Minerals minister orders review of small-scale mining levies

Minerals Minister Anthony Mavunde has ordered a technical review of levies and other statutory charges affecting small-scale miners, opening a joint Government-industry process to examine how payments are treated as minerals move from extraction through processing to sale. The review follows concerns raised by small-scale miners in Geita over the difficulty of linking payments made at earlier stages of the production chain to the same mineral consignment when it reaches another processing or regulatory point. No levy or royalty was removed at the meeting. Instead, Mr Mavunde directed the Mining Commission, small-scale mining representatives and regional authorities to examine the system and recommend ways of protecting Government revenue while making the treatment of payments clearer. The minister said the Government wanted to understand the practical concerns raised by miners before deciding whether administrative procedures needed to be changed. The review will focus partly on how mineral ownership changes along the production chain. Mining Commission officials explained that when a small-scale miner sells ore to another business, that transaction transfers ownership of the material. The buyer then processes the ore and may enter another transaction when the recovered mineral is sold, with separate statutory obligations potentially arising. Small-scale miners, however, asked the Government to examine cases where ownership does not change. Under such arrangements, a miner may extract mineral-bearing material, transport it for crushing or further processing and eventually sell the recovered gold. Their concern is that receipts issued earlier in the process may not always provide officials at subsequent stages with a clear record of payments already made in relation to the same material. Mr Mavunde consequently directed the technical team to examine whether mineral consignments can be more closely linked to their source, movement documents and payment records. One option under consideration is to identify the originating mining licence or production area and maintain a clearer connection between mineral consignments and receipts issued during transportation and processing. The technical review will also consider whether payments already made in relation to the same material can be recognised when subsequent liabilities are assessed. Mr Mavunde said the Government would first consider the legal, operational and revenue implications before making any changes. “The review must safeguard every legitimate Government entitlement while ensuring compliant small-scale mining businesses are not subjected to unnecessary administrative costs,” he said. Small-scale miners also raised concerns about moving ore between mining and processing sites, particularly where suitable treatment facilities are unavailable within a licensed area. Procedures governing the transportation of carbon used for elution were also submitted for consideration. The issue is significant given the growing contribution of small-scale mining to Tanzania’s mineral economy. Mr Mavunde said the subsector accounted for about 40 per cent of the Sh1.393 trillion collected from the mining sector during the 2025/26 financial year. The minister said the mining sector collected Sh411 billion in the first quarter of 2026/27, against a target of about Sh351 billion, equivalent to 117 per cent of the target. He said the Government was also directing 10 per cent of mining-sector collections to mineral exploration to support the identification of commercially viable deposits. FEMATA president John Bina supported the technical review, saying the financial implications should be established before any adjustments are made. Mr Mavunde said the joint team would examine charging points, receipts, mineral movements and transaction records before submitting recommendations to the Government. The review is expected to determine whether stronger traceability can provide a clearer record from the mining licence through processing to sale, while ensuring that legitimate Government revenue is protected.