Mining & Minerals

Mining Licence Tanzania: Eligibility, Capital Bands, Fees, the 16% State Stake and How the ML Compares with the SML and PML

Cover: mining licence Tanzania, USD 100,000 to 100 million capital band, USD 3,000 a km2 rent and 16% free carried interest under Cap. 123 and GN 1 of 2018
The mining licence on the Mainland: who may hold it, what it costs, what the Government takes and how it compares with the special and primary mining licences. As at 11 October 2026.
Direct answer

What is a mining licence in Tanzania? It is the medium-scale mining right under the Mining Act, Cap. 123, for projects with capital investment between USD 100,000 and USD 100 million. A Tanzanian-incorporated company applies to the Mining Commission with a feasibility study and environmental certificate. The first term is up to ten years. It costs USD 2,000 to apply and USD 3,000 a km2 a year in rent for gold.

The mining licence, or ML, sits between the citizens-only primary mining licence and the special mining licence for large projects. The Government's free carried interest, local content plans and rent per km2 decide what it costs to keep.

What the law says about the mining licence

A mining licence Tanzania investors apply for is a mineral right under Part IV of the Mining Act, Cap. 123. Section 4 defines it as "a mining licence for medium scale mining operation" with capital investment between USD 100,000 and USD 100,000,000, or the shilling equivalent. A special mining licence covers large-scale operations of not less than USD 100,000,000.

We read the TanzLII text of the Act as at 30 November 2019. The mining licence rules sit in sections 49 to 53, the special mining licence rules in sections 41 to 48, and conversion of a primary mining licence in section 58. Section 10 sets the Government's stake.

The procedure and fees sit in the Mining (Mineral Rights) Regulations, 2018, GN 1 of 2018, with the fee schedule substituted by GN 47 of 2018. We also read the gazetted text of GN 1 of 2018 as published on 10 January 2018, hosted by a third party, for the forms and area limits.

Which edition we cite

The 2019 text keeps the 2010 numbering. The Revised Edition of 2023 renumbers the Act: royalty moved from section 87 to section 111, and the inspection fee from section 90A to section 115. We have not read the R.E. 2023 numbers for sections 41 to 58. Section numbers below are from the 2019 text, so confirm the R.E. 2023 number before quoting one in a filing.

Who should read this

This guide replaces our earlier mining licence application note for 2026 as the definitive mining licence guide. For the exploration stage, read our prospecting licence guide. For small-scale citizen mining, read the primary mining licence guide.

What is the difference between a PML, an ML and an SML?

The three mining rights differ by scale, ownership and cost. The capital bands come from section 4 of the 2019 text; the fees are from the Zatra fee register at 26 September 2026.

PointPrimary mining licenceMining licenceSpecial mining licence
ScaleSmall-scaleMedium-scale, USD 100,000 to USD 100 million capitalLarge-scale, USD 100 million or more
Who may holdCitizens and wholly citizen-owned bodies, s.8(2)Company incorporated under the Companies Act, s.8(1)(b)Same, with Cabinet approval, s.42
Maximum area, metallic minerals10 ha for most minerals10 km2; 1 km2 for building materials and gemstones, reg. 7(e) and (f)35 km2; 70 km2 for superficial deposits, reg. 7(c) and (d)
Term7 years, renewableUp to 10 years, renewable up to 10 yearsLife of the ore body or a shorter period requested
Application feeTZS 50,000 (F0619)USD 2,000 (F0621)USD 5,000 (F0621)
Annual rentTZS 90,000 a ha, gold (F0620)USD 3,000 a km2, metallic (F0621)USD 5,000 a km2 (F0621)
Government stakeNone statedNot less than 16% free carried interest, s.10Not less than 16% free carried interest, s.10

Our overview of Tanzania mining licence types also covers dealer, broker and processing licences.

Who may hold a mining licence?

Section 8 sets the disqualifications for every mineral right. For companies, section 8(1)(b) requires a physical and postal address in Tanzania for service of notices and, in the 2019 text, incorporation under the Companies Act. A foreign parent therefore holds a mining licence through a Tanzanian subsidiary, not through a branch.

TestRuleStatus
IncorporationCompany incorporated under the Companies Act, Cap. 212, with a Tanzanian address, s.8(1)(b)Settled on the 2019 text
Foreign ownershipAllowed for the ML, unlike the PML; gemstone mining licences are limited to Tanzanians, with up to 50% non-citizen shares by ministerial permission, s.8(5) and (6)Settled on the text; gemstone detail to verify
Directors and shareholdersNo disqualified director or shareholder; company not in liquidationSettled on the text
Prior defaultsNo grant while the applicant is in default on another mineral right, s.50(1)(d)Settled on the text
Indigenous equityAt least 5% held by an indigenous Tanzanian company where the applicant is non-indigenous, reg. 8(2) of the local content rules, as reportedVerify the current text
Capital bandUSD 100,000 to USD 100 million, s.4Settled on the 2019 text; see the 2024 bill below

Breakthrough Attorneys reported in February 2019 that regulation 8(2) of the Mining (Local Content) Regulations requires a non-indigenous mining licence applicant to have at least 5% equity held by an indigenous Tanzanian company. It applies to mining licences, not special mining licences. We could not read the consolidated regulations, so confirm the rule with the Commission.

How much capital does a mining licence need?

Section 4 of the 2019 text sets the band: more than USD 100,000 and up to USD 100 million of capital investment. Above USD 100 million the project needs a special mining licence. Mayer Brown's Tanzania mining summary and Gerpat Solutions (January 2025) report the same two bands.

The band tests planned investment, not paid-up capital. Section 50(1)(f) lets the Commission refuse where financial and technical resources are not adequate.

A 2024 bill proposed raising the mining licence floor from USD 100,000 to USD 5,000,000, LEX Africa reported in May 2024. We could not confirm that it was enacted. Treat the USD 100,000 floor as the text we read and confirm the current figure before you size a small project.

What does the Government's 16% free carried interest mean?

Section 10 gives the Government "not less than sixteen percent non-dilutable free carried interest shares" in mining companies operating under a mining licence or a special mining licence. The Government may also take up to 50% of shares against tax expenditure. The fee register records the 16% rule against both licences (F0621).

The detail is in the Mining (State Participation) Regulations, 2022, GN 574 of 2022. Clyde & Co reported in October 2022 these points:

Model the 16% in the share register and financing plan before applying. The STAMICO joint venture route is a separate, negotiated model.

What local content and CSR rules apply?

Section 49 requires a local content plan, a procurement plan and an employment and training plan with a succession plan for expatriates. Sections 102 to 104 of the 2019 text cover local content and section 105 covers corporate social responsibility. The Mining (Local Content) Regulations, GN 3 of 2018, set the detail and have been amended by GN 139 and GN 656 of 2019, GN 479 of 2022 and GN 563 of 2025.

Our note on mining local content and ownership checks covers the October 2026 enforcement drive and the fronting offences.

CSR runs under the Mining (Corporate Social Responsibility) Regulations, 2023, GN 409 of 2023. Bowmans reported in July 2023 that the plan is jointly agreed with the local government authority and approved by the council. On 28 January 2026 the High Court struck down the 40/60 split between village and council projects in regulation 4(4), African Mining Market reported. GN 692 of 2025 added quarterly reporting to the Commission and the council.

What documents does a mining licence application need?

Section 49 lists the contents. Form MRF.3 in GN 1 of 2018 is the application form for both licences, and its appendices add company and environmental papers.

DocumentBasis
Form MRF.3, with area coordinates in Arc 1960 datum and a sketch planReg. 3; s.49(2)
Identification of the prospecting licence, if an entitled applicants.49(2)(a)
Feasibility study: mining programme, recovery rate, treatment, annual sales and environmental measuress.49(2)(d)
Mineral deposit data and programme for mining operationsForm MRF.3, Appendices 3 and 4
Environmental certificate under the Environmental Management Act, Cap. 191s.50(1)(g); Form MRF.3, Appendix 5
Employment and training plan, with succession plan for expatriatess.49(2); Appendix 2
Statement of financial and technical resources, with financial statementss.49(2); Form MRF.3, note 4
Procurement plan and local content plans.49(2); GN 3 of 2018, reg. 10
Integrity pledge in the prescribed forms.49(2); Appendix 7
Certificate of incorporation, memorandum and articlesForm MRF.3, Appendix 1

The environmental certificate is the long pole. The National Environment Management Council screens and reviews the study through its EIA online system, and the certificate is issued under the Act. A mine is a Type A extractive project, and the review fee scales with project cost (F0498). Our guides explain when an EIA is required and who signs the certificate.

How do you apply through the Mining Commission cadastre?

Applications go through the Commission's Online Mining Cadastre Transactional Portal at portal.madini.go.tz. The Mining Commission grants the licence. The company registers its officers, searches the map, uploads Form MRF.3 and pays against a GePG control number. On grant it pays the preparation fee and first-year rent. Portal steps change, so check the live screens.

Section 39 makes a prospecting licence holder an "entitled applicant" over its prospecting area. Section 50(1) says the Commission "shall grant" a properly made application unless a listed ground applies. Grounds such as overlapping rights or a tender area do not apply to entitled applicants, which is why most mining licences start as prospecting licences. Our guide to overlapping mineral claims covers priority.

We found no statutory deadline for a mining licence decision in the 2019 text. A special mining licence needs Cabinet approval under section 42, and the offer lapses if not accepted within 60 days.

What does a mining licence cost?

The fees below are the First Schedule to GN 1 of 2018 as substituted by GN 47 of 2018, recorded in the Zatra fee register. Each is paid to the Mining Commission at the official rate on a GePG control number, and the amount on the control number governs.

ItemMining licenceSpecial mining licenceRegister ID
ApplicationUSD 2,000 (TZS 4,500,000), same for building materialsUSD 5,000 (TZS 11,300,000)F0621
Preparation of the licenceUSD 1,000 (TZS 2,300,000)USD 2,000 (TZS 4,500,000)F0621
Renewal applicationUSD 2,000USD 5,000F0621
Annual rent, metallic, energy, gemstones, kimberlitic diamondUSD 3,000 a km2 (TZS 6,800,000)USD 5,000 a km2 (TZS 11,300,000)F0621
Annual rent, building and industrial mineralsUSD 2,000 a km2 (TZS 4,500,000)USD 5,000 a km2F0621
Transfer of the licenceUSD 3,000 (TZS 6,800,000)USD 3,000NEW-06-16
Registration or approval of a documentUSD 500 eachUSD 500 eachNEW-06-16
Suspension certificateUSD 200 (TZS 500,000)USD 200NEW-06-16

The schedule as first gazetted in January 2018 printed lower figures, such as USD 1,000 to apply and USD 1,000 a km2 in rent; GN 47 of 2018 replaced them. Rent for gemstones, which the register groups with metallic minerals, should be confirmed for a gemstone licence. The full list is in our government fees handbook.

What charges fall on production?

Once the mine sells, royalty and other charges replace rent as the main cost. Rates are from the register at 26 September 2026.

Section 66 adds a surcharge on royalty unpaid after 90 days: 25% for an individual and 50% for a company. Our guide to mineral royalty and the inspection fee explains who pays at each point.

How long does a mining licence last and how is it renewed?

Section 49 caps the requested duration at ten years, and section 50 sets a maximum initial period of ten years. Form MRF.4 notes the same limit. A special mining licence runs for the estimated life of the ore body in the feasibility study, or a shorter period requested, under section 43.

PointMining licenceSpecial mining licence
Initial termUp to 10 years, s.50Life of the ore body or shorter, s.43
Start of operationsWithin 18 months, s.52Within 18 months, s.47
Renewal filingNot later than six months before expiry, with a tax clearance certificate, s.53At least one year before expiry, with an updated programme and environmental certificate, s.45
Renewal termPeriod requested, up to 10 yearsNot beyond the remaining ore body life
Renewal feeUSD 2,000 (F0621)USD 5,000 (F0621)
TransferWritten consent of the Commission, s.9(2); USD 3,000 (NEW-06-16)Same

Older secondary sources still describe a 25-year special mining licence, which reflects the 2010 Act as enacted. Use the current text. Our guide to renewing and transferring a mining licence covers the file. A tax clearance certificate must be in hand for the renewal.

When can a mining licence be suspended or cancelled?

Section 63 allows suspension or cancellation for breach of the Act, the licence conditions or lawful directions. The Commission must first serve a default notice and allow 30 days, or a longer period it sets, to remedy the default.

ConductConsequenceBasis
Mining without a mineral right, companyFine of not less than TZS 50 millions.6(3)(b), 2019 text
Mining without a mineral right, individualFine of TZS 5 million to 10 million, up to 3 years' imprisonment, or boths.6(3)(a)
Royalty unpaid after 90 daysSurcharge of 50% for a company, 25% for an individuals.66
False statement in a local content plan or reportFine of TZS 50 million to 500 million, 2 to 5 years' imprisonment, or bothGN 3 of 2018, reg. 49(1)
Breach of conditions, CSR or programmeDefault notice, then suspension or cancellations.63
Sustained under-productionTermination after three years below 50% of expected recoverys.72

A holder aggrieved by suspension or cancellation may apply to the High Court for judicial review within 60 days of the decision, under section 65(1). Our guide to appealing a licence refusal or revocation sets out the steps, and our note on Mining Commission inspections covers site visits. A default notice, a charge, seizure of minerals or a land dispute should go to an advocate the day it arrives.

Does the mining licence apply in Zanzibar?

No. Section 2 states that the Act applies to Tanzania Mainland. The mining licence, the Mining Commission and every fee here are Mainland matters.

The Citizen reported on 28 November 2024 on a proposed Zanzibar mining law. We could not read an enacted text, so mining rights, the regulator and fees in Zanzibar are unknown in this guide.

PointMainland TanzaniaZanzibar
LawMining Act, Cap. 123; GN 1 of 2018Zanzibar mining law reported for 2024; text not confirmed
RegulatorMining CommissionNot confirmed
Medium-scale rightMining licenceUnknown
Environmental authorityNEMC under Cap. 191Zanzibar's own environment authority
VAT on services bought18% under TRA15% under ZRA

Worked example: a 5 km2 gold mining licence

A Tanzanian subsidiary of a foreign explorer converts part of its prospecting licence into a 5 km2 gold mining licence in Geita Region. Planned capital is USD 20 million, inside the medium-scale band. It expects sales of USD 40 million a year from year two. The figures are illustrative.

ItemBasisCalculationUSD
Application feeF0621Flat2,000
Preparation feeF0621Flat1,000
Rent, year 1F06215 km2 x 3,00015,000
Licence cost, year 118,000
Rent over a 10-year termF062110 x 15,000150,000
Royalty on USD 40m, all at 6%F062440m x 6%2,400,000
Inspection feeF062540m x 1%400,000
HIV Response LevyF062640m x 0.1%40,000
Commission charges on sales, a year2,840,000

If 20% of the gold, USD 8 million, goes to the Bank of Tanzania, royalty on that part falls to 4% with no inspection fee (F0627). Royalty becomes USD 2,240,000, the inspection fee USD 320,000 and the total USD 2,600,000. That saves USD 240,000 a year.

The NEMC review for a Type A extractive project of about TZS 45 billion falls in the TZS 10 billion to 49.99 billion band: TZS 20,000,000 (F0498). A CIP or CIL plant then pays TZS 4,000,000 a year (F0508). The Government's 16% free carried interest is a share of dividends, not a fee; on USD 5 million of distributable profit it takes at least USD 800,000. Zatra's professional fee is quoted separately and never mixed with these charges.

What to do now

  1. Fix the band. Size capital against the USD 100,000 to USD 100 million band and confirm the current floor.
  2. Set up the vehicle. Use a Tanzanian company, check every director and shareholder against section 8, and plan the 16% stake and any indigenous equity.
  3. Secure entitlement. Apply over your own prospecting licence area where possible, and search the cadastre for overlaps.
  4. Start the EIA early. Register with NEMC as soon as the feasibility study defines the footprint.
  5. Build the file. Prepare Form MRF.3, feasibility study, programme, training and succession plan, financial statements, procurement and local content plans and the integrity pledge.
  6. Pay against control numbers. Pay each GePG control number promptly and keep receipts.
  7. Agree the CSR plan. Work with the district council and host villages before the first annual plan is due.
  8. Diarise obligations. Start operations within 18 months, pay rent yearly and file renewal six months before expiry.

Key dates and deadlines

Assumed grant: 1 March 2027. Replace the dates with your own.

WhenDate in the exampleActionBasis
Local content plan filedWith the applicationCommission acknowledges in 7 days; committee reviews in 60 daysGN 3 of 2018, regs. 10 and 11
Grant1 March 2027Pay preparation fee and first-year rentF0621
Start of operationsBy 1 September 2028Commence mining operationss.52
Each yearBy each anniversary, to confirmPay rent; file reports; CSR quarterly reportsF0621; GN 409 of 2023
Default notice servedWithin 30 days of the noticeRemedy or answer in writings.63
Suspension or cancellationWithin 60 days of the decisionApply to the High Court for judicial reviews.65(1)
Renewal filingBy 28 August 2036Apply to renew with tax clearance, USD 2,000s.53; F0621
Expiry28 February 2037End of the ten-year terms.50

How Zatra helps

Zatra's sector permits service prepares mining licence applications, conversions, renewals and transfers with the NEMC, local content and CSR files. For investors buying into a licence holder, our investment due diligence service checks title, rent, royalty and state participation records. See our Tanzania mining page and the pricing page.

Government fees are paid by the client to the authority at the official rate against its GePG control number, separately from Zatra's professional fee. Zatra prepares and coordinates the file; it does not decide or guarantee any authority's outcome. Default notices, cancellation, prosecution, land and compensation disputes and formal legal opinions go to Zatra's advocate.

Sources and status

Accurate as at 11 October 2026. Section numbers are from the 2019 text of the Act unless marked R.E. 2023; fees marked with an ID are from the Zatra fee register at 26 September 2026.

Figures to confirm before you act

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

Can a foreign company hold a mining licence directly?

Not as a foreign company. Section 8(1)(b) of the 2019 text requires a company incorporated under the Companies Act with a Tanzanian address. A foreign group sets up a Tanzanian subsidiary, which may be wholly or mostly foreign-owned, subject to the 16% state stake and the local content rules.

Can a citizen convert several primary mining licences into one mining licence?

Yes. Section 58 lets a PML holder convert one or more licences into a mining licence before expiry, provided the fee is paid, there is no default and the section 49 particulars are given. The unexpired PML term is not carried over. Foreign investors often join after conversion.

Does the Government pay for its 16% shares?

No. The free carried interest is non-dilutable and the Government contributes no cash, including on later capital increases, according to Clyde & Co's summary of GN 574 of 2022. Any stake above 16% is negotiated. The shares rank as preferred shares for dividends.

Can a mining licence be used as security for project finance?

Yes, with care. Section 9(2) requires the Commission's written consent to assign a mining licence, and registering a document costs USD 500 (NEW-06-16). Lenders usually also take security over shares, offtake receivables and accounts. The state participation rules require sales proceeds to be held in Tanzanian bank accounts.

Do foreign engineers and managers need permits on a mining licence?

Yes. Each foreign employee needs a work permit and a residence permit on the Mainland before starting work. The employment and training plan must also show a succession plan for expatriate roles, and the Commission tracks it through quarterly local content reports.

What happens if the company is sold to a new owner?

A share sale does not move the licence, but the Commission's records, the state participation documents and the local content partner must stay accurate. Treat any change of control as needing Commission approval until it confirms otherwise, and budget USD 3,000 if the licence itself is transferred (NEW-06-16).

Is a mine closure plan required?

For a special mining licence, section 47 requires the holder to prepare mine closure plans. For any holder, the Commission monitors progressive rehabilitation and mine closure under section 22(h), and closure measures belong in the feasibility study and the environmental certificate conditions. Lenders and buyers ask for the plan during diligence.

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.

Brief the desk

This Insights page is orientation. Sector permits is the commercial desk for the same facts. Zatra’s fee stays on its own line, separate from government, bank and regulator charges. Approvals are not guaranteed.

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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/.

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