Mining – Local Content Regulations 2018

Mining – Local Content Regulations 2018 have been published. They are detailed and concise in their scope and application but are materially unclear in some aspects. As regards foreign service providers please note for instance:

• Regulation 8(6): A non-indigenous Tanzanian company which intends to provide goods or services to a contractor, a subcontractor, licensee, the Corporation or other allied entity within Tanzania shall:
  • incorporate a joint venture company with an indigenous Tanzanian company; and
  • afford that indigenous Tanzanian company an equity participation of at least 20%.

• Also, Regulation 15(5): Where a non-indigenous Tanzanian company is required to provide goods and services to a contractor, subcontractor, licensee, or other allied entity, that non indigenous Tanzanian company shall:
  • incorporate a company in Tanzania and operate it from Tanzania; and
  • provide the goods and services in association with an indigenous Tanzanian company, where practicable.

• “indigenous Tanzanian company” means  a company incorporated under the Companies Act that:
  • has at least 51% of its equity owned by a citizen or citizens of Tanzania; and
  • has Tanzanian citizens holding at least 80% of executive and senior management positions and 100% of non-managerial and other positions.

• Also, Regulation 13(2): A contractor, subcontractor, licensee, the Corporation or other allied entity shall achieve the minimum local content levels specified in the First Schedule.
  • For example, catering, cleaning and security 100% (see First Schedule, page 112 Mining – Local Content Regulations 2018).

Please contact us if you have any comments or questions, so we can advise you further.