Tanzania’s Mining Sector Collects TZS 753.82 Billion in 2023/2024; Targets Nearly TZS 1 Trillion in 2024/2025; New Regulations Reserve Primary Mining Licenses for Tanzanian

On July 28, 2024, the Minister of Minerals of Tanzania, Hon. Anthony Peter Mavunde, addressed the press in Dodoma, unveiling notable achievements and updates within the mining sector.

During the press briefing, he highlighted the Ministry’s revenue collections and a new directive aimed at regulating foreign involvement in small-scale mining operations.

Revenue Collection Milestones

During the financial year 2023/2024, the Ministry of Minerals, through the Mining Commission, set a target to collect TZS 882.1 billion from various sources, including royalties, annual license fees, inspection fees, geological fees, laboratory service charges, and fines.

Minister Mavunde announced that the Ministry successfully collected TZS 753.8 billion, achieving 85.45% of the target.

The revenue breakdown included:

• Annual License Fees: TZS 48.7 billion, exceeding the target by 121.7%.
• Inspection Fees: TZS 106.2 billion, meeting 88.52% of the target.
• Geological Fees: TZS 13.0 billion, achieving 68.43% of the target.
• Royalties: TZS 582.9 billion, meeting 83.52% of the target.

The total collections for the year marked an increase of TZS 76.1 billion compared to the TZS 677.7 billion collected in the previous financial year (2022/2023), which had a target of TZS 822.0 billion.

This consistent year-on-year increase in revenue has bolstered confidence in achieving the ambitious target of TZS 1 trillion for the financial year 2024/2025.

Strict Regulations on Foreign Involvement in Small-Scale Mining

In addition to the financial updates, Minister Mavunde announced a critical policy directive prohibiting foreigners from entering Primary Mining License (PML) areas without an approved Technical Support Agreement (TSA).

The Minister emphasized that PMLs are reserved for Tanzanian citizens, and any technical assistance required from foreign entities must be formally approved by the Mining Commission as per Section 8(3) of the Mining Act, Chapter 123.

This regulation aims to protect local miners from unfair competition and ensure that Tanzanians benefit fully from their natural resources. The Minister warned that legal action would be taken against any foreigner or local PML holder found violating these regulations.

Minister Mavunde lauded the efforts of all stakeholders, from small-scale miners to large mining companies, for their contributions to the sector’s growth. He reiterated the Ministry’s commitment to creating a conducive environment for investment while ensuring that all operations comply with the law.