Mineral versus land rights

A Tanzanian mining company holds a valid mining licence and discovers that a portion of its licensed area overlaps with land occupied by local villagers. The company argues that its mining licence gives it the right to commence operations immediately, while the villagers claim that they cannot be displaced without proper compensation. Under the law, whose rights should prevail, and what must the company do before commencing mining activities on the occupied land?

MM, Mara

A mining licence does not automatically extinguish the rights of lawful occupants of the land. Nor does it create surface rights over the mining area. Although the Mining Act, Cap. 123 gives the licence holder rights to conduct authorised mining operations, those rights must be exercised subject to the applicable land and compensation requirements. Where mining activities require the use or occupation of land, the company must follow the legally prescribed procedures for acquisition or occupation of the land and address the rights of the affected lawful occupiers. This generally includes assessment and payment of appropriate compensation before the affected persons are required to vacate their land. This is in terms of sections 120 and 122 of the Mining Act.

Practically, the company, therefore, cannot simply enter the village area and begin mining because it possesses a valid mining licence. It should first resolve the land and compensation issues in accordance with the Mining Act and applicable land laws. Failure to do so may expose the company to disputes, delays, and legal liability despite having a valid mining licence.