Mining

June 2018

Briefing

Mining Regulations
In this month's briefing, we have summarised key differences between:

- the Mining (Mineral Rights) Regulations, 2010, and the Mining (Mineral Rights) Regulations, 2018;
- the Mining (Mineral Beneficiation) Regulations, 2010 and the Mining (Mineral Beneficiation) Regulations, 2018; and
- the Mining (Mineral Trading) Regulations, 2010 and the Mining (Minerals and Mineral Concentrates Trading)
Regulations, 2018.

It should be noted that there are other mining regulations that have been issued in 2018, notably:

- the Mining (Audit and Inspection of Records) Regulations 2018

- the Mining (Geological Survey) Regulations 2018
- the Mining (Local Content) Regulations 2018
- the Mining (Radioactive Minerals) Regulations 2018

The Mining (Mineral Rights) Regulations of 2010 and 2018

These Regulations govern the application and issuance procedures for issuance of mineral rights. These Regulations were
initially published in 2010 and later repealed and replaced in 2018. In the following table below, we have highlighted the key
differences between the Regulations of 2010 and the ones of 2018.

The Mining (Mineral Rights) Regulations, 2010 The Mining (Mineral Rights) Regulations, 2018
Fees payable Fees payable

It used to cost the following to obtain the following types It now costs the following to obtain the following types of
of mineral rights licences: mineral rights licences:

 Prospecting Licence  Prospecting Licence

- Application Fee – USD 300 - Application Fee – USD 300
- Renewal Fee – USD 300 - Renewal Fee – USD 300

 Special Mining Licence  Special Mining Licence

- Application Fee – USD 5,000 - Application Fee – USD 5,000
- Renewal – USD 5,000 - Renewal – USD 5,000

 Mining Licence  Mining Licence

- Application Fee – USD 2,000 - Application Fee – USD 2,000
- Renewal – USD 2,000 - Renewal – USD 2,000

 Our views – Practically, there has been no change

from the old regulations.
Primary mining licence holders – reporting Primary mining licence holders – reporting requirements
requirements
Primary mining licence holders are now required to file
Primary mining licence holders used to be required to reports at the Mining Commission, every month.
file reports at Zonal Mines Offices, every 4 months.
 Our views – Practically, the new requirement
increases the administrative obligations imposed on
primary mining licence holders.

Retention licence holders – cancellation Retention licence holders – cancellation

There used to be no provisions relating to the There are now provisions relating to the cancellation of
cancellation of retention licences. retention licences. These provisions say that all retention
licences that were issued prior to the publication of the
new mineral rights regulations are cancelled and all rights
over those areas are reverting to the Government.

 Our views – There was uncertainty regarding the

rights of the previous retention licence holders after
such cancellation. Recently, according to the media
reports, it is now understood that the holders of
retention licences which were cancelled are given an
opportunity to apply for the relevant mining licences
within a reasonable time, otherwise they may lose
their rights over the mining area.
The Mining (Mineral Beneficiation) Regulations of 2010 and 2018

Mineral beneficiation involves the processing, smelting and/or refining of a mineral.

The Mining (Mineral Beneficiation) Regulations, 2010 The Mining (Mineral Beneficiation) Regulations, 2018

Fees payable Fees payable

It used to cost the following to obtain mineral It now costs the following to obtain mineral beneficiation
beneficiation licences: licences:

 Application Fee – USD 200  Application Fee – USD 200

 Renewal Fee – USD 200  Renewal Fee – USD 200

In addition, it has been made clear that the fees that are
paid for mineral beneficiation licences are non-
refundable.

 Our views – Although there has been no change in

fees, the fact that it has been made clear that licence
fees are non-refundable, means that this is a more
favourable position for the Government.
Succession plans for foreign employees Succession plans for foreign employees

Mineral beneficiation licence holders used to be Mineral beneficiation licence holders are now required to
required to prepare succession plans for their foreign prepare succession plans for their foreign employees,
employees, pursuant to the provisions of the pursuant to the provisions of the Mining Act.
Employment and Labour Relations Act.
 Our views – While the old regulations made
reference to the Employment and Labour Relations
Act, this Act does not comprehensively deal with the
issue of succession plans. This may be the reason
why the new regulations state that succession plans
should be made pursuant to the provisions of the
Mining Act, which comprehensively addresses the
issue of succession plans. In addition, the Mining
(Local Content) Regulations 2018 have been
published, to expand upon issues relating to
succession plans.

Reporting requirements Reporting requirements

Mineral beneficiation licence holders used to be Mineral beneficiation licence holders are now required to
required to forward a copy of their records to the forward a copy of their records to the Mining
Commissioner for Minerals on a quarterly basis. Commission on a quarterly basis.

 Our views – Practically, there is no change that has

occurred from the old regulations. The only change
is that records must be forwarded to the Mining
Commission.
The Mining (Mineral Trading) Regulations of 2010 and 2018

These Regulations govern trading of minerals by licence holders, dealers and brokers.

Mining (Mineral Trading) Regulations, 2010 the Mining (Minerals and Mineral Concentrates Trading)
Regulations, 2018
Mineral Concentrates Mineral Concentrates

Did not have the term "mineral concentrates". It makes reference to the term "mineral concentrates"
defined in the amendments to the Mining Act 2010.

Fees payable Fees payable

It used to cost the following to obtain the following It now costs the following to obtain the following types of
types of mineral trading licences: mineral trading licences:

 Application Fee  Application Fee

- Broker Licence – TZS 50,000 - Broker Licence – USD 25
- Dealer Licence – USD 200 - Dealer Licence – USD 200

 Renewal Fee  Renewal Fee

- Broker Licence – TZS 50,000 - Broker Licence – USD 25
- Dealer Licence – USD 100 - Dealer Licence – USD 100

 Our views – The change is that fees are quoted in

USD with an approximate amount in TZS. There is a
disclaimer that the amount payable in TZS may vary
in accordance with the value of the USD. With the
rising dollar rate, this change from the old
regulations is more favourable to the Government.

Export permits Export permits

Permits to export minerals and samples of minerals used Permits to export minerals and samples of minerals are
to be issued by persons authorised by the Commissioner now issued by the Mining Commission.
for Minerals.
 Our views – Practically, there is no change that has
occurred from the old regulations. The only change
is the issuing authority.
 It is important to note that the Tanzania Shipping
Agencies Act now provides that only the Tanzania
Shipping Agencies Corporation (TASAC) may
undertake the clearing and forwarding function
relating to import and export of minerals, mineral
concentrates, machineries, equipment and products
or extracts related to minerals and petroleum.
 If you would like to read our updater on TASAC,
please do not hesitate to contact us.
Dealer licence holders – specific penalties Dealer licence holders – specific penalties

If a dealer licence holder failed to comply with the

mineral trading regulations, they were liable to: If a dealer licence holder fails to comply with the mineral
trading regulations, they could be liable to:
 pay a fine not exceeding TZS 1 million;
 pay a fine not exceeding TZS 50 million;
or
or
 serve a custodial sentence not exceeding 1 month.
 serve a custodial sentence not exceeding 2 years.

 Our views – The dramatic increase in penalties for

dealer licence holders suggests that the Government
is keen to ensure increased compliance.
Contact us
This monthly briefing is prepared for clients and contacts of
Clyde & Co operating in the mining sector in Tanzania. We
aim to keep our clients abreast of developments in the sector
as they happen and if you have any questions on the issues
raised above please contact us using the details provided:

Peter Kasanda
Partner, Dar es Salaam
E: peter.kasanda@clydeco.com
T: +255 768 983 003

Amalia Lui
Senior Associate, Dar es Salaam
E: amalia.lui@clydeco.com
T: +255 768 983 026

Amreen Ayub
Associate, Dar es Salaam
E: amreen.ayub@clydeco.com
T: +255 768 983 032

Kankiza Tibaijuka
Associate, Dar es Salaam
E: kankiza.tibaijuka@clydeco.com
T: +255 768 983 023

Clyde & Co Tanzania

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Dar es Salaam, Tanzania.

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