Govt tightens mining rules to protect local firms

DAR ES SALAAM: THE government has strengthened regulations governing local content in the mining sector, tightening requirements for non-indigenous companies and boosting protections for indigenous Tanzanian companies (ITCs).

The amendments, issued on September 12, 2025 through Government Notice No. 563 of 2025, require nonindigenous firms supplying goods or services to contractors, subcontractors, licensees or the mining corporation to form joint ventures with ITCs that are fully owned by Tanzanians.

Previously, ITCs could be partially foreign-owned, with 20 per cent Tanzanian equity and 80 per cent foreign participation.

“The new regulations require that ITCs must now be 100 per cent Tanzanian owned to enter into such joint ventures,” FB Attorneys noted in their Legal Update.

“Non-indigenous companies must hold a minimum 20 per cent equity in the joint venture unless the goods and services fall under the list of items exclusively provided by ITCs.” The amendments also formalise the submission of joint venture agreements to the Commission for approval before mining operations commence.

Such agreements must detail the ITC’s role, equity participation and a strategy for transferring technology and know-how to the local partner. Previously, only a local content plan was required, according to FB Attorneys.

“Contractors, subcontractors, licensees or other allied entities must submit a joint venture agreement specifying the role and responsibilities of the ITC, equity participation and technology transfer strategy, before commencement of mining activities,” FB Attorneys said.

In addition, the amendments streamline the approval process for revised local content plans. Where the Commission does not respond to a revised plan within 50 working days, the plan is deemed approved.

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This replaces the previous 14-working-day window for resubmission after rejection. To further promote domestic sourcing, the Commission is now required to publish periodically a list of goods and services that must be supplied exclusively by ITCs.

The amendments also revise reporting requirements for sole-source procurement. Contractors, subcontractors, licensees and allied entities must notify the Commission in writing of any proposed sole-source contract valued over the equivalent of 10,000 US dollars. Previously, notification was required for all sole-source contracts, regardless of value.

“These amendments reflect the government’s commitment to ensuring that Tanzanian companies play a central role in the mining sector, enhancing local participation and fostering technology transfer,” FB Attorneys’ Legal Update said.

Industry stakeholders are expected to adjust operations to comply with the new rules, which analysts say could increase collaboration between foreign investors and fully Tanzanian-owned enterprises while strengthening the domestic supply chain.