INTRODUCTION
On 12th September 2025, the Minister for Minerals issued the Mining (Local Content) (Amendment) Regulations, 2025 (herein referred to as “the Amendments”) through Government Notice No. 563 of 2025. These Amendments were introduced to address regulatory and practical issues that had emerged in the implementation of the Mining (Local Content) Regulations, GN. No. 3 of 2018 (herein referred to as “the Regulations”).
JOINT VENTURE REQUIREMENTS WITH INDIGENOUS TANZANIAN COMPANIES (ITCS) TIGHTENED
One of the most significant changes is the tightening of the joint venture requirement. The amendments have amended Regulation 8 of the Regulations to require any non-indigenous Tanzanian company wishing to provide goods or services to contractors, subcontractors, licensees, or the Corporation in Tanzania mining sector must now establish a joint venture with an Indigenous Tanzanian Company (“ITC”). The amendments require the ITC to comply with the following conditions;
a) The ITC must be wholly (100%) owned by Tanzanian citizens;
b) The ITC must be engaged in the same line of business as the goods or services to be supplied; and
c) The ITC must hold a minimum equity participation of twenty percent (20%) in the joint venture, unless the goods or services fall under categories that are exclusively reserved for ITCs.
This amendment significantly departs from the earlier regime, where ITCs could have as little as 20% Tanzanian ownership, with up to 80% held by foreign shareholders. The new position therefore strengthens the requirement for full Tanzanian ownership of ITCs and expands opportunities for local enterprises to benefit more directly from joint ventures in the mining sector.
APPROVAL OF JOINT VENTURE AGREEMENTS
Also, Regulation 8 of the Regulations has been amended to strengthen oversight of joint venture structures and protects ITCs, specifically the amendment requires contractors, subcontractors, licensees, and allied entities to submit their joint venture agreements to the Mining Commission for approval before the commencement of mining operations. These agreements must expressly set out the role and responsibilities of the ITC, the equity participation of the ITC; and the strategy for the transfer of technology and know-how to the ITC.
STREAMLINED APPROVAL OF LOCAL CONTENT PLANS
The Amendments also address delays and inefficiencies in the approval of local content plans. Previously, if the Commission rejected a submitted local content plan, the applicant was required to revise and resubmit it within 14 working days, after which approval could still take an uncertain period.
The new provision brought by the amendment introduces a “deemed approval” mechanism, in the sense that where the Commission for Mining does not communicate its decision on a revised local content plan within 50 working days of its submission, the plan is automatically deemed to have been approved.
This amendment introduces regulatory certainty and reduces delays in the licensing and compliance process.
EXCLUSIVE GOODS AND SERVICES FOR ITCS
To further safeguard and promote local participation, the Amendments have added new Regulation 13A to now require the Commission for Mining to periodically publish, via the Gazette, its official website, and nationwide media, a list of goods and services that may only be supplied by ITCs wholly owned by Tanzanians.
This is intended to provide clarity, enhance transparency, and ensure that such goods and services remain within the control of indigenous enterprises.
NOTIFICATION OF SOLE-SOURCED CONTRACTS
The Amendments also revise the requirements relating to notification of sole-sourced contracts and purchase orders. Going forward, the amendment requires contractors, subcontractors, licensees, and other allied entities to notify the Commission in writing of each proposed contract or purchase order related to mining activities that is to be sole-sourced only where the value exceeds the Tanzania shilling equivalent of USD 10,000. Previously, a contractor, subcontractor, licensee or other allied entity was required to inform the Commission in writing of each proposed contract or purchase order related to mining activities which was to be sole sourced regardless of the value of such proposed contract or order.
This change reduces the compliance burden by eliminating the need to report all sole-sourced contracts, regardless of value, and instead focuses regulatory oversight on contracts with material economic significance.
CONCLUSION
The Amendments introduce important refinements to Tanzania’s mining local content framework. By requiring ITCs to be wholly Tanzanian-owned, mandating approval of joint venture agreements, streamlining approval timelines for local content plans, and clarifying requirements for sole-sourced contracts, the new regime strengthens indigenous participation while improving regulatory efficiency. Meanwhile, the periodic publication of exclusive goods and services lists ensures continued protection of Tanzanian-owned enterprises in the mining supply chain.
FIN & LAW -LEGAL UPDATE -Mining Local Content (Amendment 2025)
