Who must give a guarantee for mine closure in Tanzania? The Mining Act requires a special mining licence holder to prepare and update a mine closure plan, and the Minister may require a rehabilitation bond if the holder fails to do so. The Mining Commission and the National Mine Closure Committee review plans. Parliament heard on 5 November 2026 that only 2 of 84 large and medium mines had given a guarantee.
What changed
On 5 November 2026 the Parliamentary Budget Committee met the Mining Commission in Dodoma and pressed for tougher mine closure rules, according to The Respondent Online. The Commission reported that of 84 large and medium mines, 44 had submitted closure plans, 36 had been discussed by the National Mine Closure Committee and 21 had been approved. Only North Mara and Bulyanhulu had provided rehabilitation guarantees, through the insurer MUA on 16 January 2026.
In remarks reported on 6 November the Commission's chair said licences left undeveloped in breach should face legal action, including cancellation. In April 2026 the Minister revoked 40 licences for non-development, as The Citizen reported, though the report did not state the licence type.
Fursa365 does not hold mining licences, lend or hold money. It matches qualified mining offers and project participation requests with demand verified by Zatra Consultants Limited. A partner who joins a licence holder takes on part of the closure cost, so this guide sets out what the law and the regulators currently say.
Who should read this
Holders of primary mining licences, mining licences and special mining licences. Investors and partners considering equity, joint venture or technical support in a mining project. Mine service companies and offtake buyers. Lenders and insurers asked to issue a bond or guarantee. Advocates and accountants who advise any of them.
What does the law say about closure plans and bonds?
The Mining Act, Cap. 123 has two numbering systems in circulation. The Office of the Solicitor General e-Library holds the Revised Edition 2023. TanzLII shows the version as at 30 November 2019. Always state which edition a section number comes from.
In the Revised Edition 2023 section 57(1)(d) requires a special mining licence holder to prepare and update mine closure plans. Section 57(2) says the Minister, after consulting the Commission, may require a rehabilitation bond if the holder fails its closure plan obligation. The word is "may", so a bond is a discretionary power in the text read, not an automatic rule. Section 24(h) gives the Commission the task of monitoring and auditing environmental management and closure. In the 2019 numbering the same duties sit at section 47(d) and 47(f) and section 22(h).
For a mining licence the 2019 text at section 72 provides that a licence can be terminated if production is under 50% of the expected recovery for three or more continuous years, and that the holder must pay mine closure and environmental rehabilitation costs. An equivalent express closure clause for a mining licence in the 2023 text was not seen in the part read. The remainder of the 2023 text, including section 74 on suspension and cancellation, was not read.
Which rules sit below the Act?
The Mining (Safety, Occupational Health and Environment Protection) Regulations 2010, Government Notice 408 of 22 October 2010, are made under the Act. Their contents list includes a Part on the mine closure plan, a regulation on a rehabilitation bond to be posted, and a regulation on plans to be updated on closure. The text of regulation 206, which The Respondent says requires a closure plan to go to the Chief Inspector of Mines and then the National Mine Closure Committee, could not be read in the copy available. The bond calculation was not found.
Regulation 36 allows an inspector to carry out work at a closed or abandoned mine, with the costs treated as a government debt and a lien and charge on the mine or mineral right. That is the cost to a holder or partner who walks away.
The Mine Closure Guidelines 2019 of the Mining Commission, listed by OGEL on a third-party database, say closure plans need progressive and final closure costs and cover reclamation cost and the rehabilitation bond. A copy of the full guideline text was not read. The National Environment Management Council's EIA regulations of 2018, Government Notice 474, treat large and medium mines as Type A, where an EIA is mandatory, and small-scale mines as Type B1, where screening decides. They require decommissioning to be considered but contain no financial guarantee.
Who decides, the Commission, the committee or the Minister?
The Commission monitors. The National Mine Closure Committee reviews closure plans, and the Mining Commission's technical reviewers sit in that process, for example the review of the Bulyanhulu plan in July 2026. The Minister holds the power under section 57(2) to require a bond. No source read here sets out the statutory basis of the committee. Whether a holder can challenge a decision, and how, depends on the Act's review provisions and an advocate should advise on any dispute.
The NEMC decides the EIA certificate. A special mining licence application needs an environmental certificate under section 51(3)(e) of the 2023 text. For a primary mining licence the application needs environmental investigations, a social study and an environmental protection plan under section 64. An express EIA certificate before the grant of a mining licence was not confirmed in the text read.
What forms can a rehabilitation guarantee take?
The Respondent names four forms: an escrow account, a capital guarantee, an insurance bond and a bank guarantee. The table sets out what each does and the question to ask. These are general descriptions, not a Tanzanian rule that approves a form.
| Form | How it works | Question to ask |
|---|---|---|
| Escrow account | Cash set aside in a restricted account, released as closure work is certified | Who controls release, and does interest follow the money? |
| Capital guarantee | A parent or investor commits capital to cover closure | Is the guarantor creditworthy at the time closure falls due? |
| Insurance bond | An insurer undertakes to pay if the holder does not close properly | Which events void cover, and is the insurer regulated by TIRA? |
| Bank guarantee | A bank issues a guarantee, usually secured by the holder's collateral | Is the bank's own limit and collateral requirement affordable? |
Which of these the Commission accepts for a given mine is a matter for the Commission. Ask it and record the answer in writing.
How do the numbers look?
| Step | Count | Share of 84 |
|---|---|---|
| Large and medium mines | 84 | 100% |
| Closure plans submitted | 44 | 52% |
| Plans discussed by the committee | 36 | 43% |
| Plans approved | 21 | 25% |
| Rehabilitation guarantees given | 2 | 2% |
The shares are arithmetic on the reported counts. The counts come from one press report of a Parliamentary seminar and the Commission has not published them in a source read for this guide. They suggest a gap between having a plan and funding it, which is the point Parliament raised.
What does this mean for a primary mining licence holder?
A primary mining licence, PML, is for small-scale mining. The 2023 Act at section 4 describes it as small-scale mining with minimal machinery and initial capital not above USD 5 million. Under section 9 only Tanzanian citizens may hold one, and a foreign technical adviser is allowed only if the Resident Mines Officer recommends it and the skill is not available locally. The fee register lists the PML application at TZS 50,000 and transfer at TZS 500,000 (register ID F0619), though the gazette amounts could not be confirmed independently, and states that a PML is not available to foreigners.
A PML runs seven years and is renewable. Mining must start within six months of grant. An environmental protection plan is part of the application. A PML holder that partners with a technical support provider must do so under the Mining (Technical Support for Primary Mining Licence Holders) Regulations, Government Notice 260 of 2025. Bowmans and Clyde and Co describe the maximum term differently. They also differ on the equity needed by foreign providers. Check the Swahili Government Notice. See also the Fursa365 guide on partnering on a PML.
What should a partner or investor check?
- Whether a mine closure plan exists, which licence it covers and whether the committee has approved it.
- The closure cost estimate, its date and the contingency in it.
- Whether a guarantee or bond exists, its form, issuer, amount and expiry.
- Whether a default notice has been served for non-development or non-compliance. Under the 2019 text a holder gets 30 days to remedy, and cancellation does not remove accrued liabilities.
- The EIA certificate and its conditions at the NEMC.
- Local content compliance under Government Notice 3 of 2018 as amended by Government Notice 563 of 2025, and the state's non-dilutable free carried interest of at least 16% under section 11(1) of the 2023 text.
- Who pays for closure under the joint venture or technical support agreement, and what happens if the licence holder cannot.
What happens if a holder does nothing?
Under the 2019 text a material failure to comply with the Act, the licence conditions or lawful directions can lead to suspension or cancellation after a default notice and a 30 day period to remedy. Cancellation does not affect accrued liabilities. Under regulation 36, work done by an inspector at a closed mine becomes a government debt and a lien and charge on the mine or mineral right. Parliament and the Commission both signalled on 5 and 6 November that enforcement will tighten. No new rule was published in the sources read.
A worked example: closure funding for a small open pit
An investor and a licence holder plan a five hectare open pit with an expected five year life. Their consultant estimates the closure cost at TZS 600 million for backfilling, reshaping and revegetation, plus a 20% contingency, a total of TZS 720 million. The joint venture agreement sets up an escrow account funded from 2% of gross sales. On gross sales of TZS 6 billion a year the escrow receives TZS 120 million a year and reaches TZS 600 million in five years, which is below the contingency-inclusive TZS 720 million.
The partners therefore raise the contribution to 2.4% of gross sales, which gives TZS 144 million a year and TZS 720 million over five years. The figures are illustrative assumptions, not a Commission method. The Commission and the committee decide what an acceptable plan and guarantee look like, and the parties' advocate should draft the funding clause.
What to do now
- Ask for the closure plan and the committee's decision before any money or name moves.
- Ask which form of guarantee the Commission accepts for the licence, and get the answer in writing.
- Read the licence edition: confirm which numbering your advocate is citing, 2019 or 2023.
- Agree who funds closure in the joint venture or technical support agreement, with an escrow or other mechanism.
- Check the EIA certificate and any conditions at the NEMC.
- List the offer or request on Fursa365, sign the NDNCA when matched, and run your own geological, legal and financial due diligence.
- Let an advocate draft the agreement and have the Commission's consent obtained where the Act requires it.
Key dates
| Item | Date or period |
|---|---|
| Parliamentary Budget Committee seminar | 5 November 2026 |
| North Mara and Bulyanhulu guarantees through MUA | 16 January 2026 |
| Revocation of 40 licences | 15 April 2026, as reported |
| Default notice remedy period | 30 days or longer, under the 2019 text |
| PML duration and start of mining | Seven years; start within six months of grant |
| Mining Commission collections, July to September 2026 | TZS 411.67 billion, as reported |
How Zatra helps
Zatra Consultants Limited screens the licence, the owner and the offer before Fursa365 shows a mining listing, and verifies a request's capacity before a match. As the client's adviser under a PSFA, Zatra structures the participation, coordinates the client's own geologist, valuer and advocate, and records the steps. Zatra does not issue licences, insure, value a mine, lend or hold money. The Mining Commission, the NEMC and the Minister decide their own matters, and Zatra does not decide or guarantee any authority's outcome. Zanzibar minerals fall under separate Zanzibar laws that this guide does not cover, so Zanzibar projects should take advice there.
Related pages on Fursa365 include the verification standard, project participation, mining licences and stockpiles and regulatory boundaries.
Sources and status
Accurate as at 6 Nov 2026. Figures are from the sources below and from the Zatra government fees register, quoted with their register IDs so they can be checked line by line.
- Parliament pushes for tougher mine closure rules. The Respondent Online, 5 November 2026. Accessed 6 Nov 2026.
- Mining Commission urged to prioritise development of licences. The Respondent Online, 6 November 2026. Accessed 6 Nov 2026.
- Mining Act, Cap. 123 R.E. 2023. Office of the Solicitor General e-Library, item dated 1 July 2025. Accessed 6 Nov 2026.
- Mining Act as at 30 November 2019. TanzLII, consolidated to 30 November 2019. Accessed 6 Nov 2026.
- Mining (Safety, Occupational Health and Environment Protection) Regulations 2010, GN 408. TanzLII, published 22 October 2010. Accessed 6 Nov 2026.
- Environmental Impact Assessment and Audit (Amendment) Regulations 2018, GN 474. National Environment Management Council, 31 August 2018. Accessed 6 Nov 2026.
- Mine Closure Guidelines 2019, database entry. OGEL, entry for a 2019 Mining Commission guideline. Accessed 6 Nov 2026.
- Tanzania revokes 40 idle mining licences. The Citizen, 16 April 2026. Accessed 6 Nov 2026.
- Tanzania enacts mining technical support regulations. Clyde and Co, 16 May 2025. Accessed 6 Nov 2026.
- Mining technical support for primary mining licence holders regulations published. Bowmans, 2025. Accessed 6 Nov 2026.
- Zatra Tanzania Government Fees Register 2026, mining chapter. Zatra Consultants Limited, 2026 edition. Accessed 6 Nov 2026.
Figures to confirm before you act
- Edition of the Mining Act: 2023 section numbers (s.57, s.24, s.9, s.11) differ from the 2019 numbering (s.47, s.22, s.8, s.10)
- Regulation 206 and 207 of Government Notice 408 of 2010: text not read, only the contents list; confirm the bond calculation with the Mining Commission
- Counts of 84 mines, 44 plans, 36 discussed, 21 approved and 2 guarantees come from one press report
- PML application and transfer fees (register ID F0619) are from Government Notice 1 of 2018 as amended in 2019; the amounts were not confirmed independently
- Government Notice 260 of 2025: Bowmans and Clyde and Co differ on maximum term and foreign provider equity
General information prepared by the Fursa365 deal desk, Zatra Consultants Limited. It is not legal, tax or investment advice and does not decide or guarantee any authority's outcome. Confirm current rules and fees with the authority named and your own advocate before you act. Mainland Tanzania is described; Zanzibar has separate laws and bodies.
Questions readers ask
Is a rehabilitation bond compulsory for every mine?
Not on the text read. Section 57(2) of the 2023 Act says the Minister may require a bond if a special mining licence holder fails its closure plan obligation. Parliament heard on 5 November 2026 that only two large or medium mines had given a guarantee.
Who reviews a mine closure plan?
The National Mine Closure Committee discusses and reviews plans after the plan goes to the Chief Inspector of Mines under regulation 206, as cited by the Commission. The Mining Commission monitors closure. The statutory basis of the committee was not found in the sources read.
What forms of guarantee were named?
The Commission named an escrow account, a capital guarantee, an insurance bond and a bank guarantee. The sources read do not say which the Commission accepts for each mine, so ask the Commission and record the answer in writing.
Does a small-scale licence need a closure plan?
A primary mining licence application needs an environmental protection plan under section 64 of the 2023 Act. An express closure plan or bond rule for a primary mining licence was not found. Check the licence conditions and the EIA screening with the NEMC.
Can a foreigner hold a primary mining licence?
No. Section 9 of the 2023 Act limits it to Tanzanian citizens, with a foreign technical adviser allowed only on a Resident Mines Officer recommendation. Foreign providers work under the technical support regulations, whose terms the two firms read differently.
What happens if a licence holder abandons a mine?
Regulation 36 lets an inspector do work at a closed or abandoned mine and makes the cost a government debt and a lien on the mine or mineral right. Under the 2019 text cancellation does not remove accrued liabilities.
Does Fursa365 take part in mining projects?
No. Fursa365 matches qualified offers and requests and never holds money, lends or takes equity. Participants run their own geological, legal and financial due diligence, and Zatra's professional fee is separate from the Commission's fees.
Does this guide cover Zanzibar?
No. It describes Mainland law. Zanzibar has separate laws and institutions for minerals and the environment, and a Zanzibar project should confirm the rules with a Zanzibar advocate before any commitment.
Engineer. Execution of registrations, licences and authority follow-up. Ten years in operations and industrial engineering.
