Vemma Consult Attorneys
  • HOME
  • ABOUT US
    • HISTORY
    • OUR SHARED VALUES
    • CSR
    • OUR AWARDS
  • OUR PEOPLE
  • SERVICES
      • COMPETITION LAW, MERGERS AND ACQUISITIONS
      • INTELLECTUAL PROPERTY LAW
      • BANKING AND FINANCIAL SERVICES
      • EMPLOYMENT AND LABOUR LAW
      • CORPORATE AND COMMERCIAL LAW
      • TELECOMMUNICATIONS LAW
      • CONSTRUCTION, REAL ESTATE AND CONVEYANCE LAW
      • LEGISLATIVE AND REGULATORY REVIEW
      • BUSINESS IMMIGRATION
      • PUBLIC LAW AND POLICY
      • OIL, GAS, ENERGY AND MINING
      • INVESTMENT AND INTERNATIONAL TRADE
  • AFRICA IP PRACTICE
  • CAREERS
  • NEWS AND UPDATES
  • GET IN TOUCH
  • Menu

MINIMUM SHAREHOLDING AND PUBLIC OFFERING ON SPECIAL MINING LICENSE.

December 6, 2016/in Latest on 2016 /by amicidesign-veema

The wording of the new law from the Government Notice No. 286 of 2016, published on 7th October 2016, has a new look and effect on the Mining sector in Tanzania, This is “Mining (Minimum Sharing and Public offering) Regulations.

These regulations has two-way effects on the holders of Special Mining License (SML) these means the new regulations do not have any exceptions for “special conditions”. The regulations are acting retrospectively and here below is the detailed extract.

SHAREHOLDING REQUIREMENTS AND OBLIGATIONS

Minimum Shareholding Requirement
  • The regulation requires, the minimum local shareholding requirement of a holder of Special Mining License shall be thirty percent (30%) of the total issued and paid up shares. Local Shareholding in relation to a natural person, means shares held by a citizen of the United Republic, and a body corporate means shares held by a company incorporated under the Companies Act in which citizens or the Government of the United Republic has beneficial interest in at least fifty percent (50%) of the ordinary shares of such company or other body corporate established or incorporated in the United Republic under the provisions of any written law.
Obligations for Local Shareholding
  • There is an obligation that, minimum local shareholding shall be obtained through the Capital Market and Securities Authority, in compliance with the Capital Market and Securities Act.
  • A licensee referred in the regulations, whose license was issued prior to commencement of these regulations, shall, within two years from the date of commencement of these Regulations, ensure compliance with the local shareholding obligation.
  • That, a licensee referred herein, whose license is issued after the commencement of these regulations shall, within one year from the date of grant of a Special Mining License, ensures compliance with the local shareholding obligation.
Obligation for Listing
  • That, a holder of special Mining License shall list its shares on a stock exchange within the United Republic in accordance with the applicable listing rules of the stock exchange.

Though it is required for a holder of a Special Mining License to issue a Minimum of 30% of local shareholding, The Regulations has provided that, “Where the holder of a license has failed to secure the minimum local shareholding due to an unsuccessful public offer, the Minister may, upon application of the holder of a license granted under the Act (The Mining Act) and on the recommendation of the Authority, grant a waiver to the holder from the minimum local shareholding requirement.

The above waiver, is appearing to be available exception which the mining company operating under special mining license, can undertake mining activities in Tanzania under Special Mining License without local shareholding.

FURTHER INFORMATION:

This editorial is intended to give you a general over view of the Law. If you would like further information on any issue raised in this column, please contact.Patrick Sanga
Partner
E: p.sanga@vemmaattorneys.co.tz
M: +255 686 999 993

Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on Google+
  • Share on Pinterest
  • Share on Reddit
https://vemmaattorneys.co.tz/wp-content/uploads/2019/06/logo-red1.png 0 0 amicidesign-veema https://vemmaattorneys.co.tz/wp-content/uploads/2019/06/logo-red1.png amicidesign-veema2016-12-06 09:00:512019-06-24 09:51:48MINIMUM SHAREHOLDING AND PUBLIC OFFERING ON SPECIAL MINING LICENSE.

Latest News and Publications

  • Latest on 2021
  • Latest on 2019
  • Latest on 2018
  • Latest on 2017
  • Latest on 2016
  • Latest on 2022
  • Latest on 2023
  • Latest on 2024
  • News and Publications on 2025

DISCLAIMER

The information contained in this website is for general information purposes only. The information is provided by Vemma Consult Attorneys and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

© 2020 Vemma Consult Attorneys – All Rights Reserved

LEGAL RIGHTS AND PROCEDURES TO PETITION FOR DIVORCE FOR FOREIGN NATIONALS DOMICILED... AfDB okays $228m for Kenya-Tanzanian Road
Scroll to top

This is a notification that can be used for cookie consent or other important news. It also got a modal window now! Click "learn more" to see it!

OKLearn More

Cookie and Privacy Settings

How we use cookies

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

Essential Website Cookies

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, you cannot refuse them without impacting how our site functions. You can block or delete them by changing your browser settings and force blocking all cookies on this website.

Other external services

We also use different external services like Google Webfonts, Google Maps and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Vimeo and Youtube video embeds:

Privacy Policy

You can read about our cookies and privacy settings in detail on our Privacy Policy Page.

Privacy Policy