Economy

Tanzania to introduce separate mining licences for salt production

Dodoma. The government is set to introduce a Special Salt Production Licence in an effort to distinguish salt from other minerals and stimulate growth in the domestic salt industry, which has long faced structural and regulatory challenges.

This was announced on Thursday, May 1, 2025 here by the minister for Minerals, Mr Anthony Mavunde, during a consultative meeting with the leadership of the Tanzania Salt Producers Association (TASPA).

The meeting focused on addressing longstanding concerns and charting a path towards a more conducive business environment for salt producers.

In Tanzania, mining activities are regulated under a licensing framework that includes Prospecting Licences (PLs), Special Mining Licences (SMLs), Mining Licences (MLs), and Primary Mining Licences (PMLs).

PLs allow exploration of minerals, while SMLs are reserved for large-scale operations involving investments above US$100 million.

MLs cover mid-scale projects with investments between US$100,000 and US$100 million, while PMLs are designed for small-scale miners.

Additionally, Broker and Dealer Licences allow for the trading of minerals, with only the latter permitting export.

Currently, salt production is regulated under the same legal framework as other mineral commodities.

However, industry players have long argued that this classification inflates operational costs and limits investment in value addition.

“The President, Her Excellency Dr Samia Suluhu Hassan, has directed us to empower salt producers and facilitate sectoral growth.

In response, the government will introduce a distinct Salt Production Licence that removes salt from the broader mineral category,” said Mr Mavunde.

He added: “I have directed the immediate commencement of legal amendments to pave the way for this new licence. Additionally, the annual licence fee per hectare will be revised downward to Sh20,000 to ease the financial burden on producers.”

Mr Mavunde further said the government wants to see domestic salt producers move beyond raw extraction and into processing and refinement, thereby increasing the competitiveness and quality of Tanzanian salt in both local and international markets.

The Permanent Secretary in the ministry of Minerals, Yahya Samamba, commended TASPA for its continued support of salt producers and assured the association of strong collaboration in resolving sector challenges.

TASPA chairperson, Ms Hawa Ghasia, applauded the government for listening to stakeholders and formulating pragmatic solutions.

She also thanked President Samia for commissioning the construction of a modern salt processing plant in Lindi Region, which she said will significantly enhance local value addition.

The proposed reforms are expected to incentivise investment in salt production, promote job creation, and unlock the sector’s potential as a key contributor to Tanzania’s industrialisation agenda.

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