PMLs ownership in Tanzania

I am a South African citizen engaging in mining business. Upon review of Tanzania’s mining legal framework, I have noted there are various mineral rights under the law. One of them is Primary Mining Licence (PML). Can I apply for them or buy from the existing holders? Kindly guide me.

JD, South Africa

Generally, Primary Mining Licences (PMLs) are reserved for Tanzanian citizens or companies wholly owned by Tanzanian citizens and whose control is exercised in Tanzania by Tanzanians. A foreign citizen cannot therefore apply for, and be granted, a PML by the Mining Commission. Besides, simply incorporating a Tanzanian company and putting Tanzanian shareholders on paper does not meet compliance, for the law expressly looks at direct and indirect control. This is in accordance with section 9(2) of the Mining Act (the Act).

However, upon recommendation of a resident mines officer and upon its satisfaction that a PML holder needs technical support that cannot be obtained in Tanzania, the Mining Commission may allow the said PML holder to contract a foreigner for technical support (TS) through a technical support agreement (TSA). However, the TSA can only cover 10 PMLs.

The Act insofar as PMLs are concerned is supplemented with the Mining (Technical Support for PML Holders) Regulations, 2025 (the Regulations). The Regulations provide for such aspects as: registration of TSAs with the Mining Commission; definition of technical support; the relationship between the PML holder and TS provider (the parties); and revenue sharing between the parties. Having a TSA signed by the parties is not enough. The spirit of the restriction regarding PMLs ownership is to have Tanzanian citizens and entities actively participating in the mining operations. To this end, the provisions on revenue sharing under TSAs are critical.

Under the Regulations, the PML holder is entitled to not less than 30% of the gross revenue generated from mining operations, excluding royalties and other charges due to the Government regardless of operating costs incurred by the TS provider.

Regarding buying the PMLs from the existing holder, this is possible. However, there should be an agreement or arrangement to convert the PML into a Mining Licence, subject to the provisions relevant to application for and grant of a Mining Licence. In addition to this, the PML holder and the TS provider can agree to combine the PMLs for which the TS has been requested for purposes of transferring the PML to the TS provider’s company or their joint venture company and agree on the revenue sharing.