By: African mining market

Tanzania has taken a significant step toward attracting responsible investment into its small-scale mining sector with the recent publication of regulations governing technical assistance for Primary Mining Licence (PML) holders. These regulations offer a structured legal framework for partnerships between PML holders and investors, aiming to streamline cooperation, enhance operational capacity and de-risk investment in the sector. By clarifying the roles, rights and obligations of both parties, the new framework presents a timely opportunity for investors to engage in Tanzania’s rich but undercapitalised mineral potential with greater confidence and transparency.

Under the provisions of the Mining Act, Cap. 123, it is the legal position in Tanzania that PMLs are reserved exclusively for Tanzanian citizens. While foreign investors have been permitted to participate by offering technical assistance through agreements with PML holders, the absence of the regulations resulted in a lack of clarity on how such cooperation should be structured and implemented. The newly issued regulations now fill this gap by offering much-needed guidance, thereby enhancing legal certainty and fostering stronger, more compliant partnerships between local miners and external investors.

The new regulations provide a clear regulatory framework for technical assistance agreements, including requirements for approval and registration by the Mining Commission, as well as distinct obligations applicable to both the PML holder and the provider of technical assistance. “Technical assistance” is broadly defined to include the provision of mining expertise, operation and supply of machinery and equipment, and the transfer of specialised skills not readily available in Tanzania – all aimed at supporting exploration, mining and processing activities within a PML area. The regulations also establish mechanisms for determining and distributing profits between the PML holder and the technical assistance provider. For investors, this structured approach reduces regulatory ambiguity and offers a lawful pathway to engage in Tanzania’s promising small-scale mining ventures without the need to directly hold equity or mining licences. By formalising these arrangements, the government signals a commitment to transparency, accountability and investment facilitation in the mining sector.

For investors seeking to partner with PML holders, careful attention must be paid to compliance with the regulatory process. Technical assistance agreements must be submitted to the Mining Commission for review and approval, and all contributions – whether financial, technical or material – must be clearly documented and aligned with the scope permitted under the regulations. Investors are advised to conduct due diligence on prospective PML partners, ensure that agreements are comprehensive and legally vetted, and maintain transparency throughout the collaboration. Engaging with local legal counsel and technical consultants early in the process can significantly reduce risks and streamline regulatory approvals, paving the way for a more sustainable and compliant investment.

As Tanzania continues to refine its mining regulatory landscape, the introduction of clear guidelines for technical assistance to PML holders marks a progressive step toward inclusive and sustainable sector growth. For investors, particularly those seeking entry into the small-scale mining space, the new regulations offer a viable, legally secure avenue for participation. With growing global demand for critical minerals and a government eager to formalise and support its mining sector, now is an opportune moment for well-prepared investors to engage – responsibly, compliantly and strategically in one of Africa’s most resource-rich jurisdictions.