Mining & Minerals

Rare Earth Mining Tanzania: Licences, the 16% State Stake, the Royalty Question, Value Addition and TAEC Rules for Thorium

Cover: rare earth mining in Mainland Tanzania, from the prospecting licence and 16% state stake to royalty, TAEC radiation rules and concentrate export
Licence by scale, 16% to the Government, a royalty class to confirm, and TAEC rules where thorium is present. As at 27 October 2026.
Direct answer

What does an investor need for rare earth mining in Tanzania? A Tanzanian company holding a prospecting licence, then a mining or special mining licence, plus a framework agreement giving the Government at least 16% free carried shares. Ngualla is reported to pay 3% royalty, but the Act does not name rare earths, so confirm the class. A 1% inspection fee, a value-addition plan and, for thorium-bearing ore, TAEC licences apply.

Rare earth mining in Tanzania runs under the Mainland Mining Act, Cap. 123, a project framework agreement and, where ore carries thorium or uranium, the Atomic Energy Act. This guide covers each layer, the main projects and a costed export.

What the law says about rare earth mining in Tanzania

Tanzania has no rare earth statute. Seven instruments carry a project from exploration to the port.

On numbering: we cite the 2019 sections we read. The fee register gives R.E. 2023 numbers for royalty (s.111, formerly 87) and the inspection fee (s.115, formerly 90A).

Who should read this

For general licence rules, read our mining licence guide and prospecting licence guide. For a sister battery mineral, see our graphite mining guide, and for base metals our note on copper, nickel and battery metals.

How does the Mining Act classify rare earths?

The Act mentions rare earths once. Section 4 defines "Mineral Concentrate" in four groups. Paragraph (c) covers "minerals in the category rare earth elements", listed with transition elements such as ytterbium, beryllium, tantalum and lithium. Precious and base metals sit in a separate paragraph (a).

The definitions used for royalty are silent. Section 4 defines "metallic minerals" by a list: gold, silver, copper, iron, nickel, cobalt, tin, tungsten, zinc, chromium, manganese, titanium, aluminium, the platinum group and "other metallic minerals". Rare earths are not named.

Mining Act termWhat it listsDoes it name rare earths?Why it matters
Mineral Concentrate, para (c)Rare earth elements and transition elementsYesConfirms rare earth concentrate is a recognised product class
Metallic mineralsNamed metals plus "other metallic minerals"NoA 6% royalty applies if rare earths are read in as other metallic minerals
Energy mineralsCoal, peat, uranium, thorium, other radioactive mineralsNoThorium in the ore brings radiation rules, not a rare earth royalty
Industrial mineralsPhosphate, kaolin, lime, gypsum and similarNoPhosphate by-products may fall here
Other mineralsResidual royalty classNoA 3% royalty applies if rare earths fall here

The result is a classification question to settle in writing with the Mining Commission before building the financial model.

Which royalty rate applies to rare earth concentrate?

Section 87(1) of the 2019 text sets five rates: uranium 5%, gemstones and diamonds 6%, "metallic minerals such as copper, gold, silver and platinum group minerals" 6%, gems 1%, and other minerals, including industrial minerals, 3%. The Zatra fee register prints the same classes under section 111(1) of the R.E. 2023 text (F0624). Neither names rare earths.

The project record points to 3%. Peak Resources modelled a "Tanzanian Royalties" line of 3.0% for Ngualla in its ore reserve announcement of 11 April 2017, republished by MarketScreener. Ecofin Agency reported on 20 September 2025 that Tanzania keeps a 16% free carried interest and a 3% gross revenue royalty on Ngualla.

So the position is "verify". Budget at 3% if your project mirrors Ngualla, run a 6% sensitivity, and get the Commission's written position. Do not apply the 5% uranium rate to rare earths; it attaches to uranium itself.

ChargeRate or amountWhen it fallsRegister IDBasis
Royalty3% (other minerals) or 6% (metallic minerals); class to confirmOn minerals produced and soldF0624s.111(1) R.E. 2023; s.87(1), 2019 text
Inspection fee1% of gross valueBefore clearance for export or domestic useF0625s.115 R.E. 2023; s.90A, 2019 text
HIV Response Levy0.1% of gross valueWith royalty, from 1 July 2025F0626s.113A
Export permit applicationUSD 100 per consignmentBefore each exportF0628GN 2 of 2018 as amended by GN 235 of 2019
Service levy0.25% of turnoverTo the district councilF0630Local Government Finance Act, Cap. 290
TASAC clearing, containerisedUSD 300 per 20 ft; USD 350 per 40 ftAt the port, per bill of ladingF0390GN 181 of 2021; GN 184 of 2025
Export tax and VATNo export tax; exports zero-ratedOn exportF0343, F0241Export Tax Act Cap. 196; VAT Act Cap. 148

A dealer exporting concentrate it bought pays a "payment in lieu of royalty" under section 88 at the same rate. Section 86 bars any dealer or broker licence in uranium minerals. Our mineral royalty and inspection fee guide covers valuation and the ministerial review of double charging ordered on 4 October 2026.

Which licence does a rare earth project need?

Licence choice turns on scale and on who owns the company. Fees are from the Zatra fee register at 26 September 2026 and are paid to the Mining Commission against a GePG control number.

LicenceFit for rare earthsWho may hold itMain government feesRegister ID
Prospecting licence (PL)Mapping, drilling, metallurgical testwork and feasibilityCompanies, including foreign-owned Tanzanian companiesApplication USD 300 (metallic, energy and kimberlitic classes); preparation USD 300; rent from USD 100 a km2; expenditure from USD 500 a km2F0615, F0616, F0618
Primary mining licence (PML)Small surface workings; rarely suits rare earths, which need a concentratorCitizens and wholly citizen-controlled bodies only, s.8(2)Application TZS 50,000; not available to foreignersF0619
Mining licence (ML)Medium-scale mine and concentratorTanzanian-incorporated companyApplication USD 2,000; preparation USD 1,000; rent USD 3,000 or USD 2,000 a km2 by mineral classF0621
Special mining licence (SML)Large-scale projects such as NguallaSame, with Cabinet approvalApplication USD 5,000; preparation USD 2,000; rent USD 5,000 a km2F0621
Processing licenceCracking, leaching or separation plantsLicensed separately from the mineApplication TZS 150,000 (USD 200); annual fee half the issue feeF0631

ML rent is USD 3,000 a km2 for metallic and energy minerals and USD 2,000 for industrial minerals, so confirm the class here too. Applications run on the Online Mining Cadastre Transactional Portal, and the Mining Commission grants and polices the rights. Our primary mining licence guide explains the citizen-only route.

What stake does the Government take in a rare earth project?

Section 10(1) gives the Government "not less than sixteen percent non-dilutable free carried interest shares" in a company holding a mining licence or special mining licence. Section 10(2) lets it acquire up to 50% in total, commensurate with tax expenditures granted to the company.

Clyde & Co wrote on 19 November 2024 that the template framework agreement sits in GN 574 of 2022 and that the licence is withheld until the agreement is signed. It said some projects have gone to 20%.

Ngualla follows the floor. TanzaniaInvest reported that Peak Rare Earths and the Government signed the Ngualla framework agreement on 17 April 2023. Two companies were set up, each 84% Peak and 16% Government through the Treasury Registrar:

That design ring-fences the downstream commitment and puts the state's 16% into the refinery as well as the mine. Our local content and ownership checks cover the other ownership tests.

Which rare earth projects are moving in Tanzania?

Status below is as reported by the sources linked; confirm each before relying on it.

ProjectHolderAreaReported status
NguallaMamba Minerals Corporation: 84% Peak Rare Earths, now owned by Shenghe Resources; 16% GovernmentNgwala village, Songwe RegionSML granted April 2023; environmental certificate March 2017; construction awaiting an export approval from Chinese authorities, September 2026
Wigu HillSTAMICO, the state mining corporationMorogoro RegionLarge-scale licence handed over on 24 July 2025 after the Montero dispute settled
Mkiu, LudewaHongji Mining Co. Ltd, in cooperation with the GovernmentNjombe RegionNeodymium and praseodymium found; detailed work over 280 km2 reported in May 2026

Ngualla. NS Energy reported on 23 July 2021 that Cabinet had approved the SML over about 18.14 km2. The Business Wiz reported on 27 April 2023 that the SML was granted to Mamba Minerals. The framework agreement set its term at the shorter of 33 years or the life of the mine. Peak's 2017 plan was about 28,300 tonnes a year of 45% rare earth oxide concentrate.

The BizLens reported on 8 May 2025 that the Minister, Anthony Mavunde, reminded holders that medium and large-scale licences must start mining within 18 months. Ecofin reported that Shenghe bought the 80.3% of Peak it did not own, for A$195 million, with court approval on 19 September 2025. BigGo Finance reported on 22 September 2026 that Shenghe still awaits an export approval from Chinese authorities and targets completing construction in 2027.

Wigu Hill. The Chanzo reported on 25 July 2025 that STAMICO received a large-scale exploration and mining licence on 24 July 2025. The earlier holder's licence was revoked, and Montero Mining settled its ICSID claim for US$27 million. The Citizen reported on 23 November 2024 that the settlement saved the Government US$43 million. TanzaniaInvest places the deposit in Kilosa District. Any private role there runs through STAMICO; see our STAMICO joint venture guide.

Njombe. Voice of Nigeria reported on 21 May 2026 that Hongji Mining had finished a first exploration phase near Mkiu village. No licence number was reported.

Can rare earth concentrate be exported from Tanzania?

Yes, on the present record, with conditions and a downstream plan.

We found no adopted critical minerals strategy or regulation naming rare earths by 27 October 2026. TanzaniaInvest reported on 4 August 2025 that a July 2025 report prepared with the Government lists neodymium-praseodymium metal among 14 value-addition opportunities. That is direction, not law.

Every shipment needs its own Mining Commission export permit after weighing, valuation, payment and sealing. Concentrates fall under TASAC's exclusive clearance under GN 184 of 2025. Our mineral export permit guide sets out the sequence. A separation or cracking plant needs its own processing licence; see our mineral processing licence guide.

When does TAEC licensing apply to rare earths?

Many rare earth ores carry thorium and some uranium; monazite is the classic case. Two regimes then run in parallel: the Mining Act's radioactive minerals rules and the atomic energy regime of the Tanzania Atomic Energy Commission.

The trigger under the mining rules is a number. Regulation 3 of GN 4 of 2018 defines a radioactive mineral as one containing by weight at least one-twentieth of one per cent of uranium or thorium, or both. That is 500 parts per million. It expressly includes "monazite sand and other ores containing thorium".

InstrumentWhat it requiresWho acts
GN 4 of 2018, regs 7 and 9Radiation protection plan, radioactive waste plan, and a plan to transport and store ores and productsMineral right holder; copies to TAEC
GN 4 of 2018, reg. 6Permit to acquire, store, transport, import or export radioactive mineralsMining Act licensing authority
GN 4 of 2018, reg. 18(2)(a)Approval of source and end-user documents for salesTAEC
GN 369 of 2011, regs 6, 8, 9, 10 and 15Licences for prospecting, mine and plant construction, operation, and decommissioningTAEC
GN 369 of 2011, regs 16 and 29Decommissioning funds; authorisation for each export of radioactive oreTAEC
Atomic Energy Act, s.17Licence to import, export or transport radiation sourcesTAEC

The TAEC regulations are the Atomic Energy (Radiation Safety in the Mining and Processing of Radioactive Ores) Regulations, 2011, GN 369 of 2011. TAEC charges its own fees under the Atomic Energy (Fees and Charges) Regulations, 2022, GN 478J. Those lines are not in the Zatra fee register yet, so we do not print them; TAEC assesses them on filing.

Ngualla shows why assays matter. Peak's 2017 announcement put average uranium at 14 ppm and thorium at 55 ppm in the ore body, well under the threshold. Concentration raises those levels in the product, so test the concentrate, tailings and any monazite stream, not the ore alone. Breach of GN 4 of 2018 carries a fine of TZS 10 million to TZS 100 million, up to five years' imprisonment, or both (reg. 23). Our TAEC radiation source guide covers the separate licences for XRF analysers and density gauges on site.

What do local content, CSR and the EIA add?

Radioactivity raises the NEMC bill. The register prints annual fees for radioactive exploration of TZS 50 million, mining of TZS 100 million and processing of TZS 150 million (F0508); whether a project falls there depends on assays and NEMC's view. Large mines also pay the OSHA inspection fee, TZS 1,440,000 a year in the large mining band (F0442).

Does the Mining Act apply to rare earths in Zanzibar?

No. Section 2 limits the Mining Act to Tanzania Mainland, and every Mining Commission licence, fee and permit in this guide is a Mainland instrument. The known rare earth deposits are on the Mainland. The atomic energy regime is different: section 3 of the Atomic Energy Act applies to "Mainland Tanzania as well as Tanzania Zanzibar".

PointMainland TanzaniaZanzibar
Mining lawMining Act, Cap. 123No dedicated mining law reported in November 2024; enactment not confirmed
Licensing bodyMining CommissionNot confirmed
Royalty3% or 6% plus 1% inspection fee (F0624, F0625)Unknown
Radiation controlTAEC under the Atomic Energy ActTAEC under the same Act, s.3
CustomsTRA, TANCISTRA, TANCIS

The Citizen reported on 28 November 2024 that Zanzibar had no dedicated mining law and was preparing one. Routing Mainland concentrate through a Zanzibar port does not avoid the Mining Commission's export permit.

Worked example: royalty and inspection fee on a rare earth concentrate shipment

This example is hypothetical. A special mining licence holder, 84% foreign-owned and 16% Government-held, ships 2,000 tonnes of rare earth concentrate in 100 twenty-foot containers. At an illustrative USD 2,500 a tonne, gross value is USD 5,000,000. We use an illustrative TZS 2,450 to the dollar; the control number amount governs.

ChargeRegister IDCalculationUSD at 3% royaltyUSD at 6% royalty
Export permit applicationF0628One consignment100100
RoyaltyF06243% or 6% x USD 5,000,000150,000300,000
Inspection feeF06251% x USD 5,000,00050,00050,000
HIV Response LevyF06260.1% x USD 5,000,0005,0005,000
Mining Commission chargesn/aSum of the four lines205,100355,100
TASAC clearingF0390100 x 20 ft containers at USD 30030,00030,000
Total per shipmentn/aAll lines235,100385,100

Zatra's professional fee for the export file is quoted separately and is never added to these government charges.

What to do now

  1. Fix the royalty class. Ask the Mining Commission in writing whether it treats your rare earth product as metallic minerals or other minerals, and record the answer in the framework agreement.
  2. Assay for radioactivity. Test ore, concentrate, tailings and any monazite stream for thorium and uranium against the 500 ppm threshold.
  3. Open the TAEC file early. If the threshold is met or close, prepare the radiation protection, waste and transport plans before construction.
  4. Build the cap table. Model the 16% free carried interest in both the mining and any refinery company, with lender security and offshore account terms.
  5. Write the value-addition plan. Set out concentrate grade, any cracking or separation stage, the timetable and the offtaker.
  6. Start the EIA. Register with NEMC as soon as the footprint, tailings design and resettlement area are known.
  7. Plan each shipment. Book weighing, valuation and sealing, pay control numbers, obtain TAEC export authorisation where needed, and line up TASAC.
  8. Route trouble to an advocate. Default notices, licence cancellations, valuation disputes, seizures and legal opinions need an advocate before any reply.

Key dates

DateEventSource
23 May 2003Atomic Energy Act assented; TAEC establishedAct No. 7 of 2003
18 October 2011GN 369 of 2011 signedFAOLEX copy
10 January 2018GN 1, GN 2, GN 3 and GN 4 of 2018 publishedTanzLII
1 July 2022TAEC fees and charges, GN 478J of 2022, in forceTanzLII
17 April 2023Ngualla framework agreement signedTanzaniaInvest
April 2023Ngualla SML granted to Mamba MineralsThe Business Wiz
30 April 2024Value-addition plan announced as a licence conditionThe Guardian
24 July 2025Wigu Hill licence handed to STAMICOThe Chanzo

Royalty and levy rates change by Act of Parliament, usually from 1 July.

How Zatra helps

Zatra's sector business permits service prepares licence files, local content and CSR plans, TAEC submissions and export permit packs. Our investment due diligence service checks licence title, rent, royalty class, radiation compliance and state participation for buyers and lenders. See our Tanzania mining page, the government fees handbook and pricing.

Two cost buckets stay separate. Royalty, the inspection fee, levies, rent, TAEC and permit fees are paid by the client to each authority at the official rate against its control number. Zatra's professional fee is quoted on its own and never marked up onto them.

The authorities make every decision. Zatra prepares and coordinates the file; it does not decide or guarantee any authority's outcome. Framework agreement negotiation, licence cancellations, disputes, seizures, prosecutions and formal legal opinions go to the advocate on our team.

Sources and status

Accurate as at 27 October 2026. Section numbers are from the 2019 text of the Mining Act unless marked R.E. 2023. Fees 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 own 100% of a rare earth mine in Tanzania?

No. The licence must sit in a Tanzanian company, and the Government holds at least 16% of any company with a mining licence or special mining licence. The foreign group can hold the remainder, subject to local content rules and the terms of its framework agreement.

Can drill core or bulk samples be exported for metallurgical testing?

Yes, with a sample export permit from the Mining Commission. Agree the sample size, laboratory and return or disposal terms first. If the material crosses the thorium or uranium threshold, TAEC transport and export rules apply as well, so assay before you book the courier.

Do phosphate or niobium by-products pay the same royalty as rare earths?

Not necessarily. Royalty follows each mineral's class. The register prints 1% for phosphate used for fertiliser and 3% for industrial minerals (F0624). Name every saleable product in the licence application and the framework agreement so each has an agreed rate.

Does a rare earth mine need a council business licence?

Not for mining itself. The Business Licensing Act excludes miners licensed under the Mining Act (NEW-08-16). A separate trading or logistics business in the group may need its own licence.

Can a trader buy and export Tanzanian rare earth concentrate?

Only with a mineral dealer licence, which needs at least 25% Tanzanian shareholding (F0622). The dealer pays a payment in lieu of royalty when it exports. No dealer or broker licence is available for uranium minerals, which matters if a stream is radioactive.

What happens to licences if the parent company is sold?

A direct transfer of a mineral right needs Commission consent and a USD 3,000 fee (NEW-06-16). A sale of the offshore parent can still need Tanzanian approvals and tax filings. Ecofin reported that Shenghe's takeover of Peak was pre-cleared in Tanzania. See our guide to renewing and transferring a mining licence.

Who pays to close a radioactive tailings facility?

The licence holder. GN 369 of 2011 requires decommissioning funds, set aside by insurance or another approved method, and GN 4 of 2018 sets long-term stability goals for tailings.

Can rare earth sales proceeds be held offshore?

The Permanent Sovereignty Act requires earnings from natural resources to be kept in Tanzanian banks, apart from repatriation allowed by law. Lenders often want offshore accounts, so agree the position in the framework agreement and with the Bank of Tanzania before financial close.

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. Tanzania mining 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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