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Local participation in mining sector highlighted in amendments to local content regulations in Tanzania


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Local participation in mining sector highlighted in amendments to local content regulations in Tanzania

Bowmans

29th September 2025

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Tanzania's Mining (Local Content) (Amendment) Regulations, 2025 (the 2025 Amendments), which amend the Mining (Local Content) Regulations, GN No. 3 of 2018 (the Principal Regulations) (as amended) were published on 12 September 2025 vide Government Notice No. 563/2025.

The 2025 Amendments introduce key changes aimed at tightening compliance, strengthening institutional oversight, and ensuring greater participation of indigenous Tanzanian companies and financial institutions in the mining sector.

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Key changes

Joint venture requirements

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Regulation 8(6) of the Principal Regulations has been revised to provide greater clarity on the joint venture structure required where a non-indigenous company wishes to supply goods or services to the mining sector. The amended framework now stipulates that:

  • The indigenous partner must be a 100% Tanzanian-owned company operating in the same line of business.
  • The indigenous company must hold at least 20% equity in the joint venture.

Notably, the 2025 Amendments have not included reference to ‘a joint venture company’ and have introduced a new Regulation 8(7). This new provision requires any contractor, subcontractor, licensee, or allied entity to submit the joint venture agreement to the Mining Commission for approval before commencing operations. This change signals a stricter compliance environment, and it is anticipated that even contractors or subcontractors already operating in Tanzania will need to regularise their arrangements and submit their joint venture agreements for approval.

Given these developments, we strongly recommend that stakeholders review their current structures and seek timely legal advice to ensure compliance with the new requirement

Approval timeline for local content plans

A new sub-regulation 11(8) introduces a 50-working-day deemed approval period. The Commission must notify an applicant of its decision on a revised local content plan within this timeframe, failing which the plan is automatically approved.

Reserved goods and services

A new Regulation 13A requires the Commission to publish a list of goods and services that can only be provided by companies that are 100% Tanzanian-owned. The list will be published in the Gazette, on the Commission’s website, and in national media.

Procurement threshold clarified

Under Regulation 16(1)(a), a threshold has now been introduced for sole sourcing contracts or purchase orders which are to be notified to the Commission i.e., with a value above the Tanzania shillings equivalent of USD 10,000.

Other changes:

  • A new definition of ‘Tanzanian financial institution’ has been added. It refers to a financial institution registered under the Banking and Financial Institutions Act.
  • The Director of the Mineral Audit and Trading Department has been added as a member of the Local Content Committee under Regulation 5(2) of the Principal Regulations.
  • Regulation 12 now requires mineral right holders to submit two local content sub-plans, banking services sub-plan and procurement sub-plan instead of filing a financial service sub-plan.
  • minor amendment to regulation 17 of the Principal Regulations; and
  • replacement of Part A of the Third Schedule with a new Part A setting out the information to be provided by a contractors, subcontractors, licensees, or other allied entities to the Commission prior issuing an expression of interest (EOI). This now includes (i) a description of the scope of work; (ii) prequalification criteria; and (iii) number of days for the submission of EOI once the tender is advertised. The EOI submission timeline is now a minimum of seven days.

Conclusion

The 2025 Amendments reflect the Government of Tanzania’s continued focus on maximising local economic benefits from the mining sector. By tightening local content obligations, mandating joint ventures with 100% Tanzanian-owned companies, and reinforcing the use of local financial institutions, the amendments aim to deepen the integration of Tanzanian businesses and citizens into the mining supply chain.

All mineral rights holders, contractors, and service providers are strongly advised to review the amended Regulations in full and consult the Mining Commission to ensure full compliance.

Written by Evarist Kameja and Kelvin Mosha, Senior Associates, Bowmans Tanzania

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