• Foreign Investment and Technical Support Limits for 10 Hectares of Land in Tanzania
  • Question
  • Answer
    • Land Size Classification: 10 Hectares is Small-Scale Mining
    • References
    • Foreign Equity Restrictions on Primary Mining Licences
    • Foreign Technical Support Limit: Maximum 70% Profit Share
    • Key Conditions for Foreign Technical Support
    • Summary Table
    • Conclusion

Foreign Investment and Technical Support Limits for 10 Hectares of Land in Tanzania

Question

For 10 hectares of land designated for gold mining in Tanzania, why is this considered insufficient for large or medium-scale mining operations, and what is the percentage limit for a foreigner offering technical support under the Primary Mining Licence framework?

Answer

Land Size Classification: 10 Hectares is Small-Scale Mining

Under Tanzania’s Mining Act, Cap. 123 R.E. 2019 , 10 hectares of land is legally classified as small-scale mining and cannot support large or medium-scale operations. The Primary Mining Licence (PML) covers areas up to 10 hectares and is specifically intended for small-scale mining activities with low or minimum budgets, targeting artisanal miners or small-scale investors with limited financial and technical resources .

By contrast, a standard Mining Licence (ML) covers areas between 10 hectares and 10 square kilometres and is designed for medium to large-scale mining operations requiring significant financial, technical, and operational capacity . The Mining Act explicitly states that PMLs are available only to Tanzanian citizens or wholly Tanzanian-owned companies, while Mining Licences can be granted to both Tanzanians and foreign investors .

References

• https://leap.unep.org/en/countries/tz/national-legislation/mining-act-revised-edition-2019-chapter-123
• https://bowmanslaw.com/insights/tanzania-mining-technical-support-for-primary-mining-licence-holders-regulations-published/#jupiterx-main
• https://africanminingmarket.com/tanzania-issues-mining-regulations/21985/#go-to-tie-body

Foreign Equity Restrictions on Primary Mining Licences

Foreign investors are capped and limited in their ability to invest directly in PMLs. Under Article 5 of the Mining Act, all minerals within Tanzania are the property of the United Republic of Tanzania . The Act explicitly reserves Primary Mining Licences exclusively for Tanzanian citizens or Tanzanian-owned companies . Foreign individuals or companies are not eligible to directly hold or own equity in a PML for 10-hectare gold mining operations .

Foreign Technical Support Limit: Maximum 70% Profit Share

While foreigners cannot hold direct equity in a PML, the Tanzanian government created a legal framework for foreign technical support through the Mining (Technical Support for Primary Mining Licence Holders) Regulations, 2025 (Government Notice No. 260 of 2025), issued under section 129 of the Mining Act, Cap. 123 R.E. 2019 and operationalising section 8(3) of the Act . These regulations were published on 25 April 2025 .

Under these regulations, the foreigner’s share is the total gross profit minus the 30% minimum guaranteed to the Tanzanian licence holder. Regulation 9 prescribes that :

• Local PML Holder’s Minimum Share: 30% of gross profits (net of all government royalties and charges)
• Foreign Technical Support Provider’s Maximum Share: 70% of gross profits

The regulations define “technical support” as mining expertise, machinery or various machines, operating methods of machinery, or knowledge of carrying out mining activities not available in Tanzania, provided for the purpose of assisting in exploration, mining, prospecting, or knowledge of minerals intended to be mined in a PML area . A “facilitator” is defined as a person, group of persons, or company that provides technical assistance to a PML holder .

This profit-sharing arrangement is formalised through a Technical Support Agreement (TSA) – a legally binding written contract between the PML holder and the Technical Support Provider that must be submitted to the Mining Commission for approval and registration before commencement .

Key Conditions for Foreign Technical Support

Foreigners providing technical support under this framework must comply with several requirements:

1. Profit Share Guarantee: The PML holder must receive not less than 30% of gross profit generated from mining activities, net of all government royalties and charges, regardless of project operating costs incurred by the facilitator .

2. Commission Approval: All TSAs must be submitted to the Mining Commission for approval and registration before commencement. The Commission may refuse registration and must provide written reasons .

3. Duration Limits: TSAs are valid for a maximum of 3 years and are renewable, provided the total duration does not exceed 12 years .

4. Coverage Limit: A PML holder may enter into one agreement covering up to 10 licences, provided the licences are located in the same locality .

5. Availability Certification: The Resident Mining Officer (RMO) must verify that the required technical expertise is not available within Tanzania before approval .

6. Employment Preferences: The PML holder must ensure that only Tanzanian citizens are employed in the PML area, except where technical support requires foreign experts .

7. Local Content Compliance: Under the Mining (Local Content) (Amendment) Regulations, 2025 (Government Notice No. 563 of 2025, published 12 September 2025), a foreign Technical Support Provider operating through a joint venture with an indigenous Tanzanian company must have the indigenous company hold a minimum equity interest of 20% , with the indigenous partner being 100% Tanzanian-owned and operating in the same line of business .

8. Facilitator Obligations: Facilitators must :

   • Provide machinery, technical expertise, and operational knowledge
   • Prepare and submit mining and Environmental Impact Assessment (EIA) plans (mining plan within 90 days, EIA plan within 120 days)
   • Develop a structured plan for technology and knowledge transfer
   • Appoint a permanent representative for authority communication

9. PML Holder Responsibilities: The PML holder retains overarching responsibility for legal, tax, and regulatory compliance and must directly participate in managing exploration and mining activities .

Summary Table

Aspect	Limit/Rule	Legal Authority
Land size classification	Small-scale mining (PML category)	Mining Act, Cap. 123 R.E. 2019
Foreign direct equity in PML	Not permitted	Mining Act, Cap. 123 R.E. 2019
Foreign technical support profit share	Maximum 70% of gross profits	Regulation 9, GN No. 260 of 2025
Local PML holder minimum profit share	Minimum 30% of gross profits	Regulation 9, GN No. 260 of 2025
Indigenous company JV equity requirement	Minimum 20% for 100% Tanzanian-owned partner	GN No. 563 of 2025
TSA maximum duration	3 years, renewable up to 12 years total	Regulation, GN No. 260 of 2025
Maximum PMLs per TSA	10 licences within same locality	Regulation, GN No. 260 of 2025

Conclusion

For 10 hectares of land in Tanzania, large or medium-scale gold mining is not possible because this land size falls exclusively within the Primary Mining Licence framework under the Mining Act, Cap. 123 R.E. 2019 , which is legally designated for small-scale operations. Foreign investors cannot hold direct equity in such licences . However, under the Mining (Technical Support for Primary Mining Licence Holders) Regulations, 2025 (GN No. 260 of 2025) , foreigners may provide technical support through a Technical Support Agreement and receive up to 70% of gross profits, with the Tanzanian PML holder guaranteed a minimum of 30% . This framework provides a lawful pathway for foreign participation without direct equity ownership in the PML .