Key Mining Act Amendments Introduced by the Finance Act, 2025 in Tanzania

On 30 June 2025, the Government of the United Republic of Tanzania enacted the Finance Act No. 11 of 2025 (the Finance Act), introducing key amendments to several statutes, including the Mining Act, Cap. 123 R.E. 2023 (the Mining Act). These amendments are part of broader fiscal and regulatory reforms impacting the extractive sector.

A significant change introduced under the Finance Act is the creation of the HIV Response Levy on mineral production. This legal update highlights the nature of this new levy, its operational implications, and what mining companies should expect going forward.

HIV Response Levy on Minerals: Section 113A

The Finance Act introduces a new section 113A to the Mining Act, establishing a HIV Response Levy to support national health initiatives.

Key features include:

• Rate of the HIV Response Levy will be charged at a rate of 0.1% of the gross value of minerals. The term gross value has been defined under the Mining Act as the market value of mineral or minerals at the point of refining or sale or in the case of consumption within Tanzania, at the point of delivery within Tanzania. In practice, when calculating royalties, the cost of transport is taken into account when assessing the gross value of mineral(s).
• The Mining Commission is responsible for collecting the HIV Response Levy and shall distribute the collected funds in the following manner:
  • 70% is allocated to the AIDS Trust Fund, established under the Tanzania Commission for AIDS Act, Cap.379 of 2002; and
  • 30% is allocated to the Universal Health Insurance Fund, established under the Universal Health Insurance Act, No. 12 of 2023.
• The HIV Response Levy is payable at the same time as mineral royalty, by persons liable under the Mining Act, including mineral right holders and licensees.

Implications for Mining Operators

This amendment underscores the government’s objective to expand social funding mechanisms through resource-based levies. However, it introduces additional compliance and cost considerations for stakeholders in the mining industry. The mineral right holders and licensees must:

• Review and adjust their financial models to account for the new levy;
• Ensure timely reporting and remittance in accordance with royalty schedules; and
• Evaluate the cumulative fiscal impact alongside other statutory obligations.

Conclusion

The introduction of the HIV Response Levy marks a continued shift in Tanzania’s policy approach to integrating social development priorities with extractive industry governance. While the levy amount appears modest, it forms part of a broader cumulative tax burden and should be factored into operational planning.

We anticipate further guidance from the Ministry of Minerals or the Mining Commission on implementation procedures and will provide updates accordingly.