Mining in Tanzania: The Update

On 30th October 2020, The Ministry of Minerals published The Mining (State Participation) Regulations, 2020 (The Regulations).

The Regulations are part of implementation of requirements under the Mining Act (as amended by The Written Laws (Miscellaneous Amendments) Act, 2017 that requires mining or special mining licence holders to allocate a minimum of 16% non dilutable free carried interest of their mining interest, to the State. 

  • In line with the Mining Act, “non-dilutable” free carried interest shares are those special class of shares, in which case the holder of shares is entitled to the payment of dividend of a fixed amount in priority to another class or classes of shares and these shares shall not decrease in value or percentage of ownership of a shareholder or a loss of some percentage of equity. 
  • The Treasury Registrar shall be the lead on behalf of the Government on all matters relating to the managing and control of the government shares in the capital of the mining company or a person holding a mining or special mining license. 

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