Mining & Minerals

Quarry and Building Materials Licence Tanzania: Sand, Gravel, Aggregate, Murram and Stone Under the Mining Act

Cover: licensing a quarry or building materials operation for sand, gravel, aggregate and stone in Mainland Tanzania under the Mining Act Cap. 123
Building materials are minerals under Cap. 123: a mineral right, a prepaid 3% royalty and 1% inspection fee, then NEMC, OSHA, land and water approvals. As at 18 October 2026.
Direct answer

Which licence does a quarry or building materials operation need in Tanzania? On the Mainland, sand, gravel, aggregate, murram and building stone are minerals under the Mining Act, Cap. 123. A citizen-owned quarry usually works under a primary mining licence; a foreign-owned or larger operation needs a mining licence. Royalty is 3% of gross value plus a 1% inspection fee, prepaid before sale. NEMC, OSHA, land and water approvals sit alongside.

A quarry licence Tanzania regulators recognise is a mineral right from the Mining Commission, not a council permit. This guide covers routes by scale, the March 2026 prepaid royalty system, levies, environment, river sand, land, safety and Zanzibar, with a costed 20,000 tonne example.

What the law says about quarry and building materials licences

Quarrying on the Mainland is mining in law. Sand pits, gravel borrow areas, aggregate crushers and stone quarries all extract minerals that belong to the state. Four instruments set the frame.

The 2023 revised edition renumbers Cap. 123: royalty moved from section 87 to section 111, and the inspection fee from section 90A to section 115. We quote the 2019 text we read.

Who should read this

For the wider map of mineral rights, read our mining licence guide first.

What counts as a building material under the Mining Act?

Section 4 of the 2019 text says building materials include "all forms of rock, stones, gravel, sand, clay, soils, volcanic ash or cinder" used for "the construction of buildings, roads, dams, aerodromes, or similar works". Three exclusions follow: gypsum, limestone burned to make lime, and material used to manufacture cement.

Limestone sent to a cement plant or lime kiln is therefore an industrial mineral. Dimension stone such as granite blocks sits close to the line, and NEMC's fee schedule lists it separately. Ask the Resident Mines Officer to confirm the class before you pay.

Two exceptions keep everyday use outside licensing. Section 18(2) does not restrict a member of the public from possessing or disposing of building materials "commonly used for domestic purposes". Section 7(3) lets a person building tunnels, roads, dams or aerodromes use building materials from "a source approved by the Minister in writing". Under section 7(4) the Minister may not approve a source inside a mining area. Neither exception covers commercial sale.

Which licence does a quarry need: PML, mining licence or none?

The route depends on ownership, scale and whether you sell. The table sets out the options.

OperationRouteWho may hold itTermBasis
Household or village use of sand, stone or soil, not for saleNo mineral rightAny member of the publicNot applicables.18(2)
Public road, dam, tunnel or aerodrome worksMinister's written approval of the sourceThe contractor or project ownerAs approved; may be withdrawns.7(3) to (5)
Small commercial sand or gravel pitPrimary mining licence (PML)Tanzanian citizens and wholly citizen-owned and controlled bodiesOne year for sand and other fast-depleting building materials, renewabless.8(2), 55(4)
Small aggregate or stone quarryPMLAs aboveSeven years, renewable, unless the material is fast-depletingss.8(2), 55(2)
Medium commercial quarry, capital USD 100,000 to 100 millionMining licence (ML)Company incorporated in Tanzania, local or foreign-ownedUp to 10 yearsss.4, 8(1), 49(2)
Building materials inside another holder's licence areaPML or ML for building materials, with the holder's consentAs for the licence classAs for the licence classs.7(2)(a)
Exploration for a stone or aggregate depositProspecting licenceQualified applicants under s.8(1)Initial four yearss.28(1)(f); F0616

Our primary mining licence guide explains the citizen ownership test and the technical support route. A foreign investor cannot hold a PML directly or through a nominee, so a foreign-owned quarry uses a mining licence. The Act defines a mining licence by capital investment of USD 100,000 to USD 100,000,000. We found no rule in section 8 reserving building materials licences to citizens, but gemstone mining licences are reserved.

How do you apply on the Mining Commission cadastre portal?

Applications go through the Online Mining Cadastre Transactional Portal at portal.madini.go.tz. The Mining Commission handles them through the Resident Mines Officer for the region. The sequence for a PML:

  1. Search the map for overlapping rights, and get any existing holder's written consent under section 7(2).
  2. Open an account with the applicant's TIN, NIDA numbers and BRELA particulars.
  3. Lodge the application with the coordinates, the mineral group and the section 54(3) documents, including the environmental protection plan.
  4. Pay on GePG: the application fee first, then the preparation fee and first year's rent on grant.

A mining licence application is a heavier file. Our mining licence guide covers what it contains.

What royalty and inspection fee does a quarry pay?

Royalty on building materials is 3% of gross value. Section 87(1)(e) of the 2019 text charges three per centum "in the case of other minerals, including building materials". Zatra's fee register records the same rate under section 111(1) of R.E. 2023 (F0624). The inspection fee is 1% of gross value, payable before domestic use or export (F0625, s.115 R.E. 2023, formerly s.90A).

A 0.1% HIV Response Levy on gross value has been paid with royalty since 1 July 2025 (F0626). Limestone or phosphate used for fertiliser pays 1% royalty, not 3% (F0624).

The prepaid system under GN 84 of 2026

Since March 2026, quarries no longer pay after the sale. Regulation 13H requires the holder to:

Regulation 13I protects a quarry that over-declares. If production falls short of the declared volume, the excess paid "shall be carried forward to the next production period". Keep weighbridge or truck-count records, because they are the evidence for a carry-forward. Our mineral royalty and inspection fee guide covers the October 2026 review of double charging.

Gross value is market value as the Commission determines it. We found no published price schedule for aggregate or sand, so ask the Resident Mines Officer for the unit value in your district.

What does a quarry licence cost?

The figures come from the Zatra fee register at 26 September 2026. Each is paid to the authority at the official rate against a GePG control number, and the amount on the control number governs.

ItemGovernment chargeRegister IDBasis
PML application; preparation; renewal; transferTZS 50,000; 50,000; 100,000; 500,000F0619GN 1 of 2018, First Schedule, as amended by GN 741 of 2019
PML annual rent, minerals other than gold, diamonds and gemstonesTZS 45,000 a hectare; minimum TZS 90,000 under 2 haF0620GN 1 of 2018, item 8, as amended by GN 419 of 2022
ML application; preparationUSD 2,000 (TZS 4,500,000), same for building materials; USD 1,000 (TZS 2,300,000)F0621GN 1 of 2018, as substituted by GN 47 of 2018
ML annual rent, building and industrial mineralsUSD 2,000 a km2 (TZS 4,500,000)F0621As above
Royalty, building materials3% of gross valueF0624Cap. 123 R.E. 2023 s.111(1)
Inspection fee1% of gross valueF0625Cap. 123 R.E. 2023 s.115
HIV Response Levy0.1% of gross valueF0626Cap. 123 s.113A
NEMC environmental fee on building materials producedPer m3: aggregates TZS 2,000; base course and chippings 1,000; sand, murram, gravel and stones 500NEW-05-04GN 387 of 2021 category 16, as substituted by GN 588 of 2024
NEMC EIA application; project briefTZS 50,000; 150,000F0495GN 387 of 2021
NEMC Type B review, project cost below TZS 50 millionTZS 2,000,000F0500GN 387 of 2021
OSHA annual inspection, mining and quarryingTZS 160,000 / 480,000 / 960,000 / 1,440,000 by size bandF0442GN 149 of 2015, as amended by GN 719 of 2018
Council service levy0.25% of turnoverF0630Local Government Finance Act, Cap. 290

For a site that stores explosives, add the NEMC storage fee of TZS 1,000,000 a year (F0508) and the Cap. 45 permits. The full schedule is in our government fees handbook.

Do councils charge cess or service levy on sand and aggregate?

Produce cess is the wrong label. The cess councils levy under the Local Government Finance Act, Cap. 290 covers crops and forest produce, capped at 3% of farm-gate price (F0547). Sand and stone are not crops.

Two council charges can reach a quarry:

In practice councils collect per truckload. The Guardian reported on 3 September 2024 that Ubungo charged TZS 3,000 to TZS 10,000 a trip by truck size. Ask your council for its current by-law.

Mining under a mineral right sits outside the Business Licensing Act (NEW-08-16), so the quarry itself needs no business licence. A separate retail yard selling cement, sand and blocks needs a Class B licence (F0875).

When does a quarry need an EIA from NEMC?

Section 81 of the Environmental Management Act obliges a developer of a listed project to undertake an environmental impact assessment before starting. The project list sits in the EIA and Audit Regulations, GN 349 of 2005, as amended by GN 474 of 2018.

Every project starts with registration and screening at NEMC. The Council then decides whether a full study is needed. Our guide on when an EIA is required covers the steps, and our EIA compliance page explains how Zatra coordinates the file. NEMC also charges an annual production-based fee per cubic metre on building materials (NEW-05-04), recorded in the UNEP LEAP record of GN 588 of 2024.

Can you mine sand from a river bed?

Not freely, and often not at all. Three rules overlap.

The Guardian's 2024 report described Dar es Salaam guidelines of February 2021 that let permit holders remove only excess sand deposited by rain. Permits ran two months for TZS 50,000 and involved five authorities, including the Wami Ruvu Basin Water Board.

The rules do not line up neatly. Researchers at Mzumbe University wrote in May 2025 that the law contains "contradictions on aspects such as the distance to keep from ecologically sensitive zones". Treat any river site as high risk and get written positions from the Basin Water Board and NEMC before you invest.

Whose consent do you need on village and private land?

A mineral right is not a land right. FB Attorneys wrote on 7 September 2026 that "a mining licence does not automatically extinguish the rights of lawful occupants of the land". Holding a valid licence does not, in the firm's view, entitle a holder to enter village land and start mining. The firm points to sections 120 and 122 of the R.E. 2023 text.

The 2019 arrangement of sections lists section 95, "Restriction of rights of entry of holder of a mineral right". We could not read its text, so the distances and consent requirements it sets are listed under figures to confirm.

In practice a quarry needs three things before extraction:

Our guide to village land and granted rights of occupancy explains the tenure types. Our land acquisition page covers screening a site before a deposit is paid.

How do OSHA, explosives and local content rules apply to a quarry?

A quarry is a workplace. Register it with the Occupational Safety and Health Authority before work starts; registration is free (NEW-04-40). The annual inspection fee for mining and quarrying runs from TZS 160,000 to TZS 1,440,000 by size band (F0442). Our OSHA registration guide sets out the steps.

Hard-rock quarries blast. A mineral right does not authorise the purchase, storage or use of explosives. The Explosives Act, Cap. 45 requires a licence to acquire, a magazine licence and a blasting certificate for each shot-firer. Our explosives licence guide maps that chain.

Local content rules apply to mineral right holders and their contractors. According to FB Attorneys writing for LEX Africa on 29 January 2026, the Mining (Local Content) Regulations were amended by GN 563 of 2025, and a list of goods and services is now reserved for Tanzanian-owned suppliers. See our local content ownership checks.

Commission officers check boundaries, MTF 23 declarations and receipts; see our guide to a Mining Commission inspection.

How does Zanzibar regulate sand and quarrying?

Separately. Section 2 limits Cap. 123 to Tanzania Mainland, so the Mining Commission, the PML and the fees above do not apply on Unguja or Pemba.

The Citizen reported on 28 November 2024 on a proposed Zanzibar mining law. We could not read an enacted text, so we cannot confirm a Zanzibar Mining Act 2024, its licence classes or its royalty. Sand extraction is politically sensitive on the islands. Daily News reported on 22 August 2025 that an Unguja district commissioner called for illegal sand mining to stop.

PointMainland TanzaniaZanzibar
Governing lawMining Act, Cap. 123Zanzibar law; a 2024 mining law was reported, enactment not confirmed
Licensing bodyMining CommissionRevolutionary Government of Zanzibar; body not confirmed
Royalty on building materials3% plus 1% inspection feeUnknown
Environmental clearanceNEMC under Cap. 191Zanzibar environmental authority under Zanzibar law
Company and tax registrationBRELA; TRABPRA; ZRA for non-Union taxes, TRA for income tax

Who does what in a quarry file?

BodyWhat it decides or collects
Mining Commission and Resident Mines OfficerPML or ML grant, rent, MTF 23 declarations, royalty, inspection fee, inspections
NEMCScreening, EIA certificate, annual and production-based environmental fees
Basin Water BoardWater use permits and works near watercourses
District, town or municipal councilService levy, by-law fees per truckload, building permits for site structures
Village council and assemblyConsent to use village land and terms with occupiers
OSHAWorkplace registration and annual inspection
Inspector of explosives and PoliceCap. 45 permits, magazine licence, blasting certificates
TRATIN, income tax and any withholding on purchases
Zatra's advocateDisputes, seizures, prosecutions, compensation claims and legal opinions

Worked example: a 20,000 tonne aggregate quarry

A Tanzanian-owned company in Pwani holds a 5 hectare PML for building materials. It crushes and sells 20,000 tonnes of aggregate a year and employs 25 people. We make three stated assumptions:

ChargeRegister IDCalculationTZS
PML application and preparationF061950,000 + 50,000100,000
Annual rentF06205 ha x 45,000225,000
RoyaltyF06243% x 600,000,00018,000,000
Inspection feeF06251% x 600,000,0006,000,000
HIV Response LevyF06260.1% x 600,000,000600,000
NEMC production feeNEW-05-0412,500 m3 x 2,00025,000,000
EIA application, brief and Type B reviewF0495, F050050,000 + 150,000 + 2,000,0002,200,000
OSHA annual inspection, small bandF04425 to 49 employees480,000
Service levy, if chargedF06300.25% x 600,000,0001,500,000
First-year total54,105,000

The Commission's charges (royalty, inspection fee and levy) come to TZS 24,600,000, or TZS 1,230 a tonne. Under GN 84 the company prepays them as it declares production. If it declares 5,000 tonnes at a time, it prepays about TZS 6,150,000 before that batch is sold.

The total is 9.0% of gross value. From year two, without the application, preparation and EIA costs, recurring charges are TZS 51,805,000. The NEMC production fee is the largest single line, so confirm the rate and the volume basis with NEMC before you price.

A foreign-owned company would use a mining licence: USD 2,000 to apply, USD 1,000 for preparation and rent at USD 2,000 a km2 (F0621), totalled separately from the TZS lines. Zatra's professional fee is quoted separately.

What to do now

  1. Classify the material. Confirm whether your product is a building material or an industrial mineral, especially limestone and dimension stone.
  2. Pick the route. Use a PML if every member, director and controller is a Tanzanian citizen; otherwise plan a mining licence.
  3. Screen the site. Check the cadastre, the sixty metre zones, protected water sources and the land tenure before paying anyone.
  4. Agree with occupiers. Record village council minutes, compensation and written consent.
  5. Register with NEMC. Lodge the project for screening and budget the production fee per cubic metre.
  6. Apply on the portal. File the PML or ML application and pay against control numbers.
  7. Set up MTF 23 records. Declare production, prepay royalty and inspection fee, and keep weighbridge data for any carry-forward.
  8. Register the workplace. Register with OSHA, and secure Cap. 45 permits before any blasting.
  9. Clear council charges. Obtain the council's by-law on building materials fees and service levy, and keep receipts per truck.

Key dates and deadlines

EventTimingBasis
GN 84 prepaid royalty systemPublished 20 March 2026GN 84 of 2026, regs. 13H and 13I
Royalty and inspection feeBefore sale or consumption, after each MTF 23 declarationReg. 13H
PML for sand and fast-depleting materialsExpires one year from grant; renew under s.56s.55(4)
PML for other building materialsSeven years, renewables.55(2)
Mining licenceUp to 10 years initial terms.49(2)
Default notice from the CommissionRemedy within 30 days or a longer period alloweds.63, 2019 text
Judicial review of suspension or cancellationWithin 60 days of the decisions.65(1), 2019 text
Explosives stock returnBy the 10th of each monthGN 561 of 1964 reg. 52

How Zatra helps

Zatra's sector business permits service prepares PML and mining licence applications for building materials, sets up the MTF 23 declaration file, and coordinates NEMC screening, OSHA registration and council levies. Our Tanzania mining page covers the wider sector, and packages are on our pricing page. Reach the desk through contacts.

Government fees, royalty and levies are paid by the client to each authority at the official rate against its control number. They are separate from Zatra's professional fee and are never marked up.

The Mining Commission, NEMC, the Basin Water Board, OSHA and the council decide every application. Zatra prepares and coordinates the file; it does not decide or guarantee any authority's outcome. Compensation disputes, seizures of material, prosecutions, licence cancellations and formal legal opinions go to Zatra's advocate.

Sources and status

Accurate as at 18 October 2026. Fees are from the Zatra fee register at 26 September 2026; legal text is from the versions listed below.

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 farmer sell sand dug from his own land without a licence?

No. Owning or occupying the land does not give ownership of the minerals, which are vested in the state. Section 18(2) protects only building materials commonly used for domestic purposes. Selling sand by the truckload is commercial mining and needs a PML, prepaid royalty and the council's fees.

Can a sand PML sit inside another company's gold licence?

Yes, with that holder's consent. Section 7(2)(a) lets the licensing authority grant a PML or mining licence for building materials over an area already held for other minerals. Put the consent in writing, with access, boundaries and safety duties agreed, before applying.

Does a road contractor need a PML for a borrow pit on its project?

Not if the Minister has approved the source in writing under section 7(3) for public works. The approval cannot cover a site inside a mining area, and the Minister may withdraw it. Selling material from the pit to third parties falls outside the exception.

Does a crushing plant at the quarry need a separate processing licence?

We found no rule in the texts we read that treats crushing building materials as processing. Processing licences under the Mining (Mineral Beneficiation) Regulations target value addition. Ask the Resident Mines Officer in writing before you commission a stand-alone crusher serving several quarries.

What happens if a quarry sells before paying royalty under GN 84?

The point-of-sale machine stays locked until the declared royalty and inspection fee are paid. Sales outside that system risk assessment, seizure of stockpiles and prosecution. A notice, seizure or charge should go to an advocate on the day it arrives.

Can a foreign-owned construction company buy aggregate from PML holders?

Yes. Buying aggregate for its own works is a purchase, not a mineral right. Ask the seller for its PML number and the GN 84 receipt for the lot. Reselling minerals as a trade may need a dealer licence, so confirm the position with the Commission.

Is limestone for a cement plant a building material?

No. Section 4 excludes limestone burned for lime and material used to manufacture cement. Those are industrial minerals with their own licensing questions, and limestone for fertiliser pays 1% royalty rather than 3%. Confirm the class with the Commission at application.

How long does the Commission take to grant a building materials PML?

We found no published service standard for PML decisions. Timing depends on the Resident Mines Officer's site check, objections from other rights holders, land consent and NEMC screening. Budget several months and do not commit crushers or trucks before the grant.

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 business 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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