MINING LAW UPDATE: What Mining Companies Should Know About the Local Content Amendments 2025

• What significant legal change has been made by the Amendments?
• What are the legal implications of the amendments to the industry players?
• What should the mining industry players do to comply with the Amendments?

1.0 Introduction

The Mining (Local Content) Regulations, 2018 (hereinafter referred to as “the Local Content Regulations”) imposes the local content requirements that were introduced for the first time by the Written Laws (Miscellaneous Amendments) Act No. 7 of 2017, which amended the Mining Act, 2010.

The Regulations have been amended from time to time, including in 2019 and 2022. On 12th September 2025, the Ministry of Minerals, through the Government Notice No. 563 of 2025, published the Mining (Local Content) (Amendments) Regulations, 2025 (hereinafter referred to as “the 2025 Amendments Regulations”), which revised the Local Content Regulations.

The 2025 Amendments Regulations are built on the original 2018 framework, with the main focus of strengthening Tanzania’s indigenous participation in the mining sector. These adjustments aim to ensure that Tanzanian citizens and businesses gain direct and fair opportunities in mining-related activities.

In this mining update, Breakthrough Attorneys, through the energy and natural resources sub-department, provide a highlight on the amendments made and their implications to the mining industry players.

2.0 Key Areas of the Regulations Amended

We have summarized below the key issues introduced by the 2025 Amendments Regulations, as follows:

2.1 Conditions on Composition of an Indigenous Tanzanian Companies

Prior to the 2025 Amendments Regulations, a non-indigenous Tanzanian company intending to provide goods or services to contractors, subcontractors, licensees or the corporation could simply incorporate a joint venture company with an indigenous Tanzanian company and allocate at least 20% equity to the indigenous Tanzanian company. With the amendments, a non-indigenous company must now establish a joint venture with an existing indigenous Tanzanian company that is wholly owned (100%) by Tanzanian citizens and already operating in the same line of business as the goods or services to be supplied. The indigenous company must hold a minimum of 20% equity, unless the goods or services fall under specific exemptions provided under Regulation 13A, introduced under the same amendments.

2.2 Restrictions on Supply of Goods and Services

Regulation 13A, introduced by the 2025 Amendment Regulations, empowers the Mining Commission to publish, from time to time, a list of goods and services that can only be provided by indigenous Tanzanian companies that are 100% Tanzanian-owned. Effectively, these goods and services shall be fully reserved for indigenous companies, and non-indigenous companies shall not be able to participate in their supply, even through a joint venture.

This list of the goods and services reserved for indigenous Tanzanian companies shall be made publicly available through the Gazette, the Commission’s website, and other national media outlets. This means that industry players must now not only secure the right kind of joint venture partners but also closely monitor the Mining Commission’s published lists.

This shift signifies a stronger push towards genuine local participation and capacity building within the mining sector. Industry players should carefully review their current and planned joint venture structures to ensure compliance with these amendments.

2.3 Submission of Joint Venture Agreement to the Mining Commission

Previously, contractors, subcontractors, licensees, or other allied entities were only required to submit a plan to the Mining Commission before starting mining activities. This was mainly an operational step, ensuring the Mining Commission was informed of how the activities would be conducted and whether they aligned with regulatory standards.

The 2025 Amendment Regulations require these entities to submit a joint venture agreement to the Mining Commission for approval before commencing operations. This marks a significant shift, as it moves beyond operational planning into ownership and partnership arrangements.

With these amendments, we anticipate that the Mining Commission will directly review and approve the structure of collaborations, ensuring stronger local participation and compliance with local content requirements. In practice, this raises the bar for mining entities, as they must secure and formalize joint ventures in advance before commencing activities.

2.4 Deemed Approval of Revised Local Content Plan

The 2025 Amendments Regulations have reintroduced subregulation (8) of Regulation 11, which was deleted in the 2019 amendment regulations.

Essentially, the regulations provide that if the Mining Commission doesn’t respond to a revised local content plan within fifty working days, then the plan is automatically considered approved. This provision prevents indefinite delays in the review process and provides a clear deadline for the Commission’s action. The applicant is not left in a state of uncertainty, as the plan’s approval becomes a matter of default if the Commission fails to act.

2.5 Introduction of a Threshold in Single-Source Procurement

Prior to the amendments, contractors, subcontractors, licensees, and other allied entities engaged in mining activities were obligated to notify the Commission in writing of every single-sourced contract or purchase order, regardless of its value. This blanket requirement meant that even low-value transactions had to be reported, creating an extensive compliance burden and increased administrative oversight.

The 2025 Amendment Regulations introduce a more practical approach by setting a monetary threshold of USD 10,000, in Tanzanian Shilling equivalent. Now, only sole-sourced contracts or purchase orders exceeding this value must be reported to the Mining Commission.

This adjustment narrows the reporting scope, easing compliance for industry players by excluding minor transactions, while ensuring that higher-value deals—those with greater potential impact on local content, transparency, and accountability—remain subject to regulatory scrutiny.

3.0 Conclusion

The 2025 Amendments Regulations clearly demonstrate the Government’s commitment to deepening local content and enhancing meaningful participation of indigenous Tanzanian companies in the mining sector. The amendments reflect a policy shift from mere formal compliance to substantive empowerment of local businesses. This approach signals that mining entities must strategically align their operations not only with regulatory frameworks but also with the broader national agenda of capacity building and economic inclusion.

The amendments balance pragmatism with oversight by allowing deemed approval of revised local content plans and setting monetary thresholds for sole-source procurement reporting. These changes streamline processes, reduce administrative burdens, and provide greater certainty for industry players.

 

Important Notice:

This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Breakthrough Attorneys, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.