Mining & Minerals

Prospecting Licence Tanzania: Eligibility, Area, Rent, Spending Rules and the Road to a Mining Licence

Cover: prospecting licence Tanzania, 300 km2 area limit, four-year term and minimum spend under GN 1 of 2018 and the Mining Act, Cap. 123
The prospecting licence on the Mainland: who may hold it, how large it may be, what it costs to keep and how it leads to a mining licence. As at 10 October 2026.
Direct answer

What is a prospecting licence in Tanzania? It is the exploration right under the Mining Act, Cap. 123, granted by the Mining Commission through its online cadastre. It allows prospecting, not commercial mining, over up to 300 km2 for metallic minerals or 5 km2 for gemstones and building materials. The first term runs up to four years, with two renewals. Rent starts at USD 100 a km2 a year.

The prospecting licence, or PL, is how explorers hold ground on the Mainland while they drill and build a resource. Unlike the primary mining licence, it is open to foreign-owned companies. Rent and the minimum spend per km2, which rise at each renewal, drive the cost.

What the law says about the prospecting licence

A prospecting licence Tanzania investors apply for is a mineral right under Part IV of the Mining Act, Cap. 123. Section 6 bars prospecting except under a mineral right. Section 7(1) lists the prospecting licence and the gemstone prospecting licence.

We read the TanzLII text as at 30 November 2019. The PL rules sit in sections 28 to 36, and section 8 sets who may not hold a mineral right.

The detail sits in the Mining (Mineral Rights) Regulations, 2018, GN 1 of 2018. TanzLII lists five amendments, from February 2018 to May 2022, not yet applied. We read the gazetted text of GN 1 of 2018 as published on 10 January 2018, hosted by a third party.

Which edition we cite

The 2019 text keeps the 2010 numbering, with inserted sections such as 86A to 86M and 90A. The Revised Edition of 2023 renumbers the Act. The Zatra fee register already cites royalty at section 111 of R.E. 2023, formerly section 87. Section numbers here are from the 2019 text; check the R.E. 2023 number before quoting one in a filing.

Who should read this

For a map of every licence class, start with our guide to Tanzania mining licence types. For the wider investor process, read the mining licence guide for 2026.

Who may hold a prospecting licence?

The Act does not reserve the PL for citizens, unlike the primary mining licence under section 8(2). Section 8 instead sets disqualifications for every mineral right.

Applicant or testRule in the 2019 textStatus
Individual18 or over, not bankrupt, no disqualifying conviction in ten years; a non-citizen needs four years' ordinary residence; s.8(1)(a)Settled on the text
CompanyPhysical and postal address in Tanzania; not in liquidation; no disqualified director or shareholder; s.8(1)(b)Settled on the text
Place of incorporationPractitioners report that PLs go to companies incorporated in Tanzania, locally or foreign ownedVerify with the Commission
Holder of other rightsNo grant to a person in default on another mineral right until the default is rectified; s.8(7)Settled on the text
Number of licencesNo grant to a holder of more than 20 other valid PLs unless their combined area is 2,000 km2 or less; s.8(8)Settled on the text
GemstonesA mining licence for gemstones goes only to Tanzanians, s.8(5), with ministerial power to allow up to 50% non-citizen shares, s.8(6)PL position to verify

Rive & Co wrote in July 2025 that a PL can be granted only to companies incorporated in Tanzania and that only Tanzanians may hold PLs for gemstones. We could not match the gemstone point to the 2019 text. A foreign group should use a Tanzanian subsidiary anyway, because that company must later hold the mining licence. Section 31 also allows refusal for weak financial or technical resources, or land already taken, reserved or set for tender.

Is there a state free carried interest in a prospecting licence?

No. Section 10(1) gives the Government not less than 16% non-dilutable free carried interest shares "in any mining operations under a mining licence or a special mining licence". The PL is not named. The stake arrives when the discovery is converted. Herbert Smith Freehills reported in July 2017 that the 2017 amendments introduced this minimum stake, which can rise up to 50% against tax expenditure. The register records the 16% rule against mining and special mining licences (F0621).

Model the 16% from day one in any farm-in. Our note on mining local content and ownership checks covers how ownership is tested.

How large is a prospecting licence and how long does it last?

Section 70 leaves the maximum area to regulation. Regulation 7 of GN 1 of 2018 sets it by mineral group.

PointMetallic, energy, industrial minerals, kimberlitic diamondBuilding materials and gemstones (not kimberlitic diamond)Source
Maximum area, initial period300 km2 (30,000 ha)5 km2 (500 ha)GN 1 of 2018, reg. 7
Initial periodUp to 4 yearsUp to 4 years; Form MRF.1 notes a one-year limit for some classess.32(1)(a); Form MRF.1
First renewalUp to 3 yearsTo confirms.32(1)(b)
Second renewalFinal; reported as up to 2 yearsTo confirms.32(1)(c); Rive & Co
After the second renewalArea reverts to the GovernmentSames.32(1)(d)

Section 32(1)(c) states that a PL "shall not be renewable after the second period of renewal." Rive & Co and Gerpat Solutions both describe a nine-year life: four years, then three, then two. Rive & Co adds that the old regime allowed eleven years with half the area given up at each renewal.

We found no compulsory relinquishment rule in the 2019 Act text or the 2018 Regulations we read. Regulation 4(2) does require a renewal plan showing the area applied for, and section 33(5) lets the Commission challenge an insufficient description of the area relinquished. In practice, holders shed ground at renewal because rent and the minimum spend per km2 rise.

How do you apply through the mining cadastre portal?

Applications go through the Mining Commission's Online Mining Cadastre Transactional Portal at portal.madini.go.tz. Regulation 3(1) prescribes Form MRF.1, which covers the applicant, mineral group, duration, location, coordinates, resources and prior rights. Coordinates use the Arc 1960 datum. Section 28(2) requires the prescribed form and fee, and section 28(3) lists what must come with it.

Item in the fileBasis
Form MRF.1 with area coordinates and plan, within the maximum areaReg. 3(1); s.28(3)(c)
Mineral group applied for, from the six groups in section 28(1)s.28(1)
Statement of financial and technical resourcess.28(3)
Prospecting programme and expenditure estimates.34(1)(e); s.36(1)(c)
Procurement plan and local content plans.28(3)
Integrity pledge in the prescribed forms.28(3)
Company documents: incorporation, constitution, directors, latest accountsPractice, per Rive & Co

The six groups are metallic minerals, energy minerals, gemstones other than kimberlitic diamond, kimberlitic diamond, industrial minerals and building materials. The group sets the area cap, spend and fee.

Section 33(1) requires the licensing authority to decide within four weeks of registering the application and to give reasons for any rejection. Search the cadastre for overlapping rights before you file. Our guide to overlapping mineral claims covers priority.

A 2024 bill proposed that an unpaid grant fee after 28 days voids the application, LEX Africa reported in May 2024. Enactment is unconfirmed, so pay promptly.

What does a prospecting licence cost?

The fees below are the First Schedule to GN 1 of 2018 as amended, as recorded in the Zatra fee register (F0615 to F0618) and confirmed against Rive & Co (July 2025) and Gerpat Solutions (January 2025). Each fee is paid to the Mining Commission at the official rate on a GePG control number, and the amount on the control number governs.

ItemGovernment feeBasis
Application, metallic, energy minerals and kimberlitic diamondUSD 300 (TZS 700,000), F0615GN 1 of 2018, First Schedule as substituted by GN 47 of 2018
Preparation of the licence, any mineralUSD 300 (TZS 700,000), F0615First Schedule as amended
Renewal applicationUSD 300 (TZS 700,000), F0617First Schedule as amended
Annual rent, initial period, years 1 to 4USD 100 (TZS 230,000) a km2, F0616First Schedule as amended
Annual rent, first renewal, years 5 to 7USD 150 (TZS 340,000) a km2, F0616First Schedule as amended
Annual rent, second renewal, years 8 and 9USD 200 (TZS 500,000) a km2, F0616First Schedule as amended
Surrender applicationNo filing fee reportedRive & Co

The schedule as first gazetted in 2018 printed lower figures, USD 100 to apply and rent of USD 40 to 60 a km2, later amended. Rent for other mineral groups is not confirmed. See our government fees handbook.

What must a holder spend and report each year?

Section 36(1) requires the holder to start work within three months of grant, notify any discovery of commercial potential, keep to the appended programme and spend at least the prescribed amount. Section 30 lets regulations set that amount per km2, by period, with a lump-sum option.

Mineral groupInitial periodFirst renewalSecond renewal
Metallic and energy minerals, kimberlitic diamondUSD 500 a km2 a yearUSD 2,000 a km2 a yearUSD 6,000 a km2 a year
Industrial minerals and building materialsUSD 100 a km2 a yearUSD 100USD 100
GemstonesUSD 250 a km2 a yearUSD 250USD 250

The figures are in regulation 9 of GN 1 of 2018, also summarised by FB Attorneys in January 2018. Regulation 10 requires full accounts of the spend, with receipts, converted to US dollars at the Bank of Tanzania mid rate on the day.

A shortfall is a default under section 36(2)(a). A false statement about these obligations is an offence carrying a fine of not less than TZS 20 million under section 36(2)(b). Confirm the reporting calendar in the licence conditions. GN 1 of 2018 also requires the area to be pegged and demarcated, FB Attorneys report.

What environmental and local content steps apply?

The PL application does not require an EIA certificate in the text we read, but environmental law applies once work begins. Drilling, camps and access roads fall under the Environmental Management Act, Cap. 191, and the National Environment Management Council screens projects through its EIA online system. Let NEMC decide the level of study early.

If NEMC screens a project for a Type B review, the fee is TZS 2,000,000 for a project below TZS 50 million (F0500). See our guides to when an EIA is required and obligations after the EIA.

Local content starts at application: section 28(3) requires procurement and local content plans. Herbert Smith Freehills reported that the 2017 rules require preference for Tanzanian suppliers, a joint venture with at least 25% Tanzanian participation where goods are not available locally, and training of citizens. Our guide to supplying mining projects under local content rules covers the supplier side.

Prospecting licences for gemstones and building materials

Section 7(1) lists the gemstone prospecting licence as a separate right. Four rules differ.

Section 8(5) limits gemstone mining licences to Tanzanians. Our comparison of gemstone, diamond and gold trading sets out the downstream rules.

How does a prospecting licence become a mining licence?

Section 39(1) makes a PL holder an "entitled applicant" for a special mining licence under section 41 or a mining licence under section 49. Section 50(1) says the Commission "shall grant" a mining licence unless a listed ground applies, and one ground does not apply to entitled applicants. A special mining licence needs Cabinet approval under section 42(2).

PointProspecting licencePrimary mining licenceMining licenceSpecial mining licence
PurposeExploration onlySmall-scale miningMedium-scale miningLarge-scale mining
Who may holdAny qualified person, foreign ownership allowedCitizens and wholly citizen-owned bodies, s.8(2)Company incorporated under the Companies Act, s.8(1)(b)Same, with Cabinet approval, s.42(2)
Area or term300 km2; 4 + 3 + 2 years10 ha; 7 yearsSet in the grantSet in the grant
Application feeUSD 300 (F0615)TZS 50,000 (F0619)USD 2,000 (F0621)USD 5,000 (F0621)
Annual rentUSD 100 a km2 at firstTZS 90,000 a ha, gold (F0620)USD 3,000 a km2, metallic (F0621)USD 5,000 a km2 (F0621)
State stakeNoneNone stated16% free carried interest, s.10(1)16% free carried interest, s.10(1)

The jump in rent is the planning point. A 10 km2 metallic mining licence pays USD 30,000 a year in rent (F0621), against USD 1,000 to 2,000 under a PL. See our guide to the primary mining licence and the STAMICO joint venture route

The 2024 bill also proposed raising the mining licence minimum capital from USD 100,000 to USD 5,000,000; enactment is unconfirmed.

Renewal, surrender, transfer and reversion

The Written Laws (Miscellaneous Amendments) (No. 3) Act, 2022 later amended sections 15 and 32, according to Rive & Co. Mining Weekly reported in 2023 that rights which cease now revert to the State and are offered by public tender. Our guide to renewing and transferring a mining licence covers the next stage.

Section 38 was repealed by Act No. 7 of 2017, and FB Attorneys report that earlier retention licences were cancelled.

When can the Commission suspend or cancel a prospecting licence?

Section 63 allows suspension or cancellation for material non-compliance, breach of conditions or failure to follow lawful directions. The authority must first serve a default notice and allow 30 days, or a longer period it sets, to remedy the default.

ConductConsequenceBasis, 2019 text
Prospecting without a mineral right, individualFine of TZS 5 million to 10 million, up to 3 years' imprisonment, or boths.6(3)(a)
Prospecting without a mineral right, companyFine of not less than TZS 50 millions.6(3)(b)
False statement on PL obligationsFine of not less than TZS 20 millions.36(2)(b)
Failure to peg and demarcate the areaFine of up to TZS 25 million, as reportedGN 1 of 2018; FB Attorneys
Breach of spend, programme or conditionsDefault notice, then suspension or cancellations.36(2)(a); s.63

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; see also our note on Mining Commission inspections. A default notice, a criminal charge, seizure of samples or a boundary dispute should go to an advocate the day it arrives.

Does the prospecting licence apply in Zanzibar?

No. Section 2 states that the Act "shall apply to Tanzania Mainland." The PL 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. Exploration licences, regulator and fees in Zanzibar are unknown in this guide; check with the Revolutionary Government of Zanzibar.

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

Worked example: a 50 km2 gold prospecting licence budget

A Tanzanian subsidiary of a foreign explorer applies for a 50 km2 PL for gold, a metallic mineral, in Geita Region. It pays rent yearly, at the schedule figures reported by Rive & Co, and spends the regulation 9 minimum.

ItemBasisCalculationUSDTZS alternative
Application feeFirst ScheduleFlat300700,000
Preparation feeFirst ScheduleFlat300700,000
Rent, year 1First Schedule50 km2 x 1005,00011,500,000
Government cost, year 15,60012,900,000
Minimum spend, year 1Reg. 9(2)(a)50 km2 x 50025,000Converted at BoT mid rate
Initial period, 4 years: fees and rent600 + 4 x 5,00020,60046,600,000
Initial period, 4 years: minimum spendReg. 9(2)(a)4 x 25,000100,000

The renewal is where the budget turns. Keeping all 50 km2 for the three-year first renewal, rent is 50 x 150 x 3, or USD 22,500, and minimum spend 50 x 2,000 x 3, or USD 300,000. Keeping the best 20 km2, rent falls to USD 9,000 and spend to USD 120,000, plus the USD 300 renewal fee.

Add a NEMC Type B review of TZS 2,000,000 (F0500) if NEMC requires one. Zatra's professional fee is quoted separately and never mixed with these government charges.

What to do now

  1. Choose the vehicle. Use a Tanzanian company and check every director and shareholder against section 8.
  2. Search the cadastre. Check for existing rights, reserves and tender areas.
  3. Size the area. Apply only for ground you can fund.
  4. Build the file. Prepare Form MRF.1, coordinates, programme, budget, resources statement, local content plans and pledge.
  5. Pay against control numbers. Pay each GePG control number promptly and file receipts.
  6. Register the work with NEMC. Let NEMC screen the drilling programme before rigs mobilise.
  7. Keep the spend ledger. Record every cost with receipts and the BoT rate.
  8. Plan the renewal a year ahead. Decide which ground to keep, and file well before the one-month window closes.
  9. Prepare the conversion. Budget mining licence rent, the 16% stake and feasibility work.

Key dates and deadlines

Assumed grant: 1 February 2027.

WhenDate in the exampleActionBasis
Application registeredWithin 4 weeksCommission decides and gives reasons for any refusals.33(1)
Grant1 February 2027Pay preparation fee and first-year rentFirst Schedule
Start of workBy 1 May 2027Begin prospecting operationss.36(1)(a)
Each yearBy each anniversary, to confirmPay rent; meet the minimum spend; file reportss.30; reg. 9 and 10
Suspension or cancellationWithin 60 days of the decisionApply to the High Court for judicial reviews.65(1)
Initial period ends31 January 2031Renewal filed within the month before, decision within 6 weekss.32(2); s.33(5)

How Zatra helps

Zatra's sector permits service prepares PL applications, renewals, surrenders and conversions with the NEMC and local content files. For investors buying into exploration ground, our investment due diligence service checks title, rent, spend records and ownership. 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 access disputes and formal legal opinions go to Zatra's advocate.

Sources and status

Accurate as at 10 October 2026. Section numbers are from the 2019 text of the Act; 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 prospecting licence holder sell gold found during exploration?

No, not as a business. A PL authorises prospecting, with samples tested and assayed. Commercial extraction and sale need a mining right. The stated exception is gemstones recovered during gemstone prospecting, which may be sold to a licensed dealer under section 35(3).

Can two companies hold one prospecting licence together?

The 2019 text we read sets no bar on joint holding, and section 9(3) mentions assignment to another holder of the same licence. Most investors still prefer one Tanzanian holding company with a shareholders' agreement, which keeps the licence, the spend ledger and the conversion in one name.

Does a prospecting licence give the right to enter private or village land?

No. The licence grants exclusive prospecting rights over minerals, not over the surface. The holder needs the local authority's entry permit and must agree access and compensation with lawful occupiers under sections 95 and 96. Village land, forest reserves and protected areas need their own consents.

Can the Commission grant a primary mining licence inside my prospecting area?

For gemstones, yes: section 7(2)(b) allows a gemstone primary mining licence within a PL for other minerals. A building materials licence can also be granted over a right with the holder's consent under section 7(2)(a). Watch the cadastre and object in writing to any application over your ground.

Can a lender take security over a prospecting licence?

Section 9(3) allows assignment to a bank or financial institution as security without the consent needed for a mining licence. Lenders should still record the security with the Commission and check that enforcement would not pass the licence to a disqualified person. Many also take security over shares in the holding company.

Do foreign geologists need permits to work on a prospecting licence?

Yes. A foreign geologist, driller or manager needs a work permit and residence permit from the Mainland authorities before starting work. The local content plan also expects Tanzanians to be trained and employed. Budget permit fees and lead time in year one.

Is exploration spending deductible for income tax?

The Income Tax Act, Cap. 332 has specific rules for mining expenditure, and the result depends on whether and where the company later mines. Keep the regulation 10 ledger in a form your auditor and TRA can use. Take tax advice before the first renewal, especially for a group holding several licences.

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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