The Mining (Government Minerals Warehouse) Regulations, 2021

2. Application.

3. Interpretation. PART I PRELIMINARY PROVISIONS PART II ESTABLISHMENT AND FUNCTIONS OF THE GOVERNMENT MINERALS WAREHOUSF

4. Establishment of minerals warehouse.

5. Functions of minerals warehouse.

6. Appointment of warehouse keeper.

7. Qualifications of warehouse keeper.

8. Duties of warehouse keeper.

9. Powers of warehouse keeper. I 0. Appointment of authorized officers. 1 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) PART III TRANSPORTATION OF MINERALS

11. Application to transport minerals.

12. Permit to transport minerals.

13. Sealing and identification of parcels of minerals.

14. Approval of means of transportation.

15. Transportation of minerals.

16. Time of transportation.

17. Transportation costs.

18. Notification to Bank. PART IV DEPOSIT AND WITHDRAWAL OF MINERALS

19. Minerals for warehousing.

20. Rejection of deposit of minerals.

21. Storage period.

22. Storage fees.

23. Purchase of deposited minerals.

24. Withdrawal of deposited minerals

25. Transportation of withdrawn minerals PARTV GENERAL PROVISIONS

26. Duty of Bank.

27. Insurance cover.

28. Register of minerals authorized for transport. 2 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.)

29. Records management.

30. Confidentiality.

31. Offences and penalties.

32. Reports to Minister. 3 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) THE MINING ACT, (CAP. 123) _____ REGULATIONS _____ (Made under section 27E) _____ THE MINING (GOVERNMENT MINERALS WAREHOUSE) REGULATIONS, 2021 Citation 1. These Regulations may be cited as the Mining (Government Minerals Warehouse) Regulations, 2021. Application 2. These Regulations shall apply in respect of Government Minerals Warehouses established or designated under these Regulations. Interpretation 3. In these Regulations, unless the context requires Cap. 123 otherwise• "Act" means the Mining Act; "authorised officer" has the meaning ascribed to it under section 4 ofthe Act; "Bank" means the Bank of Tanzania; "Commission” means the Mining Commission established under section 21 of the Act; "deposit" means placing minerals in the warehouse for custody and storage; "gemstone" has the meaning ascribed to it under section 4 ofthe Act; "metallic minerals" has the meaning ascribed to it under section 4 ofthe Act; "mineral right holder" means a person who holds any of the licenses referred to under section 7 of the Act; "Minister" means the Minister responsible for finance; "raw minerals" has the meaning ascribed to it under section 4 of the Act; "unique reference number" means a u n i q u e system g e n e r a t e d identifier 4 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) assigned by the warehouse keeper to a consignment of minerals; "Warehouse" means t h e G o v e r n m e n t Minerals Warehouse e s t a b l i s h e d o r designated under regulation 4; ''warehouse keeper" means an officer appointed under regulation 6. PART II ESTABLISHMENT AND FUNCTIONS OF THE GOVERNMENT MINERALS WAREHOUSE Establishment 4.-(1) There is established Government of M i n e r a l s Warehouses at the mineral warehouse head office and branches of the Bank. (2) Without prejudice to sub regulation (1), t h e M i n i s t e r m a y , in consultation with the Governor and the Commission, designate any premises other than head office or branches of the Bank to be a Warehouse. (3) Notwithstanding the provisions of subregulations (1) and (2), the Minister may, in c o n s u l t a t i o n with the Governor a n d t h e C o m m i s s i o n , designate premises within a mining site where metallic and gemstone minerals are produced in bulk to be a Warehouse. (4) The Warehouses designated u n d e r subregulations (2) and (3) shall be under control and management of the Bank. (5) The premises designated under subregulations (2) and (3) shall- (a) have unimpeded access; (b) be capable of being fortified; (c) be in a secure neighbourhood; and (d) have its specifications certified as to its impregnability. (6) Without prejudice to the requirement under subregulation (5), the Warehouse shall be built in 5 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) accordance with the best construction standards and shall include: (a) fire alarm security systems; (b) intrusion detection systems; (c) twenty-four hours monitored surveillance cameras; (d) secured combination locks and keys to avoid duplication; and (e) secured safes and storage equipment, which are rust free, water resistant and fireproof. Functions of 5. The Warehouse shall p r o v i d e facilities minerals warehouse for keeping in custody minerals deposited. Appointmen 6. The Governor shall a p p o i n t a t of warehouse warehouse keeper f r o m a m o n g the Bank's staff keeper to be in-charge o f the Warehouse o p e r a t i o n s a t each branch and Head office of the Bank and in respect of any designated Warehouse. Qualificatio 7. A person shall not qualify to be appointed ns of warehouse a s the warehouse keeper unless he possesses the keeper following qualifications: (a) diploma or any other higher qualification in warehouse management; or (b) any other equivalent qualification in the field of warehouse management. Duties of 8.- (1) The Warehouse keeper, while warehouse keeper discharging his duties, shall adhere to the principles r e l a t i n g to protection o f the legitimate r i gh t s and interests of the mineral right holders and shall be responsible to- 6 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) (a) witness verification of minerals intended for warehousing; (b) ensure that the minerals are appropriately packed and effectively labeled for warehousing; (c) receive minerals for warehousing; (d) enforce strict observance of these Regulations and other relevant instruments; (e) maintain proper records relating to deposited minerals; (f) properly arrange deposited minerals in the Warehouse and in a manner that permits unimpeded inspection and orderly handling of deposited minerals; (g) such other responsibilities as may be assigned to him by the Governor for the proper management of the Warehouse. (2) The warehouse keeper shall be responsible for implementation of the operational security measures and proper control of the warehoused minerals. Powers of 9.-(1) In the performance of his duties, the warehouse keeper warehouse keeper shall, upon advice of authorised officer, have powers to- (a) accept d e p o s i t o f minerals w h i c h m e e t t h e r e q u i r e m e n t s of these Regulations; and (b) refuse deposit of minerals which do not satisfy the requirement of these Regulations. (2) Where the warehouse keeper refuses to accept minerals delivered to the warehouse for deposit, he shall state the reasons for such refusal. 7 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) PART ill TRANSPORTATION OF MINERALS Appointment 10. The Commission shall appoint and introduce of authorised officers to the Bank authorised officers responsible for matters relating to depositing into or withdrawing minerals from Application to the Warehouse. transport minerals Permit to 11.-(1) A mineral right holder who is required to transport minerals transport raw minerals from a mine to the Warehouse shall inform the Mines Resident Officer who shall, with immediate effect, require him to apply for the permit to transport minerals from the mine to the Warehouse through Form No. 1 s e t out in the First Schedule to these Regulations. (2) The Mines R esi dent O f f i c e r shall, within twenty-four hours after receiving Form No.I from the mineral right holder or his agent, employee or contractor submit such Form to the Commission with a copy of the report on the mining, sorting and valuation of raw minerals concerned made under section IOOB of the Act. (3) The Commission shall, within twenty-four hours after receiving Form No. 1 with a copy of the report on the mining, sorting and valuation of raw minerals, verify the group, type, quant i t y, and purity level of raw minerals intended to be removed from the mine to the Warehouse. (4) The v e r i f i c a t i o n under s u b r e g u l a t i o n (3) shall be made by the authorised officer or designated officer of the Commission, other than the Mines Resident Officer, in the presence of an officer from Tanzania Revenue Authority and other relevant institutions of state organ. 8 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) Sealing and 12.-(1) The Commission shall, within three days identifica- tion of after verifying the group type, quantity and purity level parcels of of minerals intended to be transported, issue a permit to minerals the applicant in Form No. 2 set out in the First Schedule to these Regulations. (2) Upon receiving a permit under sub regulation (1), the mineral right holder shall pack the minerals in a manner prescribed by the Commission. Sealing and 13.-(1) The Commission shall, where satisfied identificatio n of parcels that minerals are properly packed, seal the parcel of of minerals minerals in the presence of mineral right holder, an officer from Tanzania Revenue Authority, and other relevant institutions of state organ. (2) Subject to subregulation (1), the mineral right holder and an officer from Tanzania Revenue Authority shall each place their own seal on the parcel. Approval of 14.-(1) The Commission shall indicate the means means of transport of transportation in the permit for transportation of mineral. (2) A mineral right holder shall transport minerals by means of transportation indicated in the permit for transportation of minerals from mines to the Warehouse as approved by the Commission. (3) In determining the means of transportation, the Commission shall take into consideration the nature, value of the minerals to be transported and the distance from mines to the Warehouse. Transportati 15. A m i n er al right h o l d e r shall on of minerals t r a n s p o r t minerals to, and f r o m t he Warehouse u n d e r the escort of authorised o f f i c e r s of the Commission, an officer from the Tanzania Revenue Authority and other r e l e v a n t institutions of state organ. 9 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) Time of 16.-(1) Transportation of minerals t o , and transport ation from the Warehouse s h a l l be done between 8:00 a.m. and 5:00 p.m. on working days or on such other days and hours as the Commission may authorise. (2) Notwithstanding the provisions of subregulation (1), the Governor may authorise i n writing the warehouse k e e p e r to accept deposit of minerals out of the prescribed time. Transport 17.-(1) The m i n e r a l right holder shall ation costs b e a r c o s t s o f transportation of minerals to, and from the Warehouse. (2) Subject t o subregulation (1), the costs of transportation of minerals shall consider the nature, value of the mineral to be transported and the distance from the mines to the Warehouse. (3) The Commission shall bear travel expenses o f officers from Tanzania Revenue Authority and other relevant institutions of state organ. Notification 18.-(1) The Commission shall, in writing, notify to Bank the Bank of the issuance of mineral transportation permit from mines to the Warehouse. (2) The notification shall- (a) be s i g n e d by a u t h o r i s e d officer of the C o m m i s s i o n who h a v e b e e n introduced to the Bank under regulation 10; (b) be made at least one working day prior to the day of deposit; (c) state group, type, quantity, a n d purity level of minerals i n t e n d e d to be transported and warehoused; a nd 10 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) (d) indicate the name of an officer from the Commission authorised to escort the minerals on the relevant date. PART IV DEPOSIT AND WITHDRAWAL OF MINERALS Deposit of 19. -(1) Upon delivery of the minerals to the minerals to Warehouse Warehouse, the authorised officer shall- (a) jointly with the warehouse k e e p e r , verify particulars of the minerals as set out in Minerals Transportation Permit; (b) break seals and open the parcel containing the minerals for purpose of conducting physica l verification o f the minerals with the v i e w t o ascertaining the authenticity of the minerals a n d certifying c o r r e c t n e s s of the information contained in the Minerals Transportation Permit; (c) where he is satisfied as t o the authenticity o f the minerals and correctness of the particulars contained in the Minerals T r a n s p o r t a t i o n Permit, require- (i) the mineral r i g h t holder to fill Form No. 3 set out in the First Schedule to these Regulations; and (ii) properly re-pack the minerals. (d) seal t h e p a r c e l o f the repacked m i n e r a l s a l o n g with o f f i c e r from Tanzania R e v e n u e A u t h o r i t y a n d the m i n e r a l r i g h t h o l d e r in t he presence of other relevant institutions of state organ and the warehouse keeper; (e) sign F o r m N o . 3 along w i t h a n officer from Tanzania Revenue Authority, warehouse keeper, relevant institutions of state organ and the mineral right holder and hand over to the warehouse keeper the parcel containing the minerals; 11 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) (2) Subject to subregulation (1), the warehouse keeper shall assign and mark the parcel with unique system generated reference number for identification. (3) The Commission shall ensure that there are different authorized officers involved in the verification of the minerals at the mines and at the Warehouse to safeguard the integrity of the process. Rejection of 20.- (1) W here there is discrepancy bet ween deposit of minerals the particulars of the minerals s u b m i t t e d a n d the act ual m i n e r a l s g r o u p , type, p u r i t y l ev el and quantity, the warehouse keeper shall, after being advised by the authorised officer, refuse deposit of minerals and state the reasons thereof (2) Where the warehouse keeper has refused to accept the minerals for deposit, it shall be the duty of the mineral right holder to rectify the defects or request for conditional deposit which shall be subjected to surcharge fee as prescribed under regulation 22. Storage 21.-(1) Storage of minerals in the Warehouse period shall be for an initial period of one month at a fee prescribed in regulation 22. (2) Upon expiry of the initial period, storage of the deposited minerals may be extended for additional period oftwo months. (3) The m i n e r a l r i g h t h o l d e r shall p a y s u r c h a r g e s prescribed in regulation 22 for the additional extended period. Storage fees 22. The mineral right holder shall pay storage fees as prescribed in the Second Schedule to these Regulations 12 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) Purchase of 23.-(1) Where, after expiry of the extended deposited minerals period, the mineral right holder fails to withdraw the deposited minerals, the Bank may, after reaching an agreement with mineral right holder, purchase the deposited minerals or advise the Government to purchase the minerals at market price provided that the minerals meet the level of purity determined by the Bank in accordance with provisions of section 270 (c) of the Act. (2) Where the Bank or Government decides to purchase the deposited minerals, it shall make payment in Tanzania shillings on the purchase date. (3) The payment made under thus regulation, shal l be subjected to deduction of all applicable taxes, royalties, and accrued storage fees. Withdrawal 24.-(1) A mineral right holder who intends to of deposited minerals withdraw minerals from the Warehouse shall apply to the Commission for a permit by using Form No. 1 set out in the First Schedule to these Regulations. (2) The application to the Commission shall be accompanied by a copy of the Minerals Deposit Form. (3) The Commission s h a l l , upon consideration a n d issuance of the permit to the mineral right holder, notify the Tanzania Revenue Authority, the relevant institutions of state organ and the Bank, of the intended withdrawal of minerals from the Warehouse. (4) The notification to the Bank shall be made at least one working day prior to the day of withdrawal and s h a l l be accompanied by a copy of the Mineral Deposit Form and approval of the Commission. (5) The m i n e r a l right holder shall fill, i n t r i p l i c a t e , the Minerals Withdrawal F o r m No. 13 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) 3 set out in the First Schedule to these Regulations and shall submit it to the warehouse keeper. (6) For the purpose of withdrawal of minerals from the Warehouse, the warehouse k e e p e r , mineral right holder, authorised o f f i c e r of the Commission, an officer f r o m Tanzania R e v e n u e A u t h o r i t y and the relevant institutions o f state organ shall- (a) verify t h e seal s of each p a rc el o f minerals indicated i n the minerals withdrawal form; and (b) sign the Minerals Withdrawal Form No. 3. (7) Upon completion of the procedure set out under subregulation (6), the warehouse keeper shall release and hand over the parcel of minerals to the mineral right holder. Transportation 25. The provisions o f regulations 14, 15, 16 and of withdrawn minerals 17 shall apply mutatis mutandis in relation to the transportation of withdrawn minerals. PART V GENERAL PROVISIONS Duty of Bank: 26. - (1) The Bank shall ensure that minerals s t o r e d in warehouse are kept in a manner that does not, in any way, jeopardise the quality or quantity of the minerals. (2) The warehouse keeper or the Bank shall not be liable for any loss or liability that may arise relating to- (a) the aut henti cit y of the minerals stored i n the Warehouse where i t is established t h a t the s e a l and package o f the minerals h a v e not been tempered with; (b) normal wear and tear of the minerals; or 14 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) (c) war, terrorists act or force majeure events.

27. The mineral right holder shall take Insurance appropriate i n s u r a n c e cover for the minerals during cover transportation and storage in the Warehouse. Register of 28.-(1) The Commission shall keep and maintain minerals authorised for a register containing particulars of the minerals verified transport and authorised to be transported to, and from the Warehouse. (2) The register shall c o nt a i n p a r t i c u l a r s of the mineral r i g h t holder, specify group, type, quantity a n d purity level of the minerals a n d purpose f or which minerals are transported. Records 29. The Bank, the Commission, the Tanzania management Revenue Authority, other relevant institutions of state organ and mineral right holder shall each maintain records r e l a t i n g t o transportation, deposit a n d withdrawal of minerals t o and from the Warehouse for the period of not less than ten years. Confidentia- 30.-(1) Any p e r s o n i n v o l v e d in the lity t ransport ati on or storage o f the minerals, in the Warehouse s h a l l not, without l a w f u l aut hori t y, disclose any information relating to the transportation, deposit or withdrawal of the minerals. (2) Any person who contravenes the provisions o f sub regulation ( 1), commits an offence, and upon conviction, shall be liable to a fine not exceeding ten million shillings, or imprisonment for a term not exceeding twelvemonths or both. 15 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) Offences 31.-(1) Any person who- and penalties (a) transports minerals without a permit issued under these Regulations; or (b) transports minerals b y means o f transportation not a p p r o v e d b y the Commission, commits an offence, and upon conviction, s h a l l be liable to a fine equivalent to three times of the value of the minerals involved. (2) In addition to penalty prescribed under subregulation (1), the court shall order the m inerals i n v o l v e d t o be confiscated to the Government a n d revocation of the license, in respect of which the offence was committed. Reports to 32. The Bank shall prepare q u a r t e r l y r e p o r t s o f Minister the operations o f the warehouse and submit to the Minister. 16 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) FORMN0.1

FIRST SCHEDULE ________ ________ (Made under regulation 11 and 24(1)) ________ APPLICATION FOR TRANSPORTATION OF MINERALS TO/FROM THE GOVERNMENT MINERALS WAREHOUSE [To be filled in duplicate] To: Executive Secretary, Mining Commission (Full name of the Applicant) (Physical Address ofthe App/iamt) hereby apply for transportation of minerals from________________________________ to ---------- for the purpose of The minerals have the following particulars: SINO MINERAL VARIETY NET QUALITY CATEGORY WEIGHT PARAMETERS( E.g Purity, colour, clarity, 1. Cut etc) - 2. 3. 2. The source of minerals: (a) Mining Company _______________ (Full name and Licence number ofthe AppIiamt) (b) Minerals dealers _____________________ (Full name and Licence number ofthe Applicanl) 17 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) (c) Minerals broker _____________________________________________ _ (Full name and Licence number ofthe Appliamt) (d) Artisanal___________________________________________________________ (Full name and Identity number of the Appliaint) (e) Any other sources_____________________________________________________ (Full name and ldenlity number of the Applicant) Add detailsfor wtthdrawal 3. Proposed transportation details: Type of vehicle/ vessel/ craft:------------------ Owner------------- Tel No----------- Physical Address _____________________________________________________ Driver/pilot/captain's name _____________________Tel No_________ Dated this___________________day of ___________20 ______________ __________________ Signature ofApplicant 18 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) FORMN0.2 __________ (Made under regulation 12) __________ MINERALS TRANSPORTATION PERMIT This permit is issued to___________ (Full name) Of_________________________________________________________________________ (Full name) For transporting minerals from__________________________________________ to_________________________________________________________________________ This permit authorises the holder of license number/ National Identity number/ Import Permit number _ _ _ _ _ _ _ _ _ _ _ _ _ _ to transfer___________________ parcel(s) of minerals having the following particulars: Unique MINERAL MINERAL GROSS NET QUALITY SEAL SEAL reference GROUP TYPE WEIGHT WEIGHT PARAMETERS ( NUMBER: NUMBER: number E.g Purity, (1) (2) colour, clarity, - Cut etc) APPROVED TRANSPORTATION DETAILS: Type of vehicle/ Vessel/ Craft:___________________________________________ Owner____________________ Tel No:___________________________________ Physical Address________________________________________________________ Driver/pilot/captain's name__________________Tel No:____________________________ ISSUED BY: Name of the designated Officer of the Commission ______________________________ Signature ____________________________date ___________________________ 19 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.) FORMN0.3 ______ (Made under regulation 19 and 24(6)) ______ FOMU YA KUWEKA I KUTOA MADINI (MINERALS DEPOSIT IRE-DEPOSIT/WITHDRAWAL FORM) 1. KUTO.KA 3. TAREHE FROM KWA DATE 2. KWENDA 4. UZITO WA TO KWA JUMLA 5. MAELEZO YA MADINI , NYARA.KA NA LAKIRI/ MINERALS PARCELS, DOCUMENTS A. MAJINA AND SEALS DETAILS GROSS WEIGHTC. JUMLA YA PARCEL'S (Ct,1!.,Ksv YA UZITO NAME B. UZITO WA VIFURUSHI NET WEIGHT MADINI TOTAL NET (CT, G,KG) WEIGHT D. MAJINA (CT,G,KG) NAME YA OF DOCUMENTS E. NAMBA ZA NYARA.KA LL L2. L3. L4. SEAL LAKIRI (L) NUMBERS L5. L6. L7. L8. L9. 6. DHUMUNI LA MAKABIDHIANO/ PURPOSE FOR HAND OVER A. MKABIDHISHAJI: MINERAL RIGHT HOLDER: JINA/NAME, SIMUIPHONE, CHEOIT'ITLE, SAINI/ SIGNATURE B. A UTHORJZED OFFICER OF (JINA/NAME, SIMUIPHONE, THE COMMISSION: CHEOIT'ITLE, SAINI! SIGNATURE) C. OFFICER TANZANIA REVENUE (JINA/NAME, SIMUIPHONE, AUTHORITY: SIGNATURE) CHEOIT'ITLE, SAINI! D. OFFICER OF THE RELEVANT (JINA/NAME, STATE ORGAN SIMUIPHONE, SIGNATURE) CHEO/T'ITLE, SAINI/ F. SHAHIDINA. 4: AFISA WA WITNESS JESHI LA NO. 4:POLICE POLISI (TPF} OFFICER (JINA/NAME, SIMU/PHONE, SIGNATURE) CHEOIT'ITLE, SAINI/ E.WITNESS NA. 5 : WAREHOUSE (JINA/NAME, SIMU/PHONE, KEEPER SIGNATURE CHEO/T'ITLE, SAINI/ UNIQUE REFERENCE NUMBER * To be filled in triplicate 20 <!-- page break --> Mining (Government Minerals Warehouse ) GN. NO. 58 (Contd.)

SECOND SCHEDULE ______ (Made under regulation 22) ______ STORAGE FEES (a) TZS 200,000 in respect of the initial term of one month. (b) TZS 500,000 in respect of first extension of two months or portion thereof after the lapse of the initial term. (c) TZS 1,000,000 for every additional month or portion thereof after the expiry of the first extension of two months. (d) TZS 500,000 for conditional deposit. Dodoma, MWIGULU LAMECK NCHEMBA MADELU, 15th November, Minister of Finance and Planning 21 <!-- page break -->