The Mining (Mineral and Gem Houses) Regulations, 2019

(a) production;

(b) supporting infrastructure;

(c) traditional market;

(d) traditional routes; and

(e) any other factor as the Commission may determine. Regulation of 5.-(1) The Mineral and Gem Houses shall provide: Mineral and 2 <!-- page break --> Mining (Mineral and Gem Houses) GN. No. 418 (contd.) Gem Houses (a) a platform for mineral auction , minerals exchange, minerals warehouse and minerals clearing house; and (b) a one stop centre for all mineral transactions. (2) Subject to the Act, the Commission may issue general or specific directives to the Mineral and Gem Houses. (3) Without prejudice to sub regulation (2), the Mineral and Gem Houses shall operate and adhere to the following principles: (a) transparency; (b) publicity; (c) fairness; (d) continuity; and (e) protection of legitimate rights and interests of the people conducting business. Sale at the 6.-(1) A person who wishes to buy or dispose of mineral Mineral and may do so through the Mineral and Gem Houses. Gem Houses (2) Notwithstanding sub-regulation (1), holders of mining licence and special mining licence may dispose of minerals extracted from respective licenced areas at the Mineral and Gem Houses. (3) Artisanal and Small scale miners who dispose of minerals through the Mineral and Gem houses shall be Caps 332 and 148 exempted from paying withholding tax and Value added tax (VAT) in accordance with the Income Tax Act, and the Value Added Tax respectively. (4) A licenced broker shall be allowed to buy or acquire minerals in designated buying stations and to sell or dispose of minerals so acquired to a licenced dealer at the Mineral and Gem Houses (5) A person who contravenes the provision of sub- regulation (1) commits an offence and shall, be liable to a fine equivalent to three times of the value of the mineral involved. (6) In addition to penalty prescribed under sub-regulation (5), the court shall: (a) order the convict to pay all taxes, royalties or other charges that would have been payable in accordance with these Regulations; and (b) order the minerals involved to be confiscated to the Government and revocation of the licence, in respect of which the offence was committed. 3 <!-- page break --> Mining (Mineral and Gem Houses) GN. No. 418 (contd.) Powers to set 7.-(1) The Commission shall have powers to set a minimum minimum price for each type of the mineral to be transacted at the Mineral price and Gem House. (2) In setting the minimum price, the Commission shall design a formula in accordance with the standard prices obtaining in domestic and international markets as well as national interest. (3) An authorized officer shall ensure that the price of minerals at all times does not fall below the minimum prices. PART III ACQUISITION, TRANSPORTATION AND STORAGE OF MINERALS Declaration of 8.-(1) A person other than a mineral right holder, holder of minerals minerals import permit, a licensed dealer or licensed broker or who is in possession of minerals shall be required to declare such minerals to the Commission. (2) Upon declaration, the Commission shall allow the declarant to transport or trade or dispose such minerals in accordance with the Act. (3) A person who fails without reasonable cause to declare the acquired minerals shall be deemed to commit an offence under subsection (1) of section 18 to the Act and shall, be liable under subsection (4) of section 18 to the Act. Acquisition 9.-(1) A person shall be considered to have acquired mineral and if possession of the minerals have come into ownership by any registration of minerals of the following means: (a) importation of minerals from outside Mainland Tanzania; (b) extracting minerals through mining activities; or (c) any other legal means not specified under these Regulations. (2) The Commission may register and recognize a person as qualified to trade in the Mineral and Gem Houses for an acquired minerals as it may direct. Importation 10.-(1) A person who imports minerals in the Mainland and storage of Tanzania may be required to use warehouses for storage of minerals imported minerals pending disposition or processing. (2) For the purpose of sub – regulation (1), every person who is in possession of minerals, other than minerals which are in secured storage facility of the owner or possessor pending transfer to the warehouse, may be required to deliver the minerals in the warehouse for storage. 4 <!-- page break --> Mining (Mineral and Gem Houses) GN. No. 418 (contd.) Duty of the 11. The owner of the warehouse in which the minerals may warehouses be kept for storage shall have the duty to ensure that the owner minerals are stored in a manner that does not, in any way, jeopardise the quality or quantity of the minerals. Disposing of 12.-(1) The minerals in the Mineral and Gem Houses may minerals be disposed of by selling. (2) Any disposal of minerals under these Regulations shall be subject to payment of royalties, taxes or other charges, if any, as provided for in any written law. Transportation 13. A person shall not transport or transfer minerals from of minerals one point to another within the country without first getting within the country written authorization from the Commission. \Refinery, 14.-(1) The owner or operator of the refinery or elusion or elusion and VAT leaching plant shall not refine any minerals or mineral leaching plant concentrates unless there is a written authorization from the Commission with regard to such minerals or mineral concentrates. (2) The owner or operator who contravenes the provisions of sub regulation (1) shall be deemed to commit an offence under subsection (1) of section 18 to the Act and shall, be liable under subsection (4) of section 18 to the Act. PART IV OPERATION OF MINERAL AND GEM HOUSES (a) Auction Centres Minerals 15.-(1) The Commission shall organize mineral auctions. auctions (2) In organizing mineral auctions, the Commission shall: (a) set date and time for inspection of minerals which are subject to auctions in the warehouses; (b) set date and time for mineral auctions; and (c) determine the manner in which the auction may be conducted. Requirements 16.-(1) A participant at the mineral auction shall be required for to present to the Commission receipt of payment of fees for participating in auctions participating in the auction. 5 <!-- page break --> Mining (Mineral and Gem Houses) GN. No. 418 (contd.) (2) A company or firm participating in the mineral auction may appoint up to three persons in the mineral auction one of whom shall be a representative authorized to place bids. (3) The Commission shall determine the rates of fees to be paid by participants at the mineral auction. Viewing of 17.-(1) A participant at the mineral auction who intends to minerals buy minerals may view the minerals on the date, time and venue as determined by the Commission. (2) Pursuant to sub regulation (1), each registered buyer may bring one or more than one staff for purpose of viewing the minerals. (3) The process of viewing minerals shall be on first come first served basis. Bidding 18.-(1) During the bidding for the buying of minerals, a participant depending on preference, may offer to buy all or some of the minerals. (2) The buyer shall be required to fill in the bidding Form BF.4 specified in the Schedule to these Regulations and make declaration committing to pay the amount in relation to the disposing price without delay. Return of bids 19.-(1) The bid form shall be returned to the Commission in a sealed envelope not later than 15.30 hours on the day set as deadline for submission of the bid form. (2) The Commission shall not accept a bid form from any person after the time prescribed under sub regulation (1). Announcement 20.-(1) The Commission shall announce eligible buyers on of auction the same day of the auction after completion of evaluation or results analysis of the submitted bid forms. (2) The buyer with the highest price shall be announced as a winner and be offered to buy the relevant minerals. (3) Notwithstanding the provisions of sub regulation (2), where it appears that a buyer has succeeded to place the highest bid for all lots of minerals offered for sale in the mineral auction, such buyer shall be allowed to buy only seventy five percent of the mineral concerned unless other buyers fails to reach the price offered by the buyer. Withdrawal of 21. The Commission shall have the right to withdraw at any minerals from time during the auction any minerals prepared for sale, if the 6 <!-- page break --> Mining (Mineral and Gem Houses) GN. No. 418 (contd.) the auction Commission is not satisfied with the price offered or by any reason as it may be determined by the Commission. Refusal to 22.-(1) The winning bidder shall not refuse to pay for the honour the bid mineral unless the Commission consents upon being satisfied with the reasons advanced by the bidder. (2) Where the winning bidder refuses to pay for the mineral without consent of the Commission, such bidder shall be prohibited from participating in any mineral auction session conducted in the mineral auction centres for the period of one year. (3) In addition to the prohibition, the winning bidder shall be liable to pay a fine of not less than ten million shillings. Settlement of 23. The winning bidder shall be required to: payments (a) settle payment before the deadline as may be specified in the bid form; and (b) pay royalty, taxes and other fees in accordance with the provisions of the Act. (c) Mineral Exchange Trading on the 24.-(1) Trading on the mineral exchange shall take place on mineral the physical trading floor of the Mineral and Gem Houses or on exchange an electronic platform provided by the Commission. (2) The mineral exchange shall be open for trading during such days and hours as the Commission shall determine. (3) Notwithstanding the provisions of sub regulation (2), the Commission may, under exceptional circumstances, close the trading in any or all contracts for more than one trading days. Commodity 25.-(1) There shall be a Commodity Register to be Register maintained by the Commission in which particulars of the minerals for trading shall be duly recorded. (2) The Commodity Register shall be accessed by any person eligible to trade in the Mineral and Gem Houses in physical or electronic form. Particulars 26.-(1) Any person authorized to dispose of minerals in the relating to Mineral and Gem Houses shall submit a warehouse receipt minerals for trading issued to that person by the warehouse. (2) An uthorized officer of the Mineral and Gem Houses shall record particulars contained in the warehouse receipt in the Commodity Register. 7 <!-- page break --> Mining (Mineral and Gem Houses) GN. No. 418 (contd.) (3) Without prejudice to sub regulation (2), the Commodity Register shall contain the following: (a) personal particulars of the seller; (b) name and address of the warehouse in which the mineral is stored; (c) particulars of the mineral in terms of its identification number, type, grade, weight, quality and place of origin; (d) information relating to taxes or charges, if any, that has been paid by the seller; and (e) any other information as the Commission may determine. Requirements 27.-(1) Any person authorized to buy minerals in the relating to Mineral and Gem Houses shall be required to provide the buyer following: (a) personal particulars; and (b) particulars of the mineral intended to be bought. (2) An authorized officer of the Mineral and Gem House shall record particulars referred to under sub-regulation (1) in the Commodity Register. Inspection of 28.-(1) Where the buyer intends to buy a mineral recorded the minerals under Regulation 27, an authorized officer of the Mineral and Gem house shall issue the buyer with an inspection permit. (2) The inspection permit issued under sub regulation (1) shall authorize the buyer to enter into the warehouse and inspect the mineral he intends to buy. (3) Without prejudice to sub regulation (2), the buyer shall be required to observe and adhere to the rules and procedures of the warehouse relating to inspection of minerals. Mineral 29.-(1) Where, after inspection, the buyer is satisfied as to trading the price offered by the seller and particulars of the mineral, the buyer may contact the seller and inform the seller of the intention to buy such minerals. (2) Upon being informed and agree on the intention of the buyer, the seller and the buyer shall inform an authorized officer at the Mineral and Gem Houses on the agreement for clearing arrangements. (c) Clearance Functions of 30. The clearing house shall ensure that: 8 <!-- page break --> Mining (Mineral and Gem Houses) GN. No. 418 (contd.) the clearing (a) mineral transactions are smooth and each party involved in house the transaction receive what is due; (b) minerals are delivered to the buyer in a quantity and quality agreed upon by the buyer and seller; (c) parties involved in the transactions observe and adhere to the principles and procedures laid down; and (d) transactions are settled by payment and delivery. Clearance of 31.-(1) All mineral transactions in the Mineral and Gem transactions Houses shall be cleared, registered and settled by the clearing house. (2) No clearance shall be effected unless: (a) the buyer has deposited the money due to the seller as the clearing house shall determine; (b) all applicable taxes, royalty, fees and other charges have been paid; and (c) all conditions, necessary for transportation or exportation of minerals, have been fulfilled. (3) Where the clearing house is satisfied that the conditions under sub regulation (2) have been fulfilled, it shall instruct in writing the warehouse to effect transfer of ownership from the seller to the buyer. Declaration for 32. A person who imports minerals to Tanzania Mainland importation of for trading in the Mineral and Gem Houses shall be required to minerals comply with the provisions of section 86A of the Act. PART V GENERAL PROVISIONS Unauthorized 35. Any conduct regarded as unauthorized trading of trading of minerals under section 18 of the Act shall correspondingly minerals apply in these Regulations. Issuance of 36.-(1) The Minister may issue directives to the Commission directives of general or specific nature pertaining to proper or smooth operations of the Mineral and Gem Houses. (2) For the purpose of sub-regulation (1), all participants in the Mineral and Gem Houses shall be bound by the directives issued under sub-regulation (1). 9 <!-- page break --> Mining (Mineral and Gem Houses) GN. No. 418 (contd.) 10 <!-- page break --> Mining (Mineral and Gem Houses) GN. No. 418 (contd.) ______ SCHEDULE ________ (Made under Regulation 18(2)) FORM BF.4 BID FORM Company Name:…………..…………………………………………………………………….. TIN No:…………………………………….…………………………………………………… Buyer Name:………………………………….…………………………………………………. Buy Form Number:………………………………….…………………………………………… Schedule Mineral Details Weight Amount(USD) Category Proposed buy price in words:………………………………………………………………….. Declaration: I ………………………………. The buyer at the minerals market of………….. in………….Region do hereby declare that I am capable to pay the amount of USD………. Upon announcement of an eligible buyer by the Commission. Signature:……………………….. date:…………………………… Dodoma, DOTO M. BITEKO, 10th May, 2019 Minister for Minerals 11 <!-- page break -->