before day 90, so the penalty clock does not run against a payment already made.
Sources & regulators
Verify before filing: Rates, forms and thresholds move by Finance Act, Government Notice and portal revision. Confirm the live schedule on the mandate-holder portal before you budget or submit. Law-firm alerts and Big Four notes are discovery only.
- Mining Act, Cap. 123: TanzLII, revised text at 30 Nov 2019, ss.2, 63, 65 and 66 read 20 Oct 2026; primary source. Accessed 2026-10-20.
- Mining (Mineral Rights) Regulations, 2018, GN 1 of 2018: TanzLII record, version of 10 Jan 2018 with amendment list to 17 May 2022, read 20 Oct 2026; primary source. Accessed 2026-10-20.
- GN 1 of 2018, gazetted text: Special Supplement No. 1 to the Gazette, 10 Jan 2018, regs. 11, 15 and 18 and First Schedule as made, third-party copy read 20 Oct 2026; primary text. Accessed 2026-10-20.
- Mining (Mineral Rights) (Revocation of the First Schedule) Regulations, 2018, GN 47 of 2018: TanzLII record, dated 9 Feb 2018, title and date read 20 Oct 2026; primary source. Accessed 2026-10-20.
- Mining Commission: Serikali yafuta leseni 40 za utafiti wa madini: Mining Commission news release, April 2026, title only read 20 Oct 2026 (site blocks automated reading); primary source. Accessed 2026-10-20.
- Mining Commission (Tume ya Madini): Mining Commission official website, live 2026, accessed 20 Oct 2026; primary source. Accessed 2026-10-20.
- Online Mining Cadastre Transactional Portal: Mining Commission, live 2026, accessed 20 Oct 2026; primary source. Accessed 2026-10-20.
- Mwananchi: Serikali yafuta leseni 40 za madini, yatoa onyo: Mwananchi, published 15 Apr 2026, read 20 Oct 2026; independent news source. Accessed 2026-10-20.
- African Mining Market: Tanzania tightens control over its mining sector by revoking 40 mineral exploration licences: African Mining Market, published 16 Apr 2026, read 20 Oct 2026; independent news source. Accessed 2026-10-20.
- Rive & Co: Application for Prospecting Licence (PL) Procedures in Tanzania: Rive & Co, Ruwaida Manji, published 31 Jul 2025, read 20 Oct 2026; independent law firm source. Accessed 2026-10-20.
- Clyde & Co: Launch of the online mining cadastre transactional portal: Clyde & Co briefing, Aug 2014, hosted by In-House Community, read 20 Oct 2026; independent law firm source. Accessed 2026-10-20.
- Clyde & Co: Key Mining Act amendments introduced by the Finance Act, 2025: Clyde & Co, published 21 Aug 2025, read 20 Oct 2026; independent law firm source. Accessed 2026-10-20.
- The Citizen: How Zanzibar hopes to promote economic growth with mining law: The Citizen, published 28 Nov 2024, summary only read 20 Oct 2026; independent news source. Accessed 2026-10-20.
Disclaimer
This article is informational orientation. It is not legal, tax or investment advice and not a government decision. Tanzanian instruments move by Act, Government Notice, Finance Act and portal revision. If a sentence here disagrees with the live mandate-holder, the mandate-holder wins. Zatra Consultants Limited does not issue licences, permits, tax clearances or approvals, and gives no assurance of any regulatory or banking outcome. Professional fees are published only on /pricing/.