MINING LAW UPDATE: What You Should Know About Technical Support Agreements (TSA) For Primary Mining License Holders
- What Challenges Affect the Effectiveness of Primary Mining Licenses?
- What Key Benefits do the 2025 Technical Support Regulations Offer to PML Holders?
- How Do TSAs Operate Under the Current Regulatory Framework?
- Potential Implementation Risks from the New TSAs
1.0 Introduction
Tanzania’s mining sector, particularly Primary Mining License (PML) holders, plays a vital role in driving the local economy, job creation, and rural livelihoods. Despite this, small-scale miners have consistently faced technical, operational, and regulatory hurdles that limit their productivity and long-term growth. Historically, PMLs granted certain rights while imposing specific restrictions on exploration and development—more details on these historical provisions are discussed in Section 2.0 below.
Recognizing these structural constraints, the Government of Tanzania introduced the Mining (Technical Support for Primary Mining License Holders) Regulations, GN No. 260 of 2025 (the Regulations), which came into effect on 25th April 2025. The Regulations formalize the provision of technical support to PML holders through written Technical Support Agreements (TSAs) with qualified facilitators.
Breakthrough Attorneys has prepared this article to provide a comprehensive legal analysis of TSAs, examining the pre-existing challenges faced by PML holders, outlining the structure and obligations under the new regulatory framework, highlighting the anticipated benefits, and evaluating potential implementation risks.
2.0 Historical Barriers to Growth in the PML
PML holders in Tanzania have long struggled with a lack of technical expertise in critical areas such as exploration, extraction, and mineral processing. This knowledge gap is largely due to limited access to specialized training and support services, particularly in rural and small-scale mining communities.
Compounding this challenge is the inability of many PML holders to access modern mining equipment, primarily because of limited capital, high import costs, scarce financing options, and inadequate technical support. Consequently, most operations rely on outdated, labor-intensive methods, resulting in low productivity, operational inefficiency, and poor mineral recovery. These operational limitations have a direct impact on profitability and long-term viability.
Moreover, compliance with environmental and occupational safety standards remains a persistent challenge due to both regulatory enforcement gaps and technical constraints. The absence of structured frameworks for technology transfer and skills development has prevented the sector from evolving into a sustainable and competitive component of the broader mining industry.
3.0 What Do the 2025 Technical Support Regulations Introduce?
The 2025 Regulations empower PML holders to enter into formal Technical Support Agreements (TSAs) with facilitators who provide both technical and financial assistance. A PML holder may enter into a single TSA covering up to ten licenses, subject to review and registration by the Mining Commission. This framework has enabled PML holders to gain access to modern equipment, financing, and technical expertise—factors that were previously constrained and limited productivity and profitability.
Notably, under Regulation 9(a), a PML holder is guaranteed a minimum of 30% of the gross profit from mineral production, calculated after deduction of royalties, inspection fees, and government levies, irrespective of the facilitator’s operational costs. This arrangement ensures that PML holders retain a protected share of project revenues, while enabling qualified facilitators—typically parties with capital, technical know-how, and equipment—to provide operational support without holding the license directly. In doing so, the Regulations address historical limitations and create a framework through which PML holders can benefit from external expertise under a structured and legally enforceable mechanism.
Facilitators, in turn, are obligated to supply modern equipment, technical expertise, and supporting infrastructure, while ensuring knowledge transfer, environmental compliance, and meaningful community engagement. The TSAs further set out clear provisions on dispute resolution and reporting, thereby providing both legal certainty and operational support to PML holders.
4.0 How Do Technical Support Agreements Work in Practice?
Technical Support Agreements (TSAs) provide a legal and operational framework for collaboration between PML holders and facilitators. The key elements of a TSA include the steps and obligations outlined below, which together ensure that mining operations are conducted efficiently, safely, and profitably while protecting the rights and interests of both PML holders and facilitators.
4.1 Inspection
Before a TSA is signed, the Resident Mining Officer conducts an inspection to assess the PML holder’s eligibility and compliance status, including any disputes or unpaid dues. This ensures that only qualified holders enter into TSAs under appropriate conditions.
4.2 Obligations for Facilitators
Facilitators have several core obligations: They must provide modern mining expertise and equipment, build infrastructure that meets environmental standards, and prepare and implement knowledge transfer plans. Facilitators are also required to submit detailed operational and environmental reports, appoint a permanent on-site representative, and support community development initiatives.
4.3 Obligations for PML Holders / Compliance Issues
PML holders are required to comply with mining laws and participate actively in joint management of operations. They must avoid overlapping agreements, pay all statutory levies, restrict operations to their licensed area, and cooperate fully with monitoring activities conducted by the authorities.
4.4 Duration / Tenure
TSAs last for a maximum of three years and may be renewed for up to twelve years, subject to the remaining life of the PML. The agreements must clearly outline profit sharing arrangements, dispute resolution mechanisms, and conditions for asset transfer.
4.5 Role of the Mining Commission
The Mining Commission is responsible for registering, monitoring, and enforcing compliance with all regulatory requirements.
5.0 Benefits and Implementation Challenges
The 2025 Regulations introduce TSAs to enhance small-scale mining by mandating collaboration between PML holders and qualified facilitators. Key benefits include a guaranteed minimum 30% share of gross profit for PML holders (after statutory payments), access to modern equipment, mandatory knowledge transfer, joint decision-making, and formalized compliance support for environmental and closure plans.
Challenges with the TSA may include weak skill transfer, unclear asset exit clauses, and the burden of compliance. There’s also a risk of inadequate monitoring if the Commission’s oversight capacity is stretched, which could allow opportunistic facilitators to exploit loopholes or neglect their obligations. Stronger legal support and active Commission follow-up will be key to ensuring TSAs work as intended.
6.0 Conclusion
The Regulations represent a landmark reform in Tanzania’s mining legal framework. By formally structuring partnerships between PML holders and technical facilitators, the Government seeks to address longstanding inefficiencies and foster modernization in small-scale mining. While the Regulations create opportunities for improved productivity, legal compliance, and sustainable development, their success will ultimately depend on robust regulatory enforcement, genuine knowledge transfer, and the ability of stakeholders to engage in fair and transparent agreements. PML holders, investors, and service providers must understand these frameworks deeply to navigate them effectively and ensure shared value across the mining value chain.
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.