By Business Insider Reporter
The Government has signalled a decisive shift toward stricter enforcement of mining laws, announcing plans to cancel exploration licences that have been held for years without meaningful activity, a move aimed at unlocking investment, accelerating mineral development and curbing speculative hoarding of mineral rights.
The Minister for Minerals, Antony Mavunde, made the announcement on January 22, 2026, during a performance review meeting with senior officials from the Ministry of Minerals, where he directed an immediate audit of exploration licence holders across the country.
Crackdown on speculative licence holding
Under Tanzania’s mining framework, exploration licences are issued with clear obligations, including time-bound exploration work programmes, expenditure commitments and regular reporting. However, the Ministry says a significant number of licence holders have failed to undertake any exploration, instead holding onto large tracts of mineral-rich land while waiting to attract investors.
“This practice delays development and denies the country the economic benefits of its mineral endowment,” Mavunde said.
“All Resident Mine Officers are required to return to their duty stations within seven days and submit detailed reports on all large-scale licences where no operations are taking place. It will not be long before you hear me announce the cancellation of exploration licences in areas such as Mbogwe and Shinyanga,” he added.
According to the Minister, the licence holders concerned have already been formally notified, and any appeals must follow the procedures set out in the Mining Act and its regulations.
Ending land banking in the mining sector
Mavunde was particularly critical of what he described as “land banking” – the practice where individuals or firms acquire extensive exploration areas, not to develop them, but to hold them as assets while negotiating with potential investors.
“Some people secure licences and then force the government to wait according to their own timelines. Only when they get an investor do they begin to act. We cannot allow the country to be run in this manner,” he said.
The Minister stressed that mineral rights are not speculative instruments, but national assets entrusted to investors under the expectation of timely development, job creation and revenue generation.
Policy context: From access to accountability
The move reflects Tanzania’s broader mining sector reforms over the past decade, which have shifted focus from merely issuing licences to maximising value addition, compliance and accountability.
Mining contributes significantly to Tanzania’s economy, accounting for around 10 per cent of GDP, more than 50 per cent of export earnings, and a growing share of government revenue. Gold remains the dominant mineral, but the country is also increasingly positioning itself in critical minerals such as graphite, nickel and rare earth elements.
Government officials argue that idle licences undermine these ambitions by locking up prospective areas that could otherwise attract serious investors with technical capacity and financing.
Opportunity for serious investors
Industry analysts note that cancelling dormant licences could open up new exploration opportunities for both domestic and foreign investors, particularly at a time when global demand for minerals used in energy transition and manufacturing is rising.
By reclaiming underutilised licences, the Government hopes to improve transparency, boost investor confidence and ensure that exploration areas are allocated to companies willing and able to invest.
“This is about discipline in the sector,” a senior ministry official said. “If you are granted a licence, you must work. If you cannot, the area should be freed for others.”
Balancing enforcement and investor confidence
While the crackdown may raise concerns among some licence holders, the Ministry insists that the process will be lawful, transparent and predictable, with due process for appeals and compliance reviews.
The enforcement drive comes as Tanzania seeks to strike a balance between attracting investment and protecting national interests, ensuring that mineral resources translate into tangible economic benefits rather than remaining locked underground. As Resident Mine Officers compile their reports and licence reviews begin, the coming weeks are expected to send a strong signal to the mining industry: use it or lose it.
