Tanzania's 2025 Mining Act represents the most investor-friendly legislative package since the original 2010 framework. Following the turbulent 2017-2019 period of resource nationalism - which saw Barrick's Acacia Mining delisted and billions in investment frozen - the Tanzanian government has systematically reversed the most damaging provisions.
Key Changes Under the 2025 Act
Royalty Rate Revisions
Gold royalties have been reduced from the punitive 7% rate introduced in 2017 to 4% - returning to near the pre-2017 level that attracted the original wave of institutional investment. Tanzanite and diamond royalties are set at 5%. Industrial mineral royalties remain at 3%.
Local Content Requirements - Clarified
The 2025 Act clarifies ambiguous local content provisions that previously created operational uncertainty. Procurement thresholds, employment ratios, and community benefit obligations are now explicitly tiered by project scale - removing the arbitrary ministerial discretion that characterised the 2017 framework.
Dispute Resolution - Return to International Arbitration
One of the most damaging 2017 provisions - requiring that all mining disputes be settled in Tanzanian courts - has been reversed. The 2025 Act reinstates access to international arbitration under ICSID and ICC rules for disputes exceeding $5M. This single change is perhaps the most significant signal for institutional investors.
Key Takeaways
- Gold royalties reduced from 7% to 4% - near pre-2017 levels
- International arbitration access reinstated for disputes over $5M
- Local content requirements tiered and clarified by project scale
- Barrick and AngloGold expansions in progress signal renewed confidence
- Tanzania is now Hasnihl's highest-rated East African jurisdiction for new investment