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Mining Bill 2010
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No. 14MiningTHE MINING ACT, 2010ARRANGEMENT OF SECTIONSSectionTitlePART IPRELIMINARY PROVISIONS1.2.3.4.Short title and commencement.Application.Disapplication to petroleum.Interpretation.PART IIGENERAL PRINCIPLES5.6.7.8.9.10.11.12.13.14.15.16.17.18.Control of minerals.Authority required for prospecting or mining.Mineral rights and exclusivity.Restriction on grant of mineral rights.Mineral rights transferable.Development agreementValidity of development agreement.Review of development agreement.Joint and several obligations.Priority between competing applications.Applications for mineral rights by tender.Exclusive areas for primary licensees.Specified gemstone.Offences relating to unauthorised trading of minerals.PART IIIADMINISTRATION19.20.21.22.Appointment of commissioner for minerals and other officers.Execution and delegation of functions of Commissioner.Geological services.Geological survey, mapping and prospecting.12010

223.24.25.26.27.No. 14MiningMining Advisory Board.Committees of the Board.Prohibition against the disclosure of information.Zonal Mines Offices.IndemnityPART IVMINERAL RIGHTSDIVISION AProspecting Licence and Retention Licence:(i) Prospecting Licence28.29.30.31.32.33.34.35.36.Application for prospecting licence.Prospecting licence by tender.Minimum expenditure.Condition for grant of prospecting licence.Grant, renewal and relinquishment of prospecting licence.Notification of grants.Content of prospecting licence.Rights of holder of prospecting licence.Obligations of holder of a prospecting licence.(ii)Retention Licence37. Application for retention licence.38. Grant of retention licence.22010

No. 14Mining20103DIVISION BSpecial Mining Licence and Mining Licence(i)Applications for Special Mining Licence and Mining Licence39. Applicants.40. Effect of application under this head on prospecting licence.(ii) Special Mining Licence41.42.43.44.45.46.47.48.Application for special mining licence.Grant of special mining licence.Duration of special mining licence.Content of special mining licence.Renewal of special mining licence.Rights of holder of special mining licence.Obligations of holder of special mining licence.Amendments of special mining licence by holder.(iii) Mining Licence49.50.51.52.53.Application for mining licence.Grant of mining licence.Rights of holder of mining licences.Obligations of holder of mining licences.Renewal of mining licence.DIVISION CPrimary Licences54.55.56.57.58.Application for primary mining licence.Grant and validity of primary mining licence.Renewal of primary mining licence.Allocation of primary mining licences to mine in exclusive primary area.Conversion of primary mining licences to mining licences.DIVISION DProcessing, Smelting and Refining Licences59. Mineral right holder to set aside minerals for processing, smelting or refining3

4No. 14Mining60. Application and grant of licence for processing minerals61. Application and grant of licence for smelting or refining mineralsDIVISION ESupplementary provisions affecting mineral rights62.63.64.65.66.67.68.69.70.71.72.Surrender of land subject to mineral right.Suspension and cancellation of mineral rights.Abandonment of land subject to mineral rightsAppealsPenalty for failure to pay royalty.Extension of mineral rights during applications.Enlargement of mineral right.Holder of certain mineral right suspending mining operations.Maximum area for mineral rights.Allocation of mining licence by tender.Termination of mining licence where production is insufficient.PART VLICENCES FOR DEALING IN MINERAL OR MINERALS(i) Dealer licence73.74.75.76.77.78.79.Application for dealer licence.Grant of dealer licence.Duration and renewal of dealer licence.Rights of holder of dealer licence.Holder to keep records and accounts.Minimum turnover requirements.Termination of dealer licence for default.(ii) Broker Licence80.81.82.83.Application for broker licence.Grant of broker licence.Duration and renewal of a broker licence.Rights of holder of broker licence.42010

No. 1484.85.86.MiningHolder to keep records and accounts.Termination of broker licence for default.Prohibition against dealing in certain minerals.PART VIROYALTIES, FEES AND OTHER CHARGES87.88.89.90.91.92.93.Royalties.Payment in lieu of royalties.Provisional assessment of royalties.Sorting fees.Prohibition on disposal of minerals.Charges in respect of mineral rights and licences.Recovery of fees.PART VIIRESTRICTIONS, REPORTS AND THE RIGHT OF ENTRY94.95.96.97.98.99.100.101.Security of gold and gemstones mining operations.Restriction of rights of entry of holder of a mineral right.Rights under a mineral right to be exercised reasonably.Compensation, relocation and resettlement.Removal of minerals.Wasteful practices.Reports, records and information.Authorised officer's power of entry.PART VIIIDISPUTES SETTLEMENT102.103.104.105.Commissioner may decide disputes.Enforcement of Commissioner's orders.Appeal to High Court.Rules.PART IXREGISTRATION OF MINERAL RIGHTS106. Registers of mineral rights.520105

6No. 14Mining107. Evidentiary provisions.PART XMISCELLANEOUS PROVISIONS108.109.110.111.112.113.114.115.Radioactive minerals.Listing with the stock exchangeTransfer of control over company.Insurance and indemnities.Regulations.Obstruction of holder of mineral rights.Miscellaneous offences.Offence committed by body corporate.PART XIREPEAL AND SAVINGS PROVISIONS116. Repeal and savings.SCHEDULES62010

[ASSENT,.,. ;. ' . .' .An Act to re-enact with substantial amendments the provisions thatregulate the law relating to prospecting for minerals, mining,processing and dealing in minerals, to granting, renewal andtermination of mineral rights, payment of royalties, fees andother charges and any other relevant matters.PART IPRELIMINARY PROVISIONSShort titleandcommencement1. This Act may be cited as the Mining Act, 2010 and shallcome into operation on such date as the Minister may, by noticepublished in the Gazette, appoint.

8Disapplication topetroleumInterpretationCap. 245Cap. 212No. 14Mining20103. This Act does not apply to exploration for or productionof petroleum.4.-(1) In this Act, unless the context otherwise requires“Agency” means the Geological Survey of Tanzania establishedunder the Executive Agencies Act;"authorised officer" means the Commissioner, Chief Inspector,Inspector, Tanzania Mining Audit Agency, or a publicofficer appointed under section 19 or a person designated assuch by the Commissioner under subsection (4) of section19;“Board” means the Mining Advisory Board established undersection 23;"building materials" includes all forms of rock, stones, gravel, sand,clay, soils, volcanic ash or cinder, scoria, pumice, or otherminerals being used for the construction of buildings,roads, dams, aerodromes, or similar works but does notinclude gypsum, limestone being burned for the productionof lime, or material used for the manufacture of cement;“Chief Inspector” means the Chief Inspector of Mines appointed bythe Minister under section 19;"Commissioner" means the Commissioner for Minerals appointedunder subsection (1) of section 19;"company" means a company incorporated under the CompaniesAct;"development agreement" means an agreement made between theGovernment and the holder of a mineral right with intentionto conduct mining operations under a special mininglicence;“dispute” means all disputes as referred to under section 102;“energy minerals” means a group of minerals comprising of coal,peat, uranium, thorium and other radioactive minerals;“entitled applicant” means an applicant to whom subsection (1) ofsection 39 applies;8

No. 14Mining20109“free carried interest” means the interest derived from holdingshares of which the holder enjoys all the rights of ashareholder but has no obligation to subscribe or contributeequity capital for the shares;“gems” means cut and polished or engraved gemstone;“gemstone” means(a) diamonds, emerald and other gem varieties of beryl,opal, ruby, sapphire, turquoise, chrysoberyl, spinel,topaz, tourmaline, zircon, obsidian, peridot,moonstone, chrysophase, amethyst;(b) other gem varieties of quartz, garnet, zoisite,tanzanite, cordierite and scapolite, in rough and uncutform;(c) any other rough and uncut stone which may bedeclared to be a gemstone by the Minister by noticein the Gazette:Provided that prospecting operations, the primary purposeof which is to search for diamonds located in a kimberlite pipe,shall not be treated as prospecting for gemstones for the purpose ofPart IV and diamonds located in, and recovered from, a kimberlitepipe shall not for the purpose of section 7 or Part IV be treated asgemstones;“gold” means all gold other than refined gold and includes gold inthe raw or natural state, gold in ore, gold at any stage of itsextraction from its ores or other minerals including auriferousamalgam, gold slimes, pot scrapings and slags containing gold,gold-bearing concentrates and sweepings from gold reductionworks;“holder” means the person in whose name a Mineral Right isregistered;“in default” means in breach of the provisions of this Act or theregulations or any condition of a Mineral Right;“industrial minerals” means a group of minerals comprising ofphosphate, kaolin, lime, gypsum, dolomite, diatomite,bentonite, zeolite, trona, pozzollana, vermiculite, salt,beach sands and other minerals other than metallicminerals, normally used in industries;“Inspector” means an Inspector of Mines appointed by the Ministerunder section 19;9

10Cap. 113Cap. 114No. 14Mining2010“kimberlitic diamonds” means diamonds of gem or industrialquality formed and found in a primary rock intrusion orextrusion from the earth’s crust known as kimberlite pipe;"land to which this Act applies" means(a) land in Tanzania; (including land beneath the territorialsea and other territorial waters); and(b) the seabed and subsoil of the continental shelf;"lawful occupier" in relation to any land means the lawful occupierof land in accordance with the Land Act, and the VillageLand Act;"licensed broker" means a person holding a broker licence grantedunder section 81;"licensed dealer" means a person holding a dealer licence grantedunder section 74;“licensing activities” include receiving, processing and validatingapplications, and granting and issuing of mineral rights;"licensing authority" means(a) where an application for a licence is to be made to theMinister, the Minister;(b) where an application for a licence is to be made to theCommissioner, the Commissioner; or(c) where an application for a licence is to be made to theZonal Mines Officer, the Zonal Mines Officer;“licensing officer” includes a licensing authority or any other publicofficer authorised or appointed to perform licensingactivities on behalf of the licensing authority;“metallic minerals” means a group of minerals comprising of gold,silver, copper, iron, nickel, cobalt, tin, tungsten, zinc,chromium, manganese, titanium, aluminium, platinumgroup of metals and other metallic minerals;"mine" when used as a noun, means any place, excavation orworking in or on which any operation connected withmining is carried on together with all buildings, premises,erections and appliances belonging or appertaining thereto,above or vertically below the ground within horizontalboundaries of the licence, the purpose of mining, treating orpreparing minerals, obtaining or extracting any mineral ormetal by any mode or method or for the purpose of dressingmineral ores but does not include a smelter or a refinery;10

No. 14Cap. 328Mining201011“mine” when used as a verb, means intentionally to mine minerals,and includes any operations directly or indirectly necessarytherefor or incidental thereto, including such processing ofminerals as may be required to produce a first saleableproduct, and “mining” shall be construed accordingly;“mineral” means any substance, whether in solid, liquid or gaseousform, occurring naturally in or on the earth, or in or underthe seabed formed by or subject to a geological process, butdoes not include petroleum or surface water;“mineral rights” means licences referred to in section 7;“mining area” means an area of land subject to a special mininglicence, a mining licence, or a primary mining licence;“mining licence” means a mining licence for medium scale miningoperation, whose capital investment is between US 100,000 and US 100,000,000 or its equivalent inTanzanian shillings;“mining operations” means operations carried out in the course ofmining;“Minister” means the Minister responsible for mining;“person” means a natural person or a body corporate or otherjuridical person;“petroleum” has the meaning ascribed to it in the Petroleum(Exploration and Production) Act ;“primary mining licence” means a licence for small scale miningoperations, whose capital investment is less thanUS 100,000 or its equivalent in Tanzanian shillings;“processing area” means an area whether within or outside themining area used for the purpose of milling, beneficiatingand dressing mineral ores, and including smelting andrefining of minerals;“prospect” means to search for any mineral by any means and tocarry out any such works and remove such samples as maybe necessary to test the mineral bearing qualities of land,and includes the conduct of reconnaissance operations;"prospecting area" means an area of land subject to a prospectinglicence;"prospecting licence" means a prospecting licence granted underDivision A of Part IV;11

12Cap. 399No. 14Mining2010"prospecting operations" means operations carried out in the courseof prospecting;"regulations" means regulations made under this Act;"reserved area" means(a) an area reserved in accordance with section 15 forapplications for mineral rights by tender; or(b) an area reserved in accordance with section 16exclusively for the grant of primary licences to mineminerals under Division C of Part IV;"retention area" means the area subject to a retention licence;"retention licenc

8 No. 14 Mining 2010 Disapplica-tion to petroleum 3. This Act does not apply to exploration for or production of petroleum. Interpreta-tion 4.-(1) In this Act, unless the context otherwise requires- Cap. 245 “Agency” means the Geological Survey of Tanzania established under the Executive Agencies Act;

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