Mining Policy

Shift from Socialist State Directed to Free Market Economic Policies

Since independence, the Government has taken several steps to develop the mineral sector. After 1967, the Government adopted state-directed development strategies and thus there were limited private owned investments directed to the mining industry.

With the changes in macro-economic policy of the country to adopt free market economic policies in the early 1990's, many foreign and local investors have returned to the mining scene.

Policy That Encourages & Protects Private Investment

Under the Mineral Sector Policy of 1997, the vision for the next 25-30 years for the mineral sector is to have a strong, vibrant, well-organized large and small-scale mining industry conducted in a safe and environmentally sound manner with a public-private partnership. The mineral sector is expected to contribute in excess of 10% of the GDP.

Policy Objectives

The Government's policy for the mineral sector development aims at attracting and enabling the private sector to take the lead in exploration, mining development, mineral beneficiation and marketing. The policy objectives are to:
  • Stimulate exploration and mining development
  • Regularize and improve artisanal mining
  • Ensure that mining wealth supports sustainable economic and social development
  • Minimize or eliminate the adverse social and environmental impacts of mining development
  • Promote and facilitate marketing arrangements for minerals and mineral-based products
  • Alleviate poverty especially for artisanal and small scale miners
  • Maximize value adding in mineral products before exportation

The Role of Government -- A Facilitator, Promoter & Regulator

The Government's role in the mineral sector is to provide clear policy guidelines, stimulate and promote the sector's various stakeholders and see the sector's general development. The direct involvement in mineral exploration and exploitation has been ceased.

Government as a regulator in:
  • Pursuing sound economic and fiscal policies that are conducive to private sector investment in mining
  • Administering the mining laws and attendant regulations
  • Issuing and administering all types of mineral rights and mineral trading licenses
  • Establishing environmental, health and safety guidelines and ensuring compliance
  • Collecting taxes, duties, royalties, fees and rental payments arising from mining development
Government as a promoter and facilitator in:
  • Co-coordinating and establishing consultation mechanisms within the government, the private sector and other agencies for smooth development of the mineral sector
  • Carrying out basic geological mapping of the country and maintaining up-to-date information on mineral resource potential for promotional and development purposes
  • Promoting the development of Tanzania's mineral potential by preparing and disseminating promotional materials
  • Providing guidance to investors and facilitating contact and communication with relevant institutions