The Tanzanian mining industry is regulated at national level and governed by the Mining Act, 2010 (Mining Act) and supporting Regulations. It was previously governed by the Mining Act 1998 (old Act) and supporting Regulations.
The principal regulatory body is the Ministry of Energy and Minerals under which there is a Minister, an appointed Commissioner for Minerals, a Mining Advisory Board and an appointed Chief Inspector of Mines.
Under the Tanzanian mining regime, the United Republic of Tanzania owns the mineral rights in, on or under all land, which are then licensed to mining companies by the Ministry of Energy and Minerals.
Generally, under the Mining Act mining licences must be obtained for all mining in Tanzania, which may only be granted to Tanzanian citizens and/or companies incorporated locally. Special Mining Licences may also be granted for either Superficial or Non-Superficial Deposits. The applicant for a mining licence is required to submit Environmental Management Plans, local employment and training plans and local procurement plans, and to operate in accordance with these plans upon grant of the licence. In addition, the Government may also enter into specific Mineral Development Agreements in accordance with the Act, mainly for purposes of achieving tax and fiscal stabilisation.
In addition to mining licences, the Ministry of Energy and Minerals has the power, subject to certain conditions and restrictions, to grant prospecting licences and retention licences. Prospecting licences provide for exclusive prospecting rights for minerals in defined areas. Retention licences protect an identified mineral deposit within licensed areas which is potentially of commercial significance, but cannot be immediately developed due to technical constraints or market conditions of a temporary nature.
ABG has mining and exploration rights granted under both the Mining Act and the old Act. It has obtained the relevant mining licences for all of its mines and has entered into mineral development agreements and other supporting agreements for each of its operating mines. ABG also owns or controls, through prospecting licences or third party agreements, extensive exploration holdings in Tanzania.