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Home Tanzania

Tanzania Crackdown on “Shadow” Mining Hits Foreign Investors

The move, announced by the Mining Commission in the capital, Dodoma, signals a significant escalation in President Samia Suluhu Hassan’s efforts to reclaim "operational sovereignty" over the country's vast mineral wealth.

admin by admin
March 19, 2026
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Tanzania Crackdown on “Shadow” Mining Hits Foreign Investors
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DODOMA  – The Tanzanian government on Thursday intensified its crackdown on illicit mining operations, issuing a final ultimatum to license holders accused of acting as fronts for unauthorized foreign entities.

The move, announced by the Mining Commission in the capital, Dodoma, signals a significant escalation in President Samia Suluhu Hassan’s efforts to reclaim “operational sovereignty” over the country’s vast mineral wealth.

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Officials stated that “fronting”—where local individuals hold licenses while foreign investors provide capital and equipment in exchange for total control—has deprived the state of billions in tax revenue.

“The era of regulatory ambiguity is over,” Commissioner Engineer Theonestina Mwasha told a high-level meeting of industry stakeholders.

“We are mandating that all partnerships undergo rigorous scrutiny. Failure to disclose foreign interests will result in the immediate revocation of licenses.”

The crackdown comes as Tanzania’s mining and quarrying sector continues to outperform broader economic growth, expanding by over 9% in recent years.

However, the government argues that the benefits have not trickled down to local communities, citing reports of local miners being forcibly displaced from their own pits by well-funded foreign syndicates.

Investors have expressed concern that the aggressive rhetoric could chill foreign direct investment.

“The message is clear: the days of operating in the shadows are over,” said a Dar es Salaam-based legal consultant.

“But the burden of proof now rests entirely on the license holders, creating a new layer of bureaucratic risk for legitimate international partners.”

The Mining Commission confirmed it has already begun auditing several high-value gold and graphite sites in the western regions to ensure compliance with the Mining Act.

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