Contents Page

 
 

 

The Mineral Sector Policy

Under the Mineral Sector Policy of 1997, the vision for the the next 25 to 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.

The Mineral Sector 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.

● Regularise 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;

●Promote and develop Tanzania as a gemstone centre of Africa.

● Alleviate poverty especially for artisanal and small scale miners; and

● Maximize value adding in mineral products before exportation.

The Role of the Government

The Government’s role in the mineral sector is to provide clear policy guidelines, stimulate and promote the sector’s various stakeholders and see to the sector’s general development. The direct involvement in mineral exploration and exploitation has been ceased; the Government now plays the role of a regulator, promoter, facilitator and service provider. On rare cases the government may opt

to require limited participation in certain projects for strategic or promotional purposes. The functions of the Government will focus on the following;

Government as regulator in:

● pursuing sound economic and fiscal policies that are conductive 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 environment, health and safety guidelines and ensuring compliance; and

● Collecting taxes, duties, royalties, fees and rental payments arising from mining development.

Government as promoter and facilitator in:

● Co- ordinating 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; and

● Facilitating and promoting linkages among universities, government, research institutions and industry for the productive utilization of their interdependecies  for mineral sector development.

Government as a service provider in:

● Providing or encouraging others to provide technical advice and services relating to the mineral sector to the general public, Government Department and parastatals;

● Establishing, supporting and coordinating technical assistance programmes to the artisanal and small scale mining sub - sector ; and

● Ensuring adequate operational budget for the successful implementation of extension programmes.

Legislative Framework

Administration of the Mining Act 1998.

The Mineral Sector is administered by the Mineral division. The Mining Act No.5 of 1998 sets out the legal framework governing mineral exploration, exploitation and marketing. Various mining regulations have been established under the Mining Act, 1998 to regulate mining activities. The mining regulations and rules are:

● The Mining (Minerals Rights) Regulations 1999;

● The Mining (Mineral Trading) Regulations 1999;

● The Mining (Safe - working and Occupational Health) Regulations 1999;

● The Mining (Environmental Management and Protection) Regulations 1999;

● The Mining (Mirerani Controlled Area) Regulation 2001

● The Mining (Diamond Trading) Regulations 2002.

● The Mining (Gemstone Board) Regulations 2004; and

● The Mining (Dispute Settlement Resolution) Rules 1999.

Licensing Procedure

The Mining Act 1998 established state ownership of minerals and provides rights and conditions whereby the rights to explore, develop and produce such minerals are granted. The Act groups minerals into categories for purpose of facilitating targeting of incentives, penalties, specialized skills development and mineral administration. Licensing procedures are streamlined to ensure transparency to and fairness by conferring ownership of mineral rights on ‘First come, first served’ basis.

Under the Mining Act, 1998 minerals are categorized as:

● all minerals other than building materials or gemstones;

● building materials; or

● gemstones