Mining Land Compensation Tanzania: Who Pays, How Much, and When

Mining land compensation Tanzania questions start with one fact. A mineral right is a right to the minerals, not to the surface. The farmer, the household and the village keep their land rights until they consent, are valued and are paid. This guide explains what the Mining Act Cap. 123 R.E. 2023 requires before a holder disturbs occupied land, how compensation is valued, who approves the valuation, when it must be paid, and where disputes go.

It is written for the Mainland. Zanzibar has its own land laws and a different position on mining, covered in its own section below.

What the law says

Four instruments carry most of the rules. The Mining Act Cap. 123 R.E. 2023, published by the Office of the Attorney General, applies to the Mainland. In its arrangement of sections, Part VII includes section 120, "Restriction of rights of entry of holder of mineral right", section 121, "Rights under mineral right to be exercised reasonably", and section 122, "Compensation, relocation and resettlement". Sections 150 to 152 deal with disputes: the Commission may decide disputes, its orders are enforced, and an appeal lies to the High Court.

We read those headings in the R.E. 2023 arrangement this session. We could not load the operative text of sections 120 to 122 in that edition. The content described below comes from the same provisions as enacted in 2010, then numbered sections 95 to 97, in the Mining Act No. 14 of 2010 and the TanzLII consolidation of November 2019. Confirm the current wording before you rely on a distance or a consent rule.

The land side comes from three more instruments:

• The Land Act Cap. 113. Section 3(1)(g) commits the State to "full, fair and prompt compensation" where occupation or customary use is revoked or interfered with.
• The Village Land Act Cap. 114. Section 3(1)(h) carries the same principle for village land, and section 8 makes the village council the manager of village land, acting like a trustee.
• The Land (Assessment of the Value of Land for Compensation) Regulations, 2001, Government Notice No. 78 of 4 May 2001, made under the Land Act. They set the basis of value and the allowances.

The fourth piece is the Valuation and Valuers Registration Act, now Cap. 138 R.E. 2023. It gives the Chief Valuer the power to approve valuation reports and sets the payment clock for compensation.

Who is affected?

This guide is for anyone on either side of a licence boundary:

• Holders of mining licences and special mining licences whose pits, haul roads or plant need occupied land.
• Prospecting licence holders who need to trench, drill or camp on farms.
• Primary mining licence (PML) holders working on village land.
• Landholders with a granted right of occupancy, customary occupiers on village land, and village councils.
• Lenders, buyers and joint venture partners doing due diligence on a mining asset.

If two mineral rights overlap each other, that is a different problem, covered in our guide to overlapping mineral claims. This guide is about the mineral right against the surface right.

Does a mining licence give a right to use the land?

No. A licence lets the holder carry out the authorised operations inside the licence area. It does not end anyone's right of occupancy. FB Attorneys, writing on 7 September 2026, put it the same way: a licence does not "automatically extinguish the rights of lawful occupants", and the land and compensation steps come first.

The Mining Act defines a "lawful occupier" by reference to the Land Act and the Village Land Act. That covers a holder of a granted right of occupancy and a holder of a customary right on village land. It can also reach people whose long-standing occupation the land laws recognise.

So the practical sequence is this. The licence comes from the Mining Commission. The access to land comes from the occupier, by consent and payment, under the land laws. A holder who starts work on occupied land before both are settled exposes itself to a dispute, a stop order and a claim for damage.

When is the occupier's consent required?

Section 95 of the 2010 Act, now section 120, lists places where a holder may not exercise its rights without a named consent. The list in the 2010 text runs as follows:

• Land set aside for public purposes, burial grounds and land near Government buildings, reservoirs or dams: written consent of the responsible Minister.
• Land within 200 metres of an occupied house, and cultivated or recently harvested land: consultation with the local government authority, including the village council, and then the lawful occupier's written consent.
• National parks, forest and game reserves and the Ngorongoro Conservation Area: consent of the authority in control.
• Railway land and a strip next to it: consent of the railway authority.
• Cities, municipalities, townships and registered villages: consent of the surface rights holders and the responsible authority.

The 2010 text also lets the Minister waive the occupier's consent where it is unreasonably withheld, with conditions. That waiver is a fallback, not a shortcut. It does not remove the duty to pay compensation.

Section 96 of the 2010 Act, now section 121, adds a general duty. Rights must be "exercised reasonably" and not so as to injure the occupier's interests. The occupier may keep using the surface where that does not interfere with mining.

What does the mineral right holder have to pay for?

The 2010 text makes the holder liable to pay the lawful occupier fair and reasonable compensation for disturbance of rights and for damage to crops, trees, buildings or stock. That summary comes from the East Africa Law Society SIRD training note on section 96(3), checked against the 2010 Act's structure.

Where mining cannot go ahead without moving people, the 2010 section 97, now section 122, takes over. The holder must tell the occupiers, prepare a compensation, relocation and resettlement plan, and follow the Land Act and Village Land Act procedures. A special mining licence application must carry that plan; in R.E. 2023 the requirement sits at section 51(3)(d).

The heads of compensation come from GN 78 of 2001:

The Regulations say that transport, accommodation and loss of profit are not payable for land that was unoccupied when the interest was lost. A Ministry of Lands resettlement framework of April 2020 summarises the same heads and formulas.

Who values the land and who approves it?

A qualified valuer prepares the assessment. Under the Valuation and Valuers Registration Act, only valuers registered with the Valuers Registration Board may value. Our note on who may sign a property valuation covers the registration point.

Section 6(1)(h) of Cap. 138 R.E. 2023 makes it a function of the Chief Valuer to "oversee and approve or endorse all valuation reports" prescribed under the Act. Compensation valuations are among them. A presentation by the Chief Valuer's Office in the Ministry of Lands, which covers approvals to 2021/2022, explains that authorised regional valuers approve reports below TZS 1 billion under delegated powers.

The Chief Valuer's approval fee is a government charge. The register lists it as F0471: TZS 20,000 where market value is below TZS 100 million, with percentage rates above that. It is paid against a GePG control number.

The R.E. 2023 text of Cap. 138, as published by VK Advocates, confirms the section numbers used here.

When must compensation be paid?

Cap. 138 sets a clock that runs from the valuation, not from the licence:

• Section 53(1): the cut-off date for eligibility is the date valuation starts. Crops planted or houses built after that date are not counted.
• Section 52(3): the report must be endorsed within six months after the last affected person's interest is valued.
• Section 52(4): once the Chief Valuer approves, the person or entity responsible must pay all affected persons promptly.
• Section 52(8): "prompt" means within six months after the Chief Valuer's approval.
• Section 52(5): late payment carries interest at the average commercial bank fixed deposit rate until paid.
• Section 52(2) and (6): the valuation is valid for two years from endorsement. If compensation and interest are not settled in that time, the valuation lapses and must be redone.

A lapsed valuation is expensive. Land values rise, new structures appear, and the new cut-off date brings them in. Budget the cash before you commission the valuation.

Who pays: the holder or the Government?

The holder pays. The Mining Act puts the duty to compensate on the holder of the mineral right, and Cap. 138 puts the payment duty on "the person or entity responsible". The Government does not fund compensation for a private mining project.

Keep the three money flows apart. Compensation goes to the occupiers. Government fees, such as the Chief Valuer's approval fee F0471 and the licence rents, go to the Treasury against a GePG control number at the official rate. Zatra's professional fee, if you use us, is a separate invoice. We never mix those buckets or mark up a government charge.

Compensation is often the largest early land cost of a project, larger than licence fees. Our guide to the mining licence covers the Mining Commission side of the budget.

Worked example: valuing four hectares of farmland

A company holds a mining licence for gold. Its haul road must cross four hectares of farmland held by one family under a customary right on village land. The family has a house, mature crops and trees, and a small shop on the plot. These figures are illustrative; your valuer's report decides the real numbers.

The Chief Valuer's approval fee on a report below TZS 100 million is TZS 20,000 under F0471. That goes to Government, not the family.

Now the clock. Say the Chief Valuer approves on 1 March 2027. Prompt payment means by 1 September 2027. If the company pays three months late, interest at the assumed 8% rate adds about TZS 1,992,000 (99,600,000 x 8% x 3/12). If it waits beyond two years from endorsement, the valuation lapses and the whole exercise restarts at new values.

Two assumptions here need your valuer's view. The first is the deposit rate, which changes. The second is whether the disturbance rate applies to land value alone or to land plus improvements. Both are listed under Figures to confirm.

How does this work for a PML on village land?

Primary mining licences are reserved for Tanzanian citizens and citizen-owned entities under section 9 of the Mining Act R.E. 2023. Sections 64 to 68 cover application, grant, renewal, allocation in exclusive areas and conversion to a mining licence. Section 17 lets the Minister set aside exclusive areas for PMLs. Our PML guide covers the licence itself.

Most PMLs sit on village land. Under section 8 of the Village Land Act, the village council manages that land, and under section 8(5) it cannot allocate land without the village assembly's prior approval. In practice the PML holder deals with three parties: the Mining Commission for the licence, the village council for village land matters, and each household whose fields or homes are affected.

The same consent and compensation rules apply to a PML holder as to a large miner. A small pit on a maize field still needs the farmer's written consent and payment for the crop. Agreements written only in English, signed by one family member, rarely survive a dispute. Our guide to village land and granted rights of occupancy explains the two tenure systems.

PML government fees come from the register: F0619 sets application and preparation at TZS 50,000 each and renewal at TZS 100,000. F0620 sets annual rent for gold, gemstones and kimberlitic diamonds at TZS 90,000 a hectare, with a minimum of TZS 180,000 for an area under two hectares.

What if people must be resettled?

Resettlement is the heaviest case. The holder moves from paying for crops to moving households. The 2010 section 97, now section 122, requires a compensation, relocation and resettlement plan under the Land Act. For a special mining licence, the plan is part of the application under section 51(3)(d).

A workable plan usually covers:

• A census of affected people and a declared cut-off date that matches the valuation start date under Cap. 138 section 53(1).
• A valuation schedule approved by the Chief Valuer.
• Replacement land, houses or cash, as the Land (Compensation Claims) Regulations, GN 79 of 2001, allow compensation in kind.
• A grievance channel, a payment timetable inside the six-month window, and a record of every payment.

Projects with international lenders often apply IFC Performance Standard 5 as well. The SIRD training note describes its replacement-cost and livelihood-restoration tests, which can go beyond Tanzanian market value. Resettlement also links to closure: land you take for a pit must be rehabilitated at the end, as our guide to mine closure and rehabilitation explains.

Where do disputes go?

Disputes about the assessment and payment of compensation go first to the Mining Commission. Section 150 of the Mining Act R.E. 2023 is headed "Commission may decide disputes". The procedure sits in the Mining (Dispute Resolution) Rules, 2021, GN 323 of 2021, which replaced GN 224 of 1999.

According to FB Attorneys' legal update of 30 April 2021, the Rules cover three kinds of dispute: boundaries of mineral right areas, water works and water priority, and the assessment and payment of compensation. A complainant files a memorandum of complaint, the respondent replies within 14 days, and the Commission hears the parties. The filing fee depends on the complainant's licence type; the Commission assesses it on filing.

Rive and Co., writing on 5 August 2024, describes the 14-day jurisdiction check after registration. Both firms report a 30-day window to appeal to the High Court. Section 152 of R.E. 2023 is headed "Appeal to High Court"; confirm the period in its text before you diarise it.

A TanzLII summary on the GN 323 page notes that the Commission acts as a quasi-judicial body. A decision made without hearing the parties was set aside on review. Disputes over the land title itself, as opposed to compensation, may belong in the land courts and tribunals instead. Choosing the right forum is a question for an advocate, and so is any appeal.

How does Zanzibar differ?

The Mining Act Cap. 123 applies to the Mainland. The OSG e-library record says so, and Zanzibar regulates land through its own statutes and its own Commission for Lands. Nothing in this guide about GN 78 of 2001, the Village Land Act or the Mining Commission's dispute rules carries across to Zanzibar.

On minerals, The Citizen reported on 28 November 2024 that Zanzibar had no dedicated mining law and was preparing one. We could not confirm whether that law has since been enacted. Treat the Zanzibar position as unknown and check with the Revolutionary Government of Zanzibar ministry responsible for minerals and with the Zanzibar Commission for Lands.

Our comparison of Mainland and Zanzibar land rights sets out the wider differences.

What to do now

1. Map the surface. Overlay the licence area from the mining cadastre on village boundaries, titles, houses, graves and fields before you plan any works.
2. Identify the consents. List every Minister, authority, village council and occupier whose consent the restriction section requires for each parcel.
3. Engage the village early. Meet the village council and assembly, record the meetings, and agree how households will be told about the valuation.
4. Commission a registered valuer. Fix the valuation start date as the cut-off date and announce it locally, so later structures do not join the schedule.
5. Secure Chief Valuer approval. Submit the report for endorsement within six months of the last valuation and pay the F0471 fee against a GePG control number.
6. Pay inside six months. Have the cash ready before approval, pay each household by traceable transfer, and keep signed receipts.
7. Plan resettlement where needed. Prepare the relocation and resettlement plan with the licence application, not after.
8. Route disputes correctly. Send compensation disputes to the Mining Commission under GN 323 of 2021 and brief an advocate on any title dispute or appeal.

Key dates and deadlines

How Zatra helps

Zatra maps the consents a parcel needs, coordinates registered valuers, prepares the compensation schedule and payment file, and tracks the Chief Valuer and six-month clocks. We also run land and licence checks for buyers and lenders through our investment due diligence service, and handle the Mining Commission side through sector permits. For land files more broadly, see our land acquisition page.

Government charges are paid at the official rate against GePG control numbers and kept separate from our professional fee. Disputes, appeals, title litigation and formal legal opinions go to an advocate. Zatra does not decide or guarantee any authority's outcome.

Sources and status

Accurate as at 3 November 2026.

• The Mining Act, Chapter 123 R.E. 2023. Office of the Attorney General e-Library, record dated 1 July 2025. Accessed 3 Nov 2026.
• Mining Act, consolidation at 30 November 2019. TanzLII, 2019. Accessed 3 Nov 2026.
• The Mining Act No. 14 of 2010, ss.95 to 97. African Mining Legislation Atlas, text as enacted 2010. Accessed 3 Nov 2026.
• Land Act, Cap. 113, s.3(1)(g). TanzLII, version of 30 June 2025. Accessed 3 Nov 2026.
• Village Land Act, Cap. 114, ss.3(1)(h) and 8. TanzLII, version of 31 December 2023. Accessed 3 Nov 2026.
• Land (Assessment of the Value of Land for Compensation) Regulations, 2001, GN 78 of 2001. FAOLEX copy of the Gazette of 4 May 2001. Accessed 3 Nov 2026.
• Valuation and Valuers Registration Act No. 7 of 2016, ss.6, 52 and 53. FAOLEX copy of the Gazette of 30 September 2016. Accessed 3 Nov 2026.
• Valuation and Valuers Registration Act, Cap. 138 R.E. 2023. VK Advocates library, Government text of 2025. Accessed 3 Nov 2026.
• Mining (Dispute Resolution) Rules, 2021, GN 323 of 2021. TanzLII, version of 16 April 2021. Accessed 3 Nov 2026.
• Resettlement Policy Framework, Land Tenure Improvement Project. Ministry of Lands, via World Bank, April 2020. Accessed 3 Nov 2026.
• Valuation approval process. Chief Valuer's Office, Ministry of Lands, presentation published 2023. Accessed 3 Nov 2026.
• Mineral versus land rights. FB Attorneys, 7 September 2026. Accessed 3 Nov 2026.
• New Mining Disputes Resolution Rules issued. FB Attorneys, 30 April 2021. Accessed 3 Nov 2026.
• Tanzania Mining Rules: Navigating Dispute Resolution. Rive and Co., 5 August 2024. Accessed 3 Nov 2026.
• Resettlement and Compensation. East Africa Law Society SIRD training programme, 2019, posted 2023. Accessed 3 Nov 2026.
• How Zanzibar hopes to promote economic growth with mining law. The Citizen, 28 November 2024. Accessed 3 Nov 2026.

Figures to confirm before you act

• Operative text of Mining Act R.E. 2023 sections 120 to 122, including the 200-metre and other distances and the consent waiver, which we read in the 2010 text only.
• The appeal period in Mining Act R.E. 2023 section 152, reported as 30 days by two law firms.
• Regulation numbers in GN 78 of 2001, read from an imperfect scan.
• Whether the disturbance allowance rate applies to land value alone or to land plus improvements.
• The current average 12-month fixed deposit rate; the 8% used in the worked example is an assumption.
• How the F0471 approval fee is applied above TZS 100 million for a compensation schedule.
• The Commission's dispute filing fee under GN 323 of 2021, assessed on filing and not in our fee register.
• Whether Zanzibar has enacted a mining law since November 2024, and its land compensation rules.

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.