Mining Commission Briefs Parliamentary Committee On Technical Support Agreements In Tanzania’s Mining Sector
The Parliamentary Standing Committee on Energy and Minerals has been briefed on the legal and regulatory framework governing Technical Support Agreements (TSAs) in Tanzania’s mining sector, including provisions restricting the holding of Primary Mining Licences (PMLs) to Tanzanian citizens.
The briefing session, chaired by the Committee’s Chairperson, Ms Subira Mgalu (MP), was held at the Mining Commission Headquarters in Dodoma and focused on the management and implementation of Technical Support Agreements, legal requirements governing Primary Mining Licences, and measures to protect the rights of licence holders and other stakeholders.
Speaking on behalf of the Executive Secretary of the Mining Commission, the Commission’s Director of Legal Services, Mr Francis Kayichile, said it is illegal under the Mining Act, Cap. 123, for a non-Tanzanian citizen to be granted a Primary Mining Licence.
Kayichile said Section 64, when read together with Section 9(3) of the Mining Act, Cap. 123, provides for Tanzanian citizens to apply for and hold Primary Mining Licences, meaning that non-citizens are not eligible to hold such licences.
He stated, however, that holders of Primary Mining Licences may enter into Technical Support Agreements with technical support providers, provided that such arrangements comply with the Mining Act, Cap. 123, and applicable regulations.
Under the regulatory framework, Kayichile said a Primary Mining Licence holder operating under a Technical Support Agreement is entitled to 30 per cent of the profit after all Government levies have been deducted, irrespective of the operational costs incurred by the technical support provider.
He said the management of the mine, delivery of equipment and machinery, as well as security of the mining area and assets, are joint responsibilities of the parties to the Technical Support Agreement.
According to Kayichile, a Technical Support Agreement has an initial term of three years and may be renewed, but its total duration must not exceed 12 years or the life of the mine, whichever comes first.
He said Technical Support Agreements are registered with the Mining Commission and may be amended by the parties where necessary, including where changes in legislation affect the terms of an agreement or where new minerals are discovered within the licensed area.
“The Mining Commission continues to supervise and monitor the implementation of these agreements. Any breach of their terms may result in licence suspension or cancellation in accordance with Section 74 of the Mining Act, Cap. 123,” Kayichile said.
The briefing also covered Government measures to safeguard the rights of block owners operating within areas covered by Primary Mining Licences.
Kayichile said the Mining (Technical Support) Regulations, 2025, particularly Regulation 8(1)(h), requires a licence holder, before entering into a Technical Support Agreement, to settle with block owners or compensate them for investments made within the licensed area.
He said the requirement was intended to protect the rights of both Tanzanians who hold Primary Mining Licences and block owners, while promoting lawful cooperation in mining operations and ensuring that Tanzania’s mineral resources generate greater benefits for its citizens.
The briefing brought together members of the Parliamentary Standing Committee on Energy and Minerals, officials from the Mining Commission and representatives of institutions under the Ministry of Minerals, with the aim of strengthening understanding of the legal and regulatory framework governing Technical Support Agreements in the mining sector.