Minister for Minerals Mr Antony Mavunde
Dar es Salaam. Ninety-five holders of large- and medium-scale mining licences risk losing their permits within the next seven days unless they justify why they should not be revoked.
The Ministry of Minerals issued default notices, giving the affected companies until May 13, 2025 to explain why they have not commenced operations within 18 months of signing their contracts—a requirement under Tanzanian mining law.
The Minister for Minerals, Mr Antony Mavunde, said in Dar es Salaam yesterday that the government would no longer tolerate dormant investments in the mining sector.
“Some investors acquired licences but have failed to develop their allocated mining areas as required by law. We have therefore issued default notices to 95 licence holders, who must explain their failure to begin operations,” said Mr Mavunde.
He noted that the 95 licences include seven which represent a combined investment value of Sh15 trillion.
“It is unacceptable for such significant investments to exist only on paper while Tanzanians await job opportunities and the economy loses potential growth,” he added.
Mr Mavunde also criticised companies that blame delays on ongoing discussions with the government, saying that the law does not allow for such justifications.
Before issuing notices of default, the Mining Commission reviews licensee reports, digital records, and inspection findings. If breaches are confirmed, detailed notices are then served.
Common violations include failure to commence mining activities within the legal timeframe, failure to submit mining or mine closure plans, non-submission of quarterly reports, failure to provide a local content plan and submission of false or overstated financial details.
“If a licensee responds with proof of compliance, the commission assesses the explanation’s validity. In some cases, a site inspection may follow. Where claims are found to be valid, the notice may be withdrawn or additional conditions imposed. However, where no response is received or explanations are unsatisfactory, licences will be revoked,” Mr Mavunde said.
Economist Dr Balozi Morwa welcomed the move but cautioned the government to ensure that the process is fair and thorough.
“If the process is transparent and all parties are heard, the move is justified. However, in cases where firms have been inactive for over a decade, did the government conduct adequate follow-up? Some licence holders may no longer even be alive,” he noted.
