sesa of the tanzanian sustainable management of mineral resources...

SESA of the Tanzanian Sustainable Management of Mineral Resources Project

Final Report

May 2013

Prepared by LUC in association with GEUS & Matrix Development Consultants

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E2138 V2

Project Title: SESA of the Tanzanian Sustainable Management of Mineral Resources Project

Client: Ministry of Energy and Minerals, Government of Tanzania

Version Date Version Details Prepared by Checked by Approved by Principal

1 21/12/12 Draft Final Report LT, PN, SW, JT LT PN

2 02/05/13 Final Report LT, PN, SW, JT LT, NJ PN, NJ

SESA of the Tanzanian Sustainable Management of Mineral Resources Project

Final Report

Prepared by LUC in association with GEUS & Matrix Development Consultants May 2013

Planning & EIA Design Landscape Planning Landscape Management Ecology Mapping & Visualisation

LUC BRISTOL 14 Great George Street Bristol BS1 5RH Tel:0117 929 1997 Fax:0117 929 1998 [email protected]

Offices also in: London Glasgow Edinburgh

FS 566056 EMS 566057

Land Use Consultants Ltd Registered in England Registered number: 2549296 Registered Office: 43 Chalton Street London NW1 1JD LUC uses 100% recycled paper

Contents

1 Introduction 3 Introduction to the Minerals Sector 3 The Sustainable Management of Mineral Resources Project 5 Purpose of the Report 5

2 The SESA Process 7 The Role of SESA 7 Methodology Used 8

3 Background to the Minerals Sector 11 Overview of Tanzania’s Mineral Resource 11 Overview of Tanzania’s Mining Operations 12 Background Context to the Tanzanian Mining Sector 14

4 Stakeholder Analysis 21 Introduction 21 Description of Key Stakeholders 21 Analysis of Stakeholder Roles 28

5 Environmental Issues 34 Key Issues 34

6 Social Issues 40 Key Issues 40

7 Economic Issues 46 Key Issues 46

8 Legislation and Institutional Issues 50 Key Issues 50

9 Workshop Proceedings 55 Regional Workshops 55 National Workshop 62

10 Analysis 64 Introduction 64 Environmental Issues - LSM 64 Environmental Issues - ASM 67 Social Issues - LSM 68 Social Issues - ASM 69 Economic Issues - LSM 73 Economic Issues - ASM 76 Legal, Institutional and Financial Issues – LSM and ASM 78

11 Priorities for Action 82 Introduction 82 Theme A: Finance 84 Theme B: Institutional Structures 84

Final Report 1 07 May 2013

Theme C: Community Development 86 Theme D: Planning 87 Theme E: Awareness Raising 87 Theme F: Monitoring and Enforcement 88

12 Policy Matrix and Action Plan 89 Introduction 89 Theme A: Finance 89 Theme B: Institutional Structures 92 Theme C: Community Development 95 Theme D: Planning 98 Theme E: Awareness Raising 99 Theme F: Monitoring and Enforcement 101

Appendix 1 1 Workshop Attendance and Proceedings 1

Appendix 2 1 National Workshop Attendance 1


1 Introduction

1.1 This document forms the final report of the Strategic Environmental and Social Assessment (SESA) of the Minerals Sector in Tanzania. The SESA is a component of the Ministry of Energy and Minerals (MEM) Project for the Sustainable Management of Mineral Resources. Its primary goal is to assist in raising environmental, social and economic standards in the minerals sector by influencing the priorities of the major institutions and the ways in which policy, legislation and regulations are put into effect.

1.2 The Government of Tanzania has a number of aims in undertaking a Strategic Environmental and Social Assessment. These are:

• satisfying its own legislation relating to the impact of policies, plans and programmes on the environment and social and local economic welfare;

• meeting the requirements of the World Banks’ Environmental and Safeguard policies; and

• achieving higher standards of governance, through adopting the principles of good practice in Strategic Environmental & Social Assessment.

1.3 Specific objectives of the SESA are to:

1) Establish the interests and concerns of major stakeholders in relation to current performance of the minerals sector in terms of environmental, social and local economic standards; and

2) Provide recommendations and guidance on: a. Improving environmental, social and local economic performance within the

minerals sector; b. Introducing institutional reforms; and, c. Improving governance and social accountability.

1.4 The SESA began in July 2012 and has been divided into five phases of work.

• Phase 1: Inception Phase and Situation Analysis

• Phase 2: Stakeholder Analysis

• Phase 3: Regional Stakeholder Workshops

• Phase 4: Action Planning

• Phase 5: Reporting

1.5 This report forms the final phase of the project (Phase 5) summarising the work undertaken during the first four phases of the SESA, as a permanent record of progress and to present the recommendations that have come out of the SESA process.

Introduction to the Minerals Sector

1.6 Over the last decade there has been a surge in national and international interest in mineral development in Tanzania and other Sub-Saharan African economies. Prospecting and development activity has been stimulated by rising world prices for ferrous and non-ferrous metals, energy minerals including coal, oil and gas and uranium, precious stones and rare earths where world scarcity has prompted high levels of competition. The traditional interests of industrial majors from North America, Europe and Australia have been matched by Eurasian investors including Russian and Chinese companies and their respective governments.

1.7 While metal prices have generally risen faster than overall economic indicators the world-wide recession, which was triggered in 2008, has also depressed trade and construction resulting in


temporary falls in the price of some commodities. These fluctuations reflect the volatility of the mining and minerals sector and fuel the demands from mining companies for tax concessions and a favourable financial environment. Conversely, many NGOs and Community groups argue that Governments are over-generous in their desire to attract investors and enter into secret contracts which provide inadequate economic returns to those local areas most affected by the development.

1.8 In the 1990’s legal and regulatory frameworks in many countries were ill-equipped to deal with new global financial models and technologies in mining. This led to significant reforms in all continents and there has been significant support from international partners in assisting individual countries to update their mineral laws, policies and regulatory frameworks (for example in Mozambique, Malawi, Uganda and Sierra Leone). Tanzania has, itself, made great progress in repealing the 1997 Minerals Act and replacing it with the 2010 Act (No 10) and also publishing a New Minerals Policy.

1.9 Formulation of new legislation is a critical first step in re-structuring the minerals sector in any country, but international experience shows that follow-up action in expanding staff and strengthening capacity in regulatory authorities and agencies is equally essential. So to, is developing the skills and competence of civil society representatives, NGO’s and the popular and technical media to ensure that debate on all aspects of mineral planning from environmental and social protection to wealth generation takes place in a well-informed, constructive and positive atmosphere.

1.10 The Terms of Reference for this project contain a very significant observation that in Tanzania mineral products have risen from 1% to 52% of all exports over the last decade with an average annual growth rate of 13.74% but the contribution to the economy has remained at around 2.7% (2007 data). This suggests that while mining activity is increasing rapidly in the country, value retention remains poor.

1.11 It is possible to overstate such concerns because mineral development can take time to stimulate other economic sectors and also benefits Gross Domestic Product (GDP) in many other ways through direct and indirect multiplier effects. For example, in Tanzania the creation of new opencast coal mines is providing the potential for increased electric power generation and the expansion of the national grid network which can be highly significant in areas which currently have a relatively poor power infrastructure. However, such figures have to be improved if the minerals industry and government is to reassure local stakeholders, (many of whom have legitimate or perceived social and environmental concerns about adverse consequences of mining on their communities) that local economies will benefit from job creation, improved access and transport and an overall increase in manufacturing and related industrial activity.

1.12 Reference to the Strategic Management of Mineral Resources scoping study1 findings and recent literature on mining activity in Tanzania highlights the nature of social, local economic and environmental concerns which range from restrictions on access to land to pursue traditional livelihoods, involuntary resettlement, security issues and ‘unfair’ labour policies to pollution of water courses, land contamination and conflicts with wildlife. The issues that are cited here have all been raised in recent publications and represent only one aspect of a many-sided debate in which industry and government have equally valid concerns about topics like mine health and safety, taxation and investment strategies.

1.13 It is important to stress here that the role of SESA is to provide an impartial, objective and focused lens through which the views of all stakeholders can be taken into consideration in terms of the scope and priorities for tackling institutional, policy, governance and legal gaps in the existing system.

1 MEM, CEEST (April 2009) Environmental and Social Management Framework and Initial Scoping Study for the Strategic Management of Mineral Resources Project.


The Sustainable Management of Mineral Resources Project

1.14 The Sustainable Management of Mineral Resources Project (SMMRP) is financed by an IDA credit of US$50 million equivalent, with US$ 5 million equivalent co-financing from the Government of the United Republic of Tanzania.

1.15 The Project focuses on spurring local economic development through mineral sector development, reducing conflict and improving management of environmental and social issues related to mineral sector development, and increasing growth and enhancing competitiveness in the mining sector.

1.16 The Project Development Objective of SMMRP is “to strengthen Tanzania’s capacity to manage the mineral sector to improve the benefits for Tanzania and Tanzanians, and enhance private investment.”

1.17 The project has four components, each with a number of sub-components, namely:

A – Improving the Benefits of the Mineral Sector for Tanzania, artisanal and small-scale mining, local economic development and skills development;

A1: Baseline Studies

A2: Extension Services for Artisanal and Small-Scale Mining

A3: Targeted Programs for the Development of Specific Industrial Minerals and Value Addition in Gemstones

A4: Financial Assistance to Small-Scale Miners and Value Addition Activities

A5: Linkages between Mining and the Local Economy

A6: Human Resources Development for the Mining Industry

B – Strengthening Governance and Transparency in Mining;

B1: Legal Reform and Fiscal Transparency

B2: Institutional Capacity Building

B3: Improving the Mining Cadastral Information Management System

B4: Environmental and Social Management

C – Stimulating Mineral Sector Investment;

C1: Strengthening of the Geologic Infrastructure

C2: Future role of State Mining Corporation (STAMICO)

C3: Mineral Sector Investment Information and Promotion

D – Project Coordination and Management.

1.18 The Strategic Environmental and Social Assessment (SESA) lies under project component B4 – Environmental and Social Management. Other sub-components of B4 include strengthening the Environmental Management Unit; conducting a PSIA; establishing an environmental database linked to mining cadastre and MIS; preparing and updating environmental and social guidelines and codes of practice; environmental and social awareness programs in small and large scale mining areas; development of a framework for abandoned mines and strengthening environmental monitoring capacity.

Purpose of the Report

1.19 This Final Report sets out the findings of the SESA. The report is divided into eight chapters covering the following:

• Chapter 2 provides an explanation of the SESA process and method used; • Chapter 3 gives a background to the minerals sector in Tanzania;


• Chapter 4 summarises the Stakeholder Analysis; • Chapter 5 covers the key Environmental Issues facing the minerals sector; • Chapter 6 covers the key Social Issues facing the minerals sector; • Chapter 7 covers the key Local Economic Issues facing the mineral sector; • Chapter 8 covers the key Legal and Institutional Issues facing the minerals sector; • Chapter 9 provides a summary of the workshop findings and proceedings; • Chapter 10 undertakes an analysis of the priorities for the minerals sector; and • Chapter 11 sets out the recommendations and actions that are proposed for the minerals

sector.


2 The SESA Process

The Role of SESA

2.1 The overall objective of this assignment is to conduct a SESA of the SMMRP. Strategic Environmental Assessment “SEA” has been accepted internationally as a generic term which describes a family of assessment processes including Strategic Environmental and Social Assessment (SESA).

2.2 SEA refers to a range of “analytical and participatory approaches that aim to integrate environmental considerations into policies, plans and programmes and evaluate the inter linkages with economic and social considerations”. OECD-DAC (2006)

2.3 “Institution-centred SEA does not focus primarily on assessing potential (social and environmental) impacts and mitigating these impacts. Rather, it places special emphasis on improved governance and social accountability…. on a continuous basis as well as social learning which is essential in order to raise more attention to environmental issues and to continuously improve the design of public policies”. The World Bank (2005).

2.4 The term “SESA” is regularly used interchangeably with SEA and I-SEA. However, it can also be applied as a safeguarding process to the review of investment decisions.

2.5 The World Bank identifies SESA as one of a range of instruments that can be used to satisfy the Bank’s requirement (contained in Operational Policy 4.01 - Environmental Assessment) for Environmental Assessment (EA). This policy states that Environmental Assessments are to be undertaken of projects proposed for Bank financing to help ensure that they are environmentally sound and sustainable, and thus to improve decision making. Depending on the project, other instruments that can be used, individually or in combination, to satisfy the Bank’s requirements include: environmental impact assessment (EIA), regional or sectoral EA, environmental audit, hazard or risk assessment, environmental management plan (EMP) and environmental and social management framework (ESMF). When the project is likely to have sectoral or regional impacts, sectoral or regional EA is required.

2.6 The Operational Policy provides the following definition of SESA:

“An instrument that describes analytical and participatory approaches that aim to integrate environmental and social considerations into policies, plans and programs and evaluate their inter linkages with economic considerations.”

It also states that the term "Strategic Environmental Assessment" or "SEA" may also be used.

2.7 SEAs are also required by Tanzanian Law under certain circumstances by Part VII of the Environmental Management Act (EMA), No 20, 2004, including:

• When preparing a Bill which is likely to have an effect on the management, conservation and enhancement of the environment or the sustainable management of natural resources;

• When promulgating regulations, policies, programmes and development plans; and

• When any major mineral or petroleum resource is identified or when a major hydro-electric power station or water project is being planned.

2.8 The Act requires the following information to be included in an SEA for a policy, Bill, legislation, strategy, programme or plan:

• A full description of the policy, Bill, legislation, strategy, programme or plan being considered;


• The identification, description and assessment of the positive and negative effects of the implementation of the proposed document on the environment and the sustainable management of natural resources;

• The identification, description and assessment of the likely effects of alternative means to meet the objectives of the proposed instrument;

• The identification, description and assessment of a range of practicable measures that could be taken to avoid, mitigate or remedy any adverse effects that may result from the implementation of the proposed policy, Bill, legislation, strategy, programme or plan being considered.

2.9 On completion the SEA must be submitted to the Minister, who will direct the Division of the Environment - Vice Presidents Office (DofE) to review it. The DoE must then provide the Minister with his opinion, which will be forwarded to the document drafting team for them to incorporate the comments and make the necessary revisions. If, after the document has been revised, the Minister is still of the opinion that the environmental concerns raised during the SEA have not been adequately addressed, he/she must raise an objection within 30 days with the drafting team of said document.

Methodology Used

2.10 Whilst this sector wide SESA does not fall under the requirements for undertaking a SEA under the 2004 Act, in order to help ensure alignment with other SEA’s being undertaken this SESA has covered both the World Bank’s requirement for environmental and social safeguarding under OP 4.01 and incorporated the requirements of the EMA 2004 for undertaking SEA. The resulting SESA is a fusion of safeguarding environmental and social conditions, and positively striving to integrate environmental and social considerations into the sector at the same time as improving governance and social accountability.

2.11 This SESA has produced a set of proposed solutions and key recommendations along with a prioritised set of actions. These will enable MEM and other key stakeholders to raise awareness and activity on environmental and social issues within the Minerals Sector within Tanzania.

2.12 The methodology devised by the Project Team in order to deliver the Terms of Reference comprised five main phases of work. These were:

• Phase 1: Inception Phase & Situation Analysis

• Phase 2: Stakeholder Analysis

• Phase 3: Regional Stakeholder Workshops

• Phase 4: Recommendations and Action Planning

• Phase 5: Reporting

2.13 The work undertaken under each of the Phases is described in detail below.

Phase 1: Inception Phase & Situation Analysis

2.14 The Inception Meeting for the SESA was held at the Ministry of Energy and Minerals (MEM) at 10.00 on the 9th July 2012.

2.15 The first phase of work for the SESA involved undertaking extensive stakeholder interviews to understand the context for the project. Over 20 interviews were held with key stakeholders, the majority of which were undertaken between the 9th and 13th July 2012.

2.16 Another key strand of work was to review the progress being made on other elements of the SMMRP including the Environmental and Social Scoping Study which the Government Commissioned to support the SMMRP. Other relevant literature was also reviewed to ensure a thorough understanding of the environmental, social and economic context and key issues facing the mining sector in Tanzania.


2.17 In addition to understanding the environmental, social and economic context to the mining sector, it was also critical to the SESA process to develop a close understanding of the way in which the institutional frameworks, political economy and power bases of major opinion-formers and decision-makers operate. Therefore an analysis of the Institutional and Political Economy context formed an important part of this process.

2.18 All of this work was drawn together to form the Situation Analysis. Chapters Four to Eight present this analysis for environmental, social, local economic and legal and institutional issues in turn. The issues identified in these chapters formed the basis of discussions in the regional workshops (Phase 3).

Phase 2: Stakeholder Analysis

2.19 One of the factors affecting the success of a SESA process is the level of understanding of the context within which key decisions are taken (or ignored). It is possible to have an exemplary set of mineral planning policies but for results on the ground to bear no relationship to the policy objectives due to lack of staff resources for implementation, or other human pressures. Good policies have to be backed by serious intentions for management, monitoring and enforcement. This part of the project therefore focused on examining the roles and influence of different stakeholders in decision making and implementation.

2.20 In order to establish whether policies or recommendations are capable of being implemented effectively, it was also necessary to look at the roles and capabilities of the different actors – from ministries and government agencies, through to local authorities, community leaders and NGOs. A stakeholder analysis was then undertaken to assess; the level of influence which each stakeholder was perceived to have in terms of policy formulation, and the degree of impact that the same bodies have on events on the ground. For example, it is possible for an organisation like MEM to have the dominant influence over wording of a policy on say artisanal mining licenses – but to have less practical impact than a large number of individuals who have no knowledge of the regulations but nevertheless control day to day events on the ground.

2.21 Stakeholder interviews that were undertaken during Phase 1 and subsequent stages of the SESA fed in to the Stakeholder Analysis which is presented in Chapter Three.

Phase 3: Regional Stakeholder Workshops

2.22 The third phase of work focussed on the delivery of four stakeholder workshops held in Mwanza, Arusha, Morogoro and Mbeya. The workshops were an opportunity for stakeholders to review key issues identified during the Situation Analysis (Phase 1, Chapters 4 – 8), prioritise these issues and then identifying possible actions to address these priorities.

2.23 Chapter 4 discusses in more detail the workshops including the purpose, roles and responsibilities, timetables and invitees, as well as the key conclusions and recommendations that came out of the workshop.

Phase 4: Recommendations and Action Planning

2.24 The use of policy matrices and action plan development is one of the most effective ways for a SESA to engage stakeholders and reach agreement on the priorities for action. The priorities for action represent the specific outputs and outcomes of the SESA process in terms of identifying and filling gaps in existing institutional frameworks.

2.25 Through drawing together the priorities and actions identified in the regional workshops (Phase 3) and during stakeholder interviews and the Situational Analysis (Phase 1), a series of high level cross cutting proposed solutions were identified. For each of these high level proposed solutions more detailed recommendations have been drawn out along with the actions required to address each recommendations. The organisation that would need to be responsible for leading that action, those organisations or bodies who would need to support the lead organisation, the length of time necessary to implement each action and the relative scale of costs of each action have also been considered.

2.26 A National Workshop was held towards the end of this phase of work on the 5th December in Dar es Salaam with key national level stakeholders in order to further discuss and refine the emerging recommendations and actions.


Phase 5: Reporting

2.27 This report represents the final phase of the study, drawing together the findings from the previous four phases of work and presenting the final recommendations in an easily understandable form to stakeholders and interested parties.


3 Background to the Minerals Sector

Overview of Tanzania’s Mineral Resource

3.1 Tanzania is ranked fourth in Africa in terms of diversity and richness of mineral resources, after South Africa, Democratic Republic of Congo and Nigeria.2 Minerals that can be found in Tanzania are classified into five groups as follows:-

• Metallic minerals group – this includes gold, iron ore, nickel, copper, cobalt and silver; of these, gold is the most important and has been mined in Tanzania since the pre-colonial era. In recent years, Tanzania has risen from being an insignificant gold producer in the early nineties to become the third largest producer of gold in Africa after South Africa and Ghana. The country currently produces over 50 tonnes of gold per annum.2

• Gemstone groups – this includes diamonds, tanzanite, rubies, garnets, tourmaline, sapphires, alexandrite, topaz and emeralds.

• Industrial minerals group – clays, limestone, soda ash, gypsum, salt and phosphate; the development of these minerals is still in its infancy. However, limestone, clay and gypsum are consumed in local industries.

• Energy-generating minerals - including low- sulphur coal and uranium; and

• Construction minerals like gravel, sand and dimension stones.3 There are a wide variety of rocks in Tanzania. These include granite that exists in a variety of colours i.e. pink, grey and black. These are mostly found in Dodoma, Mbeya, Morogoro, Mwanza, Singida, and Tabora regions.

3.2 Table 3.1 presents Tanzania’s proven mineral reserves by type and amount in 2007.

Table 3.1 Proven Mineral Reserves in Tanzania

Type of Mineral

Amount

Gold 2,222 tonnes Nickel 209 million tonnes Copper 13.65 million tonnes Iron Ore 103.0 million tonnes Diamonds 50.9 million carats Tanzanite 12.60 tons Limestone 313.0 million tonnes Soda Ash 109 million tonnes Gypsum 3.0 million tonnes Phosphate 577.04 million tonnes Coal 911.0 million tonnes

Source: Report of the presidential mining review committee to advise the government on oversight of the mining sector, Volume 2. The United Republic of Tanzania, April 2008.

2 Society for International Development, The Extractive Resource Industry in Tanzania – Status and Challenges of the Mining Sector (2009) 3 Bomani Report (Report of the presidential mining review committee to advise the government on oversight of the mining sector) April, 2008


Source: Map extracted from MEM Presentation at World Bank Fiscal Issues Workshop, Washington DC, 5 October, 2006

Overview of Tanzania’s Mining Operations

3.3 The mining sector in Tanzania includes both small–scale operations characterised by the deployment of manual and rudimentary technologies (sometimes referred to as Artisanal Mining) and large-scale mechanised mining.

Current Large Scale Mining Operations in Tanzania

3.4 Much of the recent success of Tanzania’s mining industry is attributed to the development of large scale mining operations, which use advanced mining and mineral processing technologies. At present there are several big mines which include six gold mines, one diamond mine, one coal mine and one for tanzanite. In addition several new projects at different development stages are proposed.

• Bulyanhulu Gold Mine –Barrick Gold - Kahama district, Shinyanga

• North Mara Gold Mine-Barrick Gold - Tarime district, Mara region

• Tulawaka Gold Mine – Pangea Minerals - Biharamulo district, Kagera region

• Buzwagi Gold Mine – Barrick Gold - Kahama district, Shinyanga

• Geita Gold Mine - Anglogold Ashanti - Geita, Mwanza Region

• Golden Pride Gold Mine - Resolute Ltd - Nzega district, Tabora region

• Tanzanite One Mine – Tanzanite One Mining Ltd - Simanjiro district, Manyara region


• Mwadui Diamond Mine – Petra Diamonds - Kishapu district, Shinyanga region

• Kabanga Nickel Project – Xstrata - Ngara district in Kagera region

• El-Hillal Minerals Diamond Mine – Williamson Diamond Mining - Mwadui, Shinyanga

• Buhemba Gold Mine – Meremeta Ltd

• Kitongo Gold Mine – Gallery Gold Ltd

• Golden Ridge Gold Mine – Barrick Gold

• Nyakafuru Gold Mine - IAMGOLD

• Mchuchuma Coal Project – National Development Corporation & SHCL– Ludewa District, Njoluma region

• Liganga Iron Ore Project – National Development Corporation & SHCL - Ludewa district, Njoluma region

• Kiwira Coal Mines - STAMICO

• Ngaka Coal Project – National Development Corporation & Pacific Corporation East Africa – Mbinga District, Ruvuma Region

Current Small Scale Mining Operations in Tanzania

3.5 In addition to these big mining operations Artisanal and Small Scale Mining (ASM) is incredibly important in Tanzania and ASM remains the greatest employer in the mining industry in Tanzania employing about 800,000 people while the total number of people employed by large scale mines is estimated at 10,000 people.

3.6 The Mining Act of 2010 doesn’t provide a definition of Artisanal and Small Scale Mining (ASM), although Section 15 and Section 16 give a definition of Designated Areas which are areas to be exclusively used by Small Scale Miners who have a Primary Mining License (PML), (see Section 54-58 in the Act).

3.7 Broadly speaking, ASM refers to mining by individuals, groups, families or cooperatives with minimal or no mechanisation, often in the informal (illegal) sector of the market. In some countries a distinction is made between ‘artisanal mining’ that is purely manual and on a very small scale, and ‘small-scale mining’ that is more mechanised and on a larger scale. In this report we will use the terminology Artisanal and Small Scale Mining (ASM) to cover both formal miners, meaning Small Scale Miners (SSM) who have a primary mining license (PML), and those who do not have a license.

3.8 Since 2004 the Tanzanian Government has set aside designated areas exclusively for miners having a Primary Mining License amounting to a total area of more than 589,613 ha. Areas allocated include:

Tarime District (Mogabiri, Garonga-Gibaso, Nyakunguru) 2067.6 Ha.;

Geita District (Rwamgasa and Nyarugusu) 103,479 Ha.;

Kishapu (Maganzo) 14,000 Ha.;

Kilindi District 153,990 Ha.;

Mvomero/Kilosa 272,864 Ha.;

Mpwapwa (Winza) 38,130 Ha.; and,

Simanjiro (Mirerani) 7,150 Ha.


Source: (MEM, 8 Dec 2011, from Tanzania Daima Dec 9 2011)

3.9 The latest baseline study shows that the greatest number of ASM (85%) is concentrated in Central, Central-Western and Lake Zones, which includes the Lake Victoria Goldfields, where most of Tanzania’s gold deposits occur. The gemstone mining ASM population is widely distributed across the country with 42.5% located in the Eastern, 27.6% in the Northern, 17.6% in the West and Central and 12.3% in the Southern Zones. 6.1% of the ASM population is engaged in salt, diamond and the emerging copper mining activities, with salt mining (panning) taking place mainly along the coastal plain. Other salt extraction activities are based in the western and central Tanzania, in the continental brine waters (e.g., the salt springs at Uvinza) and evaporite localities, (e.g. Itigi and Bahi Swamps). Diamond mining activities are based in central-western and central Tanzania (Shinyanga region) while copper is found in the central and western parts of the country.

3.10 The baseline survey indicates that Iramba, Musoma and Geita Districts contribute about 43.7% of the overall ASM population. Other significant districts include Kahama, Bukombe, Nzega, Chunya, Mpanda and Igunga, which together contribute 28.7% of the ASM work force in gold. Handeni and Kilindi are new fields of gold exploration and it is expected that the number of ASM work force will increase in these areas in future.

3.11 The baseline survey also shows that of the ASM population engaged in coloured gemstone mining, Simanjiro District (Blocks B and D of Minerani tanzanite mines) is the main employer, namely 19.6% of the entire ASM workforce is engaged in mining gemstones. A further four districts, Mpwapwa, Handeni, Tunduru and Korogwe employ over 42.4% of the ASM population engaged in coloured gemstone mining.

3.12 For the ASM population engaged in copper, diamond and salt mining, it was found that the Copper mining activities were restricted on the greenstone belt of Mpanda, Mpwapwa, Iramba and Kigoma, where gold is also found. Salt mining is established in Mtwara, Singida and Uvinza, and these districts also employ more than 53% of population engaged in gemstone mining. Diamond mines in Shinyanga Region engage almost all diamond miners.4

3.13 In recent years Tanzania has experienced minerals rushes in Seita, Ikuzi, Handeni and Bukombe districts. These centres are located remotely; the latter is located in farmland while Ikuzi is within a forest reserve. Studies show that temporary mine rush communities often develop into substantial villages. In Geita district for instance, Mgusu was a mine rush area but is now an established community.4

Background Context to the Tanzanian Mining Sector

3.14 Whilst large scale exploitation of mineral resources in Tanzania is a relatively recent phenomenon, mining in Tanzania has a long history. This history is explored in more detail below, including significant changes to policy and legislation that have influenced the scale of mining activities visible in Tanzania today.

Pre-Independence

3.15 The history of Tanzania is intertwined with the history of gold and mineral mining in East Africa. Over a thousand years ago Arabs settled on the Swahili coast and Arab and local traders mined and sold the country’s natural resources including gold, copper, iron, and salt. It was also primarily the lure of gold which drew the Portuguese to the region and they became the first Europeans to settle on the coast of east Africa in around 1500.

3.16 Alluvial gold has been mined for centuries by Tanzanian farmers, who have used it as an alternative source of income in the off season. However, it was in the nineteenth century that larger-scale mining first began to be organised in Tanzania, commencing with gold discoveries in the Lake Victoria area by German prospectors in 1894. The first mine to start producing gold was the Sekenke mine in Iramba district in 1909 with other mines then opening in the Geita and

4 MEM & World Bank, Baseline study on ASM Activities (Draft 2012).


Musoma districts. After the British had assumed colonial control in the 1920s, further substantial gold deposits were discovered in the Mwanza and Musoma districts and diamonds were discovered in the Mwadui area.

3.17 Just before World War II, gold output peaked at more than 100,000 ounces in 1938 and in 1939, gold was exceeded only by sisal as Tanganyika’s main export, earning almost £1 million.6

Independence to the 1990s

3.18 Mining activity scaled down during the Second World War, and prospecting for gold was banned; many gold mines became exhausted in the late 1960s and 1970s. This resulted in gold production almost ceasing in Tanzania in the early post-independence years, with only 84 ounces sold in 1975. Diamonds remained the most significant component of the mining sector.6

3.19 Following independence in 1961 the mining sector was increasingly brought under the direct control of the state. Public institutions such as the National Development Corporation (NDC) and STAMICO were established under the first comprehensive post-independence mining act which came into effect in 1979. These institutions were given full control of all mineral resources with legal powers to engage in exploration, prospecting, research and exploitation. Large-scale mining was very limited during this time and often had to be undertaken in partnership with these government corporations.

3.20 It was not until the late 1980s that the government embarked upon a process of privatisation and liberalisation, introducing economic reform programmes for mining and other sectors in 1987. The opening up of the economy and these early liberalising reforms of the authorities stimulated an artisanal mining boom that preceded the boom associated with the large international companies.6 Only at this point did the government recognise the need to control the activities of artisanal miners, including stamping out smuggling and capturing the revenues being generated. Licensing requirements were brought in for private gold and gemstone dealers with the aim of capturing the revenues they were generating through buying, cutting and exporting gemstones being produced by small scale miners.5

3.21 The progressive liberalisation of the economy that began in 1987 was accelerated by the government of Benjamin Mkapa from 1995. A new structure for the Tanzanian economy was pursued with the private sector playing a larger role and the Tanzanian Government actively sought to rejuvenate the mining industry.6 In the early 1990s, the Government of Tanzania created the Investment Promotion Centre under the Investment Promotion Policy, following which the mining industry began to expand and attract international investors.

3.22 This mineral sector restructuring programme, together with accumulated geo-data, helped to reveal the potential of Tanzania’s diverse mineral resources base and strengthened the sector considerably. Resolute Mining’s Golden Pride Mine in the Nzega district was the first of the major new mines to extract gold in 1998. Several other mining companies from Canada, United Kingdom, Australia and South Africa soon arrived in Tanzania, interested in gold exploration and development. Gold production by the end of 1998 had exceeded its previous peak in 1938 with an output level of 388,000 ounces (versus 48,000 ounces in the preceding year and zero in 1998).6

3.23 This growth was reinforced by new mining policy and legislation introduced in the late 1990s.

The Mineral Policy Act 1997 and the Mining Act 1998

3.24 The government passed the Mineral Policy Act (1997) with the aim of recognising the opportunity and importance of the mining sector to contribute fully to economic development. The Act identified the minerals sector as a priority economic sector and set out the direction for the next 25 to 30 years including:

• promotion of exploration and development of mining activities;

• improvement of small scale mining;

• reduction of poverty;

5 Dreschler, B Small Scale Mining and Sustainable Development within the SADC Region. Santren & ITDG. (August 2001) 6 MacDonald, C, Roe, A, The Challenge of mineral wealth: using resource endowments to foster sustainable development; Tanzania Country Case Study (July 2007) International Council on Mining and Metals


• enhancement of social and economic infrastructure;

• increasing foreign currency and government revenue;

• developing Tanzania into Africa’s Gemstone centre; and

• encouraging environmental safety and protection.

3.25 The Mining Policy of 1997 sought to promote investment in Tanzania’s mining sector through a range of investor incentives. It also emphasised the importance of community participation, including by outlining requirements for social impact assessments, mining–community partnerships, and by encouraging mining companies to procure local inputs wherever possible. It also pioneered the efforts of improving livelihood in small scale mining areas in Tanzania.

3.26 The Mineral Policy Act (1997) was implemented through the Mining Act of 1998 and Financial Laws (Miscellaneous amendments) Act, 1997, which contained a range of fiscal incentives to encourage investment, including 100% capital allowances, import duty reduction or exemptions (e.g. on fuel), as well as the right to transfer 100% of profits to overseas accounts. It also allowed 100% foreign private investments and provided for the Minister responsible for mining to enter into development agreements with mining companies. These agreements, including clauses that stabilise fiscal conditions, are binding on the United Republic of Tanzania.

3.27 However, the Mining Act of 1998 and the subsequent Mining Regulations of 1999 did not adequately address the pro-development policy statements contained in the Mineral Sector Policy of 1997. Some commentators such as Shivji noted that the Act did not include any requirements for local content, even when the relevant goods and services are produced locally, nor did it impose any conditions on other development objectives, such as training or value addition7. Although the mineral sector has seen rapid growth since the late 1990s the sector’s contribution to GDP and to revenue has remained low as well as poor integration with other sectors of the economy. Critics target both the levels of benefits received (e.g. limited tax contribution, limited local procurement) as well as the distribution of benefits received (e.g. few jobs for immediate communities, discrimination in social services provided) arguing that the Act was slanted too heavily in favour of international mining companies and against the interests of smaller businesses and local communities in Tanzania granting excessive incentives for investors and not effectively addressing the governance of mining licenses, in particular with respect to monitoring and oversight of license holders. Many local stakeholders have therefore argued that the sector is failing to deliver sufficient benefits to the country.

2000’s to Present Day

3.28 By the year 2000, Tanzania was producing 388,324 ounces of Gold. Since 2001, annual gold production has continued to grow rapidly, especially from the Geita (AngloGold/Ashanti) and Bulyanhulu (Barrick) mines, and now routinely exceeds one million ounces per annum. This is about half the value achieved in Ghana over the same period.

3.29 This significant increase in mining activity means that the sector now accounts for over 40% of the country’s exports, around 75% of its foreign direct investment and a rising share of government tax revenues (currently 3.6%) and GDP (currently around 3.2%).

3.30 UNCTAD’s 2008 World Investment Report showed that foreign direct investment (FDI) had significantly increased, with Tanzania now ranking as one of the top non-oil African countries in terms of FDI receipts, which was fuelled by the opening up and development of the country’s mining sector.

3.31 Other significant legislation, policies and initiatives in this period are described in more detail below.

7 Shivji, I.G. (2007a). Bloody Gold on my Land, Saturday Palaver, The Citizen, Dar es Salaam, 13 October 2007.


Key Legislation, Policy and Initiatives The Bomani Report (2008/9)

3.32 To address the issues identified with the 1997 Mineral Policy Act and 1998 Mining Act and review the legal, regulatory and fiscal framework of the mining sector, several studies were conducted by external consultants and the government itself. These included the Mineral Policy Review Committee (the Kipokola Report) of 2004 and in 2008, The Tanzanian Government commissioned a report to be undertaken by Tanzanian Judge Mark Bomani, to advise the government on oversight of the mining sector. The Committee was asked to:-

• go through mining contracts and other documents related to big mines;

• analyse the taxation system used in the mining sector;

• go through the government’s oversight system in large mining activities; and

• identify and analyse rights and responsibilities of the investor and the government.

3.33 The Bomani Commission presented its findings in July 2008 and made a series of recommendations to the government. These recommendations were the impetus for the reform of the 1998 Minerals Act, and included increasing royalties and government stakes in commercial companies, fewer tax exemptions for new investors, timely and fair compensation for communities displaced by mining, and the establishment of procedures for repairing environmental damage.22 It also called for strengthened compensation practices, noting that the reality differed markedly from existing legal provisions (highlighting the vulnerability of communities who often lack any information about their rights to compensation and how to calculate it – see Government of Tanzania 2008: p. 27). However, the committee rejected a windfall tax on company profits, citing difficulties in implementation.

3.34 Both the Kipokola and Bomani Reports highlighted a lack of government capacity to regulate and administer the sector as well as the limited development of small-scale mining in the last ten years.

Resource Endowment Initiative

3.35 In May 2004, ICMM initiated its Resource Endowment Initiative to provide better understanding of how large scale mining activity in low and middle income countries can enhance the socio-economic development of host countries. The initiative aims to isolate the drivers of development effectiveness in the mining and metals sector and to document the policy frameworks, operational practices, and partnership arrangements that deliver sustainable outcomes on the ground. This action-research project is being undertaken in collaboration with UNCTAD and the World Bank Group. ICMM have also consulted stakeholders such as mining companies, governments, donor agencies, labour and non-governmental organisations (NGOs).

African Mining Vision

3.36 The African Mining Vision (AMV) was adopted in 2008 by the First African Union (AU) Conference of African Ministers responsible for mineral resources development. Its ultimate goal is to use Africa’s mineral resources to meet the Millennium Development Goals (MDGs), eradicate poverty, and achieve rapid and broad-based socio-economic development.

3.37 It aims to create circumstances that support a “transparent, equitable and optimal exploitation of Africa’s mineral resources to underpin broad-based sustainable growth and socio-economic development”. And to integrate the mining sector into broader social and economic developmental processes and address the sector’s isolation from mainstream social and economic activities.

The African Mining Vision

The main features of the mineral sector which should contribute to achieving this goal are outlined below in a number of broad areas as follows:

• A knowledge-driven African mining sector that catalyses and contributes to the broad- based growth & development of, and is fully integrated into, a single African market through:


- Down-stream linkages into mineral beneficiation and manufacturing; - Up-stream linkages into mining capital goods, consumables and services

industries; - Side-stream linkages into infrastructure (power, logistics; communications, water) - and skills and technology development (HRD and R&D); - Mutually beneficial partnerships between the state, the private sector, civil society,

local communities and other stakeholders; and - A comprehensive knowledge of its mineral endowment.

• A sustainable and well-governed mining sector that effectively garners and deploys resource rents and that is safe, healthy, gender and ethnically inclusive, environmentally friendly, socially responsible and appreciated by surrounding communities;

• A mining sector that has become a key component of a diversified, vibrant and globally competitive industrialising African economy;

• A mining sector that has helped establishes a competitive African infrastructure platform, through the maximisation of its propulsive local and regional economic linkages;

• A mining sector that optimises and husbands Africa’s finite mineral resource endowments and that is diversified, incorporating both high value metals and lower value industrial minerals at both commercial and small-scale levels;

• A mining sector that harnesses the potential of artisanal and small-scale mining to stimulate local/national entrepreneurship, improve livelihoods and advance integrated rural social and economic development; and

• A mining sector that is a major player in vibrant and competitive national, continental and international capital and commodity markets.

Action Plan for Implementing the AMV (2011)

3.38 In 2011 an action plan was drawn up by AU Ministers in charge of Mineral Resources Development in partnership with the United Nations Economic Commission for Africa (UNECA), the African Development Bank (AfDB), regional economic communities (RECs) and other stakeholders.

3.39 The Action Plan is a multi-year, multi-partner rolling plan with defined objectives and outcomes based around 9 project clusters constructed around the vision.

3.40 The State has a central role to play in implementing the AMV, Governments of Member States should:

• Create the domestic and regional policy environment in which mining activities can thrive and therefore have a responsibility to align their mining policies to the vision;

• Fund educational and training institutions, research and development organisations and public sector institutions that regulate the mineral sector, such as geological surveys, mine safety departments and environmental monitoring agencies; and

• Provide infrastructure support for mining investment and infrastructure financing either as standalone projects or through public private partnerships, to facilitate the flow of investment into mining areas.

Mineral Policy 2009

3.41 A new Mineral Policy was implemented during 2009 to replace the 1997 policy. This Policy, whilst containing many of the same objectives as its predecessor sought to redress the perceived low contribution of the mining sector to the country’s GDP and address a number of challenges that have been identified in the sector (e.g. through the Kipokola and Bomani reports). The new Mineral Policy objectives are predominantly concerned with promoting economic integration between the mineral sector and other sectors of the economy, including the promotion of value-added activities, so as to maximise the contribution of the mineral sector to the economy. Other objectives include a strengthening of the legal and regulatory framework for the mineral sector to


enhance the capacity for monitoring and enforcement, promotion and facilitation of mining related value added activities to increase income and employment opportunities and strategic participation by the Government in viable mining projects. Development of small-scale mining is also given more emphasis.

Mining Act 2010

3.42 The 2010 Mining Act translates into action the 2009 Mineral Policy, making efforts to increase ASM’s productivity, sustainability and improvement on matters related to Health, Safety and Environment.

3.43 In the Mining Act 2010 royalties paid by companies have been altered both in terms of the method by which they are calculated and in terms of the rates applied. For the method of calculation, this is now levied on the gross value of minerals (at export or point of domestic delivery) rather than the net value (net back value) used in the past. Royalties levied on diamonds have remained at 5% but the rates for several other minerals have increased. Royalty remissions that were available for negative operating margins have also been eliminated.

3.44 Provisions have been made to allow for government equity participation in selected large-scale mining projects. While the participation of the government in mining projects has to-date been on a case-by-case basis, the new Act provides for regulations granting the government a free carried equity interest, and provides for the size (percentage ownership) of national ownership to be set through negotiation. This reform is intended to enable government to participate more fully in the financing and conduct of future mining operations.

3.45 Provisions have also been made to increase the participation of Tanzanian citizens in mining operations. Primary mining licences for small-scale mining continue to be reserved exclusively for Tanzanian citizens or corporate bodies under the exclusive control of Tanzanian citizens. Licences for gemstone mining (regardless of the size of the operations) have also been reserved for Tanzanian citizens, although the Act gives the Minister the authority to grant a licence for gemstone mining to applicants with non-Tanzanian participants as long as Tanzanian participants form at least 50% of the venture. This is intended to be done only for developments for which the Minister believes specialised skills, technology or a high level of investment will be needed.

3.46 Additionally, the Act includes the following changes to Tanzania’s mining framework:

• Although the Act does not prescribe it itself, the Act grants the Minister the power to prescribe a standard MDA for all projects exceeding US$ 100 million.

• The Act gives the Minister the power to introduce regulations requiring companies to list on the local stock exchange as well as sell equity to Tanzanian citizens.

• The Act prescribes a higher degree of disclosure of reports and records from holders of mineral rights than the previous Act.

• The Act limits the number of prospecting licences per holder to a maximum of 20 if over 2,000 square kilometres.

• No MDAs will be issued for capital less than US$ 100 million; MDAs will be reviewed after every 5 years.

• Special Mining Licence term requests are restricted to a maximum of the life of the ore body as given in the feasibility study or a lesser period (the 1998 Act allowed for terms of up to 25 years to be requested). Renewals can be requested for the either 25 years or the life of the ore body, whichever is less (the 1998 Act allowed for renewals of up to 25 years).

• Mining licences must have annual procurement plans with preferences for local services and products.

• Mining projects must provide compensation, relocation and resettlement plans, and must have implementation plans in place before commencement of the project.

• Granting of Primary Mining Licenses (PMLs) and mineral trading licences (Dealers Licences) have been decentralised, whereby PMLs and Dealer Licenses are now issued at Zonal Mines Offices.


4 Stakeholder Analysis

Introduction

4.1 One of the most important roles of a SESA is to engage national and regional stakeholders, to establish their views and listen to their advice and recommendations on actions that are needed to improve performance and standards. Experience shows that the influence and effectiveness of stakeholders in any economic sector can vary considerably. Some bodies or individuals may be able to exert strong influence on government policy (for example, through political and commercial lobbying) but have very little involvement in the day to day processes of implementing such policies. Others, including informal miners and their dependents may have very limited ability to guide policies but through their individual actions, which are very difficult to regulate, they may largely dictate what happens on the ground.

4.2 This chapter summarises the background and roles of the key stakeholders identified through the SESA process, and assesses their relative power and influence over key areas of decision-making. Interviews were held with representatives from the majority of these organisations as part of the stakeholder analysis to understand their roles, current issues and how they view other stakeholders. The first half of the chapter describes key organisation and their role and the second part then goes on to analyse the view other stakeholders have of them and the role they are currently playing in the minerals sector in Tanzania.

Description of Key Stakeholders

4.3 Three types of stakeholders have been identified:

• Government Ministries, Departments and Agencies (MDAs)

• Mining Companies and Organisations

• Civil Society and Non-Governmental Organisations

4.4 The key stakeholders for each of these categories has been identified below and described along with particular issues that maybe important for the SESA process:

Government Ministry of Energy and Minerals

4.5 The Ministry of Energy and Minerals (MEM) has been mandated by The Government of Tanzania to facilitate development of energy and mineral resources. The Ministry delivers various services related to development of energy and minerals resources through the participation of various stakeholders including public, private, public-private partnerships, local communities, NGOs and civil society.

4.6 MEM has undergone a series of restructuring programmes aimed at increasing efficiency since 2001, including changes in 2006 relating to Procurement Management, and the formation of Information, Education and Communication Units. Despite these moves, the status of the organisation is still described on its current website as facing a variety of challenges.

4.7 Recent developments listed on MEM’s website include the establishment of:

• A Mineral Economics and Trading Section;

• Small-scale Mining Development Section;

• Mines Inspectorate Section;

• Licensing and Mineral Rights Management Section;


• Explosives Management Section;

• Environmental Management Unit.

4.8 One of the current challenges is to bring the eight Zonal Mines Offices and the fourteen Resident Mines Offices (which deliver services under the Mining Act) within the formal organisational structure of the Ministry.

Ministry of Energy and Minerals - Minerals Department

4.9 The Ministry of Energy and Minerals – Minerals Department is the chief supervisor of the mining sector activities in the country. This department is headed by the Commissioner of Minerals with the support of Assistant Commissioners. At the Headquarters there are six Assistant Commissioners heading six sections namely:

• Mine Inspectorate;

• Mineral Registration;

• Small Scale Mining;

• Explosives Management;

• Mineral Development; and

• Beneficiation and Value Addition.

4.10 There are also eight zonal offices headed by Assistant Commissioners for Minerals acting as Zonal Mines Officers and fourteen offices headed by resident mining officers in the Minerals Department. All these offices provide mining related services in their respective areas, including representing the Mineral Commissioner.

4.11 The Mining Act formed a Mining Advisory Committee which is responsible for advising the Minister on different issues related to running the mining sector. There is also a Gemstones Board which advises the Minister on the development and supervision of Gemstones in the country.

4.12 This structure has proved to be weak in fulfilling its duties due to the fast expansion of mining activities compared to its capacity to cope. Due to that weakness, a review was undertaken in 2006 by the Ministry of Energy and Minerals and a new structure was proposed so as to strengthen the performance of the Mining department. The structure was approved by the government in 2007 but is yet to be implemented.

National Development Corporation

4.13 The National Development Corporation (NDC) was formed by an Act of Parliament in 1965 with the aim of enabling the government to foster national economic growth through involving the private sector through partnerships. The Act lasted until NDC was reformed for the first time under the Public Corporations Act (1969). The Act gave NDC a capital and legal powers to operate on a commercial basis.

4.14 NDC together with its subsidiaries was put under PRSC for privatisation under the Public Corporations Act (1992) as amended in 2003. In 2006, the government reversed its decision to privatise NDC and instead assigned it with new roles. The decision by the government was unanimously made by the Cabinet and no Law was enacted to repeal the first decision. So NDC’s current existence is merely administrative and not by an Act of Law.

4.15 The Corporation’s new roles include starting, developing and managing basic industries in partnership with the private sector. Identified projects include Liganga iron ore project, Mchuchuma coal project and Lake Natron Soda ash project. NDC is currently developing the Liganga and Mchuchuma projects and is searching for large and small scale investors as stated in Circular no. 14/ 2007.

Geological Survey of Tanzania (GST)

4.16 The Geological Survey of Tanzania (GST) is a government agency under the Ministry of Energy and Minerals. It was formed under section 245 of the Executive Agency Act No. 30 of 1997, and


formally created through the Government Notice No. 418 of 9th December 2005. GST started to operate in 2006, and has its headquarters in Dodoma. GST’s main responsibilities are to:-

(a) Identify sites with mineral occurrences;

(b) Prepare, modify, keep and speculate all geo-scientific data, include publishing and distributing maps showing such data;

(c) Conduct monitor and evaluate geological impacts including natural Geo-hazards like earth quakes, volcanic eruptions, landslides, effects from mining activities and radiation and provide advice on how to limit these hazards and their impacts;

(d) Provide geological laboratory services;

(e) Provide geo-library services and keep all information on maps and rocks; and

(f) Provide professional advice to the government on exploration and mining activities.

4.17 GST has about 114 staff with different professional qualifications including qualifications in Geology and Mineralogy.

4.18 GST faces the following operational challenges:-

i. Lack of working equipment, especially for analysing the mineral reserves and in measuring geo-hazards;

ii. Limited budget and personnel who can fully fulfil its duties and responsibilities;

iii. Failure to publicise itself and raise public awareness on geo-hazards, its activities and their output; and

iv. Lack of international recognition for its services due to lack of registration with the International Standards Organization (ISO).

STAMICO

4.19 STAMICO is a public corporation formed in 1972 with the aim of conducting exploration, mining, production, processing, sorting, cutting, reserving, distribution and selling of minerals in Tanzania. The corporation owned shares in different mines like Kiwira, Bulyanhulu and WDL.

4.20 For several years STAMICO has been facing a lot of challenges in the implementation of its activities due to receiving a limited amount of funds from the Government Budget. Changes in economic policies in the early 1990s in favour of private sector led minerals development led to STAMICO being added in a list of public corporations for privatisation. The Government made the decision to close down STAMICO in 1996 and many of its duties were reduced as the government sold its shares in different mines. This led to many experts and workers leaving to find jobs elsewhere.

4.21 However, following evaluation of the performance of the private sector and lessons learnt from other countries, the decision to close down STAMICO was reversed and the new Mining Act (2010) set out a new role for STAMICO which includes:

• Overseeing Government shareholding in large scale mines and acquisition and development of mineral properties;

• Provision of mining related services such as drilling, provision of technical consultancy services and supply of equipment to mineral rights holders and small scale miners;

• Establishment of strategically located mineral processing centres in small-scale mining areas;

• Carrying out research on mineralisation patterns in small-scale mining areas in order to give guidance; researching gemstones enhancement techniques, mining equipment and machinery and promoting utilisation of research findings.

Tanzania Mineral Audit Agency (TMAA)

4.22 With the growth of mining activities and increase in both local and foreign investment, there was growing public dissatisfaction about the contribution the sector was making to the economy and the adequacy of monitoring of the sector by the Government. In an effort to address the public


outcry, the Government initiated a number of measures, including strengthening monitoring and auditing of minerals produced and exported by major gold mines. M/S Alex Stewart (Assayers) Government Business Corporation (ASAGBC) was engaged to undertake gold auditing of the major gold mines in the country from June, 2003 to August, 2007. ASAGBC was also engaged to build capacity of nationals to enable them to take over the minerals auditing activities in the future.

4.23 Despite the work done by ASAGBC, the operation cost was 1.9% of the market value of the audited gold exports, which is equivalent to 64% of royalty paid to the Government by the major gold mines. This was high compared to the services rendered. Therefore, the whole exercise defeated the Government's good intention of increasing revenue from the mineral sector. In this regard, on 15th August 2007 the Government approved the formation of the Gold Audit Program (GAP) under the Ministry of Energy and Minerals to take over the activities previously undertaken by ASAGBC. As a result of GAP's operations, the Government:

1. collected corporate tax from one major gold mine;

2. recovered uncollected royalty from major gold mines;

3. acquired accurate information and statistics of minerals produced and exported by major gold mines; and

4. cut monthly operations cost by 75% of the costs previously paid to ASAGBC.

4.24 These achievements prompted the Government to strengthen monitoring and auditing of the mining operations by mainstreaming GAP operations into the Ministry's organisational structure under the Minerals Auditing Section in the Minerals Department.

4.25 In July 2009, the Government approved the Mineral Policy of 2009 which stipulates, among other things, the establishment of the minerals auditing institution. On 6th November, 2009 the Government established the Tanzania Minerals Audit Agency (TMAA), which is a semi-autonomous institution. TMAA took over the functions previously undertaken by the Minerals Auditing Section (commonly called GAP) in the Minerals Department under the Ministry of Energy and Minerals. TMAA has an increased scope to cover large, medium and small scale mines for all minerals so as to maximize the benefits from the mining industry, thereby enhancing socio-economic development.

Tanzania Bureau of Standards (TBS)

4.26 Tanzania Bureau of Standards (TBS) was established under the Ministry of Industry and Trade by an Act of Parliament, in 1975, a new Act of Parliament in 2009 gave the Bureau more powers in carrying out its mandate. The Bureau was established as part of the efforts by the government to strengthen the supporting institutional infrastructure for the industry and commerce sectors of the economy. Specifically, TBS was mandated to undertake measures for quality control of products of all descriptions and to promote standardisation in industry and commerce.

Vice Presidents Office – Division of the Environment

4.27 The mission of Vice-President's Office (VPO) is to formulate policies and strategies on poverty eradication, protection of environment and non-governmental organisations as well as coordinate all issues pertaining to the union of the Government of the United Republic of Tanzania and the Government of Zanzibar. The Vice President’s Office - Division of Environment has the following overall functions:-

• Formulation of Policy on Environment

• Co-ordination and Monitoring of Environmental Issues

• Environmental Planning

• Policy-oriented Environmental Research

National Environment Management Council (NEMC)

4.28 Environmental issues related to the sector are overseen by the National Environment Management Council (NEMC), including the responsibility for mine reclamation activities. NEMC was established under the National Environment Management Act (1983). Its Council is charged with advising the government on all matters relating to the environment. NEMC consists of four


departments: Environmental Planning and Research; Environmental Enforcement and Compliance; EIA; and Information, Communication and Outreach.

Mining Advisory Committee (MAC)

4.29 The Mining Advisory Committee (MAC) was established under Section 20 of the current Mining Act. Its oversight role remains merely advisory and does not bind the Minister. Moreover MAC’s current composition comprises of government officials only. This limits the effectiveness of committee. Considering MAC’s oversight role and the need to curb unnecessary discretionary powers of the Minister, it is advisable that the MAC is given more powers to make decisions binding and to be comprised of a range of stakeholders well versed with mining issues and from a variety of different backgrounds within the mining industry such as the private sector, CSOs, mining chambers and trade unions. Moreover it is advisable to have an Authority as recommended by the Bomani Commission4, that will oversee all mining issues instead of leaving mining operations in different hands thus making it everybody’s business and at the end no man’s business.

Mining Companies and Organisations

4.30 There are now more than six major mining companies operating in Tanzania, and three of the most established companies were interviewed as part of the stakeholder analysis, including senior management staff of Barrick Gold, Ashanti Gold and Shanta Gold.

4.31 African Barrick Gold is listed on the London Stock Exchange and is currently owned by Barrick Gold plc of Canada which holds a 73.9% stake in the African subsidiary. Discussions are understood to be in progress between the owners and Chinese interests who are considering taking a majority share in ABG. The African company’s share of gold produced in 2011 was 509,000 ounces, with a production cost of USD $692 per ounce, representing operating costs of USD $350 million a year. In 2011, Barrick Gold was faced with allegations of serious human and civil rights abuses amongst some of its female employees at North Mara Mine. The events were shown on investigation to have involved security workers and the local police. Barrick moved very swiftly to prevent further repetition and has put in place a wide range of social and community initiatives to seek to redress the situation (www.africanbarrickgold.com).

4.32 Anglo Gold Ashanti - Geita Gold Mining Ltd is operating a large mine at Geita, which is located in the Lake Victoria goldfields of the Mwanza region of Tanzania, about 120km from Mwanza and 4km west of the town of Geita. Production of gold in 2010 amounted to 357,000 ounces at a production cost of $777,000 per ounce. A major programme for reducing operating costs and improving efficiency has been launched and gold production for 2011 is forecast to increase to between 485,000 oz and 506,000 oz at a total cash cost ranging from USD $631/oz to USD $655/oz. The current operations involve extraction from three open pits and the company is investigating the possibility of future underground working.

4.33 The company identifies operator fatigue to be its main mine safety issue (two dump truck drivers were killed in a collision during a night shift in 2010, breaking what had previously been a clean safety record). Disputes and claims over land rights and tenure have been largely settled, but there are still a large number of ‘intruders’ to the mine site who seek to recover low grade ore from the dump sites and even to mine exposed vein outcrops in the sides of active working faces. These illegal activities pose risks of rockfalls, threatening not only the individuals but other mine workers and the company has had to invest heavily in security to minimise its threat.

4.34 Anglo Gold Ashanti has a major community development programme, which has included work on construction of Nyankumbu Girls Secondary School and the development of the Geita Town Water Supply Project. This project, which will draw water from the Nyankanga dam on the mine’s lease area, will include transfer pumping, a treatment and storage system and will deliver water at a rate of 4,800 cubic metres per day to the town.

4.35 In environmental terms, one of the main challenges the company has faced has been the reduction of residual cyanide in waste slurry released to the tailings dam. The company has installed more efficient oxygen injection plant in the conditioning tanks and is working to ensure that weak acid dissociable (WAD) cyanide levels in the tailings slurry does not exceed 50 parts per million in any period of three to six months.


4.36 Shanta Gold is an emerging gold exploration and development company which holds a portfolio of 31 prospecting licences (in January 2012) covering a total surface area of 960km2. In August 2012 production commenced at the companies’ New Luika Gold Mine in south western Tanzania.

4.37 In addition to large scale producers, Tanzania has a number of small to medium mine operators, including the Tanzanite One mine near Arusha. There are also a number of small scale mining associations which are being promoted across the country as part of the government’s campaign to bring all mining operations within the legal framework.

Mining Inter Stakeholder Forum (MISF)

4.38 The Mining Inter Stakeholders’ Forum (MISF) is a registered non-profit organisation under the companies Act 2002. In 2008 MISF and Ministry of Energy and Minerals officially signed a Memorandum of Understanding (MOU) to collaborate in the areas of Policy Advocacy; Research; and Social - Economic Development. The forum aims to focus on ensuring that awareness is created to the community about the opportunity, challenges and utilisation of resources in the energy and mineral sectors to bring sustainable social-economic development to the family level through promoting the implementation of energy and mineral sectors policies. The Forum’s mission is to ensure the participation of stakeholders and the integration of the energy and mineral sector with other sectors of the economy to supports sustainable social-economic development.

Tanzania Chamber of Mines

4.39 Established in 1994, the Tanzania Chamber of Minerals and Energy represents the interests of its members in the Tanzanian mineral sector. Acting as a voice for the industry the Chamber plays a pivotal role within the sector as a mediator between the mining investment community and key stakeholders, most notably the Government of Tanzania and the public.

4.40 The Chamber now has approximately 60 members and represents a broad spectrum of relevant players in the mining industry, including small-scale miners, individuals, service providers, and international mining companies of all sizes who have identified Tanzania as a worthwhile place to invest their money. These companies are carrying out a range of activities within the mining sector from exploration to production.

The Madini Institute

4.41 The Madini Institute was founded in 1982 in Dodoma under the Ministry of Energy and Minerals. The aim was to provide training to serve the mining sector in the country. Courses offered include the following:

(a) Mine Engineering;

(b) Geology; and

(c) Mineral processing.

4.42 Since 2005, the Institute has been providing training course at the National Technical Award (NTA) level which involves Industrial Practical Training. Graduates from this college are employed in the mining sector as technicians.

4.43 The Institute faces a number of challenges including:-

i. Insufficient dormitories and class rooms, and lack of a laboratory;

ii. Lack of field training places, because companies usually provide a limited number of opportunities;

iii. Insufficient teachers and workers;

iv. Limited number of students due to limited of sponsorships;

v. Limited budget allocated for the college;

vi. Poor remuneration for the teachers and workers; and

vii. Lack of recognition by NACTE and hence lack of International recognition.


Civil Society & NGOs Policy Forum

4.44 Policy Forum is a network of NGOs incorporated as a non-profit company under the Companies Act of 2002. Their membership currently includes over 100 non-governmental organisations registered in Tanzania, who are interested in influencing policy processes to enhance poverty reduction, equity and democratisation.

4.45 The aim of the Forum is to strive to increase informed civil society participation in decisions and actions that determine how policies affect ordinary Tanzanians, particularly the most disadvantaged. The Forum focuses its work on three main activity clusters; Local Governance, Public Money and Active Citizens' Voice.

Legal and Human Rights Centre

4.46 The Legal and Human Rights Centre (LHRC) is a private, autonomous, voluntary non-governmental, non-partisan and non-profit making organisation. It was established in September 1995 and its headquarters are based in Dar es Salaam and has a sub office in Arusha. The main objective of LHRC is to create legal and human rights awareness and to empower the general public, in particular, underprivileged sections of society through legal and civic education, advocacy, research, monitoring and follow up of human rights violation and provision of legal aid.

Lawyers’ Environmental Action Team (LEAT)

4.47 The Lawyers' Environmental Action Team was the first public interest environmental law organisation to be set up in Tanzania. It was established in 1994 and formally registered in 1995 under the Societies Ordinance. Its mission is to ensure sound natural resource management and environmental protection in Tanzania. LEAT came to international prominence in 2001 when its offices were raided by the police, searching for documents linked to investigations of alleged killings at the Bulyanhulu mine at North Mara, the largest underground gold mine in Tanzania.

TAWOMA

4.48 The Tanzania Women Miners Association (TAWOMA) is an NGO and non-profit making organisation. It was registered in November 1997, with Headquarters in Dar es Salaam and it has in the region of 350 active members.

4.49 The main objective of the Association is to address problems of disorganised mining, including mining related activities, economic hardships, poverty alleviation, and prevention of diseases affecting Tanzanian society in general, and women miners and children in particular.

4.50 Much has been done by the Association, in terms of organising women miners and educating them on the hazards of indiscriminate mining, and its effect to the environment. But, it has become apparent that women miners need to be empowered, through economic means as well. TAWOMA members, are engaged in small scale mining of gemstones, gold, diamonds, and industrial mineral in Tanga, Morogoro, Dodoma, Singida, Shinyanga, Mbeya, Manyara, Arusha, Ruvuma, Lindi, Musoma, Karagwe, and Mwanza.

4.51 TAWOMA is affiliated to Organisations, such as the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA), Tanzania Private Sector Foundation, and the Tanzania Women Chamber of Commerce.

AFWIM

4.52 The Tanzanian chapter of AFWIM, The African Women in Mining Network (AFWIM) is a small independent NGO established by a Tanzanian business woman, and launched during the 2003 CASM (Communities and Small Scale Mining network) meeting. AFWIM runs small programs that improve the livelihoods of women involved in the mining sector in Tanzania, for example they have a project that identifies and develops alternative uses for coal ash such as the production of coal briquettes or as a pesticide to be developed by women’s cooperatives as an additional source of income.

Norwegian Church Aid

4.53 Norwegian Church Aid (NCA) is a Norwegian non-governmental and development organisation working to promote Social justice, Human Rights and Economic Justice. The Tanzanian office has


17 members of staff who work with poor communities and 20 core local partners that help to deliver its projects on the ground and bring positive changes to the lives of ordinary citizens. NCAs work in Tanzania includes Accountable Governance and Economic Justice, Interfaith and Peace Building, Gender Based Violence, HIV/AIDS/MVC, Indigenous Communities and Emergency Preparedness (including water and sanitation).

Tanzania Women Chamber of Commerce (TWCC)

4.54 Tanzania Women Chamber of Commerce (TWCC), groups together different women professional and business associations including Tanzania Women Miners Association, Tanzania Food Processors Association and others. The chamber which has over 2,400 members countrywide works with the government through Ministry of Trade and Industries, Small Enterprise Development Organization, Tanzania Bureau of Standards and Business Registration and Licensing Authority.

4.55 TWCC are also works closely with Ministry of Community Development, Gender and Children, East African Community secretariat and other institutions. Since its establishment, the Chamber has assisted its members acquire entrepreneurial skills, access credit facilities, participate at trade fairs locally and abroad and enable members to go on study tours abroad.

Analysis of Stakeholder Roles

4.56 As part of our Stakeholder Analysis, interviews were held with 20 key stakeholders. During these interviews stakeholders were asked detailed questions about their role and how they viewed the influence of other stakeholders.

The Role of Government

4.57 In discussion with all stakeholders, three government ministries, departments or agencies (MDAs) are recognised as having the dominant role at present in the minerals sector. Not surprisingly, all parties recognise the Ministry of Energy and Minerals as the dominant authority with strong influence in helping to define policy, legislation and regulations and as having primary responsibility for implementation on the ground. Other MDAs which are seen as having an important role include the National Environment Management Council (NEMC), and the Tanzania Minerals and Mining Audit Office.

4.58 Representatives of the large mines sector have regular dealings with other sectors of government, including the Ministry of Land, Housing and Human Settlement Development, the Ministry of Water, the Tanzania Revenue Authority, the Ministry of Home Affairs (on matters of security and policing) and Local Authorities in the areas in which they operate. However, the survey of all stakeholders revealed that other government agencies, small scale miners, most civil society and NGO organisations do not consider that the majority of government ministries are active or effective in the minerals sector.

4.59 In general, ministries holding briefs for land and water management, tourism, livelihoods, housing, education, trade, gender and children and employment are considered by the majority of stakeholders to be largely inactive when it comes to dealing with relevant issues arising from mineral development. This finding may reflect the limited engagement of minerals stakeholders with government ministries but it also suggests that those ministries that focus on policy work and have either no staff, or only limited representation within mining districts, and are unable to influence decisions on the ground.

4.60 This is a very important finding from the SESA since it is clear that the majority of issues raised in connection with mining and mineral development in individual districts are cross-cutting and therefore require the active participation of all key ministries.

The role of large scale miners

4.61 All stakeholders agree that the large national and international mining companies have assumed a dominant position in the development of the minerals sector over the last decade. Their influence is growing as new mines are opened and the industry diversifies to include new minerals including nickel and uranium.


4.62 Our discussions with senior managers of three of the largest companies confirmed that these companies are taking their environmental and social responsibilities seriously and are working hard to meet their corporate responsibilities. At the same time, the large scale miners are looking for clarification and guidance on defining the interface between what constitutes good corporate responsibility and offers of assistance to local communities on an individual basis, and what is seen as increasing pressure from government, especially at local authority level, for the private sector to take on roles and responsibilities that should fall under the remit of government and district councils.

4.63 The SESA team has witnessed, at first hand, some of the conflicts that currently arise between large scale miners and informal miners from neighbouring communities who trespass onto active mine sites to collect residual ore from waste dumps, and to actively mine exposed veins of gold ore in rock faces within the open pit. It is not uncommon for 50-100 men to intrude into working areas even in daylight hours which represents a major security and safety risk for mine operators.

4.64 This level of intrusion has to be combated by security staff and at times gives rise to direct conflict in which injuries and even fatalities may occur.

4.65 The fact that most large scale miners operate responsibly is generally acknowledged by stakeholders but there is a high level of concern that international investors and the private minerals sector are given preferential treatment by government by comparison with small scale operators and are awarded tax breaks which result in low levels of revenue collection in the early stages of development and production, to the dis-benefit of the national economy. There is also a widely expressed concern that the Governments’ mineral policy and regulations are too inflexible and fail to adjust levels of royalty and other payments to fluctuations in mineral prices. This issue is highlighted by the current high price of gold.

The Role of Small Scale Miners

4.66 Until recently small scale miners have played a very limited role in the processes of mineral policy formulation and the development of mineral regulations. The Governments’ drive to formalise prospecting and Primary Mining Licenses and to stimulate formation of associations of small scale miners has been effective in giving this sector of the industry a stronger voice. As more associations are formed and the regional federations become stronger it is reasonable to assume that small scale miners will gain further influence over policy, legislation and implementation procedures.

The Role of Informal Miners

4.67 In many ways, the informal mining sector represents one of the biggest challenges for constructive development of the minerals sector. The fact that around 600,000 – 800,000 individual miners operate outside the law poses some fundamental challenges. One school of thought argues that since these miners ignore the law they effectively place themselves beyond the reach of government assistance. However, the opposing view is that most informal miners would otherwise face severe poverty and can only be brought within the legal framework through capacity building, education and the realisation that they, their families and children will be better off.

4.68 Stakeholders, particularly those representing civil society and NGOs are strong champions of the rights of individuals and consider that the informal sector is a potent force for change, especially in terms of voting power through local and national elections.

The Role of Civil Society and NGOs

4.69 The influence of individual societies, associations, faith groups and other organisations is clearly recognised by government and the mining sector and some bodies, like the Lawyers Environmental Action Team and Policy Forum have played key roles in advocating changes to recent draft legislation. Other groups (TAWOMA, AFWIMM) have lobbied for fairer treatment of women miners and processors. It would appear, however, that this group of stakeholders is very diverse and is not particularly well integrated with the result that civil society and NGOs rarely speak with a single voice.


Levels of influence in policy formulation and action on the ground

4.70 All stakeholders were asked to rate the level of influence that other organisations were considered to have in the minerals sector and although the analysis is based on a small sample (9 respondents), each of the main interest groups were represented. Figure 3.1 shows the results graphically. The number of respondents is shown in the vertical axis of each graph and their assessment of the organisations’ level of influence is shown on the horizontal axis (from 0+ no influence to 5 = great influence). While the results have no statistical validity they are revealing in indicating certain characteristics about current institutional and governance issues.

4.71 The only organisation which stands out clearly in the majority of respondents’ opinions as having major influence on minerals policy is the Ministry of Energy and Minerals (including the Tanzanian Geological Survey). Other ministries which are acknowledged to have a role include the Office of the Vice President (Environment Division), NEMC, the Ministries of Trade & Industry, Lands, Housing and Human Settlement and the Bureau of Standards. Some Ministries that might be expected to have influence, including Education and Gender and Children, are not regarded as major players.

4.72 In terms of the mining sector, STAMICO emerges as an interesting case, because the majority of stakeholders made a distinction between its recent and current role – in which STAMICO was said to be weak and under-performing – and its future role – which is seen as having considerable potential. Both the Chamber of Mines and Large Scale Mining companies are seen as having strong influence, while unions and ASM are considered to have very limited impacts on policies and practice.

4.73 Wide differences of opinions were expressed in relation to the influence of the Civil Society / NGO sector. Some bodies were largely unknown to the small sample of respondents interviewed but others were noted to have had some significant influence in relation to specific issues or campaigns.


Figure 4.1 Levels of Influence – Government (MDAs)


Figure 4.2 Levels of Influence – Mining Organisations


Figure 4.3 Levels of Influence – Civil Society and NGOs


5 Environmental Issues

Key Issues

5.1 This chapter presents a review of the key issues identified in the literature and during interviews with key stakeholders undertaken during the SESA process.

5.2 Mining by its very nature causes significant changes to occur to the natural environment. However, the type and level of that change and the severity of negative effects on the environment is dependent on a number of factors, including what mineral is being extracted, the method of extraction, the scale of the operation and the safeguards that are put in place as well as what stage in the mining process the mining operation is at (i.e. exploration, exploitation, processing and closure). However, broad similarities can be seen across the mining sector in terms of effects on the natural environment and these are discussed in more detail below.

Land Clearance and Degradation

5.3 Albeit on very different scales, both large and small scale mining can result in deforestation, degradation of vegetation, exposure of the land surface, creation of waste dumps and open pits, resulting in erosion. The use of large scale clearance and excavating machinery in LSM usually results in total clearance of vegetation over an extensive area, whilst the use of more rudimentary machinery in small scale operations means that at least some vegetation usually survives.

5.4 Deforestation and degradation of agricultural lands leads to soil erosion and desertification, as well as siltation of rivers and flooding.9 Surface mining often results in total clearance of vegetation and topsoil, often leading to accelerated desertification, and often only better-managed LSM operations make provisions for rehabilitation. Degradation of the landscape by both LSM and ASM can result in aesthetic damage (potentially affecting tourism and/or the psychological wellbeing of area residents) and may increase risks to health and safety, due to increased landslide potential. Undercutting of sidewalls or hanging walls, irregular pumping, piling of waste rock adjacent to pits and modifications to site hydrology are common causes of land failure.9

5.5 The destruction of forest reserves, woodlands and agricultural lands also means the destruction of timber, non-timber forest products and crops including wood and medicinal plants. This can have a significant negative impact on livelihoods. In addition to deforestation occurring near the mining site, large amounts of timber are often imported from outside the immediate mine area as significant quantities of timber are needed for the operation of ASM mines for the construction of shelters, underground supports, pans or other ASM tools and for domestic uses. ASM communities are often heavily reliant on wood and charcoal as a source of fuel.

5.6 Whilst the effects of land clearance and degradation from current mining operations are significant, the effects of these mining activities will be felt for decades and centuries to come. Currently mining licences and agreements do not contain provision for mine closure procedures, yet experience from other countries, documents the range of environmental and social problems that can blight communities long after mining operations have finished. For a mine to contribute positively to sustainable development, closure objectives and impacts must be considered from project inception. The closure plan defines a vision of the end result of the process, including physical rehabilitation and sets concrete objectives to implement that vision. This forms an overall framework to guide all of the actions and decisions taken during the mine’s life.15

Loss of Biodiversity

5.7 Humans are all dependent on biodiversity in some way. However, its loss may have a more direct and significant impact on indigenous peoples’ or rural dwellers, many of whom continue to remain directly dependent on wild habitats and natural ecosystem services for their entire livelihood needs, whether by choice or through lack of alternatives.15 Whilst some of the effects on


biodiversity are dealt with above in the land clearance and degradation section, there are other notable effects posing significant risks to biodiversity. For example, rapid in migration can cause clearance of land for settlements or farming, triggered by a rush or the building of infrastructure such as access roads for large scale operations. These activities are often at their most intense before mining starts, during exploration activities before any major mining company are on the scene; and activities are frequently ungoverned and unregulated.15 Once mining activities commence, lighting of fires, blasting with explosives, noise from machines etc. can all cause wild animals to move from the area immediately around the mines to other areas bordering nearby farms – which can put wildlife into conflict with farmers as crops are destroyed. Generally, the greatest risks to biodiversity are when mining ventures enter relatively remote and undisturbed areas.

5.8 Clearing vegetation, shifting large quantities of soil, extracting large volumes of water, and disposing of waste on land or through water systems often lead to soil erosion, sedimentation and the alteration of the flow of watercourses and flooding. This can also result in changing the spawning grounds of fish and the habitats of bottom-dwelling creatures.15 Fishery depletion and frequent flooding can obviously have a detrimental effect on riverine communities and others dependent upon fish as a food source and for their livelihoods.8

Dangerous Chemicals

5.9 One of the most persistent environmental impacts from LSM and ASM relates to the emission of harmful chemicals, which have the potential to reach aquatic systems, affect plants and animals and detrimentally impact human health. Whilst chemical use, transportation and storage is often more controlled in LSM operations any activity that involves shifting large volumes of rock, cyanide, acid, and other hazardous reagents will inevitably be subject to accidents.15 For ASM activities where few safeguards maybe in place, the risks to both people and the environment are potentially severe not just at the mine site or within the local community but further afield along transportation routes. Miners often have little awareness of the significance of biologically sensitive areas or other natural resource dependent economic activities, putting these vital natural assets at risk.9

5.10 Although not used by LSM companies, most ASM use mercury to extract gold from the heavy mineral concentrate. Amalgamation is very easy to learn and an inexpensive gold extraction method for ASM operators. However, it has serious drawbacks, and the environmental and human health effects of mercury exposure have been well documented and are widely known. Mercury not only adversely affects the heath of miners and the environment, but also impacts upon actors along the supply chain, such as local gold shops, where ‘‘mercury levels are extremely elevated’’10.

5.11 However, methods to reduce the amount of mercury released into the environment do exist including the use of a retort to distil mercury. Several other alternatives that completely replace the use of mercury including borax, cyanide gold extraction and the Igoli process.

5.12 Cyanide gold extraction is normally used by large-scale mining companies. There are however, ASM operators who successfully carry out cyanide gold extraction mainly as a second step where tailings are treated in order to recover gold which has not been recovered by other processes. Whilst cyanide is a very toxic chemical, a cyanide spill is neutralised fast when exposed to the atmosphere and the sun. The Igoli process, developed by MINTEK, uses chlorine, to extract gold from concentrates, and has already been successfully used by small-scale miners in Tanzania. The chlorine is converted in to a harmless salt when it is discharged into the environment.

5.13 One of the most serious problems associated with mining is acid drainage, which can negatively impact on the productivity of ecosystems and be a long-term problem. 11 Acid generation occurs when iron sulphide minerals are exposed to, and react with, oxygen and water. Whilst this process can occur naturally, exposing sulphur rich materials in the walls of open pits and mine

8 Chachage, SL, The Meek Shall Inherit the Earth but not the Mining Rights – The Mining Industry and Accumulation in Tanzania 9 Hinton, J. Communities and Small Scale Mining – an Integrated Review for Development Planning. CASM (2005) 10 Hinton, J.J., Veiga, M.M., Beinhoff, C, 2003, Women and Artisanal Mining: Gender Roles and the Road Ahead, Ch. 11 in: Socio‐economic Impacts of Artisanal and Small‐scale Mining in Developing Countries, Balkema publ, G. Hilson (ed), Rotterdam, The Netherlands. 11 Childs, J Reforming small-scale mining in sub-Saharan Africa Political and ideological challenges to a Fair Trade Gold Initiative Resources Policy 33 (2008) 203–209


tunnels and breaking them up, (waste rock, tailings etc.) mining can greatly accelerate the rate at which these reactions take place. Once the process of acid generation has started, it is extremely difficult to stop. The combination of acidity and dissolved contaminants is known to kill most forms of aquatic life, rendering streams nearly sterile and making water unfit for human consumption.15

Water Pollution and Resources

5.14 Mining operations require fairly large amounts of water for extraction purposes. In addition, modification of hydrology through diversion or damming of rivers can detrimentally affect the quantity and quality of waters both onsite and downstream from mining.9 The excavation of large volumes of material can also significantly affect groundwater (when the water table is encountered), as well as surface water in adjacent areas.9

5.15 Surface water and groundwater are both main receptors of mining waste and effluent and primary conduits of these pollutants, extending the impacts of mining from local to regional and even international levels.

5.16 In ASM operations the need for large amounts of water often makes small-scale miners move that part of the processing to nearby streams, increasing the risk of pollution from both chemicals and other contaminants such as sand and crushed rock. The dumping of overburden and tailings near water courses also causes siltation leading to flooding as well as the decline of fish stocks.

5.17 The main effects of ASM on surface water and groundwater include the following:

• Siltation due to tailings discharge to water bodies, deforestation and riverbank destruction;

• Modifications to local and downstream hydrology;

• Lowering of the groundwater table due to dewatering;

• Mercury and cyanide pollution (in gold mining);

• Acid rock drainage and heavy metals pollution;

• Oil and gas pollution (from mining equipment); and

• Domestic waste pollution.

5.18 As mentioned above, the exposure of naturally occuring chemicals through acid drainage and the release of chemicals, such as Mercury, into watercourses often results in chemicals entering the food chain. Symptoms of mercury poisoning are common and detected in many mining communities living near emission sources.

5.19 Other contaminants, particularly domestic wastes and hydrocarbons (e.g. oil, petrol), often contaminate the natural waters around mine sites. As is the case for other industrial activities, diesel and gas used to run pumps, motors and generators and kerosene used for lighting can leak into the soil and subsequently reach ground and surface waters negatively effecting aquatic life and the communities who use the water for drinking, washing and irrigation. Poor organisation on ASM mine sites often leads to domestic waste from hastily established, poorly serviced mines sites polluting ground and surface water, especially in the rainy seasons.9

5.20 Whilst ASM operations often have few safeguards in place and pollution of surface and groundwater around these operations is common place, LSM mining companies themselves have also been accused of polluting the environments around their operations12. At the North Mara gold mine, the runoff from mine tailings flows directly into pastures and fields used by surrounding residents, and contaminated water from the processing plant seeps into their water. A report by the Tanzanian Legal and Human Rights Center (LHRC) found that water from a North Mara storage pond flowed into the Tigithe River, the lifeline of Nyamongo town, and was directly responsible for 20 human deaths and the loss of 270 head of cattle13. Another LHRC report found

12 (SID) Society for International Development. 2009. The Extractive Resource Industry in Tanzania. http://www.sidint.org/PUBLICATIONS/571.pdf 13 Mnyanyika, Vincent. 2009. Close North Mara Mine – Activists. The Citizen (Dar es Salaam). June 27. http://allafrica.com/stories/200906291391.html


that since the establishment of the North Mara mine, levels of arsenic in the area have risen 260 times, levels of lead have risen 168 times, and chromium levels have multiplied 14 times14. The Director of LHRC, Francis Kiwanga, has stated that despite proven higher than permissible levels of heavy metals, including cyanide, and soil and water pollution around the North Mara mine, “there is a reluctance among senior government officials to act immediately despite preliminary evidence showing that the mine has indeed polluted the environment. Health hazards from exposure to such pollution could persist for more than 2,000 years”.14,22

5.21 Tanzania had a number of written laws that addressed the utilisation and control of water during both the colonial era and post-independence. One of the most explicitly legal frameworks was Water Act No. 42 (utilisation and control) of 1974 setting up priorities of different sectors that need water for their performance. However, shifting government development priorities such as the development of the National Strategy for Economic Growth and Reduction of Poverty (MKUKUTA) and the Government’s commitment to achieving the Millennium Development Goals (MDGs) has resulted in significant changes in terms of water utilisation and control since then. The country is currently undergoing some major reforms to build a strong foundation for its future success including the water sector. New Water Laws (2002 and 2004), a Water Supply and Sanitation Act, 2009, and Water Resource Management Act 2009 were all enacted. The new National Water Policy, the National Water Sector Strategy, and the Water Sector Development Programme are all aiming to improve the access to clean and safe water and sanitation services in rural and urban areas. All these laws significantly affect the mineral sector especially in terms of provision of water to mineral processing industries.

Large Volume Waste

5.22 Large-scale mining operations inevitably produce a great deal of waste. The volume of mine waste produced depends on the geological characteristics of the ore body, the type of mining (underground versus open pit), the mineral being mined, as well as the size of the operation. How this waste is managed and disposed of and the selection of dump sites in relation to topography, drainage systems, water bodies, ground water flow, residential areas and wind direction all effect the significance of environmental impacts seen. 15

5.23 On land, the physical footprints of waste disposal facilities are often significant, with the land’s previously productive use (as wildlife habitat or agricultural land) lost for potentially a very significant length of time. Even after remediation it may be a long time before the previous level of productivity is achieved if they are not rehabilitated adequately. In addition to loss of productivity, these wastes can have a profound effect on the surrounding ecosystems. Where they are not physically stable, erosion or catastrophic failure may result in severe or long-term impacts. Where they are not chemically stable, they can serve as a more or less permanent source of pollutants to natural water systems. These impacts can have lasting environmental and socio-economic consequences and be extremely difficult and costly to address through remedial measures.15

5.24 Mine wastes are produced in a number of different categories, including:

• Overburden – the soil and rock that must be removed to gain access to a mineral resource;

• Waste rock – rock that does not contain enough mineral to be of economic interest;

• Tailings – a residual slurry of ground-up ore that remains after minerals have been largely extracted; and

• Heap leach spent ore – the rock remaining in a heap leach facility after the recovery of the minerals.

5.25 Mine wastes are occasionally seen as a resource and may be suitable as aggregates for road construction and building materials. A number of projects are looking at a range of end-uses, but more should and can be done to reuse waste.

14 Mwita, Damas. 2009. Independent researchers detect high levels of pollution around North Mara gold mine. This Day. July 14. http://www.africafiles.org/article.asp?ID=21283 15 MMSD, Breaking New Ground – The Report of the Mining, Minerals and Sustainable Development Project (2002)


Dust and Airborne Pollution

5.26 Dust generated by rock, metal and coal mining can be harmful. Using wind to separate metal from ore, or using machinery that generates rock dust, can lead to silicosis. Silicosis is a disease caused by inhaling silicates in the dust of crushed rocks; it can severely decrease workers’ lung capacity and productivity, and it sometimes results in their deaths. Chapter 7 gives a detailed description of occupational health issues related to dust. Tailings are made up of fine dust particles so when they dry they can be a source of serious dust problems. This dust is often still mineral rich so the dust itself is a pollutant.

5.27 Whilst LSM operations often employ a range of measures and technology to combat the issue of airborne pollution there are also a number of simple measures that can reduce the risk for ASM miners as well, including:

• Maintain tree or vegetation cover to capture dust and prevent dust clouds from traveling long distances;

• Ventilate underground mines so dust can escape and ease working conditions;

• Avoid crushing or grinding ore in the home;

• Provide all workers with face masks.

Noise

5.28 Mining activities can involve equipment that can be very noisy and cause strong vibrations. Noise and vibration can also have an adverse impact on wildlife and also affect workers’ hearing and health, as well as the community around the working site. This may work against the enterprise’s ability to expand production in the future. A detailed description of occupational health issues related to noise is given in Chapter 7. A range of measures may be employed to mitigate the effects of noise including providing equipment such as earplugs for workers and protective insulation or cushioning to those working with vibrating machinery. Operations can also be modified to ensure that machinery is used efficiently and do not run longer than necessary as well as only using machinery at times when the surrounding community is least likely to be disturbed.

Climate Change

5.29 Mining has a significant impact on climate change both through direct and indirect releases. Both large scale and small scale operations are energy intensive and the source of supply of energy is critical not only to security of the operation but also to the contribution it makes to climate change.15 The impact of climate change on mining issues is also an important issue as competition for resources such as water becomes more intense.

Role of Legislation

5.30 During the 1980s to mid-1990s legislation did not control mining and processing activities and as a result extraction and mineral processing had a very negative impact on the enviornment.5

However, new legislation and regulations now require the consideration of the environment.

5.31 The Environmental Management Act No. 20 of 2004 re-established NEMC as the responsible authority for the enforcement, compliance, review and monitoring of Environmental Impact Assessments (EIA), including facilitation of public participation processes in environmental decision-making. The Mandatory List of Projects that require EIA in the Environmental Impact Assessment and Audit Regulations (2005), lists extractive industry including mining. An in-depth study is required to determine the scale, extent and significance of the impacts and to identify appropriate mitigation if the project is deemed likely to have significant adverse environmental impacts. Artisanal and Small Scale Mining is included in the schedule of small scale industries that require a Preliminary Environmental Assessment. This preliminary assessment decides whether the Project needs a full environmental impact assessment as the Project is likely to have some significant adverse environmental impacts but that the magnitude of the impacts are not well-known.

5.32 Approximately 112 EIAs were conducted between 2005 and 2009 in Tanzania. During this period, about 30% of all the EIAs conducted were in the energy sector; 21% in tourism and manufacturing sectors and 18% in the mining sector. However, Tanzania still grapples with EIA


ineffectiveness in guiding development decisions and environmental management and the EIA process are often ineffective due to inadequate or lack of accountability in enforcing the Environmental Management Act and other governance failures.16

5.33 The Environmental Management Act also requires project developers to develop and implement Environmental Management Plans (EMP) as well as monitor any identified environmental issues associated with their project.

5.34 The Mining Act (1998) also required any minerals project to have a detailed Environmental Impact Statement (EIS) and Section 10(c) of the Mining Act, 1998 clearly stated that development agreements may contain binding provisions relating to, “environmental matters, including in respect of matters which are project specific and not covered by regulations of general application, provisions intended to define the scope, and as may be appropriate in any particular case, limit the extent of the obligations or liabilities of the holder of a special mining licence.”

5.35 The Mineral Policy (2009) recognises the need to ensure sustainability in mining and the importance of integrating environmental and social concerns into mineral development programmes. The policy highlights the need to balance the protection of flora and fauna and the natural environment with the need for social and economic development.

5.36 The Mining Act (2010) together with the national environmental legislation governs the environmental management of mining projects.

5.37 There are numerous other sectoral laws that also govern specific aspects of mining including:

• Fisheries Act (1970);

• Wildlife Conservation Act (1974);

• National Land-use Planning Commission Act, (1984);

• Water Utilisation (Control and Regulation) Act (1981);

• Public Health Ordinance CAP 336; and

• Protection from Radiation Act (1983).

5.38 Sector specific requirements are addressed in mineral titles.

5.39 The Ministry of Energy and Minerals (MEM), the Vice President’s Office and DANIDA produced an Environmental Action Plan 2011 – 2016 for the Minerals Sector in August 2011. The MEM Environmental Action Plan aims to mainstream environmental management activities into the Ministries Policies, Strategies and Plans. Eight key issues/challenges are identified by the Action Plan:

• Water and Soil Pollution

• Land Degradation

• Air Pollution

• Disturbance of Biodiversity

• Climate change

• Earthquakes, Flooding and Landslides

• Radioactive Minerals

• Unsecured Mine Closure Liabilities.

5.40 17 Priority Actions are identified to tackle these issues, along with targets and indicators, budgets and the identification of those needed to implement the Actions.

16 Sosovele, H (2011) Governance Challenges in Tanzania’s environmental impact assessment practice. African Journal of Environmental Science and Technology Vol. 5(2), pp. 126-130, February, 2011


6 Social Issues

Key Issues

6.1 This chapter explores the key social issues identified in the literature, and during interviews with key stakeholders.

Land Tenure, Displacement & Forced Eviction

6.2 Land law in Tanzania has a long history dating back to before independence. The most recent Land Acts No. 4 and 5 (1999) cover general/urban land and the village lands respectively. These and many other legal frameworks have influenced the use of land for mineral speculation, exploration and production. However, these written legal instruments have always encountered strong opposition from the customary land ownership patterns among the local communities. Land rights have become one of the major issues of contention in the extractive industry sector in Tanzania. The Bomani Report accuses the government of giving away large portions of land to mining companies thereby displacing indigenous people. Whilst property rights are legally guaranteed in principle, corruption and inefficiency limit the Government’s capacity to enforce the law.

6.3 Conflict over land for mining remains commonplace and conflict over use of customary land has been a major source of tension between local communities and mining companies in Tanzania, particularly where local livelihoods depend on the use of such land. The licensing process often results in ‘grey’ or ambiguous areas under which different stakeholders in the mining sector are forced to transact. In particular, the licensing process suffers from institutional weaknesses in that large-scale mining licenses are applied for centrally, whereas small-scale licenses are applied for at local zonal offices of the Ministry of Energy and Minerals. This can result in overlaps between large- and small-scale mining licenses as large mines apply for licenses on what they thought were fairly open areas. Under the law, holders of small-scale mining licenses should in principle be compensated by the larger mining license holder, but there is a lack of an effective and transparent land compensation procedure to resolve conflicts over licenses. Small-scale mining license holders are therefore rarely compensated, and have often resisted being removed from plots even when bought out.

6.4 The long-standing dispute over the Bulyanhulu concession is an extreme example of the difficulties faced by the sector in dealing with artisanal miners who do not have mining licenses. In Bulyanhulu, there was a long history of artisanal mining, but artisanal miners were forcibly removed to make way for a large scale mine.17 Unable to farm and secure land for other economic activities, thousands of the ‘[landless], jobless and unemployed’, had resorted to artisanal mining for subsistence.18,19 The government evicted as many as 400,000 rural people from the Bulyanhulu area in 1996, claiming it was ‘acting to assert mining rights claimed by Kahama Mining Corporation Limited,20. While holders of valid licenses by law should receive compensation the same does not apply for artisanal miners who have no legal basis for compensation.21

17 Hinton.J and S.Wagner. 2010 “Gender and Artisanal Small scale Mining: (ASM) A Case Study in Mererani, Tanzania Pilot Study Report. World Bank. 18 Labonne, B and Gilman, J (1999) Towards building sustainable livelihoods in the artisanal mining communities. Paper presented at the Tripartite Meeting on Social and Labour Issues in Small-scale mines, ILO, Geneva, 17-21 May 1999 p.4 19 Banchirigah, SM How have reforms fuelled the expansion of artisanal mining? Evidence from sub-Saharan Africa, Resources Policy 31 (2006) 165–171 20 MMSD (2002) ‘Artisanal and small-scale mining’ Chapter 13 in Breaking new ground: mining, minerals, and sustainable development, http://www.iied.org/mmsd/mmsd_pdfs/finalreport_13.pdf p. 325 21 Tanzania Investments Benefits Study(Sustainable Management of Minerals Resources Project) pg.37 Sept. 20


http://www.iied.org/mmsd/mmsd_pdfs/finalreport_13.pdf

6.5 The act of resettlement itself often results in many socio-economic problems. Resettlement often leads families to lose their usual way of life; not only are homes lost but also social economic activities, neighbours and support networks, often resulting in significant social psychological effects. Women and children are especially vulnerable following eviction, with their post-eviction pay falling because of the nature and location of their pre-eviction work. The SMMRP proposes the establishment of a resettlement framework based on international accepted best practice (B4: Environmental and Social Management) to ensure that resettlement avoids, where possible, these negative consequences.

6.6 In the case of artisanal communities in the Lake Victoria region, the issues of displacement and lost livelihoods are coupled with drought and rising food prices. This dangerous combination has caused communities in the region to turn to smash-and grab illegal mining tactics in and around multinational mining sites. This has caused an alarming increase in environmental damage. Faced with the pressures of time and visibility, illegal miners do not concern themselves with the long-term environmental impact of their clearing or digging. The methods by which artisanal miners process gold uses excessive amounts of mercury, often in crowded village areas, which releases the poisonous metal into local soils and watersheds. The results are scattered mining pits, increased deforestation, watershed damage from sluicing and panning along the rivers, heaps of tailings in villages, dust pollution, and mercury pollution. 22

6.7 The 2010 Mining Act, which guides new mining investments, is meant to improve the situation in terms of increased mining revenue for the state, better conditions for small-scale miners, and more reasonable and just compensation for displaced people. A number of studies have documented how these national frameworks seldom provide sufficient protection or compensation to people whose land is expropriated. Four main issues often arise:

• Firstly, only a limited range of physical assets are compensated, and valuation methods do not capture either market value or the true costs of replacing lost assets;

• Secondly, land users without legal title are usually not compensated;

• Thirdly, compensation may be poorly implemented by central and local governments – in the worst cases corrupt practices mean that compensation never reaches entitled groups;

• Fourthly, land acquisition acts are often based on laws that were established in the colonial era, giving the state wide-ranging discretionary powers.23

6.8 Mineral rushes seen over the last decade in Tanzania have put increased pressure on land resources often increasing tensions over land tenure and rights. Mwanza and Shinyanga in the far northwest of the country recorded the fastest regional population growth rates. The gold and diamond fields of these regions have attracted mass migration. In this mining frontier setting, small-scale artisanal miners’ freedom of movement coupled with mobile phone communication have led to thousands arriving at mineral strike sites in the space of a few months.24

6.9 Mine rushes especially of gold continue to be common in many parts of the country. It is very difficult to track properly all active rushes in the country. Some rushes last for only few days, others are conducted in very remote areas and discoverers will prefer to keep quiet so as not to attract a big in-flow of miners from other parts of the country. Some gold rushes are located in game reserve or forest reserve land and activities in these areas can continue for several months before the authorities are aware of the illegal encroachment.

6.10 Larger rushes (those which attract more than 5000 people) where people camp close to the mine area for more than a month are more easily noted. Among the most recent rushes include ruby mining at Winza-Mtakanini, Mpwapwa in Dodoma region and Londoni/Sambaru Gold areas of Singida region, all linked with new discoveries on grounds with no previous record of Ruby or Gold occurrences.4

22 Hall, A. Tanzania’s Gold Sector: From Reform and Expansion to Conflict? Foundation for Environmental Security and Sustainability (June 2010) 23 Siri Lange 2011,Gold and governance: legal Injustices and lost opportunities In Tanzania African Affairs, 110/439, 233–252 doi:10.1093/afraf/adr003 Published by Oxford University Press on behalf of Royal African Society 24 Jønssen, J.B., and D.F. Bryceson. ‘‘Rushing for Gold: Mobility and Small-Scale Mining in East Africa.’’ Development and Change 40, no. 2 (2009): 24979.


6.11 It was also observed that some of the active mine rush areas were later converted into reserved areas for small-scale mining; this happens to Winza, Londoni, Kilindi, Nyarugusu and Rwamagasa mine areas.

Infrastructure and social services

6.12 The level of infrastructural development and social service facilities in ASM communities is generally low, but varies according to the organisation of the settlements, and the availability of power (electricity).

6.13 In comparison to the last ASM survey conducted in 1996/97, there has been a lot of improvement in infrastructure in ASM communities. 4 Whilst in the past there was obvious exclusion of ASM participants in local governance, established communities especially, have seen the development of more organised administrative structures and several Districts and Wards have integrated ASM in their leadership. In Lwamgaza, Maganzo and Nyarugusu for example, there are a number of Mineral Brokers, PML holders or Pit Owners who are also Councillors, or Members of Village/Ward leadership. This ensures that the ASM sector is in a better position to influence decisions on development and community projects that include road construction and social facilities.

6.14 The Baseline Study on ASM activities also shows that each of the communities surveyed now has access to a Primary school, which also run pre-school classes as required by education policy. However, there is still a shortage of secondary schools, and other institutions for skills training are not often found in many communities. In the case of the three ASM study areas, Secondary schools are accessible at an average of 7 kms from mining camp. A recent government drive to have a Secondary School in each Ward may improve the situation.

6.15 Electricity has given a significant boost to the ASM communities of Makanya and Mirerani, stimulating other businesses and services in these places. There is also an increased use of generators which have improved the quality of social service provision such as the operation of health facilities, operating milling machines and other businesses. More generators have improved access to recreation facilities including TV and video shows. ASM sites have also been attractive points for investment in telecommunications infrastructure, significantly improving the mobile phone network in these sites. This has in turn boosted participation and mineral marketing. At the household level, there is an evident increase in the use of solar panels which are also used for telephone recharging.

Gender equality

6.16 Tanzania has been working on and investing in the advancement and empowerment of women in almost all spheres of decision making in society. There were, and are, various deliberate efforts by the Government to provide a conducive atmosphere and chances for women to be included in decision making positions, particularly in terms of politics, administrative and some religious denominations. However, there are still very few women (negligible) who hold political positions and ultimately strengthen and support women to aspire for more rights in the mining industry.

6.17 Women are largely only to be found as either wives or service providers in ASM.25 The culture surrounding the mining sector can be off putting to women as it is a particularly male dominated industry and is viewed by many as not a suitable industry for women to be involved in. Some men actively bar their spouses from engaging in mining (owning a mining plot) and the politics surrounding it Women may also be deterred by being subjected to malicious acts and threats. Women being actively involved in exercises such as actual gemstone digging is considered particularly culturally unacceptable in Tanzanian society.

6.18 Other barriers to women’s involvement in the mining sector include access to finance. In principle land and its resources, by law, are owned by the state in Tanzania. However, land rights, are often also closely tied to inheritance and marriage customary laws. Customary laws usually vest rights of land in men, and women derive rights of access and use of land by virtue of their relationship to the men, mostly as wives. This causes significant problems for women as, for example, banks often demand rights to land as collateral for bank loans. Borrowing from

25 Hinton.J and S.Wagner. 2010 “Gender and Artisanal Small scale Mining: (ASM) A Case Study in Mererani, Tanzania Pilot Study Report. World Bank


microfinance banks is also difficult since they do not take a risk lending to poor woman who appear to have no guarantee of success in business.

6.19 The Ministry of Energy and Minerals have been working on the provision of equal opportunities to both men and women in employment of the MEM and its undertakings. Progress is being made on gender policy and putting in place guidelines that will ensure that gender sensitive plans and strategies in all sectors and institutions are developed. These guidelines put emphasis on gender equality, equity and equal opportunity of both men and women to participate in development undertakings and to value the role-played by each member of the society. This SMMRP shall also ensure that rural women, who are engaged in mining activities, will be adequately involved at all levels of the SMMRP planning to the stage of implementation.

Child labour in mines

6.20 Child labour in ASM is still an issue and is common throughout the minerals sector in the country. It is propagated by poverty but also by the itinerant tendency of parents who shift with children from community to community, and often to mineral rushes. Some children also engage in ASM after being abandoned by parents or guardians.

6.21 Studies of child labour in two gold mining centres of Chunya and Geita showed that in terms of prevalence, the child labour ranges from 110 to 120 in Mlimanjiwa Village in Chunya, while in Geita the population goes as high as 500 in gold processing area located near the town. It estimated that children involved in these two mining Districts range from 500-700.

6.22 Mine operators prefer child labourers because they are cheap and easier to manipulate than adults. The Baseline study on ASM 4 activities established that in addition to working directly in mining-related activities, children are also engaged in activities related to the social comfort of members in ASM such as attending to guest houses and washing clothes. The Baseline Study established that children are engaged in digging pits or clearing of sediments (16.7%) and cooking food for miners (15,6%), the latter being more prevalent among female children.4

Health and Safety

6.23 Mining is a dangerous occupation, whilst LSM operations often have measures in place which conform to international standards to safeguard the health and safety of their employees, such safeguards often don’t exist in the ASM sector. The number of casualties and health problems among ASM miners is enormous. Two of the reasons that the miners jeopardise their lives and health are lack of knowledge and lack of money. Health and safety hazards in ASM falls in to three categories:

• Social health hazards e.g. drugs and venereal diseases;

• Occupational health hazards e.g. stone lungs from inhaling fine grained quartz dust; and

• Safety hazards.

Social Health

6.24 Being situated in remote regions and often established in an ad hoc manner, the resulting characteristics of many ASM communities are important determinants of health and wellbeing. The majority of ASM, primarily young men and boys, live in harsh conditions in the mine camps, experience dire health and safety risks and – lacking traditional family support systems – can easily be drawn to alcohol and drug abuse, crime, violence and high risk sexual behavior.

6.25 Girls and women providing market services to the camps (typically while engaging in re‐working of tailings) are at great risk and experience harassment, theft, sexual assault and violence on a regular basis.14 The influx of cash into a local economy, high rates of poverty and a lack of economic alternatives, and the low status of women in many societies results in the sex trade is prevalent in many ASM communities. 26 Given this, combined with the transient nature of this activity and often pervasive high risk behaviour, many ASM regions are plagued by high incidences of HIV/AIDS and other sexually transmitted diseases. Inadequate public services, poor

26 Hinton, J 2005, Communities and Small Scale Mining: An Integrated Review For Development Planning, Mining Department, World Bank Group


hygiene and deficient housing conditions, combined with limited awareness and risky personal practices, all increase the potential for transmission of infectious diseases. High levels of drug and alcohol abuse, gambling, and violence are also frequently reported.

6.26 Due to the location of ASM communities, the speed with which they are often established and the limited resources of government, these health and social issues are often compounded by a lack of services and infrastructure. Both national and local government are responsible for providing basic education and health care and in some ASM communities further support is provided by a number of NGOs and CBOs. These organisations have supported awareness in HIV/AIDS, and STDs, and other health issues that have been highly prevalent in ASM communities. The nature and type of health care and other basic services afforded to local communities does not differ markedly from one region to another, but the level of engagement and standards of service provision tend to be more sophisticated in gold mining sites than in the other ASM mineral sectors such as diamond, gemstones and quarrying. However, the care available to miners at ASM sites is often poor.

Occupational Health

6.27 The main occupational health hazards for ASM comprise: Stone lungs/silicosis (dust), Lead poisoning (dust), Mercury poisoning, Radiation and Noise.

Stone lungs/silicosis

6.28 Quartz is the main mineral in most of the gold ores mined by ASM; crushing and grinding the quartz is necessary in order to liberate the fine gold grains. If the grinding is done dry there is a major risk of inhaling the fine-grained quartz dust. The dust will over time accumulate in the lungs and eventually cause silicosis also called stone lungs, making breathing difficult and eventually leading to death.

6.29 There are two solutions to this problem. The easiest of which is to use dust masks, which are easy to use and inexpensive, although they may be difficult to get hold of in remote ASM communities, but should be available in larger towns. Another way to reduce the risk of silicosis is to use wet grinding instead of dry grinding. Wet grinding of gold ore is widely used across the Philippines, and will prevent the immediate risk of silicosis. However, precaution must be taken with the tailings from the grinding as the fine quartz dust will be blown around and cause stone lungs in the mining communities, when the tailings dry out. To prevent this, the tailings should be properly sealed with a layer of mud.

Mercury poisoning

6.30 Metallic mercury is very dangerous to health. During gold extraction with mercury (amalgamation) it is burned off and the fumes get into the atmosphere to be inhaled by people doing the amalgamation and by local communities. In the lungs the metal fumes are easily absorbed in the bloodstream, carried around in the body and taken up by various organs. Mercury vapour which is not inhaled will precipitate with rainfall and gradually be washed into the local drainage system. In the aqueous environment metallic mercury is transformed by bacteria to methylated mercury which is even more toxic than metallic mercury. The methylated mercury (also called organic mercury) enters the food chain and eventually ends up in fish which are eaten by people. In this way the population may get high concentrations of mercury in their bodies.

6.31 Classic symptoms of mercury poisoning are tremors which may spread to the whole body, or cause Erethism which is a mental disturbance characterised by acute irritability, abnormal shyness, indecision and overreaction to criticism. Inflammation of gingiva and metallic taste are other symptoms. If mercury is present in the blood stream of a pregnant woman, it will cause development deficiencies in the child such as loss of intelligence, decreased language skills, memory and attention. Methylated mercury in adults has also been linked to increased risk of cardiovascular disease including heart attack. It can also cause neurological symptoms such as loss of physical coordination, difficulty of speech, narrowing of the visual field (tunnel vision), hearing impairment, blindness and death.

Radiation

6.32 Tantalite/columbite is mined by ASM operators in a few places in Tanzania. Today the mineral is extracted from soil overlying hard rock tantalite deposits. The mining itself is not dangerous since


it does not involve deep diggings. However, the storage of the ore concentrate may create problems. The mineral columbite/tantalite frequently contains small amounts of uranium. Uranium is radioactive and its radiation produces the radioactive gas radon. Radon produces a number of radioactive daughter products some of which are metals. Radon and its daughter products are inhaled and may damage the lung tissue.

6.33 As long as the columbite/tantalite is stored outside there is no risk of radiation damage. However, if the tantalite/columbite is stored indoors in houses where people sleep, the radon accumulates and can seriously harm them.

6.34 Tanzania has a number of deposits of uranium and the Government is considering the potential of mining these deposits. The health problems with uranium are similar to the problems mention above. Uranium mining in Tanzania will be done through large scale operations and internationally recognised standards will have to be put in place.

Noise

6.35 Noise can be a major problem for ASM miners, but can be mitigated easily. If the miners use dry grinding in ball or rod mills it not only produces a lot of dust, but also an unbearable noise. Many of the miners doing dry grinding have advanced stages of tinnitus or are almost deaf. If the miners switch to wet grinding there are no noise problems whatsoever. A common argument against the use of wet grinding is the amount of water needed, however, if set up properly the water can be recycled again and again.

Safety

6.36 Underground work operations and working in open mine faces are considered to be areas of high accident risks in ASM. The major cause of injuries in the mines are from rock falls, loading & unloading trucks and rope failure during ore hoisting from mines.

6.37 Pits and tunnels are dangerous working places, but simple inexpensive means, e.g. safety boots, safety helmets and protective gloves, will protect miners against many accidents. Extracting stones from hard rock deposits is done by hammer and chisel. A major problem is that splinters from the rock may hit the eye and cause blindness if safety goggles are not used. It is therefore important to instruct workers to use safety goggles. One of the main problems in underground mining is the lack of safety measures against falling stones and collapsing walls. With more money, measures could be taken such as timbering shafts, walls and roofs in their tunnels in order to prevent collapse of their tunnels as well as fans to improve ventilation.


7 Economic Issues

Key Issues

7.1 This chapter presents, the key economic issues identified in the literature, and during interviews with key stakeholders.

Employment Large Scale Mining

7.2 There are few accurate figures available of the total number of people currently employed in the mining sector in Tanzania. In LSM the total number of direct employees is estimated to be around 10,000, out of a non-agricultural workforce of 3 million the majority of whom – 2.44m – are engaged in trade and other services including public administration.

7.3 Whilst the employment numbers may be considered quite small in absolute terms, the higher than average wages and benefits paid within the mining sector means that it is a significant sector.

7.4 Many of the professional jobs within LSM are currently filled by international specialists, however as skills and experience develop in the mining sector in Tanzania the number of Tanzanians employed in LSM is also likely to grow. There is a perception amongst many local communities around mines that the mines do not provide good employment opportunities and benefits. Despite company figures showing relatively high levels of local procurement, definitions of ‘local’ vary and can include workers from areas extending well beyond surrounding villages. The work that is available to ‘locals’ often tends to be short term and casual.

7.5 Mining in Tanzania is still very much in its infancy with many of the large gold projects still in various stages of construction. In the early stages of the mining life cycle in Tanzania, as in other countries, there has been a rapid and large build-up of the direct employment associated with the construction of the mine(s) and the associated infrastructure. Following construction however, total direct employment peaks at a level of 12,000 workers and then settles down to a level of between 7,000 and 8,000 workers thereafter – assuming the lives of the mines are extended through new investment or new mines are constructed. Total employment begins to decline significantly on the basis of present plans after about 2022. Within these totals, expatriate employment is anticipated to peak at some 1,100 workers in 2009 but thereafter to decline rapidly to only 450 staff by around 2015: a small percentage of the overall employment total.

7.6 The wage bill associated with direct employment in the mines increases to a total of more than US$200m per annum during the construction phases but also exceeds US$100m for much of the operational life of the mines. These figures exclude the often considerable labour element in contract work and in the on-going capital upgrading that occurs throughout the life cycle: a cost that adds up to US$30m in some years. These numbers partly reflect the relatively high average wages and benefits paid by the mining companies.

7.7 The numbers of indirect jobs and enterprises along mining’s supply chain created from the stimulus of mining can be significant. In Tanzania the companies report the peak of the construction employment as being in 2009, when some 6,600 workers are engaged for this activity. With construction ending in some projects and the commencement of a steady-state of operational workers in others, it is expected that by around 2010 the total workforce across four mines would stabilise at some 3,100 workers.

7.8 The extra growth that has been associated with the mining boom – albeit small on the national canvas - is certainly large and significant in those communities that are in the direct areas of influence of the mines. The new mining companies in Tanzania have clearly created a significant number of good quality jobs in these communities – either directly or indirectly – via their procurement activities. The indirect impacts could, of course, be larger. There is an expectation that this will indeed occur as the embryonic mining industry becomes more mature and embedded


in the country’s economic system. Specific corporate policies of the type already practiced at North Mara are an important part of this prospect. At the same time there have been negative effects of the newer commercial mining on the small-scale (but large in employment terms) ASM sector.

7.9 The main source of increased business opportunities came from selling to mining-company employees, rather than to the mining company itself. This was a common finding particularly amongst women and young people running small businesses.

Small Scale Mining

7.10 In addition to these big mining operations, ASM is incredibly important in Tanzania and ASM remains the greatest employer in the mining industry in Tanzania. Whilst it is incredibly difficult to accurately estimate the numbers employed in ASM in Tanzania it is thought to be about 800,000 people.

7.11 Although ASM is often rudimentary with only informal operational organisation, poor technology, using cheap and crude tools and with limited marketing knowledge, ASM is pivotal in alleviating poverty, increasing community capital and diversifying the local economy in many rural regions of Tanzania. Primarily this is because it is viable in areas with minimal infrastructure where other industries could not function. In addition to providing employment to those that provide direct services for mineral production such as crushing, milling, panning and the initial stages of processing an important industry has grown up around the ASM sector in Tanzania providing support services. Indirect services to the mining sector can include (i) Food vendors (Mama Lishe); (ii) Shops, Hotels and Bars and (iii) Accommodation/Guesthouses. These support services provide crucial social amenities in both established ASM communities and mine rush areas.

7.12 Many ASM miners are itinerant and have at least two working seasons during the year. During the wet season many engage in agriculture and venture into mining areas during the dry season. In ASM communities, households combine different activities for a livelihood, although mining is the most significant cash income earner for the households. A typical division of labour in a gold producing area will consist of claim holder(s), pit owner(s) permanent mine workers, casual labourers, and service providers. In a case where miners produce 100 sacks, retention after hauling to the surface means claim holder gets 30 sacks, pit owners 30 sacks and mine workers 30 sacks. The remaining 10 sacks are milled and miners are paid in cash. Hence each decides when to mill and process the ore. Following that, workers in a typical processing area, are paid in cash, depending on number of sacks, commonly known as “kiroba” of 75 kg, processed. For example at one site (Londoni in Manyoni District), the casual workers are paid TShs. 120,000/= out of 2gm x 50,000/= x 10 = TShs. 1,000,000/=. The remaining cash goes to pay for the miner’s food while at work. Gemstone dealers and brokers buy 10 to 20 gm per day, peak periods goes to 50 g/day. The income therefore is 55,000 (sell price) – 50,000 (buy price) per gm = 5,000 shs/g x 20 gms = 100,000 per day = 3.0 Million per month.

7.13 The relatively high wages in ASM, compared with agriculture and construction, act as a lure for financial and social independence in many communities. ASM also often provides employment for retrenched workers from large-scale mines. It is estimated that women account for as much as a third of the sector and are involved in all activities associated with ASM in various parts of the world.

Inequalities in Society

7.14 Increased employment and the relatively high wages associated with both LSM and ASM causes its own problems and tensions within communities surrounding mines, between those receiving benefits from the mines and those not receiving benefits. This can contribute to the deterioration of social cohesion in some of the communities surveyed. For example, people receiving (relatively high-paying) jobs from the mine have more disposable income and some villagers complained of the creation of a new ‘class’ of people undertaking mining work. There may be a perception of localised inflation for basic commodities and land around mine sites, compounded in some cases by in-migration and increased demand for goods, services and land. In the areas of health and education, where mines provided hospitals and schools, mine employees are well catered for because they can afford the services, whereas non-employees are prevented from accessing healthcare because of the costs. In Mwendakulima, for example, near the Buzwagi mine, incomes


have increased significantly in recent years because there are more mineworkers in the village, more community investment projects and the construction of the ward office, which provided short-term employment.

7.15 Indirect benefits to communities from the mining sector seem to be relatively limited in the Tanzanian case, this may be due to the level of poverty in Tanzania and the emerging state of the mining industry. The mechanisms of trickle-down that can enable mining activities to contribute to general poverty reduction and help redress income inequalities do not arise automatically and inevitably. It has taken time for the well-developed mining supply industry of the type that has developed in more advanced mining economies such as South Africa and Chile to emerge. They also need help from forward-looking and supportive polices by both the mining companies and the government.

Corporate Social Responsibility

7.16 Some companies have implemented successful employment-generation projects that try to help extend the benefits of the mine beyond those directly employed. For example, Buzwagi mine has run agricultural improvement projects, with a focus on bee keeping, which have been well received in the local communities. The project is part of African Barrick Gold’s (ABG) livelihoods restoration efforts and is run in collaboration with the Mwendakulima Bee Keepers Cooperative (a local organisation with 60% of members from resettled households). At the Mwadui mine, villagers are employed as security guards, carpenters and masons, with priority given to members of the nearby Mwadui village. National survey data shows that, possibly as a result of largescale mining, average incomes in the Mwanza and Shinyanga regions were respectively 110% and 130% higher by 2007 than they had been in 2001.

7.17 Companies have also undertaken a range of projects in the areas of health, education, small-business development, infrastructure development and the provision of water. In Mwadui and Maganzo, villagers explained that the cost of travelling from Kakola village to Kahama has reduced from TZS 5,000 to TZS 3,000, and the time has reduced from three hours to one.21 There is also some evidence to suggest that the presence of mines may have been beneficial to health in some ways.

7.18 An increasing number of the large mining companies are also striving to implement environmental management systems within their operations that meet international standards such as ISO 14000 (a series of international standards on environmental management).

7.19 However, there is mixed evidence and views on the success of Corporate Social Responsibility with many media reports decrying unmet promises or failed schemes by mining companies, whilst mining companies themselves report difficulties ensuring that government and local government agencies deliver their components of these projects.

Role of Local Government

7.20 Whilst companies may adopt their own ethical codes of practice and policies in terms of their social and corporate responsibilities that go beyond the basic minimal legal requirement, they also have clear obligations to undertake their activities within the framework of the laws and regulations that govern this (and other) sectors and all costs relating to achieving the necessary performance standards which are a legal obligation. Defining the extent of such work can be contentious with companies drawing the line on financial assistance at the point where they feel services required are clearly the responsibility of a local authority. There can be an underlying assumption that large multi-national mining companies will have the necessary resources to pay for all improvements in local infrastructure including clinics, nurses’ hostels, community centers, employment and skills training centers. While companies may be willing to meet part of their social and corporate responsibility obligations by offering to assist in community development projects, misunderstandings frequently occur. Cases arise where a company agrees to build a school or community center which then remains empty and gradually falls into disrepair because the local authority has no budget to provide the necessary staff or basic equipment.

7.21 There is a need for clarity on what the role of Local Government should be in the provision of services and infrastructure and what falls under Corporate Social Responsibility.


7.22 Whilst LSM mining companies are putting in place supportive policies and projects to ensure benefits to the community are maximised and the environment protected, the situation for ASM operators is quite different. Wider community benefits and the environment are not their most immediate concerns. ASM activities in some areas are considered a supplementary income generating activity and for many at site level a purely subsistence level activity driven by the need for financial gain, however small. Negative impacts of mining are only really considered when it begins to directly impact on their lives, such as pollution of drinking water sources and the long term implications, are often not fully appreciated and/or addressed. This means that the role of Government is particularly important.

7.23 It is difficult to effectively control, monitor and enforce environmental or health and safety violations due to lack of resources and the inaccessible nature of the ASM sector. Awareness needs to be raised and sensitisation to issues amongst ASM operators increased. It is important that any obligations on ASM operation do not result in time consuming or financially restrictive constraints. Involving the miners and the local community in the development, operation and monitoring of environmental schemes will increase ownership and hopefully, the success of these environmental schemes. In this respect, generic sensitisation plans need to be developed and implemented to ensure that miners recognise the negative effects of the mining activities, how these effects can be prevented and/or remediated should any damage occur.

7.24 Strong links between Local Authorities and regional-level and state-level ministries responsible for environmental protection, health and safety and economic issues will be particularly important when trying to educate and influence the sector.

7.25 Until recently, mining activity in Tanzania has been concentrated within relatively few districts which, in consequence, have borne the main brunt of planning for the expansion of existing communities and the emergence of new settlements, but without receiving any additional budget allocation from national government. Lack of coordination between centralised ministries, their very small local teams, the provincial government and individual local authorities has mean that there has been no proper planning for urban growth, or redevelopment of existing settlements in mining areas. In addition, provision of new or expanded infrastructure, establishment of new health care and educational facilities and other essential services has lagged a long way behind the rise in population, stimulated by the lure of potential employment and new forms of economic activity. In these circumstances, there is a clear need to look closely at the relationship between different authorities, their individual remits and the financial mechanisms and budgets required to deliver more effective local government services.

Access to finance

7.26 A significant barrier for ASM operations to provide quality socio-economic services, where Government is not able to, is the provision of finance. The Tanzanian government has always put emphasis on cooperatives as a way of accessing services including savings and credit, access to mining plots and education. The Ruling Party’s (CCM) Manifesto of 2005 has also put emphasis on cooperative development. The formation, registration and management of cooperative groups should be in accordance with the Cooperative Policy of 2002, Cooperative Act No.20 of 2003, The Cooperative Law is enforced through a number of Societies Rules and guidelines.

7.27 Country-wide there are of three types of cooperative societies namely:-

• Savings and Credit Cooperative Societies;

• Mining Cooperative Societies;

• Multipurpose Cooperative Societies.


8 Legislation and Institutional Issues

Key Issues

8.1 In this chapter, the key legislative and institutional issues identified in the literature, and during interviews with key stakeholders are explored. A number of studies have been undertaken over the last four years looking at the changes in the minerals sector that have been brought about by new legislation and by changes in the institutional framework of Tanzania. These studies have included “Mining in Tanzania – What future can we expect?” by the Resource Endowments initiative (REi) of the International Council of Mining and Metals (ICMM) and “The Extractive Resource Industry in Tanzania, - status and challenges of the Mining Sector”, by the Society for International Development, 2009. The SESA team has reviewed the literature and drawn together some of the principal findings below:

The Tanzanian Record through 2008

8.2 International commentators have observed that:

• The improvement in Tanzania’s ability to attract Foreign Direct Investment (FDI) in the past decade has been truly remarkable. As UNCTAD’s 2008 World Investment Report shows, Tanzania is now placed in the higher ranks of African economies in terms of FDI and at the very top of the list in terms of non-oil countries. The major single reason for Tanzania’s sustained high performance in recent years is considered to have resulted from the massive new inflows of capital for investment in the mining sector;

• The very significant growth of total exports seen in Tanzania since 1999 is almost wholly accounted for by the growth of the non-traditional export sectors within which mining products and manufactures are the major elements. The share of gold mining exports in total non-traditional exports rose from only 10% in 1999 to more than 53% in the peak year of 2004. Exports of gold have also easily outgrown the traditional agricultural export crops such as coffee that for so many years were the leading foreign exchange earners for the country;

• As regards the level and rate of growth of GDP, the evidence shows the share of total GDP attributable to mining has risen clearly and consistently if only by a small absolute amount. Coincidentally the magnitude of that increase (2.1% of GDP cumulatively since 1998) is almost equal to the cumulative decline that has been seen over that same period in the GDP share of manufacturing. Mining and the construction sector are the only identifiably dynamic sectors in the overall GDP growth seen since 1998; and

• An assessment of the government revenue contribution of mining is hampered by data difficulties. However, merely on the basis of the taxes paid by the four largest mines, and using a conservative range of assumptions, total revenues from these four mines had grown from almost nothing to between US $76m and US $100m per annum by 2007. By international standards, the sums involved are not large but they nevertheless represent the equivalent of between 3.1% and 4.3% of the total tax revenues achieved by the government; about one third of all the government’s receipts from all import duties; and more than the actual receipts from the Heavily Indebted Poor Countries Initiative (HIPC) debt relief in the last years when this was provided.

8.3 Overall, these macroeconomic contributions are substantial and they represent an important part of the explanation of Tanzania’s overall strong performance in macroeconomic terms in recent years. This is especially so given the very short life span of the new mining investments in what is still essentially an industry in its infancy in Tanzania.

8.4 In terms of governance, Tanzania has seen clear improvements but it does remain weak in many areas as routinely measured by the World Bank’s standard indicators. The critical components in


the case of Tanzania have been the establishment of the stronger, and more effective, central executive power that is necessary in order to achieve the gains in economic policy performance referred to above. However, some commentators argue that the gains achieved in terms of central control may have caused further dilution of the effective power at the local and community levels of government. Effective local and community government power is necessary to achieve a set of true partnership arrangements with the large and powerful international mining companies.

8.5 ICMM has concluded that in relation to macroeconomic policies, Tanzania has achieved a lower and more stable inflation climate and a fiscal balance that is much more easily financed without inflation than in the past. The maintenance of this lower inflation equilibrium in the past decade has been an important ingredient of the stability that has encouraged higher levels of new mineral and other investments. But even more important than this is the fact that Tanzania has, for a decade, sustained a reasonably reliable commercial regime that gives investors’ confidence that payments and receipts in foreign currency – a key factor in commercial mining - will not be associated with unreasonably high risks. This has been supported by a much more realistic exchange rate than in the years before 1996 and, above all, by the avoidance of the serious real exchange rate misalignments that occurred early on.

8.6 In a very short space of time the government revenues from mining in Tanzania have grown from almost nothing (artisanal mining contributed little) to almost 4% of total tax revenues and over 3% of total domestic budget revenues: a not insubstantial contribution in a country with a generally poor record on tax collection. The mining revenues have also been very stable to date (much more so than the dominant donor aid flows) and could soon overtake HIPC debt relief as a source of resources for the government. Investors still view the tax regime in Tanzania (as is also the case of Ghana) as significant deterrent to investment relative to the similar regimes of countries that compete for the same investments.

8.7 One extremely important manifestation of this change has been Tanzania’s considerable success in attracting FDI into private commercial activities. Indeed the transformation of Tanzania’s fortunes in this regard after 1996 were truly remarkable, with the insubstantial inflows of less than US$10m annually of the early 1990s rising more than fifty-fold since 2000 to levels which now average more than US$500m per annum. In the three years to 2007 alone, Tanzania attracted no less than US$1.7bn of FDI which is more than twice the level received by neighbouring Kenya. Within these impressive FDI totals new mining investments have been the absolutely dominant element with over US$2bn being attracted into new mining projects since the sector reforms of 1997–1998.

The General Contributions of Mining

8.8 The report “Mining in Tanzania –What future can we expect?” is the latest in a series on mining and its social and economic impacts that have been prepared under the auspices of the Resource Endowments initiative (REi) of the International Council of Mining and Metals (ICMM).

8.9 It provides an objective basis to help the Tanzanian government, and provides a number of interesting recommendations and comments. The examination of mining’s general macroeconomic contributions across several countries leads to the following broad statements:

• Mining can readily become the main source of a country’s FDI;

• If this happens (as is already the case in Tanzania) the volume of domestic investment is also likely to be significantly increased;

• Mining can also become a major foreign exchange earner by generating new forms of exports. These new exports can easily (and quickly) supplant long-standing traditional exports in this role;

• Mining can often contribute a share of government revenues that is high relative to its share of Gross Domestic Product (GDP). This is because large scale mining is a visible and easily taxed activity compared with many more traditional activities including agriculture, the majority of small scale manufacturing and artisanal mining;

• Mining in its more modern forms is unlikely to contribute a large proportion of a country’s GDP. This is for the simple reason that it is a highly capital intensive activity. Its contribution to a country’s Gross National Income (GNI) is likely to be even smaller


because of the outflows of mining company dividends and interest in debt that represent part of the difference between GDP and GNI; and,

• Modern mining cannot be expected to make a significant contribution to direct local employment levels. Again this is mainly because of the high capital intensity of the activity and less because of the use of expatriate labour over local labour as is often asserted.

Balance of Payments

8.10 The present export earnings from gold of more than US$700m (US$770m for all mining) seem likely to rise to almost double that value to reach a total of around US$1.4bn in the period 2012 to 2016. Thereafter there is likely to be a significant decline so that by 2023 export earnings from gold will be lower from these identified mines than has been the case in the recent past. The figure will decline further and will be less than US$400m by about 2025. The numbers encapsulate potentially different views about the future of the gold price.

8.11 There are four main deductions from export earnings that need to be made in order to assess the overall current account contribution of mining. These are:

• imports for capital construction;

• imports for mining operations;

• interest payments on international debt; and

• dividend payments to shareholders.

8.12 The results indicate a significant overall trade deficit in the earlier intensive construction years up to and including 2001 attributable to the large imports of capital equipment. However, in all years from 2001 onwards to 2034 the sector realises a trade account surplus: in the peak years from 2014 to 2017 the trade surplus should be close to US$900m. In part this is because of the fortuitous staggering of the construction outlays of the mines for which we have data through time. The high import costs of some of the later mines after 2000 came at a time when the earlier mines were already generating off-setting export earnings. Tanzania also has the scope to increase the trade surplus even more than shown to the extent that increased local procurement can be encouraged. Factoring in the interest payments on international debt, although these payments are large in their absolute total amount, their impact on the current account surplus in most years is small. So Tanzania seems able to look forward to a sustained period of some ten years from 2011 when the mining-generated current account surplus could be in the region of US$600m to US$800m per annum.

Government Revenues

8.13 The responses that were provided on this matter by the companies to the Resource Endowment Initiative were on the basis of the tax regime now in place and so do not reflect any possible changes that have been under discussion following the Bomani Committee recommendations. The evidence confirms one of the points of the critics of mining, that in the early years of their licensed activities in Tanzania the companies paid only very modest amounts of tax in total.

8.14 However, once the actual mining operations began in Resolute’s Golden Pride mine (December 1998), Geita (July 2000), Bulyanhulu (2001) and North Mara (2002) the revenue receipts of government rose rapidly to the current (2007 and 2008) level of around US$80m to US$90m per annum. Looking forward the data tell us that the revenue from the existing identified gold mines alone will rise to a peak of over US$280m; three times today’s levels by 2017 and thereafter decline. The peak revenues will be achieved in large measure because of a large absolute and proportionate increase in the yield from the corporation tax as the depreciation allowances unwind; at the peak this tax alone is expected to yield some US$186m a year. From about 2016 the corporation tax is also unambiguously and continuously the most important source of mineral sector tax receipts even assuming the continuation of the present tax regime.

8.15 This continues to be the case even in the later years when the levels of mining production are in decline. Assuming a nominal growth rate of total government tax revenues in dollar terms of 5% per annum through 2017, then total tax revenues would raise to US$3.87bn. At that point mining revenues would account for 7.3% of the total. With a higher rate of growth of total revenues of,


say, 7% the mining share would be 6.1%. At a slower rate of growth of total revenues of, say 3.5%, the mining share would be 8.2%.

8.16 In brief, the evidence indicates that even under the present Tanzanian tax regime, the tax contribution of the existing major gold mines alone will raise very significantly through 2017 in both absolute dollar amounts and as a proportion of total government revenues. Thereafter the tax take will begin to decline because of falling production levels. At that stage if not before, the government will need to rely on payments from new mining activities if it wishes to enjoy a sustained high tax yield from the sector. The pattern we see here is not unusual – it is evident also in data from other countries where a life cycle analysis has been possible.

Local Government

8.17 It is important to note that in Tanzania, the majority of all mining revenue comes from just seven out of a total of 117 local districts. Seven of the main eight operating mines in Tanzania are located narrowly in these districts. Hence the quality of regional and local administration in these regions is a critically important factor in helping to capture the benefits of mining and avoiding possible adverse effects. As a matter of government policy these districts do not receive any direct allocations from the mineral taxes themselves. However, they do participate, along with all of Tanzania’s local districts, in the general revenue allocation system of the country.

8.18 The ICMM report has concluded that although the system of local authority financing is improving, it does not yet provide a satisfactory basis for the effective bottom-up planning and financing of local economic and social development. Nor does it provide sufficiently well-equipped interlocutors for the mining companies in local and regional administrations to ensure the maximum economic and social benefits from mining companies’ spending.

8.19 The distribution of fiscal functions between the central and local levels of government is well established within the legal and regulatory framework of Tanzania. However, most local government funding (70% to 90%) still comes from the central government. Both central and own-revenue funding are subject to significant year-on-year variability and to low levels of elasticity. Hence local administrations do not easily or automatically capture any part of the benefits of more rapid income growth in their areas whether induced by large mining development or by other activities. Therefore, consistent locally-driven programs of development – especially in the context of overall expansion - are difficult to design, execute and finance. 6

8.20 There is a need as part of the SESA process, to consider the case for adjustment of the present Tanzanian policy of no explicit transfer of mineral revenues to the mining areas. The Tanzanian approach assumes that:

(a) all issues of local damage and disruption are the responsibility of the mining companies or alternatively that the mainstream funds-transfer formula will automatically provide the local governments with funds to deal with these problems; and

(b) all complementary development funding (to support the spending of the mining companies) can come from additional locally generated resources, or from reliably available ad hoc funding from the Central Government including donors.

8.21 It seems to follow that improved local impacts from mining will require the greater empowerment of local authorities through both greater independence of their finances and greater local management and other capabilities.

Artisanal Mining and Managing the Interface with Small Scale Mining

8.22 Although artisanal and small scale mining is shown to make a minimal contribution to the Government’s revenue accounts, its importance within the overall economy is greatly underrated. It has been shown through case studies that even the most disorganised and ill equipped individual miners, operating entirely outside the law are capable of earning six times more from illicit mining and processing of gold and gemstones, than they can earn from subsistence farming or harvesting other natural resources. With this incentive, it is hardly surprising that upwards of 800,000 men are willing to risk their lives in working in dangerous conditions within the informal sector. In addition to those individuals engaged directly in artisanal mining there are many others who participate through processing, buying and selling mineral products and in providing support services, food, tools, timber and other essential materials. When the size of the rural population


is taken into account, allowing for typical household sizes of 6-7 individuals, it may reasonably be assumed that in the region of 3.5-4.5 million Tanzanians benefit directly or indirectly from the informal artisanal mining sector. The flow of money from these operations is not accounted for in the national economy, but it plays a major role in supporting the livelihoods of ordinary people throughout the mining districts.

8.23 Current policy and institutional arrangements are geared to assisting those small scale miners who agree to form associations and apply for Primary Mining Licenses and it is clearly important to reward those who follow rules and regulations and make a direct contribution to the economy, but it is equally important to seek to find more effective ways of bringing miners who are currently operating outside the law within the regulatory fold.

8.24 Managing the interface with Artisanal and Small Scale Mining is hugely controversial in Tanzania and possibly the single most important factor that negatively influences attitudes to the international mines. It also raises important questions about the lines of decision making and the checks and balances that are part of the governance system in Tanzania, with the Executive, the President and a small number of Senior Ministers still closely controlling power. Weak checks and balances on the exercising of high level executive power may potentially have a negative impact on mining and the likelihood of arbitrary and populist ad hoc solutions to local problems will be so much the greater.

8.25 It also raises questions about the formal links between central and local administrations and how the mining companies need to position themselves in relation to these two parts of government. Clearly the mining company’s authority to mine, as well as the specific mineral concessions they enjoy, derive from agreements entered into at national level and in accordance with national law. But the impact of those agreements, when some displacement of ASM miners is involved, is an inherently local matter that is informed best by government authorities at the local level. It seems likely that many of the problems with ASMs that have arisen in the past, derived from a poor level of communications as between the high level decision makers who were dealing with the mining companies and the local officials including the police who needed to implement particular aspects of the decisions that had been taken. Such situations are inherently conflicted.

8.26 Interaction between LSM and ASM can take a variety of forms from violent confrontation requiring security protocols to protect assets through to cooperative support between the two operators, targeting social development and poverty reduction through mineral development. The optimal engagement approach between LSM and ASM is entirely dependent upon the operational setting of the business, the social context in which it operates and the business drivers for both parties to engage.


9 Workshop Proceedings

9.1 Whilst the process of winning minerals affects all areas of Tanzanian society, different areas of the country will have different experiences of the minerals industry. The success of the SESA process has therefore depended on gathering the views of stakeholders at both national and regional level. Therefore, in addition to the detailed discussions that were held with key national organisations (detailed in Chapter 4), four stakeholder workshops were held in Arusha, Morogoro, Mbeya and Mwanza and a National Workshop was held in Dar es Salaam. Stakeholder workshops are, without question, one of the most important components of a SESA, as they allow the team’s findings to be refined and validated and priorities identified. The proceedings and findings of these workshops are described in more detail below.

Regional Workshops

9.2 Four regional workshops were held in Mwanza on the 20th September, Arusha on the 24th September, Morogoro on the 27th September and Mbeya on the 1st November 2012.

9.3 A wide cross section of government, industry, community and civil society stakeholders were invited and attended the workshops offering a wide variety of opinions and views on issues and ways of improving the environmental, social and economic performance of mining activities in the country. Full details of attendees are given in Appendix 1 and a summary of participants is given below:

Summary of Participants

Mwanza Arusha Morogoro Mbeya

Central Government 6 10 7 44

Local Government 21 14 49 0

Civil Society Organisations 5 4 2 5

Small Scale Mining 8 4 6 2

Private 6 3 6 1

Unknown 0 0 3 0

Total 46 35 73 52 206

9.4 The Agenda below was used for all four workshops:

Agenda

08.30 – 09.00: Registration

09.00 – 09.15: Official opening of the workshop.

09.15 – 09.30: Introduction - Presentation of the SESA and agenda for the workshop - Peter Nelson

09.30 – 09.45 Questions and comments from delegates

09.45 - 10.00: Formation of the Break- Out Groups

10.00 – 10.45: Group Session 1 – Break-out groups – determining the key issues (priorities) for discussion


10.45 – 11.00: Tea / Coffee Break

11.00 – 12.00: Plenary Session – Feedback from each Group on their Priorities and discussion of the findings by all participants

12.00 – 13.00: Group Session 2 - Break-out groups – begin work on the Action Plan

13.00 – 14.00: Lunch break

14.00 – 15.00: Group Session 3 – Break-out group discussions to fill in details of the Action Plan

Tea / Coffee available during this session

15.00 – 17.30:

Plenary Session – Presentation of Conclusions and Recommendations on Action Plans from Individual Groups and open discussion by all participants

17.30-17.40: Summary of the next steps

17.45 Closure of the workshop

9.5 Workshop materials were produced in both English and Swahili. The workshops were conducted in the language participants felt most comfortable with and translation provided where needed. Following an introduction to the SESA process stakeholders were allocated a number 1 - 4 at random and then divided in to four groups in order to undertake the three group sessions. Each group focussed on one of the following topics: Group 1 – environmental issues, Group 2 – social issues, Group 3 – economic issues, Group 4 – legislative and institutional issues.

Group Session 1 – Determining the key issues (priorities) for discussion

9.6 Following on from the situational analysis of environmental, social, economic and institutional issues discussed in chapters (Chapter 5 – 8), a number of key issues were identified that the SESA team felt it would be beneficial to explore further and discuss with stakeholders. These key issues are presented below:

Key Environmental Issues

• Mining activities takes land and water resources away from existing uses such as forestry and agriculture significantly affecting ecosystems and the services they provide as well as livelihoods.

• All stages of mine & infrastructure development result in the disturbance and loss of vegetation and biodiversity.

• Open pit extraction brings particular environmental problems to the area.

• Waste Dumps such as tailings and large volume waste cause particular issues for the environment.

• The pollution of both surface and ground water from mining activities affect ecosystems, livelihoods, food and human health.

• Dust and Air Pollution can seriously affect the quality of life as well as the health of both mine workers and local communities.

• Noise can have a detrimental impact on the quality of life as well as the health of both mine workers and local communities.

• The use of dangerous chemicals such as mercury in the extraction process and the way that they are handled and stored can affect not just mine workers but whole ecosystems and communities in not just the short but also the long term.

• Clearance of land and mining activities themselves can cause erosion and unstable ground conditions resulting in landslides and flooding.


• The recent discovery of radioactive minerals has the potential to present a new set of environmental issues and concerns.

• The degradation of the land due to mining is not just a short term issue, lack of reinstatement or reclamation of sites after mining operations cease results in the negative impacts being felt by communities long after the mine closes.

• The role that mining plays in accelerating climate change through both direct and indirect releases needs to be examined in the context of planning for a low carbon future for Tanzania.

Key Social Issues

• The lack of clear demarcation of areas set aside for ASM can lead to tension and conflict in communities.

• The lack of formal organisation and licencing of ASM prevents other social issues associated with ASM being tackled.

• A lack of clarity and understanding of Residents’ rights to resettlement and compensation can cause tension and conflict between mining companies and communities.

• Forced evictions not only cause tension and conflict but can also lead to the loss of livelihoods and social dislocation.

• Child Labour is still an issue is ASM areas in Tanzania, whether children are engaged directly in mining activities or mining service activities such as cooking for miners.

• There are a number of occupational hazards associated with Mining that can negatively affect Mine Workers’ health.

• Tensions and conflict between Large and Small Scale Miners can result in Mine and Community Security being compromised.

• Particularly in ASM areas, the impacts of mining extend beyond the mine site itself.

• Social health hazards such as alcohol and drug abuse, STIs and HIV/AIDs are exacerbated by many of the characteristics of mine sites.

• Rapid in migration to mining areas and significant barriers to women’s safe participation in the mining industry can lead to cultural tensions.

• The role and effectiveness of legislation in protecting miners and communities from the negative effects of the industry needs to be examined.

Key Economic Issues

• Mining operations have the opportunity to transform the economies of nearby urban settlements, promoting development and redevelopment, yet this potential is not always realised.

• Lack of access to credit and loans, traditional attitudes towards land ownership and other tangible assets means that women are disadvantaged from participating fully in the minerals sector.

• The Bomani Commission concluded in 2008 that valuation and compensation measures for displaced people were inadequate, resulting in significant economic problems for communities affected.

• There is often a lack of clarity, and sometime tension, over the role Local Authorities play in providing infrastructure and services in mining communities.


• There is also a lack of transparency and confidence in Local Authorities fulfilling their role regarding management of finance such as collecting rents and services levies from mining companies and operations.

• This lack of trust regarding the payment of rents and levies also negatively affects Mining Companies and their relationship with the wider community.

• There is often a blurring of responsibility as to where measures and services should be provided by Mining Companies as result of an obligation and where they are provided as an additional commitment under Corporate Social Responsibility.

• There is also mixed views on whether all mining operation are enforcing rules on employment and workers’ rights in mining operations on employment and workers’ rights are fairly enforced in mining operations.

• The benefits of the mining sector are not being shared equally amongst the population and the sector is accelerating inequalities creating tensions in some mining communities.

• It is felt that greater effort is needed by mining companies and by government (at both national and local level) to stimulate other forms of related sustainable development in areas surrounding mine sites.

Key Legislative and Financial Issues

• The effectiveness of the liberalisation of Mining Codes and the adequacy of safeguards for community and individual interests need to be reviewed.

• The role of NGOs and CSOs in discussions on new mining legislation and regulations in parliamentary procedures and influencing reform of the minerals sector should be considered.

• The ability of Parliamentarians to make a valuable contribution to minerals reforms which protect the interests of their constituents should be assessed.

• Consideration should be given to the amount of influence and involvement that international partners represented by embassies and banks have over policy formulation and the work of official Tanzanian bodies.

• The dominance of large international investors who are engaged in infrastructure development on behalf of the government or are actively involved in mining and construction should be examined.

• Pressure on the long term protection of economic, social and environmental conditions in the face of increasing competition between the world’s leading economies and the demand for minerals and other raw materials.

• The objectivity, impartiality and accuracy of media reports and other publicity surrounding the mining industry and mining related issues should be reviewed.

• The financial transparency of mining companies and their subsidiaries and the adoption of international financial reporting standards being adopted by Government should be explored.

• Consideration needs to be given to retention of money earned by the minerals sector within Tanzania and Mining Contribution to Gross Domestic Product.

9.7 These key issues were given to the respective group dealing with that issue as a starting point for discussions. Each member of the group was then asked to individually rank the top five priority issues from the list in relation to large scale mining operations and the top priority in relation to small scale mining operations. Each group was then asked to discuss amongst themselves their priorities and try to come to a group consensus of the priorities for both large and small scale


mining operations. Groups were encouraged to identify any issues that had not been identified by the situational analysis.

9.8 A plenary session was then held where groups fed back their priorities and findings of their discussions to all participants.

9.9 A summary of the priorities identified and agreed at the workshops is given below, the full notes from the workshops can be found in Appendix 1:

ENVIRONMENT - LARGE SCALE MINING

Issues MWANZA ARUSHA MOROGORO MBEYA

Loss of land or water resources 2 4 1 2 Destruction of vegetation / biodiversity

1 2 2 1

Water Pollution 4 Dust & Air Pollution 3 4 Noise

Dangerous chemicals 4 3 3 Landslides / instability

Exposure to radioactivity 5

Land Degradation 1 3 5

Climate change 5 5

SOCIAL & HEALTH - LARGE SCALE MINING Issues

MWANZA ARUSHA MOROGORO MBEYA

Areas set aside for SSM Licensing Small Scale Miners Residents Rights & Obligations 4 1 3 1 Forced Evictions 1 4 Role of Legislation 5 2 2 3 Child Labour Mine Workers’ Health & Safety 3 3 4 Mine & Community Security 2 4 5 Community Health & Safety 1 5 2 Alcohol & Drug Abuse Cultural tensions/immigration/ gender

5

LEGAL, INSTITUTIONAL & FINANCIAL - LARGE SCALE MINING Issues MWANZA ARUSHA MOROGORO MBEYA Liberalisation of Mining Codes 2 1 3 4 Civil Society & NGOs Role of Parliamentarians 1 3 1 1

ECONOMIC - LARGE SCALE MINING Issues

MWANZA ARUSHA MOROGORO MBEYA

Urban Development & Redevelopment

1 2

Women in Mining 2 3 Valuation & Compensation 1 4 1 Role of Local Authorities 2 1 5 Local Authorities Finance 5 3 3 Mining Companies 4 5 4 Corporate Responsibility 3 Employment 4 5 Inequalities in Society 2 Related Development


International Partners International Investors & Globalisation

4 5 5

Faith Groups Media Activities 5 Financial Transparency Measures 5 4 2 2 Mining Contribution to GDP 3 2 4 3

SOCIAL & HEALTH - SMALL SCALE AND ARTISANAL MINING Issues MWANZA ARUSHA MOROGORO MBEYA Areas set aside for SSM 1 1 1 1 Licensing Small Scale Miners 2 3 2 Residents Rights & Obligations Forced Evictions Role of Legislation 5 3 5 Child Labour 4 5 3 Mine Workers’ Health & Safety 3 2 2 Mine & Community Security 5 Community Health & Safety 5 4 4 Alcohol & Drug Abuse 4 Cultural tensions/immigration/ gender

ECONOMIC - SMALL SCALE AND ARTISANAL MINING Issues MWANZA ARUSHA MOROGORO MBEYA Urban Development & Redevelopment

4 1 3

Women in Mining 2 3 4 Valuation & Compensation 5 2 Role of Local Authorities 3 5 Local Authorities Finance 3 1 Mining Companies Corporate Responsibility Employment 5 4 Inequalities in Society 2 4 5 Related Development 1 2 1

LEGAL, INSTITUTIONAL & FINANCIAL - SMALL SCALE AND ARTISANAL MINING Issues MWANZA ARUSHA MOROGORO MBEYA Liberalisation of Mining Codes 3 1 1 2 Civil Society & NGOs 4 5 3 3 Role of Parliamentarians 1 3 2 1 International Partners International Investors & Globalisation

Faith Groups Media Activities 4 4 4 Financial Transparency Measures 5 5 Mining Contribution to GDP 2 2 5

ENVIRONMENT - SMALL SCALE AND ARTISANAL MINING Issues MWANZA ARUSHA MOROGORO MBEYA Loss of land or water resources 1 5 3 Destruction of vegetation / biodiversity

3 3 2 4

Water Pollution 2 4 1 1 Dust & Air Pollution Noise Dangerous chemicals 1 4 2 Landslides / instability 4 5 5 Exposure to radioactivity Land Degradation 5 2 3 Climate change


Group Session 2 & 3 – Discussion and completion of Action Plan

9.10 For the second and third group sessions workshop participants went back into their groups and discussed the five priorities that they had identified in the earlier session. For the top two priorities identified for both large scale and small scale mining. They discussed and started work on producing an action plan.

9.11 An action plan table like the one shown below was then completed for each priority.

PRIORITY:

ACTION REQUIRED

WHO DOES IT?

HOW LONG WILL IT TAKE?

HOW MUCH WILL IT COST?

WHAT WILL IT ACHIEVE?

LEAD AGENCY:

SUPPORT BODIES:

….

9.12 This action plan covered; the individual actions required to address that priority, who is responsible for leading that action, and if there are any other organisations or bodies who need to support the lead organisation. Each group was also asked to consider how long their proposed actions might take, whether they were achievable in the short, medium or long term and also the relative scale of costs of different actions – whether they are high or low cost activities. Each group then identified what would be achieved by pursuing this action, as a cross check. A plenary session was then held with all participants to further discuss and debate the actions identified.

9.13 The full details of the action plans produced can be found in Appendix 1, but a summary of the key ideas that were echoed throughout all of the regions is given below:

• Identification of dedicated areas for Small Scale and Artisanal Mining to occur within;

• Improve and strengthen the organisation of Small Scale and Artisanal Miners in order to facilitate enforcement of existing legislation and transfer of knowledge on topics such as mine safety;

• Ensuring that EIAs or Environmental Management Plans are undertaken for Small Scale Mines and that these EIAs / Environmental Management Plans are also reviewed by Local Authorities and take a more holistic view of the environmental sensitivities of the area;

• Improve and strengthen local Land Use Planning in areas affect by both Large and Small Scale Mining to reduce conflict, environmental degradation and social issues;

• Increase awareness of residents / communities’ rights in relation to Large Scale Mining especially regarding resettlement;

• Improve the way resettlement of residents is undertaken and planned for;

• Provide guidance to Large Scale Mining companies on how much of their income should be channelled back to communities affected by their operations through Corporate Social Responsibility and the best mechanisms to undertake this;

• Improve Parliamentarians awareness and understanding of mining issues so they are better able to represent the interests of their communities;


• Review and improve the transparency of contracts made with Large Scale Mining Companies.

National Workshop

9.14 Following on from the regional workshops a national workshop was held on the 5th December in Dar es Salaam. Key Stakeholders were invited, many of whom we had held one to one discussions with during the course of the SESA. 23 Stakeholders attended from a wide range of different interest groups. The full list can be found in Appendix 2.

9.15 The priority issues and ideas identified in the draft actions plans from the regional workshops were presented to the national workshop stakeholders and detailed discussions were held on:

• Any issues that were missing or given undue priority;

• how priorities might be tackled and what appropriate actions might be.

9.16 Several key cross cutting issues were discussed in detail along with possible alternative actions that could be used to address them. A summary of the key points from the discussion is given below:

What do we do about illegal / informal Small Scale Miners?

• Any solutions to this key issue need to come from the illegal / informal miners themselves and not be imposed in top down way from Washington / Government;

• Assistance should focus on empowerment of these miners, for example through helping them take advantage of low cost technology which could significantly help them improve their recovery rates;

• Illegal / informal mining will only be stopped when people stop being desperate and have another alternative way of making a living available to them.

How to increase women’s participation in the mining sector as a whole?

• There is a significant cultural issue which prevents women being involved (or being fully involved) in the sector, there is a need to change perceptions that women can do jobs in mining;

• Women Small Scale Mine owners face significant problems in knowing how much is being mined as they are unable to go down into the pits to check that they are not being cheated by their diggers;

• There is also a need to have better enforcement of the law, especially around small scale mining sites, to ensure that it is safe for women to participate in mining;

• There are many opportunities for women to be involved in support services to the mining industry such as through agriculture, but mining companies need to increase the amount procured from the local area;

• Education plays a big role in changing perceptions and giving women the skills and opportunities to play a bigger role in the sector. The emerging oil and gas sector will substantially increase the demand for mining skills in Tanzania. MEM will need to work with the Ministry of Education to fully address this and there is a general need for more integration and a more joined up approach to the mining sector by Government Ministries.

Tackling Financial Transparency in the Mining Sector

• Non-transparency of Mine Investment Agreements is a significant issue and one that has many ramifications, Government needs to be more accountable and open and this would help to stop some of the mistrust that surrounds the sector, there needs to be a clear link and evidence between the revenue the Government has gained from the sector and what this money has been spent on;

• For example, companies (including mining companies) pay a 6% training levy, but there is little evidence of this money going on training in the minerals sector which is badly


needed. It may be better for companies to retain some of this levy and undertake the training themselves;

• All stakeholders have a role to play in demanding better accountability. Mining companies themselves should demand better accountability from local authorities and government and central government should hold local government to account.

How to improve the contribution that the mining sector makes to the development of Tanzania?

• Tanzania does not have a manufacturing industry that is able to supply the mining industry. This is a significant opportunity for entrepreneurs;

• Mining companies are keen to procure goods from Tanzania rather than import them and they are prepared to enter into long term (10 – 20 year) agreements with manufacturers for goods;

• One of the main barriers to local procurement is the taxation system particularly the way taxes are applied to imports. Whereas the large mining companies can secure tax breaks on importing goods, this is not possible for Tanzanian businesses that are looking to import wholesale goods or materials in order for them to supply the mining companies meaning that their goods end up being more expensive;

• Government needs to focus on removing the barriers to local procurement and ways to open up and facilitate this market which is likely to grow significant especially with the growth of the oil and gas markets.

9.17 The discussions and findings from the Regional and National Workshops along with the Situational Analysis were drawn together and analysed further in the following chapter.


10 Analysis

Introduction

10.1 This Chapter draws together all of the issues and priorities identified during the Situational Analysis and the Regional and National Workshops. Taking Environmental, Social, Economic and Institutional issues in turn it identifies for both LSM and ASM some of the key challenges identified by the SESA along with some proposals for how solutions might be developed in order to achieve a more efficient, equitable and sustainable minerals sector in Tanzania. The following chapter goes on to identify the Key Recommendations and Priorities for Action that will help deliver these key challenges.

Environmental Issues - LSM

Loss of Land and Land Degradation, Vegetation & Biodiversity

10.2 The regional workshops confirmed that the challenge of minimising the long term loss of land (and temporary disruption during working) needs to be tackled as a top priority in the planning of all large scale mines.

10.3 Large scale mining inevitably involves the conversion of very large areas from one type of land use to another. Typically, areas of natural habitat, agriculture or forestry are converted into active excavations, pits, tips, haul roads, plant or open water. These changes may be temporary or permanent – but even temporary activities may last for two or more generations. For some types of mining, the scale of operations is so large that changes become permanent. For many critics of current mining practice, the costs of permanent change are never adequately assessed or compensated for during the lifetime of the mine by the value of the mineral recovered or the price paid by society. A permanent debt is created which is passed on to future generations in the form of un-useable or derelict land. Circumstances vary enormously according to the type of mineral and from mine to mine. In some cases (e.g. opencast coal) total reinstatement may be feasible but in other cases a large void may be left with no practical uses.

10.4 Mining sites are often found in areas of varied vegetation and rich biodiversity since the underlying geology invariably influences the nature of the relief and soils - and these, in turn, can affect biodiversity and land use. A decision on whether or not to mine in a particular area, and the nature of any conditions imposed by the regulator, should be determined by predictions of environmental impact, the extent to which these can be mitigated and any designations of the land in question (for example; national park, reserve, or special protection area (Ramsar site)).


Proposed Solutions to address these issues:

• The correct stage to determine whether the costs of land appropriation and the eventual reinstatement and rehabilitation of the land are properly addressed in the mine plan is at the approvals stage – based on good land use planning practices, a comprehensive EIA, mine management and restoration plans, and a proper evaluation of the restoration costs.

• The process of reaching decisions will be greatly assisted if Government sets clear policy guidelines and, in particular, explains how conflicting objectives (for example protection of national park status and promotion of sustainable forms of mineral development) are to be reconciled.

• In addition, adequate safeguards – restoration guarantees - must be built into the financial planning and authorisation procedures to ensure that money is secured (through performance bonds/ bank guarantees or other mechanisms) to ensure that the works are completed even if the operating company runs into difficulties and defaults on its obligations.

Water Pollution

10.5 Issues relating to water pollution caused by LSM operations were raised by NGOs especially during stakeholder interviews and at the regional workshop in Morogoro.

10.6 Minimising the risks of water pollution should be one of the top priorities for any mine manager and the ease with which this can be done will depend partly on the company’s knowledge and experience but more especially on the local site conditions, including climatic conditions – annual level and intensity of rainfall, nature of storm and flood events, and the physical environment (terrain, proximity to rivers, lakes, water courses and the sea). Whilst much effort is already placed on reducing the risk of water pollution the consequences of failing to plan adequately for water control and management can be very severe, with collapse of tailings dams, pollution and siltation of rivers and associated environmental, social and economic loss.


• MEM should prepare guidelines based on international experience which set out the parameters for dealing with water pollution through EIAs, the preparation of mine management and restoration plans and daily supervision and monitoring.

Dust and Air Pollution

10.7 The regional workshops in Mwanza and Mbeya both highlighted dust and air pollution as a priority.

10.8 Large mining operations involve the blasting, transportation, crushing and pulverisation of hard rock and it is inevitable that dust will be generated through these processes. Remedial measures to reduce the extent of dust can be employed, including spraying water onto exposed surfaces (although this may also result in an environmental and resource impact in areas where water is in short supply). In addition to maintaining high ambient air quality in the overall environment there will usually be local air quality issues for mine workers, especially drivers, and plant operators. A particular challenge arises where mineral products must be packaged – as occurs in the case of cement manufacture. Fine dust particles constitute a serious health hazard and workers must be equipped with high standards of personal protection using face masks and breathing apparatus.


Proposed Solution to address these issues:

• Measures for controlling dust and air pollution are well known but they can be costly to implement and constant monitoring and surveillance is required by the companies and government agencies throughout the life of the mine.

Dangerous Chemicals

10.9 Whilst many stakeholders felt that in LSM operations the use of dangerous chemicals is well controlled, there was a strong perception at the regional workshops that their use was a priority issue.

10.10 Processing of gold, uranium, copper and other metals often requires a number of different chemical reagents, some of which are very toxic and/or corrosive, including acids, arsenic, chromium and mercury compounds.

10.11 Risks of damage to the environment are primarily linked to the rupture of storage or mixing vessels, inadequate treatment of final effluent before it is released to water courses (or the atmosphere) and accidents involving permanent storage facilities, like tailing dams.


• The range of chemicals to be used and their storage and control should be established during the planning stages of any major mineral development and covered by detailed conditions agreed in the light of an EIA and mine development plan. Ensuring implementation through the stronger enforcement of EIA conditions as well as the regular environmental audit of the mine site is also vital.

Radioactivity

10.12 Amongst stakeholders interviewed (particularly amongst NGOs and Civil Society, TAWOMA in particular) and at the Arusha Regional Workshop and the National Workshop there was a lot of concern about exposure to radioactivity as a result of Uranium mining. This reflects high levels of concern about the issue across the country reflected in coverage by the media, in case Tanzania starts mining Uranium.

10.13 Radioactive minerals are widely distributed throughout the natural environment, problems of radiation only occur when the mineral is concentrated. Initial extraction must be planned with great care to avoid contamination of land or water, but the issue of radiation sickness only arises in later processing operations and transportation of concentrates.

Proposed Solution to address this issue:

• Awareness campaigns should be introduced and rolled out across the country so as to inform the public and stakeholders of the risks associated with mining of radioactive minerals.

Climate change

10.14 The regional workshops highlighted the role that mining plays in climate change as a priority issue (albeit as a lower priority than other issues).

10.15 The extraction and processing of minerals is one of the most energy demanding activities in any economy and as a result it contributes to greenhouse gas emissions and global warming and should be an important element in the country’s climate change adaptation strategy.


Proposed solution to address this issue:

• All mining activity should be assessed with the aim of reducing greenhouse gas emissions and introducing energy conservation policies.

Environmental Issues - ASM

10.16 The regional workshops raised many of the same concerns in relation to environmental damage arising from ASM, as they did for large scale operations - including loss of land, land degradation and adverse effects on vegetation and biodiversity. However, in the case of ASM greater emphasis was placed on the linkages between Water Pollution and Use of Chemicals, and on the risks of Landslides and Instability. These topics are addressed below.

Loss of Land, Land Degradation & Destruction of Vegetation

10.17 As with LSM, the loss of land and water resources, the land degradation and the destruction of vegetation and biodiversity by ASM was raised consistently as a priority issue at the regional workshops.

10.18 The ad hoc, unplanned nature of many artisanal and small scale mining operations which appear in response to rushes and follow deposits as they are discovered, exacerbates the loss of productive land increases its degradation and the destruction and disturbance of vegetation and biodiversity.


• Good land use planning should be promoted in all areas that may experience artisanal and small scale mining, so that sensitive areas are identified and can be protected from negative impacts of mining activities.

• Training of Small Scale Miners and additional support needs to be provided so that there is an improved understanding of the geology of ore deposits so that mines develop in a more planned efficient manner rather than in an ad-hoc manner that results in the destruction of land which is quickly abandoned.

Water Pollution and Dangerous Chemicals

10.19 Amongst stakeholders interviewed and at all of the regional workshops, water pollution, particularly from the use of dangerous chemicals, was seen as a top priority.

10.20 In relation to water pollution and dangerous chemicals, it is important to understand the pathways whereby mine pollutants can affect human health. For example, Mercury can be transmitted from washing sites to fish populations and drinking water supplies that are remote to the mine sites. The threat of water pollution that this poses to other land uses and economic activities is considerable. For example, water pollution from informal mining activity in the main river basin which provides Morogoro’s water supply could severely restrict the availability of drinking water, unless new pumps and water treatment plant are installed.


• A scientific study should be undertaken in the principal ASM areas to establish the extent of water pollution caused by mining activity.

Landslides and instability

10.21 The regional workshops identified landslides and instability as a priority for ASM.


10.22 Due to the lack of any form of mine planning, artisanal and small scale mining operations often lead to land instability including landslips, diversion of river courses, siltation and the creation of unstable waste and slime dumps. Consequently problems of landslides and instability often continue long after the mining operations have ceased, this contributes to land degradation and greatly adds to the complexity of establishing beneficial after uses.


• Forward mine planning and specialist technical advice should be provided in all small scale mining designated areas.

Social Issues - LSM

10.23 The regional workshops identified the Role of Legislation as being a key issue in relation to both social and legal and institutional issues, these challenges and proposed solutions have all been dealt with in the Legal, Institutional and Financial Issues section.

10.24 Whilst mine workers health and safety was highlighted as a priority in the regional workshops, plenary discussions at the workshops and with individual stakeholders and at the national workshops concluded that large mining operations generally are looking after their own employees health and safety but issues do arise when illegal operators break on to LSM sites. Therefore these issues are dealt with under Mine and Community Security.

10.25 The stakeholder interviews did touch on some perceived tensions arising in communities around large mine sites to do with increased inequality between those benefiting economically from LSM operations and those who did not. Although at the regional workshops, only in Arusha was cultural tensions / immigration and gender identified as a priority (and a fairly low priority at that), during plenary discussions at many of the regional workshops and during fairly extensive discussions at the national workshops tensions and gender issues (particularly women’s role in mining) was highlighted. Many of the challenges and proposed solutions on ensuring that community benefits from LSM operations are dispersed as widely as possible, and ensuring women’s participation in LSM are dealt with in the economic section.

Residents’ Rights and Forced Evictions

10.26 The rights of residents and forced evictions were highlighted as a priority by a broad cross section of stakeholders when interviewed as well as at the regional and national workshops.

10.27 Tanzania has experienced a number of serious incidents linked with the displacement of residents from their homes in order to make way for new mining ventures. The situation has often been complicated by the difficulties in distinguishing between those who had a legitimate right to compensation and people who took advantage of advanced notice of the development and set up temporary squatters’ homes in order to qualify for resettlement. At the same time some companies have taken unilateral action in driving people from their homes, provoking anger and severe tensions in the local communities that has subsequently erupted in violence.

10.28 It was stated at the Mwanza and Mbeya workshops that the most important stage in planning any new mineral development is the identification of residents’ rights and the creation of a resettlement plan, that not only replaces every home with an equal or better quality structure, but also addresses livelihoods, maintains community cohesion and ensures that everyone benefits from the existence of the mine.


• Mining companies should prepare resettlement plans to the highest international standards. MEM should also prepare and publish guidelines on the types of social survey and procedures to be followed in assessing the interests of residents on mine licence properties. Responsibility for enforcement must also be clearly defined.


Mine and Community Security

10.29 During the stakeholder interviews and at the national workshop mining companies identified mine and community security as one of their biggest challenges. The regional workshops also identified it as a top priority.

10.30 Law enforcement and security services are a critical component in the effective functioning of LSM/ASM communities, owing to the high value of mine equipment, materials and other resources and the impoverished background of local communities, (even if they are supported by members of the mine workforce) and the large number of unemployed, especially youths. These conditions result in high incidences of theft, the formation of gangs and syndicates and the spread of corruption. Most of the mining communities have Police Posts (but these are not always effective due to the issues listed above).


• MEM and local government need to work together to strengthen and train more community police for community security.

• It has been suggested that for very large mining operations there would be advantage of creating a new division of the national police force to operator both within and outside the mine.

Community Health and Safety

10.31 The regional workshops identified community health and safety around large mine sites as being a priority.

10.32 Community health and safety around large mine sites is heavily influenced by the high mobility of miners generating a host of social impacts, including alcoholism, drug abuse, prostitution, immigrants and HIV/AIDS/STIs. As noted in the environment section, LSM can also give rise to water, air and land pollution, all of which carry risks to community health and safety if not properly managed.


• There is a need for MEM and Large Scale Mining companies to encourage integration of awareness and training campaigns within environmental and human health assessments through;

- Development of training materials on appropriate technologies, occupational health and safety, environmental management and mine reclamation.

- Coordinate awareness campaigns aimed at understanding the potential risk from chemical pollution, HIV/AIDS/STI related diseases and the use of drugs and alcoholism. A good legislative framework is the essential starting point to resolving these issues.

Social Issues - ASM

10.33 In the regional workshop held in Arusha, mine and community security was highlighted as a priority (albeit it a low level priority). However, following plenary discussions it was agreed that


this was less of an issue for ASM operations and any issues would be picked up under other sections.

Licensing ASM and Setting Aside Areas for Small Scale Mining

10.34 At the stakeholder interviews and national workshops the issue of how to license and formalise mining activities that are currently regarded as illegal was a central topic. Linked to this challenge the need to further formalise and regulate SSM operations by setting aside areas for SSM activities was highlighted as the top priority at all of the regional workshops.

10.35 The current inability of government to deal with mining by the informal sector which, by definition, illegal and lies outside the scope of mining legislation impedes the ability of many environmental and social impacts to be dealt with. Therefore, there is no provision for the preparation of EIAs, mine plans, or any form of regulation of these activities. The net consequence is that large tracts of land are subject to illegal mining resulting in severe environmental degradation.

10.36 The threat that this poses to other land uses and economic activities is considerable. For example, water pollution from informal mining activity in the main river basin which provides Morogoro’s water supply could severely restrict the availability of drinking water, unless new pumps and water treatment plant are installed.

10.37 Even where Primary Mining Licences are held, a lack of capacity, forward planning and enforcement of regulations means that environmental and social impacts are still a significant issue. The need to allocate land specifically for SSM was the dominant concern raised in all of the workshops. As proposed under the Minerals Act 2010 establishment of areas for small scale working has already been put into effect in a number of areas and there are some good examples of how the concept works in practice. Initial signs are encouraging but there are some significant challenges to be overcome. These include:

• Very limited understanding of the basic geology of ore deposits;

• Random development of pits and underground workings – leading to potential sterilisation of reserves and premature abandonment of mine sites;

• Use of inappropriate technology (e.g. mercury for gold extraction);

• Low levels of mine safety and environmental protection including unsafe access to the mine shafts, inadequate propping, poor ventilation and communication, and dangerously high noise levels in processing areas.



• A major investigation is required by MEM into the level of resources needed (both technical and financial) to support the development, guidance, monitoring and inspection of small scale mines. This part of the Minerals Sector is already growing and will expand further as licensing procedures are tightened up. Current resources are inadequate to achieve the governments’ objectives for this sector

• A form of simplified EIA should be introduced for the informal mining sector, as a first step to planning for and addressing environmental issues.

• MEM together with NEMC needs to establish a comprehensive strategy to counter the environmental impacts of SSM including threats to biodiversity;

• Given the importance attached to this subject urgent attention is needed to coordinate the activities of MEM, NEMC, STAMICO, GTS and Local Government and to encourage joined up action to support the small scale sector in order to provide:

- Clear geological data and maps for designated areas for PMLs; - Exploratory drilling on small scale reserves; - Creation of mining development plans; - Practical guidelines on appropriate SSM technology; - Establishment of realistic health and safety standards; - Joint staffing of district offices; and - Joint policing and monitoring by mining associations, MEM and other Agencies.

• Training needs to be organised and funded to provide a basic understanding of the geology of ore deposits within the SSM sector including efficient, appropriate technologies and support for legalisation.

Role of Legislation

10.38 Both the regional and national workshops highlighted the role of legislation as being a key challenge, especially how to formalise artisanal mining operations and to enforce existing legislation and regulations that apply to small scale operations.

10.39 The Mining sector is regulated by the Ministry of Energy and Minerals, which sets policy and drafts basic legislation. The top administrators concerned are the Minister, the Permanent Secretary and the Commissioner for Minerals. Mining Associations like the Tanzania Chamber of Mines (TCM) and small miners associations are established to protect interests of both large-scale and small-scale operators.

10.40 In general, the policy, legislation and regulations for the minerals sector provide comprehensive coverage of large scale mining; the main issues here relate to the capacity of the relevant ministries and agencies (MEM and NEMC) to monitor performance in the private sector, due to the small number of officers in the field.

10.41 In the case of licensed small scale mining operations, the issues of regulation and control are similar to those for large scale working, with the exception that SSM operators (both mining associations and individuals holding primary licenses) do not usually have access to the same level of professional and technical expertise, support and guidance as their LSM counterparts on how they should operate. This means that government (in the form of MEM) has a greater role to play in raising environmental and social standards in the small scale mining sector. It also highlights a fundamental issue in terms of the lack of adequate technical and financial resources at the Zonal mining and District level for both managing and supervising small scale mines. In addition, the constraints imposed by the small number of mining specialists means that small scale mining operations receive a low level of attention.

10.42 It needs to be recognised that while large scale mining is the major revenue earner it employs fewer than 12,000 people whereas the small scale and artisanal mining sector makes a significant


contribution to the informal economy in rural areas and provides livelihoods for in excess of 680,000 people.

10.43 The harsh reality is that it will take a number of years, if not several decades, before all mining activity in Tanzania is brought within the formal sector where laws and regulations apply. The question therefore arises – is there not a need for an interim policy, supported by simplified regulations that would govern informal and artisanal mining activity for a period of, say 10 years?


• A review should be undertaken by MEM to assess whether some basic regulations and monitoring could be applied within the informal / artisanal sector which would introduce a degree of control over adverse environmental and social impacts.

• A major investigation is required by MEM into the level of resources (both technical and financial) to support the development, guidance, monitoring and inspection of small scale mines. This part of the Minerals Sector is already growing and will expand further as licensing procedures are tightened up. Current resources are inadequate to achieve the governments’ objectives for this sector.

• Elaborating fair trade legislation (for the benefits of the economy as a whole) and liberalising the dealer licensing regulations. MEM need to monitor miners’ activities, providing a good gauge of the level of competition in legal trading.

• There is as yet neither legislation nor standard practice regarding the rights of local government to tax miners and this needs to be addressed.

Child Labour

10.44 The issue of child labour was only highlighted at the Mbeya Workshop, but the participants in this session were very clear that the challenges of reducing child labour are serious in south west Tanzania as well as other parts of the country.


• MEM and local government need to consider the magnitude of the child labour practices in the small scale mining sector and work with the communities and mining associations to eradicate the causes; these include:

- Lack of child care; - Low income; - Inadequate schooling; - By-laws need to be enforced and strengthened in circumstances where

unscrupulous licence holders / mine managers are exploiting under-age workers who should be in school.

Mine Workers Health and Safety

10.45 The stakeholder interviews, regional and national workshops all identified significant problems with mine workers health and safety associated with ASM operations.

10.46 Most small-scale and artisanal mines are working under marginal economic conditions and cannot afford basic safety measures due to the costs; the use of safety equipment depends almost exclusively on their own conscience. Artisanal mineworkers employed by small scale mining concession holders usually use their own safety equipment and even basic safety equipment like helmet, safety boots, gloves and dust masks represent significant investment for most miners.


10.47 Participants at the regional workshops recognised that noise pollution can be a serious problem on semi-mechanised small scale mining sites. Specific problems relate to the use of dynamite which is poorly controlled (and dangerous) and use of primitive mechanised ball crushers and mills. These noise levels are well above tolerable thresholds for protection of hearing, and most operatives run the risk of permanent hearing loss. Dust also represents a major hazard in terms of respiratory illness due to fine particle size and or chemical content e.g. lead.

10.48 Other major concerns were the use of dangerous chemicals (dealt with in the environment section) and also the risk of falls in mine shafts, rock falls etc.


• Financial and technical assistance should be given to small scale entrepreneurs to assist them to develop health and safety training and the import and manufacture of low cost, practical safeguards including face masks, ear defenders and the supply of first aid materials at every mine site in the Country;

• Special programmes should be developed to promote awareness campaigns and increase understanding of the impacts of mercury misuse in gold mining and ways to mitigate it.

Community Health and Safety (including Alcohol and Drug Abuse)

10.49 The regional workshops highlighted community health and safety including the specific issues of alcohol and drug abuse as priorities. Although there was some disagreement about whether issues such as alcohol, drug abuse, HIV/AIDs and STIs, whilst prevalent around ASM sites, were any worse than in the community at large.

10.50 Impacts from mines such as water and air pollution also affect the wider community.


• Awareness and training campaigns on environmental and human health issues need to be developed and promoted in all ASM areas. HIV/AIDS /STI related diseases and the use of drugs and alcoholism should be part of the awareness campaigns.

Economic Issues - LSM

Urban Development and Related Development

10.51 The regional workshops in Arusha and Mbeya identified urban development and other related development that results from LSM operations as being a top priority for the country.

10.52 There are some exceptional mining projects where considerable assistance has been given to local communities to help promote new business activities and improve the infrastructure of the town or village, but in the majority of cases there is very little interaction. If mining is to have long term benefits to the economy and society in Tanzania, the high finite value of mineral resources needs to be converted into permanent capital (financial/social or environmental).

10.53 The SESA team considers that one of the most effective ways of creating permanent capital is to invest in the fabric, infrastructure and facilities (like hospitals and schools) in settlements within the mining districts. Joint investment by the local authorities and mining companies should take account of education, skills training and promotion of private enterprise so that alternative livelihoods and employment opportunities are created before the minerals are exhausted.



• There is a need to produce land use (spatial) plans to guide the development of mining settlements and ensure that the long term land uses of the surrounding areas are capable of replacing the economic activities / contributions once the mine(s) is closed. Mine restoration plans should be incorporated within these wider land use plans.

Women in mining

10.54 At the regional and national workshops it was noted that whilst women are actively involved in artisanal and small scale mining, as mining operations become more formal and mechanised their participation reduces and few women are found to be working in LSM operations.

10.55 Acceptance of women working in the mining industry in Tanzania in general is low. Mining companies do report an increase in female graduates taking up jobs in LSM operations such as community support workers or in environmental management positions.


• Improving the status of women is essential to advancing positive change within SSM communities. Programmes should be developed to enhance the status of women and improve their capacity to benefit from the mining sector;

• Explicit mainstreaming of gender issues is required in technical assistance and community development programmes within mining districts by promote gender equality and empowering women in the mining industries.

Valuation and Compensation

10.56 Interviews with Stakeholders and the regional workshops identified valuation and compensation as being a key challenge for the industry, as a lack of clarity was leading to tension and mistrust, as well as poor outcomes for communities and displaced people.

10.57 The Bomani Commission concluded in 2008 that the measures for handling valuation and compensation for displaced people were inadequate. This concern is still one of the principle issues raised by stakeholders at the regional workshops. Many of the criticisms and resistance to new mining projects arise because there is a sense of injustice and lack of fair play in the way in which titles and licenses are granted without first resolving the question of compensation.


• The SESA team proposes that a joint study is coordinated and sponsored by the Ministry for Energy and Minerals, the Chamber of Mines and a selection of NGOs to examine the range of compensatory measures actually agreed prior to commencement of working at a number of recent mining sites and to examine what can practically be offered by way of compensation in future mine agreements.

Local Authorities Management and Finance

10.58 The regional and national workshops identified Local Authority management and their management of finance as being a priority in terms of transforming the LSM sector.

10.59 Most stakeholders believe that there are inadequate controls over how money from the minerals sector is collected and then spent within the public sector. Large scale mining companies say that they are contributing significant amounts of money to the Local Authorities in their areas for


construction of public buildings and projects, but that the authorities fail to deliver their side of the agreement which is to staff and maintain the buildings, roads and services.


• The SESA team believes that this area of mining local authority administration needs much greater attention from Government. In discussion with one of the leading mining companies it has been suggested that a pilot project should be established at one or more of the major mining sites. This project could study over a period of two years how joint projects are planned and implemented in order to come up with a form of model agreement which can be applied widely through the minerals sector.

• Empowerment of local authorities to improve local impacts from mining through both greater independence of their finances and greater management and other capabilities.

Mining Companies Obligations and Corporate Social Responsibility (CSR)

10.60 The Stakeholder interviews and regional and national workshop all identified the way that LSM companies carry out their obligations and corporate social responsibility as a priority. This issue of the contribution that the mining sector makes to the development of Tanzania through either obligations or CSR was raised as the main issue when discussing topics to do with employment and inequalities in society, and for conciseness is all dealt with under this heading.

10.61 Mining companies have different levels and types of obligation towards the environment and social welfare of the communities within which they work. These include:

• formal obligations;

• obligations based on laws and regulations;

• the companies own corporate responsibilities; and

• additional obligations arising from voluntary agreements where a company has undertaken to contribute a higher level of support and assistance than is legally required or is defined within its corporate responsibilities.

10.62 The question arises: how should Mining Companies (and mining associations) be monitored and regulated? How much should be left to the private sector’s internal policing of its own actions and how far should these issues be regulated by the Ministry of Energy and Minerals?

10.63 The major mining companies take their corporate and social responsibilities seriously, but they express concern that there is no clarity or guidance on where CSR begins and ends and where the provision of local services should become the legitimate responsibility of government. At present decisions on what local community projects are to be developed by mining companies and what commitments will be entered into by the local authority are determined in an ad-hoc manner in negotiations between the parties.



• The SESA team considers that the present processes of reaching agreement between mining companies and Local Authorities are too random and lack transparency. All Mining Companies should meet their formal obligations as a matter of course and the Government should monitor and impose strict penalties on any company that defaults.

• It is clearly the responsibility of companies to perform in accordance with their own corporate responsibilities and to police their own activities. However, CSR policies should be published so that local communities and the public can be reassured that these standards are maintained. In the case of voluntary agreements a formal structure should be adopted so that the outcomes can be effectively monitored.

• The Government (MEM) should prepare regulations and model guidelines for establishing the levels of payment and the types of project that should be included in agreements between mining companies and local authorities.

Economic Issues - ASM

Related Development and Inequalities in Society

10.64 The regional workshops highlighted the interrelated issues of urban development and redevelopment and related development, addressing inequalities in society and valuation and compensation as being key challenges for the ASM sector. The key issues being discussed revolved around how the unplanned, ad-hoc nature of artisanal and small scale mining led to poorly planned development associated with mining taking place, with inadequate compensation for those affected by mining and little being done to tackle the inequalities in society created by the mining industry.


• The Minerals Sector is already growing and will expand further as licensing procedures are tightened up. Current resources are inadequate to achieve the governments’ objectives for this sector. A major investigation is required by MEM into the level of resources (both technical and financial) to support the development, guidance, monitoring and inspection of small scale mines societies.

• Government should continue to maintain and improve dialog with ASMs and increase resources and effort on the issue of organisation of ASM in Associations and Federations.

Women in Mining

10.65 The issue of women’s role in mining was identified as a priority in both the regional and national workshops, and lengthy debates were held in the plenary sessions on the issue.

10.66 Women comprise a significant component of the workforce in the artisanal and small scale mining sub sector. However, there are very few women who are registered holders of mineral rights. Evidence shows that women retain only a fraction of the value of minerals produced. This situation suggests unfair distribution of the wealth and exploitation of female labour.

10.67 Many women take part in the most labour intensive work and are also subjected to hazardous conditions, including that of amalgamating and refining gold with mercury in their yards at home. Notwithstanding their marginal social and economic status, women have great influence and play an indispensable role in the mining communities.



• Improving the status of women is essential to advancing positive change within ASM communities. A number of programmes should be developed to enhance the status of women and improve their capacity to benefit from the mining sector, including;

- Greater commitment to gender mainstreaming is required in government agencies, and appropriate recognition of women in policy frameworks, particularly in relation to land ownership rights;

- Strategies need to be adopted that are inclusive of, and accessible to women and which support women’s participation in political decision making;

- Explicit mainstreaming of gender issues is required in technical assistance and community development programmes within mining districts;

- Promotion of micro-credit and other financing schemes needs to be encouraged specifically for women;

- Educational campaigns need to be developed that target women in order to mitigate specific health risks, and which provide the means for them to access other resources;

- Programmes need to be devised and implemented to train women in various aspects of ASM, including mining methods as well as in marketing, management and book-keeping;

- Further in-depth research should be conducted into women’s involvement in ASM communities, and the differential impact of current practices and technical processes on the lives of both men and women in the mining sector.

Role of Local Authorities and their Management of Finance

10.68 The regional workshops identified the role Local Authorities play and particularly their management of finance as being a key challenge in terms of the ASM sector.

10.69 The administration of the Small-Scale Mining sector is carried out centrally under the jurisdiction of the Commissioner for Minerals based in MEM. In terms of administration of the small-scale mining sector, the local Government structures are in one way or another involved at all levels. The District Commissioners our usually in-charge of the security matters in the District and hence is commonly called upon to deal with conflicts related to ASM Mining. Apart from playing that regulatory role, the District Commissioners’ office has got sectoral experts who are responsible for the management of other economic sector in the District. As such, issues related to health, education, water, natural resources, environmental etc., all of which have bearing to the existence of the small-scale mining communities in the respective District, are handled by the District Commissioners’ office.

10.70 There is however, a disconnect which arises from the fact that mining is the only sector that is managed and administered centrally. As such, the District which also does not collect revenue directly from this sector tends to leave it out of its development plans. As a result SSM areas have been neglected and become enclaves for environmental destruction, insecurity, the spread of diseases due to poor health care facilities and lack of access to clean water and centres of other social vices.



• The involvement of local government and other local authorities that has been recognised under the Mining Act, 2010 (as provided in the Mining (mineral Rights) Regulations 2010)), through the formation of the “Allocation Committee” for the administration of land designated as “small-scale mining areas”. Greater coordination is needed between these authorities in order to overcome the difficulties out lined above. There is an urgent need to clarify the roles of the Regional and District Commissioners and provincial local government as distinct from the Ministerial structure involving the national headquarters of MEM, the 14 zonal officers and resident mine officers. This recommendation links directly to proposals listed under the establishment of SSM designated areas including preparation of land use plans.

Legal, Institutional and Financial Issues – LSM and ASM

Liberalisation of Mining Codes

10.71 The liberalisation of mining codes was identified as a top priority at all of the regional workshops.

10.72 For all countries with extensive mineral resources it is very difficult to achieve an effective balance between firm, just taxation and regulation on the one hand, and use of incentives to attract investment on the other. The task is complicated by the long lead times in developing mines and the variation in investment levels required over the lifecycle of an individual mine. Mining companies expect to pay low taxes during the expensive development phase before a mine starts to generate profit, but determining when a mine becomes profitable is not easy, especially given the volatility of mineral prices and energy costs. Companies need to show profits to satisfy their own shareholders and investors but at the same time they seek to offset costs against returns in order to reduce taxation. These conditions lead many critics of mining to argue that the proportion of profit retained by companies as opposed to the State are too high and these concerns are heightened at times of high prices (as currently applies to Gold).

10.73 The issues involved in setting taxation rates and determining precise fiscal conditions are far too complex to be dealt with without a specific study, but there is a need for a financial review process that will enable the Government to maintain a consistent and credible approach to the issues.


• The SESA team considers that a fundamental principle needs to be established in relation to all long-term investment strategies like mining. This is the principle of periodic review allowing for the terms and conditions of any mining licence to be amended in the light of the review findings.

• It is proposed that the Ministry of Finance should conduct a review every five years using accepted indicators relating to the state of the national economy, oil and other energy prices, and the global commercial market price for the principal mineral commodities being produced in Tanzania. This review should be an open and transparent process involving public hearings and the results should be used to set or adjust specific taxation levels for the Minerals sector.

• An expert panel should be established by the Ministers of Energy and Minerals and Finance, with terms of reference to consider the current split between funds paid to national and local authorities and to recommend ways of increasing the proportion paid to local authorities and communities (with proper safeguards to ensure appropriate use of funds at the local level).


Civil Society and NGOs

10.74 The role that Civil Society and NGOs play in terms of disseminating information about legal and financial rights and the role of institutions (and holding them to account) in the SSM sector was widely recognised at the regional workshops.

Proposed Solutions to address this issue:

• Raising Civil Societies and NGOs awareness of mining issues through training is a key mechanism by which information can be disseminated amongst communities and mine operators and government officials can be held to account.

Role of Parliamentarians

10.75 At the majority of regional workshops the role of Parliamentarians was seen as the top priority for both the LSM and ASM sectors. Attendees at the national workshop and several stakeholders that were interviewed also identified it as a key challenge.

10.76 Members of Parliament play a dominant role in enacting new legislation but to the public at large it often appears that some individual members are motivated more by their party commitments or business interests than they are by their constituents’ views and needs. There is also the challenge that MPs are dealing with so many different topics that they have no in-depth understanding of critical issues affecting a particular sector - like minerals. Whether or not such criticisms are valid, there is a widespread distrust amongst the public and particularly disadvantaged sectors of society, concerning the role of parliamentarians.


• In order to assist parliamentarians to perform their functions to the highest possible standards it is recommended that a special programme is initiated to provide briefing material and to conduct seminars for members who are engaged on specific parliamentary committees and others with an interest in the topics covered by this SESA. The range of activities that could be planned includes:

- holding breakfast briefings for MPs and individual committees with graphic presentations including video of individual mines and mining activity.

- focusing on the unsatisfactory conditions that exist within the informal section, and exploring ways of bringing these miners and their families together in mining associations so that they can be assisted.

International investors and globalisation

10.77 Three of the four regional workshops regarded the role of international investors and globalisation as one of their priority areas for the LSM sector, although this was not one of the main areas of concern.

10.78 In Tanzania the process of encouraging inward investment has been very successful and a number of large and small scale mines have been opened / developed. However, some Tanzanians consider that financial incentives to investors are too generous with the result that the contribution from mining to gross domestic product remains relatively low and insufficient funds are transferred from national to local level. This results in the needs of local communities not being addressed or the burden which they carry in terms of dislocation of existing land uses, localised pollution of land, air and water or the cultural and social pressures that are created around major mine sites.


Proposals for improving local authority finance are dealt with in two earlier sets of proposed solutions.


• The big question, of setting a fair price for minerals on the global market which reflects the true costs of extraction, requires international lobbying and agreement through international conventions.

Media activities

10.79 The role of the Media was discussed in the national and regional workshops as well as during several of the stakeholder interviews.

10.80 Media services have a duty and responsibility to report openly and objectively on all aspects of current affairs and on the role of government, civil society, mining companies and communities. Unfortunately, the press and other services may also be driven to report news sensationally and with bias out of a desire to increase readership and promote commercial self-interest. It is also the case that some journalists and other media commentators do not have a good understanding of the technical issues with which they are dealing.


• MEM and other key agencies should consider setting up regular briefing sessions for the press and television at which the technical issues associated with mineral development can be discussed.

• Short (1-2 week) training courses should be established and supported at recognised universities or technical colleges in order to teach the skills of environmental and social journalism.

Financial Transparency Measures

10.81 The regional and national workshops identified financial transparency as a key challenge for the mining sector, and there was a significant amount of discussion about the issue in the plenary sessions.

10.82 Tanzania has committed itself to participating in the Extractive Industries Transparency Initiative (EITI) under which mineral producers publish what payments they have made to government, and government publishes how this income has been spent, on an annual basis. EITI applies at present to transactions made at national level, but the regional workshop discussions have confirmed the importance of extending these principles to the payments made at district level and within individual mine regions, since there is currently great uncertainty about the total sums involved and how effectively they are used. Tanzania achieved compliance in EITI in December 2012.



• It is recommended that district level EITI accounts are established in Tanzania. These district accounts should show how much money, and assistance in kind, is provided by individual companies to local authorities and any other public bodies within the areas in which they are operating, and also the breakdown of how these resources have been used by the public bodies in question. Responsibility for making the annual returns will rest with companies and public agencies alike.

• It is also recommended that all mine licence agreements should be publically available.

Contribution to GDP

10.83 The contribution that both the LSM and ASM sectors makes to GDP was discussed at the regional workshops.

10.84 A continuing concern in Tanzania is that the Minerals Sector makes an inadequate contribution to the national economy as measured by Gross Domestic Product (GDP). There has been a small increase in the last three years but the official rate still lies below 4%. There are a number of explanations for this low level of return, including the fact that the informal sector’s activities are largely unaccounted for. All of the regional workshops registered a concern that greater effort needs to be made to ensure that mining companies obtain their labour, energy, food, equipment and other support services from Tanzanian sources.


• A study should be undertaken to demonstrate the real value of the informal minerals sector to the national economy in order to demonstrate its significance to overall turnover and the potential for capturing a higher financial return by bringing artisanal mining, processing and marketing within the tax system.

• Companies should be required to publish an annual statement demonstrating what proportion of their investment has been spent within the Tanzanian economy.

• In addition, greater clarity is needed on how the mining contribution to GDP is calculated by the Treasury. The Ministry of Finance should publish a popular guide explaining how finances in the Minerals sector are accounted for.


11 Priorities for Action

Introduction

11.1 The terms of reference for this Strategic Environmental and Social Assessment were wide-ranging and required a review of issues affecting the sustainable development of the entire minerals sector in Tanzania. This has required a focused approach and a decision was taken at an early stage to concentrate attention on key challenges identified by stakeholders in individual meetings and through the four regional workshops. More than thirty action points were identified under the four headings of environmental, social, economic and institutional /financial issues.

11.2 Following the workshops a flow diagram was prepared showing the inter-linkages between these different action points and exploring the overarching and cross-cutting themes on which action is required (see Figure 11.1). Six themes were identified through this process which summarise the core areas of recommendations arising from the SESA. These themes are:

A. Finance B. Institutional Structures C. Community Development D. Forward Planning E. Awareness Raising and Skills Training F. Monitoring and Enforcement

11.3 One other topic ran through all the interviews with stakeholders and the workshops; this being the role of legislation. However, it was concluded by the SESA team that both the Minerals Policy (2009) and Minerals Act (2010) are so recent that it would be premature to try and judge their effectiveness at this time. What is clear, however, is that the institutions, mechanisms and resources being used to implement legislation will largely affect how successful this existing legislation is likely to be, and so each of these considerations has been built into the six themes as discussed in the following sections. Where specific recommendations would require changes to the law these are identified in the relevant sections.

11.4 The thematic structure for key recommendations is followed through into a Draft Action Plan which sets out detailed comments on the whole range of initiatives proposed through the regional and national workshops.


Figure 11.1 Inter-linkages between Individual Actions and Key Themes


Theme A: Finance

11.5 Mining and mineral processing are emotive issues and can be a source of considerable social unrest and political tension if a large sector of the population starts to feel that the costs and benefits are not shared fairly across society.

11.6 The fundamental concern raised in this SESA is that to be sustainable, the minerals industry must be financed and operated in ways that see the exhaustible physical capital represented by minerals being transferred into long term social and human capital. This is not happening in Tanzania.

11.7 Greater emphasis needs to be given to increasing the proportion of mineral value that is retained within the national economy and allowing those local communities which experience the adverse effects of mining to receive a greater share in its economic benefits in order to improve their environmental and social well-being.

11.8 As Tanzania’s new mining policies start to have real effect and the scale of mineral development expands it is vitally important that the ensuing benefits are experienced in the mining heartlands – those districts which bear the brunt of mineral activity. At present, companies pay a standard levy of USD 200,000 per annum to local authorities. This bears no relationship to the scale of the issues that need to be tackled in those authorities or the abilities of the companies to pay.

11.9 There is often a reluctance on the part of national treasuries to see ‘ring-fenced’ allocations of payments of particular sectors of the economy, on the grounds that all income should be distributed through the centre and if an exception is made for one set of producers, pressures will mount for similar dispensations in other areas. However, this SESA argues that mining does present a special case which can be defended on the grounds that while everyone benefits from the use of minerals this is often at the expense of people living in the mining areas.

Recommendation 1:

Government should establish a committee on the sustainable development of mineral resources to:

1) Strengthen financial accountability across the sector;

2) Determine how the minerals value chain can be strengthened to ensure that more wealth is retained within Tanzania; and,

3) Improve the economic performance and quality of life of communities in mining areas.

Theme B: Institutional Structures

11.10 Two fundamental questions are raised in relation to institutional reform:

• How should the role of MEM develop in the longer term to support the minerals sector? and,

• How should the relationship between the formal and informal components of the minerals sector be addressed?

Strengthening Institutions to support the Minerals Sector

11.11 Tanzania has a modern mining legislation compared to other African resource rich countries. The next step is to implement efficient and cost effective structures to enforce this legislation. A full scale programme of reform is already underway in the Ministry of Energy and Minerals which includes strengthening internal teams dealing with small scale mining and environment and expanding the Zonal Offices. However, there has been a tendency to strengthen existing institutions by adding more staff without determining in detail what their role should be in


advance. This applies particularly to bodies like the Ministry itself, Tanzanian Geological Survey and Stamico.

11.12 The SESA process makes clear that the most urgent need for support lies at mining district level. This is where there is a real opportunity to influence the future shape of the minerals sector and the Ministry should aim to decentralise its activities as far as possible, while retaining a legislative and policy formulation role at national level.

11.13 There is a very strong link between these objectives and the need for institutional structural reform.

Recommendation 2:

MEM should:

1) Clarify the role of centrally based agencies of MEM (TGS / STAMICO) and other key ministries;

2) Strengthen its current programme of decentralisation and ensure that it has the requisite staff and resources located within the mining districts to monitor all levels of mining activity (including large scale, small scale and unauthorised activity).

Recommendation 3:

A thorough review should be undertaken of staffing and technical resource needs in the regional and district level offices to ensure that the required number of geologists, mining engineers, surveyors, planners and environmental and social scientists are available to support the development and expansion of the minerals sector and the ASM sector in particular).

The relationship between Large, Small scale and Informal mining

11.14 This report highlights three critical divisions within the minerals sector in terms of the institutional framework. These are:

• Large Scale Mining;

• Small Scale Mining; and

• The Informal Sector.

11.15 Large scale mining: These operations give rise to major environmental and social issues and a number of recommendations for dealing with practical concerns are set out in other sections. However, in terms of the institutional structure for managing the minerals sector there is a good level of understanding and liaison between the larger mining companies and the government and institutional reform in this regard is not one of the priority areas for action.

11.16 Small scale mining: The position is less straight forward with small scale mining since this part of the minerals sector covers a wide range of enterprises from medium sized mines and quarries down to new mining associations which may have limited organisational or management skills. Here, the Ministry of Energy and Minerals has recognised the need for substantial technical assistance and is rolling out a series of reforms. It is widely assumed that by encouraging Primary Licence Holders to band together in mining associations it will be easier to administer minerals policy and encourage compliance with the law. At the same time formation of mining associations will make it easier to provide technical aid and financial assistance. These benefits are likely to materialise if the necessary resources can be provided.

11.17 The informal sector: The greatest challenge in the minerals industry lies in handling the informal/artisanal sector. Very large numbers of people engage in mining outside the law and it is likely to take many years before all of these miners and processors are legitimised.

11.18 Initially, the SESA team formed the view that it would be necessary for the Ministry of Energy and Minerals to give some form of recognition to miners in the informal/artisanal sector to create a degree of order and capture some of the lost revenue which circulates in the ‘grey or black’


economy. However, a decision to recognise artisanal miners would remove one of the key incentives behind policies requiring miners to register in associations. Put very simply – if artisanal miners receive recognition and a degree of financial and technical support without formalising their activities what reason is there for any miner to enter into an association and start paying membership fees and taxes on earnings?

11.19 The SESA team therefore finds itself agreeing with and supporting current plans to draw all artisanal miners and processors into formal associations but in saying this it is also important to stress that this approach will require fundamental changes to the way in which the Ministry of Energy and Minerals delivers its services and a major increase in staffing and financial resources within mining districts. Despite the best efforts of those charged with enforcing the law and persuading informal miners to join associations the SESA team believe it will take many years to convert the 600,000 - 800,000 informal miners into legal entities. In the meantime, serious environmental degradation and major socio-economic tensions will continue to erupt in those small scale mining areas which are not designated as such.

Recommendation 4:

A new programme should be developed by MEM, in conjunction with other ministries and agencies, which is aimed at stimulating new economic activities in all mining areas whether or not they are formally designated. These activities should include support to small private sector enterprises that are set up to provide mining tools and health and safety equipment.

The consequences of haphazard and uncontrolled artisanal mining are not restricted to environmental degradation and social and health risks. There is strong anecdotal evidence that illegal mining and the sale of minerals through the black economy costs the country more in lost revenue than it makes from large and small scale mining put together.

Recommendation 5:

A major focus should be placed firstly on identifying and regulating mineral processors (since all artisanal miners must trade through middlemen) and, secondly, on encouraging investment and developing skills in value – added activities like gem cutting, polishing and setting.

Theme C: Community Development

11.20 Having listened to a wide cross-section of views from stakeholders, the SESA concludes that one of the most important areas for action by Government relates to the development of communities in mining areas.

11.21 At present, most commentary on conditions in mining communities tends, with good reason, to emphasis the negative effects of lack of alternative employment, poor environmental and health conditions and health, safety and security issues but there are places where significant progress has been made in reversing these trends. Mining has the potential to be a catalyst for change, providing its wealth generating power is captured locally. This requires new approaches that ensure that minerals policies are not be pursued in isolation from other areas of government policy which emphasise the need to bring people out of poverty, especially in rural areas.


Recommendation 6:

An inter-ministerial committee should be established with the remit of establishing a dialogue across all sector ministries to look at ways of accelerating community development in mining areas.

Theme D: Planning

11.22 All of the issues explored in this SESA are inter-linked to some degree and this is especially true of the need to strengthen community development and to plan for future land uses and development activities. Planning needs to take place within Government and the regulatory authorities but it also needs to happen within the industry itself. Examples of the types of planning include:

a. spatial or land-use planning under which the future of mining activity is assured by designating mining areas and prospective mining areas and safeguarding minerals against random squatting for housing development or other economic activities that could be allocated sites in non-mineral rich territories. At the same time avoiding the siting of bad-neighbour development close to residential or food producing areas (e.g. cyanide processing plant for recycling gold tailings) or allowing mining in the heart of a designated conservation area.

b. Community development planning giving priority to the establishment of small and medium sized enterprises.

c. Company mining plans including proposals for long-term reinstatement of beneficial after-uses once mining has ceased and the transfer of mining facilities and property (e.g. water storage reservoirs and mine buildings) to the local community.

Recommendation 7:

The government should consider introducing a requirement for a land use plan to be produced, supported by a strategic environmental assessment, for all mining districts so that Mine Plans are integrated into the formal planning system.

Theme E: Awareness Raising

11.23 Many different issues need to be tackled under this theme which is cross-cutting and affects all areas of minerals production, processing and marketing. Many conflicts in mining are caused by a lack of information and lack of understanding on the part of local communities and individuals about their rights and about factual aspects of mining practice. Misleading information and advice can also be given by unscrupulous individuals, companies and even politicians who seek to profit from public ignorance. Problems of lack of awareness are also linked with the need for training of employees, advisors, staff from NGOs, media journalists and presenters and decision makers to ensure that there is greater knowledge and understanding of mineral practice, law, regulations and procedures. These issues need to be tackled in a comprehensive manner.


Recommendation 8:

Government should instigate a major programme to raise awareness across a wide range of issues, linked with sustainable mineral development. Specifically, attention should be focussed on technical training programmes, the role of parliamentarians, health risks and the rights of individuals and communities.

Theme F: Monitoring and Enforcement

11.24 As indicated in the introduction to this chapter on priorities for action, the SESA concludes that significant progress has been made in the last five years in reforming minerals policy and legislation in Tanzania. Emphasis therefore needs to lie on implementation and on ensuring that these changes are effective, rather than on further revision of the law.

11.25 There is a need to develop clear instructions through regulations and guidance on the implementation of minerals legislation but the greatest challenge is to make these procedures effective through active monitoring and, where necessary, enforcement. This will require a high level of professional commitment on the part of Government staff, vigilance on the part of Civil Society and NGOs and, most importantly, the active and voluntary cooperation of the minerals industry.

Recommendation 9:

The Ministry of Energy and Minerals should prioritise its resources towards delivering higher standards and more effective monitoring and enforcement of existing legislation.

11.26 The development of mineral resources can have very different implications, and consequences, for communities, governments, the mine developers themselves and even countries and regions in which mining activities taking place. A comparative perspective reveals not only the large divergence in the interests of various stakeholders, but the wide range of conditions under which mineral exploitation takes place, especially in Africa.

11.27 The many competing interests, and outcomes, suggest the importance of a shared vision to deliberately, and proactively, create the policy space which secures the interests of stakeholders at all levels. In Africa, for far too long, it has been taken as given that there are always losers and winners in mineral extraction processes. Certainly the broader interests of some stakeholders, notably communities and perhaps even states, have been far from secure. Africa’s high levels of poverty, its severe infrastructural deficits, and its continuing weak voice in negotiating mineral development contracts are ample evidence of this.


12 Policy Matrix and Action Plan

Introduction

12.1 This final section of the report sets out a proposed Policy Matrix and Action Plan which is based on the findings from the four regional workshops and the national workshop. The activities are grouped around the six themes and nine core recommendations described in the preceding chapter.

12.2 The consultants have set up the Matrix and Action Plan in a format which can be completed by those individuals who are appointed as task managers. However, it is not practical at this stage to define the full detail of individual actions, including issues like funding and budgets. These elements can only be determined once the Minister and other key decision-makers have considered the SESA findings and decided which recommendations will be endorsed and have agreed on the modalities for giving effect to the SESA findings.

Theme A: Finance

Recommendation 1:

Government should establish a committee on the sustainable development of mineral resources to: 1) Strengthen financial accountability across the sector; 2) determine how the minerals value chain can be strengthened to ensure that more wealth is retained within Tanzania; and, 3) Improve the economic performance and quality of life of communities in mining areas.

Project Title: A.1 Establish Sustainable Development Committee

Actions: Lead Agency

Supporting Bodies

Timescale Budget Funding Sources

Action A.1.1 Prepare Terms of Reference for the Committee

MEM /Ministry of Finance

3 months


Action A.1.2. Select and appoint Committee Members and Chair

MEM /Ministry of Finance

To be identified

Action A.1.3. Agree work programme over 1 year

The Committee should work with TEITI to establish district level EITI Accounts in all mining areas. These district accounts should show how much money, and assistance in kind, is provided by individual companies to local authorities and any other public bodies within the areas in which they are operating, and also the breakdown of how these resources have been used by the public bodies in question.

Responsibility for making the annual returns will rest with companies and public agencies alike.

(This recommendation appears under the heading: Financial Transparency).

Sustainable Development Committee / /MEM/ TEITI/ Mining Districts

To be identified

1 year

Action A.1.5

A study should be initiated by the committee to show the real value of the minerals informal sector to the national economy by demonstrating its significance to overall turnover and the potential for capturing a higher financial return by bringing artisanal mining, processing and marketing with the tax system. In addition the study should have a second component which is to demonstrate the linkages between minerals, the construction industry, transport and other critical components of the national economy. (This recommendation appears under the heading: Contribution to GDP)

MEM / Ministry of Finance

Mining District Councils/ Private Sector

18 months

Action A.1.6

Companies should be required to publish an annual statement demonstrating what proportion of their investment has been spent within the Tanzanian economy.

(This recommendation appears under the heading: Contribution to GDP)


Private Sector

1 year to establish format in association with Action A.1.3

Action A.1.7

The Ministry of Finance should publish a popular guide explaining how finances in the Minerals sector are accounted for. (This recommendation appears under the heading: Contribution to GDP)

Ministry of Finance MEM 1 year

Action A.1.8

The committee should consider the current split between funds paid to national and local authorities and recommend ways of increasing the proportion paid to local authorities and communities (with proper safeguards to ensure appropriate


Mining District Councils


use of funds at the local level). (This recommendation appears under the heading: Contribution to GDP)

Project Title: A.2 Undertake a Valuation and Compensation Study


Supporting Bodies


Action A.2.1

A joint study should be coordinated and sponsored by the Ministry for Energy and Minerals, the Chamber of Mines and a selection of NGOs to examine the range of compensatory measures actually agreed prior to commencement of working at a number of recent mining sites and to examine what can practically be offered by way of compensation in future mine agreements. (This recommendation appears under the heading: Valuation and Compensation)

MEM Chamber of Mines NGOs

12 month consultancy study

Project Title: A.3 5 Year Review of Mining Agreements

Actions Lead Agency

Supporting Bodies


Action A.3.1 A fundamental principle needs to be established in relation to all long-term investment strategies like mining. This is the principle of periodic review allowing for the terms and conditions of any mining licence to be amended in the light of the review findings.

The Ministry of Finance should conduct a review every five years using accepted indicators relating to the state of the national economy, oil and other energy prices, and the global commercial market price for the principal mineral commodities being produced in Tanzania. This review should be an open and transparent process involving public hearings and the results should be used to set or adjust specific taxation levels for the Minerals sector. (This recommendation appears under the heading: Liberalisation of Mining Codes)

Ministry of Finance MEM Every 5 years


‐

Theme B: Institutional Structures

Recommendation 2:

MEM should clarify the role of centrally based agencies of MEM (TGS / STAMICO) and other key ministries.

Project Title: B.1 Clarifying the role of centrally based agencies

Action Lead Agency Supporting Bodies


Action B.1.1

There is a need to revisit the remits of principal agencies like the Tanzania Geological Services and STAMICO to ensure that their contribution to the emergence of a strong small scale mining sector is realised. At present both of these bodies are oriented more towards national research and, in the case of STAMICO, joint venture partnerships for commercial production with larger companies. This might produce more revenue for the publically owned company in the short term but divert resources away from the emerging small and medium enterprises which urgently require state support

MEM

Tanzania Geological Surveys / STAMICO

18 months


Recommendation 3:

A thorough review should be undertaken of staffing and technical resource needs in the regional and district level offices to ensure that the required number of geologists, mining engineers, surveyors, planners and environmental and social scientists are available to support the development and expansion of the minerals sector and the ASM sector in particular).

Project Title: B.2 Review of Staffing and Technical Resource Needs


Supporting Bodies


Action B.2.1

A major investigation is required by MEM into the level of resources (both technical and financial) to support the development, guidance, monitoring and inspection of small scale mines. This part of the Minerals Sector is already growing and will expand further as licensing procedures are tightened up. Current resources are inadequate to achieve the governments’ objectives for this sector.

(This recommendation appears under the heading: Environmental Skills and Training)

MEM Internal minerals agencies I year

Action B.2.2 Given the importance attached to this subject, urgent attention is needed to coordinate the activities of MEM, NEMC, STAMICO, GTS and Local Government in order to provide:

• Clear geological data and maps for designated areas for PMLs; • Creation of mining development plans; • Practical guidelines on appropriate SSM technology.

Training needs to be organised and funded to provide a basic understanding of the geology of ore deposits within the SSM sector including efficient, appropriate technologies and support for legalisation.

In addition:

• Simplified EIA should be introduced for the informal mining sector.

MEM

Internal minerals agencies, NEMC, STAMICO, GTS


Recommendation 4:

A new programme should be developed by MEM, in conjunction with other ministries and agencies, which is aimed at stimulating new economic activities in all mining areas whether or not they are formally designated. These activities should include support to small private sector enterprises that are set up to provide mining tools and health and safety equipment.

Project Title: B.3 Stimulating New Economic Activities


Supporting Bodies


Action B.3.1 The principal role of the Ministry of Energy and Minerals is to promote and regulate mineral development, but in order to stimulate small scale mining it is vital that the ministry establishes units with a wider range of expertise than purely technical skills in geology and engineering.

MEM Donors/ NGOs 18 months

Action B.3.2 Financial and technical assistance should be given to small scale entrepreneurs to assist them to develop health and safety training. Financial support should also be given to support entrepreneurs to create new businesses for example; the import and manufacture of low cost, practical safeguards including face masks and ear defenders. The aim should be to ensure the supply of first aid materials at every mine site in the Country. (This recommendation appears under the heading: Community Health & Safety)

MEM Donors/ NGOs/ Private Sector On-going


Recommendation 5:

A major focus should be placed firstly on identifying and regulating mineral processors (since all artisanal miners must trade through middlemen) and, secondly, on encouraging investment and developing skills in value –added activities like gem cutting, polishing and setting.

Project Title: B.4 Identifying and Regulating Mineral Processors


Supporting Bodies


Action B.4.1

Set up a new Regulatory Board for Mineral Processors and Traders MEM 18 months

Action B.4.2

Establish a Register for Mineral processors and traders in all mining districts MEM 18 months

Theme C: Community Development

Recommendation 6:

An inter-ministerial committee should be established with the remit of establishing a dialogue across all sector ministries to look at ways of accelerating community development in mining areas.

Project Title: C.1 Inter-ministerial committee on Community Development in Mining Areas


Supporting Bodies



Action C.1.1 Establish committee with appropriate terms of reference

MEM

All key MDAs (Water / Transport / Health

6 months

Action C.1.2 Select Pilot Areas for joint ministerial interventions in key mining areas MEM

All key MDAs (Water / Transport / Health

3 months

Project Title: C.2 Accelerating Community Development in Mining Areas


Supporting Bodies


Action C.2.1 This area of mining and local authority administration needs much greater attention from Government. In discussion with one of the leading mining companies it has been suggested that a pilot project should be established at one or more of the major mining sites to study, over a period of two years, how joint projects are planned and implemented in order to come up with a form of model agreement which can be applied widely through the minerals sector. (This recommendation appears under the heading: Local Authorities Management and Finance)

MEM /Chamber of Mines

Selected Mining Companies /NGOs / district authorities

2 years

Action C.2.2 One of the most effective ways of creating permanent capital is to invest in the fabric, infrastructure and facilities (like hospitals and schools) in settlements within the mining districts. Development Plans should be prepared for key mining districts by a joint working party of ministries, district councils and private mine owners.

MEM / Min Education /Land, Housing and Human Settlement

All key MDAs (Water / Transport / Health NGOs / Individual Private Companies

On-going

Action C.2.3 Joint investment by the local authorities and mining companies should take account of education, skills training and promotion of private enterprise so that alternative livelihoods and employment opportunities are created before the minerals are exhausted.

MEM / Education & Vocational Training; Individual Private Companies

All key MDAs (Water / Transport / Health NGOs

On-going


Action C.2.4 There is an urgent need to clarify the roles of the Regional and District Commissioners and provincial local government as distinct from the Ministerial structure involving the national headquarters of MEM, the 14 zonal officers and resident mine officers. Greater coordination is needed between these authorities in order to improve efficiency and common understanding. (This recommendation links directly to proposals listed under the establishment of SSM designated areas including preparation of land use plans). Role of Local Authorities in Small Scale Mining

MEM to launch the initiative with counterparts from Regional and District authorities

1 year

Action C.2.5 Women in Mining

Improving the status of women is essential to advancing positive change within ASM communities. Programmes should be developed to enhance the status of women and improve their capacity to benefit from the mining sector; ‐ Greater commitment to gender mainstreaming is required in government

agencies, and appropriate recognition of women in policy frameworks, particularly in relation to land ownership rights;

‐ Strategies need to be adopted that are inclusive of, and accessible to women and which support women’s participation in political decision making;

‐ Explicit mainstreaming of gender issues is required in technical assistance and community development programmes within mining districts;

‐ Promotion of micro-credit and other financing schemes needs to be encouraged specifically for women;

‐ Educational campaigns need to be developed that target women in order to mitigate specific health risks, and which provide the means for them to access other resources; ‐ Programmes need to be devised and implemented to train women in

various aspects of ASM, including mining methods as well as in marketing, management and bookkeeping;

‐ Further in-depth research should be conducted into women’s involvement in ASM communities, and the differential impact of current practices and technical processes on the lives of both men and women in the mining sector.

MEM / Community

Development Women & Gender

Womens’ NGOs On-going

Action C.2.6 MEM and local government need to consider the magnitude of the child labour

MEM Community,

Development, children &

On-going


practices in the small scale mining sector and work with the communities and mining associations to eradicate the causes; these include:

‐ Lack of child care, ‐ Low income ‐ Inadequate schooling

Child Labour

Gender Local authorities

Theme D: Planning

Recommendation 7:

The government should consider introducing a requirement for a land use plan to be produced, supported by a strategic environmental assessment, for all mining districts so that Mine Plans are integrated into the formal planning system.

Project Title: D.1 Developing Land Use Plans with SEA


Supporting Bodies


Action D.1.1 There is a need to produce land use (spatial) plans to guide the development of mining settlements and ensure that the long term land uses of the surrounding areas are capable of replacing the economic activities / contributions once the mine(s) is closed. Mine restoration plans should be incorporated within these wider land use plans. Urban Development and related development

Vice-Presidents

Office, Lands,

Housing & Human

Settlement NEMC,

Private Companies /

NGOs On-going

Action D.1.2 The process of reaching decisions will be greatly assisted if Government sets clear policy guidelines and, in particular, explains how conflicting objectives (for example, protection of national park status and promotion of sustainable forms of mineral development) are to be reconciled.

‐ Good land use planning: protection of sensitive areas.

Office of the Vice President / Lands, Housing and Human Settlement

Other key ministries: Agriculture, Food Security & Cooperatives, Natural Resources & Tourism

1 year


Action D.1.3

Mining companies should prepare resettlement plans to the highest international standards. Residents ‘ Rights, Evictions and Resettlement

MEM Individual Mining Companies On-going

Theme E: Awareness Raising

Recommendation 8:

Government should instigate a major programme to raise awareness across a wide range of issues, linked with sustainable mineral development. Specifically, attention should be focussed on technical training programmes, the role of parliamentarians, health risks and the rights of individuals and communities.

Project Title: E1 Building awareness

Actions Lead Agency

Supporting Bodies


Action E.1.1 There is a need for MEM and Large scale mining companies to encourage integration of awareness and training campaigns within environmental and human health assessments through development of training materials on appropriate technologies, occupational health and safety, environmental management and mine reclamation. Community Health & Safety

MEM

Ministry of communications,

science & technology;

Min. of Health & social welfare,

VPO, NEMC

Action E.1.2 Government should coordinate awareness campaigns aimed at understanding the potential risk from chemical pollution, HIV/AIDS/STI related diseases and the use of drugs and alcoholism should be part of the campaigns. Community Health & Safety

MEM

Health & Social Welfare,

Community Development,

Gender & Children

On-going


Action E.1.3 Awareness and training campaigns on environmental and human health issues need to be developed and promoted in all ASM areas. Community Health & Safety

MEM



Gender & Children

On-going

Action E.1.4 Special programmes should be developed to promote awareness campaigns and increase understanding of the impacts of mercury misuse in gold mining and ways to mitigate it. HIV/AIDS/STI related diseases and the use of drugs and alcoholism should be part of the awareness campaigns. Community Health & Safety

MEM



Gender & Children, Mining

companies

On-going

Action E.1.5 Role of Parliamentarians In order to assist Parliamentarians to perform their functions to the highest possible standards it is recommended that a special programme is initiated to provide briefing material and to conduct seminars for members who are engaged on specific parliamentary committees and others with an interest in the topics covered by this SESA. The range of activities that could be planned includes:

‐ Presentations including video of individual mines and mining activity- focusing on the unsatisfactory conditions that exist within the informal sector, and exploring ways of bringing these miners and their families together in mining associations so that they can be assisted.

‐ Role of Legislation ‐ Elaborating fair trade legislation (for the benefits of the economy as a

whole) and liberalising the dealer licensing regulations. MEM to monitor miners activities, providing a good gauge of the level of competition in legal trading.

‐ Reviewing the need for legislation and standard practices regarding the remit of local government to tax miners.

MEM / Parliamentary Committees

NGOs/ Civil Society On-going

Action E.1.6 Media Activities

‐ 1) MEM and other key agencies should consider setting up regular briefing sessions for the press and television at which the technical issues associated with mineral development can be discussed.

‐ 2) Short (1-2 week) training courses should be established and supported at recognised universities or technical colleges in order to teach the skills of environmental and social journalism.

MEM Universities / NGOs / Civil

Society On-going


Action E.1.7 Transparency It is recommended that all mine licence agreements should be publically available

MEM

Private Companies On-going

Theme F: Monitoring and Enforcement

Recommendation 9:

The Ministry of Energy and Minerals should prioritise its resources towards delivering higher standards and more effective monitoring and enforcement of existing legislation.

Project Title: F1


Supporting Bodies


– Loss of land and land degradation 1) Planning Approval: The correct stage to determine whether the costs of

land appropriation and the eventual reinstatement and rehabilitation of the land are properly addressed in the mine plan is at the approvals stage – based on a comprehensive EIA, mine management and restoration plan and proper evaluation of the restoration costs.

2) Restoration Guarantees: adequate safeguards must be built into the financial planning and authorisation procedures to ensure that money is secured (through performance bonds/ bank guarantees or other mechanisms) to ensure that the works are completed even if the operating company runs into difficulties and defaults on its obligations.

MEM

Mine Companies / NEMC

Continuous

3) Water Pollution Guidelines: The Government should prepare guidelines based on international experience which set out the parameters for dealing with water pollution through good land use planning, EIAs, supervision and monitoring.

MEM

Ministry of Water and Irrigation /

Health and Social Welfare

Within 12 months


Dust & Air Pollution 4) Monitoring and Surveillance: Measures for controlling dust and air pollution

are well known but constant monitoring and surveillance is required by the companies and government agencies throughout the life of the mine.

MEM Mine Companies Continuous

Use of Chemicals 5) The range of chemicals to be used and their storage and control should be

established during the planning stages of any major mineral development and covered by detailed conditions agreed in the light of an EIA and mine development plan. Ensure implementation – stronger enforcement of EIA conditions is needed.

MEM

NEMC / Ministry of Water and Irrigation /


On-going

Radioactivity 6) Awareness campaigns to understand the risks associated with mining of

radioactive minerals.

MEM

Ministry for communication,

science & technology

On-going

Climate Change 7) All mining activity should be assessed with the aim of reducing Greenhouse

Gas Emissions and introducing energy conservation policies.

MEM /VPO

On-going

Environmental Issues (ASM) Water Pollution and Dangerous Chemicals

‐ A scientific study should be undertaken in the principal small scale mining areas to establish the extent of water pollution caused by mining activity.

MEM

NEMC / Ministry of Water and Irrigation /


On-going

Noise and dust ‐ Specific recommendations for dealing with the issue of noise and dust are

dealt with in the health and safety issue.

MEM NEMC / Health

and Social Welfare

On-going

Landslides and instability ‐ Forward mine planning and specialist technical advice should be provided

in all small scale mining designated areas. ‐ MEM together with NEMC need to establish a comprehensive strategy to

counter the environmental impacts of SSM including threats to biodiversity.

MEM NEMC On-going

Residents ‘ Rights, Evictions and Resettlement MEM Community

Development, On-going


‐ MEM should prepare and publish guidelines on the types of social survey and procedures to be followed in assessing the interests of residents on mine licence properties. Responsibility for enforcement must be clearly defined.

Children & Gender / Health

and Social Welfare

Child Labour By-laws need to be enforced and strengthened in circumstances where unscrupulous licence holders / mine managers are exploiting under-age workers who should be in school.

MEM


Children & Gender / Health

and Social Welfare

On-going

Mining Companies’ Obligations

‐ All Mining Companies should meet their formal obligations as a matter of course and the Government should monitor and impose strict penalties on any company that defaults.

‐ It is clearly the responsibility of companies to perform in accordance with their own corporate responsibilities and to police their own activities. However, CSR policies should be published so that local communities and the public can be reassured that these standards are maintained.

‐ In the case of voluntary agreements a formal structure should be adopted so that the outcomes can be effectively monitored.

‐ The Government (MEM) should prepare regulations and model guidelines for establishing the levels of payment and the types of project that should be included in agreements between mining companies and local authorities.


Social Issues - Small Scale Establishment of realistic health and safety standards; and joint policing and monitoring by mining associations, MEM and other Agencies.



Appendix 1 Workshop Attendance and Proceedings

Mwanza Regional Workshop Proceedings Held at the Gold Crest Hotel in Mwanza City on 20th September 2012 Group Discussions Priorities for Action: Results

Large Scale Mining Top 5 issues

Environment Social Economic Legal Institutional & finance

1 Destruction of Vegetation and Biodiversity




2 Loss of Land or Water resources


Role of Local Authorities Liberalisation of Mining Codes

3 Dust and Air Pollution Mine Workers’ Health and Safety

Corporate Responsibility Mining Contribution to GDP

4 Use of Dangerous Chemical

Residents Rights Forced Eviction

Employment International Investors and Globalisation

5 Climate Change Role of Legislation Local Authorities Finance Financial Transparency Measures

Comments from the floor Generally consensus

from the group Very divergent views to begin with but the need for social investment was agreed on

Strong agreement on Parliamentarians being the really top priority as you can have a perfect legislation but it is up to the Parliamentarians to vote it in. If they do not understand what they are voting in then you end up with poor legislation as they come under intensive pressure from lobbying.

Small Scale Mining Top 5 issues


1 Loss of Land or Water Resources

Areas Set Aside for SSM Related Development Role of Parliamentarian

2 Water Pollution Licensing SSM Inequalities in Society Mining Contribution to GDP 3 Destruction of Vegetation

and Biodiversity Mine Workers’ Health and Safety

Role of Local Authorities Liberalisation of Mines Codes

4 Landslide / Instability Child Labour Urban Development and Redevelopment


5 Land Degradation Role of Legislations Valuation and Compensation

Financial Transparency

Comments from the floor Although not in the top 5

there was a lot of discussion about the problems of alcohol and drug abuse / STI /HIV on mine sites. Although it was agreed that these are significant problems, the degree to which these are mining specific problem or just general social problems that could be found anywhere was debated.

Strong agreement on Parliamentarians being the really top priority as you can have a perfect legislation but it is up to the parliamentarians to vote it in. If they do not understand what they are voting in then you end up with poor legislation as they come under intensive pressure from lobbying.

Action Plans for Priorities - Environment

Topic Action Lead Agent

Support How long How much Achievement

Large Scale Mining Not discussed Small Scale Mining Loss of Land or Water

Identify and allocate mining areas and resettlement areas for the communities who will be affected by the mining activities

MEM, TAMISEMI

Village Council /District Council

1 year ? Reduced conflict

Pay compensation MEM, TAMISEMI


1 year ? Reduced conflict

Water Pollution

Specified mining area should be allocated away from water sources

MEM, LGA


6 months ? Human health maintained and biodiversity conserved.

Destruction of Vegetation

Put in place Environmental Management Plan

MEM, LGA

Artisanal miners (small scale miners)

1 year Depends on area affected

Fertile soil with vegetation cover

Put in place bylaws MEM, LGA

Artisanal miners (small scale miners)

1 year Depends on area affected

Fertile soil with vegetation cover

Creation of landslides/flooding and unstable ground conditions / siltation

Introducing proper technology for structure construction. Instead of using timbers use galvanized pipes or iron rods

SSM STAMICO Depends on demand

Depends on material cost

Improved safety of SSM

Land degradation

Backfill the pits SSM LGA, MEM, NEMC

Undertaken once mines closed – mining

Depends on the magnitude of the work

Rejuvenation / recovery of the land

activities finished

Planting trees SSM LGA, MEM, NEMC

Undertaken once mines closed – mining activities finished

Depends on the magnitude of the work

Rejuvenation / recovery of the land

Action Plans for Priorities - Social

Topic Action Lead Agent Support How long

How much Achievement

Large Scale Mining Community Health & Safety

Strengthen existing health services, collaborate among stakeholders on health management plan formulation

Government Investors NGOs Communities

2013 ? Improved health and safety

Strengthen existing safety services. Collaborate among stakeholders on safety management plan.

Government Investors NGOs Communities

2013 ? Improved health and safety


Enforcement of Law and Order – community awareness on public investment

Government Investors and communities

2013 -2014

? Improved security among community and mine

Ensure total fencing of the Mining Area

Government Investors and communities

2013 -2014


Establishment of mine police

Government Investors and communitie

2013 -2014


s Mine workers health and safety

Mining industry wages and salary – scales separated from other public services and other private sector wages

Government Investors 2013 -2014

? Improved employee health and safety.

Periodic mining employees health examination



National emergency response unit



Residents Rights and Obligations

Awareness of surface and mineral rights to residents

Government Government

2013 ? General issues, improved understanding

Enforcement of land law Government Government

2013 ? General issues, improved understanding

Role of Legislation

Public awareness of legislation relating to Mining Act 201 entitlements


2013 ? Improved understanding of rights and roles Improved perception and management

Introduce government social investment framework with measurable mining industry KPIs


2013 ? Improved understanding of rights and roles Improved perception and management

Small Scale Mining Areas set aside for SSM

Identify areas for mining different minerals


2013 ?

Licensing SSM

Issue licenses for qualified individuals

MEM Zonal and Districts

2013 ?

Action Plans for Priorities - Local Economy



Large Scale Mining Valuation and Compensation

Review land act in relation to mineral act and World Bank requirements

Sectoral Ministries (Land, Mining, Finance, Legal and Policy)

Parliament 1 – 2 years, ongoing process

Large amount of money

Fair compensation. Well streamlined and transparent model of validation and compensation

Role of Local Authorities

Bottom-up approach in planning, transparent involvement of local communities

Local Authorities Central Government

Investors Other institutions i.e. NGOs

Immediate action

Small amount of money

Increased participation of local communities in development planning. Reduced conflict between local communities and investors.

Corporate Responsibility

To put in place adequate amount of money based on community needs if known at the time. Clear policy guidelines on how much companies should issue to communities

Local Government Authority Central Ministries

Ministerial Agencies

Immediate action. 1 year

Small to medium amount of money

Achievement of social and local development plans

Employment Employment should be based on merits. Good implementation of succession plans between local and expatriates

Central Government

Investors TURTA (Tanzanian workers union)

Immediate action required

Small to medium amount of money

Minimum labour turnover Increasing efficiency and fair competitiveness

Local Authorities – management of finance

Capacity building of LGA workers Implementation of Local Government Finance Act (LGFA)

Central Government MEM LGA

Investors Training Institutions

1 year Small amount of money

Improve value for money Increase revenue collection of LGA

Small Scale Mining Related Development

To put small scale miners into well organised groups

Sectoral Ministry MEM Central

LGA SSM Community

1 year Small – medium amount of money

Sustainable development in areas around mine sites Easy identification of these groups which can be easily

Government supported. Inequalities in Society

Create awareness to SSM. Create area specific bylaws for SSM.

Sectoral Ministries LGA

SSM 1 year approx

Small amount of money

Improved social economic welfare for SSM.


Identification of SSM Put in place a communication mechanism.

Local Authority

Chancellors Zonal Mine Officers

1.5 years Small amount of money

To have organised SSM who will contribute to countries GDP.

Urban Development and Redevelopment

To put in place development plans for small scale mining centres.

LGA Central Government Other institutions

2 – 5 years

Medium to large amounts of money

Well planned mining centres (settlements).


Review Land Act in relation to Minerals Act and World Bank Requirements.

Sectoral Ministry – land, mining and finance

MEM 2 years Small amount of money

Fair compensation.

Action Plans for Priorities - Legal and Institutional



Large Scale Mining Role of Parliamentarians

Review Mining Act to accommodate clear contracts and involve key people in the community in the contract

Parliament Government , Attorney General, Activists

1 year ? Increase transparency in all contracts between government, investors and community which will be a win-win situation. Increase of the national GDP.

Enhance Code of Conduct for political and civil servant leaders


1 year ? Increase transparency in all contracts between government, investors and community which will be a win-win situation. Increase of the national GDP

Separate political Parliament Governmen 1 year ? Increase transparency in all

matters and national interest matters.

t , Attorney General, Activists

contracts between government, investors and community which will be a win-win situation. Increase of the national GDP

Capacity building for political leaders on their respective sectors.



To establish policies, regulations and strong laws whereby all agreement touch the natural resources and interests of the community shall be brought before the Parliament.



General accountability for Parliamentarians and civil servant leaders.



Mining contribution to GDP

To eliminate substantial tax rebates To ensure all sub-contractors to the mother companies are identified and paying tax.

MEM, TRA Local Government

1 year Increased country revenue Improved GDP Increasing transparent and reduction of conflict between investors, government and community CSR should be a condition and legally adhere to all investors.

International Investors and Globalisation

Come up with a strong law which will force investors to be responsible and abide to CSR.

Members of Parliament AG

Supporting Government Agencies

1 year Investors will be accepted and reduce the conflict between the investors and community


Increase awareness on the amendment of Mining Act 2010. Increase awareness on the required transparency between investors and dealers on their incomes

MEM NGOs, Activists

1 year All investors (mining companies) report their incomes and are paying all required taxes to the government Enable the country to be transparent to the international financial reporting standard


Review of the national mining policy and regulation to safeguard the interest of the national and community at large. Promote strong code of conduct for all implementers from the national to the local level. Increase awareness to the community to demand their rights.

MEM NGOs CBOs

1 year Effective policy which safeguard the interest of the national and community.

Small Scale Mining Role of Parliamentarians

The Government through MEM should set apart all potential areas for SSM. Harmonise land and mineral rights.

MEM and Agencies

LGA 2 years ? Conflict resolution among SSM, LSM and Government

Mining Contribution to GDP

Facilitate SSM and monitor and evaluate loans.

MEM Mining Associations (REMA)

Continuous

Depends on the nature of individuals / groups

Sustainable SSM and hence Government Revenue Increase


The Government should establish a system of tracking Minerals produced.

MEM and Agencies

LGA and REMAs and Policy Force,

Continuous

Depends on situation

Contribution to GDP Control of mineral laundering Mines and community safety / security improved

Immigration Office

Government to establish control points for exported minerals and mineral landings.

MEM and Agencies

LGAand REMAs and Policy Force, Immigration Office

Continuous



Government should act with the sense of urgency to rush areas.

MEM and Agencies

LGA and REMAs and Policy Force, Immigration Office

Continuous




NGOs and CSOs to be involved in policy and mineral rights making.

MEM NGOs and CSOs

Continuous

? Increase transparency, improvement of minerals sector


To enhance transparency on mineral sector.

MEM and its agencies

LGA, REMA continuous

? Increase GDP from SSM

To create means and techniques of gathering accurate data from SSM.

MEM and its agencies



Enforcing available law. MEM and its agencies



List of participants

Name Organisation C-GOV

L-GOV CSO SSM PRIV.

1 SALIM SALIM ZMO MWANZA x 2 BATIGASHAGA LEONARD BARIADI DISTRICT CONC. x 3 HAMPHREY E. MMBANDO MEM x 4 GODFREY KASEKENYA TMAA - MWANZA x

5 RAMADHANI KABALA RMO - SHINYANGA x 6 SAMSON WINANI ROM - MARA x 7 MARYSTELLA SAMKI TMAA - MWANZA x 8 VICK BASIMAKI MEM - MWANZA x 9 GODLIVED MANUMBO AFRICA BARRICK GOLD x 10 JOSEPHAT MARWA SSM-NTIMARO, MARA x 11 SABAI NYANSIRI MEM - KAHAMA x 12 KORODIAS SHOO ABG - BGM X 13 MSANDA RJ MARA REGIONAL OFFICE X 14 KELISA A. WAMBURA SIMIYU REGION OFFICE X 15 GLORY MLAKI ACORD,MWANZA X 16 SYLVESTER MWITA NGS - MANONG, MWANZA X 17 BAHATI KALEKWA SHIREMA X 18 DONATUS MUKUNGU WILLAMSON D MINING X 19 JOSEPH KAAFA WILLAMSON D MINING X 20 YOBU M. KIUNGU RAS -TABORA X 21 ENG.PIUS R. LOBE MEM - MUSOMA X 22 STELLA ANDREA RAS - KAGERA X 23 ANTHONY MAGEKA RAS - GEITA X 24 ALLY A THABIT MIHANIA-MISUGWI X 25 AMBROSE J MUZENGA MEM - BUKOBA X 26 AMADI ISSA SSM X 27 HAMISI DINYA REGION HOSP TABORA X 28 ZAKAYO KALEBO BARRICK-NORTH MARA X 29 ALLY S MAGANGA RMO- GEITA X 30 HELLEN EAUSTACE GEITA DISTRICT OFFICER X 31 ANNA MDAMO LVEMP-MWANZA X 32 STEPHANA M MSSETI MAREME-MARA X 33 DAVID J. SHAYO SSM-BUNDA X 34 DOUGLAS JEZREEL SSM-GEITA,BCMCO X 35 KIKWAZA H KIWAZA SSM-MWAGIMAGI X 36 ERNEST JOHN SSM-MISUGWI,MIHAMA LTD X 37 CHRISTOPHER NDEGE SSM-CLIMATE CONTROL LTD X

38 ZEPHANIA JONH SSM-NHUMBI,ISAKA X 39 RICHARD SENI LEACHING,PLANT, MISUGWI X 40 AHMADA BUTWIGA LEACHING,PLANT, MISUGWI X 41 ELIAS MODEST TMAA - MWANZA X 42 MARIAM IBRAHIMU TMAA - MWANZA X 43 DITRICK NYONI DRIVER ZMO - SHY X 44 JOSEPH KAMUGISHA DRIVER-TMAA X 45 HAMZA ATHUMANI DRIVER-GEITA X 46 HAIDARI S. KALUNGA DRIVER ZMO - MWZ X

Summary of participants

Central Government 6

Local Government 21

Civil Society Organisation 5

Small Scale Mining 8

Private 6 Total number of participants 46

Arusha Regional Workshop Proceedings Held at the Snow Crest Hotel Arusha City on 24th September 2012 Group Discussions Priorities for Action: Results

Large Scale Mining

Top 5 issues


1 Land Degradation Residents Rights & Obligations

Urban Development and Redevelopment



Role of Legislation Women in Mining Mining Contribution to GDP

3 Dangerous Chemical Mine workers’ Health and Safety

Local Authorities Finance Role of Parliamentarians

4 Loss of Land or Water resources


Mining Companies Financial Transparency Measures

5 Exposure to Radioactivity Cultural Tensions / Immigration / Gender

Employment International Investors and Globalisation

Comments from the floor There was a feeling from

some that the use of chemicals in LSM is fully controlled.

Compensation given but resettlement an issue, loss of earnings ability, no natural neighbourhoods, people split up. No areas identified for resettlement. Lack of understanding of legislation. STIs, away from families an issue. Confrontation between LSM & community.

Investors should be emphasised to pay revenue for the local development and economy. Existing lack of educated women in mining sector. Women are voiceless while expressing their views. Employment opportunities are mainly for men due to the nature of mining works. Women are given small and simple jobs. Local leaders are lacking financial expertise and most of the time are not involve during the financial planning. There is no emphasis on CSR. Contracts between the government and investors are not clear.

There is a tendency of the investors to give dubious financial reports (this is an area of investigation by the responsible government authorities) Labour laws are not adhered to when comes to the employment in the LSM. Lack of safety in the work place. The participants commented that the issue of Valuation and Compensation is a priority to be included; Urban Development and Redevelopment growth is nothing compared to what the countries where these investors come from gain from our mines; we are left with pits while the countries where the investors are coming from are benefiting rather than us. There is no technology transfer from LSM to the local people. Royalty should be paid in terms of values (it was elaborated that Royalty is very small percentage and it is not taxed) people do not understand the different between royalty and tax.



1 Dangerous Chemicals Areas Set Aside for SSM Urban Development and Redevelopment

Liberalisation of Mines Codes

2 Land Degradation Mine Workers’ Health and Safety

Women in Mining Mining Contribution to GDP


Role of Legislation Local Authorities Finance Role of Parliamentarian

4 Water Pollution Alcohol & Drug Abuse Inequalities in Society Media Activities 5 Loss of Land or Water

Resources Mine & Community Security / Community Health & Safety

Employment Civil Society and NGOs

Comments from the floor Metallic industries –

priority should be the use of chemical and not water. Loss of land and water resources should be priority. It happens that 50% of unauthorised SSM using lots of land is not an alarming issue. The areas needed for mining is insignificant.

Could not agree on 5th priority so joint. HIV at a high rate in SSM. No safety equipment available to SSM. Cultural tension and immigration not that big an issue as most miners are Tanzanian. Employment in SSM – they lack technology in mining skills, market and use of rudimentary tools Farmers in SSM areas are poor and no compensation, while SSM are rich.

The provision of PML for SSM should be the role of Regional Commissioners. Illegal miners will continue to exist because the process of acquiring PML is expensive and cumbersome.


Topic Action Lead Agent Support How long How much

Achievement

Large Scale Mining Land Degradation

Review legal framework - environmental legislation needs reviewing as not working, implementation important – propose 10% of investment capital put aside at the beginning of a project for the environment.

Government NGOs and Civil Society

More than 5 years

? Reclaimed land

Destruction of Vegetation

Conduct EIA. Investors Government (enforce), Civil Society Oversee

Less than 2 years

$25,000 – 100,000

Achieve sustainable development of the mine

Environmental management plan.

Investors Government (enforce), Civil Society Oversee

Less than 2 years

$25,000 – 100,000

Achieve sustainable development of the mine

Small Scale Mining Use of Dangerous Chemicals

Review existing laws put in strict provisions on the use of these materials

Government, Parliament.

Stakeholders 2 years $25,000 – 100,000

Achieve properly controlled use of these dangerous chemicals

Land Degradation

Review mining legislation – include provision for 10% of investment capital to be put towards environment



Achievement

Large Scale Mining Residents Rights and Obligations

Review existing legislation Ministry of Land Housing and Settlement

Ministry of Law, MEM, Parliament, NGOs and Media

Under 2 years

More than $100,000

Reduce land disputes, Encouraging more investors, Increase GDP

Role of Legislation

Implementation of environmental requirements according to 201 Mining Act

MEM NEMC, SSM Continuous Under $25,000

Reduce negative impact to environment e.g. water pollution, soil erosion, improving workers health, improving workers environment

Increase awareness of new legislation (2010)

MEM NGOs, Media, Parliament

Under 2 years

More than $100,000

Reduce complaints from the Community, Attract more investors, Increase Government revenue.

Small Scale Mining Areas Set Aside for SSM

Identify potential areas for SSM.

MEM STAMICO, GST

2 – 5 years Over $100,000

To reduce conflict between SSM and LSM, legalise illegal SSM. To increase Government revenue. Available database for demarcated areas for SSM.

Survey of identified areas for SSM.

MEM LGA 2 – 5 years Over $100,000

To reduce conflict between SSM and LSM, legalise illegal SSM To increase Government revenue Available database for demarcated areas for SSM

Awareness Campaign. MEM NGOs, Media, CBO

2 – 5 years Over $100,000

To reduce conflict between SSM and LSM, legalise illegal SSM

To increase Government revenue Available database for demarcated areas for SSM

Licensing SSM

Awareness of the importance of having license for SSM.

MEM NGOs 2 – 5 years Above $100,000

Improvement of number of SSM with PML; Improvement of Government Revenue; The Government will be able to monitor production; It will be easy for the Government to provide support e.g. technical, marketing, finance etc.



Achievement

Large Scale Mining Valuation and compensation

Review rent act. Sectoral Ministries

Finance MEM

1-2 years on-going

Large costs

Fair compensation Transparent model for compensation.

Role of LA Bottom up approach to planning.

LGA, Central Government

Investors

Other institutions

Immediate action

Small Increased participation of local communities in local plan. Reduced conflict between local coms and investors.

Transparent engagement of local communities.

Corporate Responsibility

Set aside adequate funds for local needs (timing of release to be known).

LGA

Sectoral ministries

Ministries / Agencies

Immediate action running for 1 year

Small - medium

Achievement of social and local development plan.

Clear guidelines on amounts to be provided by companies.

Employment Based on merit Good implementation of succession plan.

Central Government

Investors Tanzania Workers Union

Immediate action

Small - medium

Minimal labour turnover Increase in efficiency and fair competition.

Local Authorities Finance

Capacity building of LGA workers. Implementation of LG Finance Act.

Central Government MEM, LGA

Investors Training institutions

1 year Small Improved value for money Increased revenue collection for LGA.

Small Scale Mining Not discussed



Achievement


To separate political and national interest matters Review 2010 Act loopholes Introduce Political Code of Conduct Capacity building Policy on contract agreements to be brought to parliament Establish accountability for Parliamentarians and Civil servants.

Parliament Government Attorney General Activists

1 year Training facilitation and materials

Increase transparency in all contracts. Increase transparency in communities Increase GDP


Eliminate substantial tax rebates. Ensure all contractors and

MEM TA

Local Government

1 year variable Increased revenue Improved GDP Increased transparency and

companies identified and paying taxes.

reduced conflict between stakeholders

Small Scale Mining Not discussed.



L-GOV CSO SSM PRIV.

1 Eng. Benjamini Mchwampaka ZMO-ARUSHA X 2 Manase Mbasha ZMO-SINGIDA X 3 Eng. Simwela N. Martin RS - SINGIDA X 4 Somboi A. Harold RS - SINGIDA X 5 Happy Kisoka ROCKTRONIC- ARUSHA X 6 Sanzeh A. Ntinkwa MEM-HANDENI X 7 Raston S. Zayumba MNRO-SINGIDA X 8 Maj A.R. Msoffe KIREMA-KILIMANJARO X 9 Felix F. Mwasenga RS-MANYARA X 10 Onesmo Munuo RS-MANYARA X 11 Sande C. Batakanwa RS- MANYARA X 12 Eng. Laurent Mayala RMO- MERELANI X 13 Charles Mpondo BABATI-WSSA- MANYARA X 14 K.V Patel ARUSHA-AGREGATE-ARUSHA X 15 Isaya Latema AREMA-ARUSHA X 16 Hamisi Lioba AREMA-ARUSHA X 17 Coletha V. Shayo RS -MANYARA X 18 Nerei Kyara RS- ARUSHA X 19 Filbert Kalala ZMO-ARUSHA X 20 Jackson Sanga ARUSHA 21 Damasius Daudi ZMO - ASSISTANT X 22 Fatuma Kyando ZMO- ARUSHA X 23 Francis Mihayo RMO - MERERANI X

24 Protas Massawe RMO - ASSISTANT X 25 Musa Shenyangi TGC- ARUSHA X 26 Amani Mustafa Haki Madini - Kilimanjaro X 27 Selemani Waziri MUWSA X 28 Richard Meela Ardhi - Simanjiro X 29 Ralph Makundi Agriculture officer - Babati X 30 Isaack Usaka RS - Manyara X 31 Deogratias Minja SSM - Mirerani X 32 Johnson Maro SSM - Mirerani X 33 Fundi Bashiri SSM - Mirerani X 34 Yusuph Mane SSM - Mirerani X 35 Johnson Mwami RS - SINGIDA X



Local Government 14




Morogoro Regional Workshop Proceedings Held at the Nashera Hotel Morogoro City on 27th September 2012

Group Discussions Priorities for Action: Results




Forced Evictions Role of Local Authorities Role of Parliamentarians


Role of Legislation Inequalities in Society Financial Transparency Measures

3 Land Degradation Residents Rights & Obligations

Women in Mining Liberalisation of Mining Codes / Role of Parliamentarians

4 Water Pollution Mine workers’ Health and Safety



5 Climate Change Community Health & Safety

Mining Companies International Investors and Globalisation

Comments from the floor Have equipment, but not

always used when supervisors not around. Also the fact that local communities don’t know their rights was discussed.

Discussions on whether Mining companies are paying revenue to Local Authorities. Also whether women are being excluded from LSM. Also need to train local citizens so that they can take part in LSM as well as SSM. Valuation and compensation procedures are inadequate with a lot of problems. Compensation delays or not effective at all Capital for SSM it is an issue Technology, access,

knowledge and funds it is an issue in SSM Employment is two sided issue i.e. bring in expatriates from outside which is a challenge to the government on the other hand citizen should be trained on mining industries to replace expertise from outside.



1 Water Pollution Areas Set Aside for SSM Local Authorities Finance Liberalization of Mines Codes


Mine Workers’ Health and Safety

Related Development Role of Parliamentarian

3 Land Degradation Licensing Small Scale Miners

Women in Mining Civil Society and NGOs

4 Dangerous Chemicals Community Health & Safety

Employment Media Activities

5 Landslides / Instability Child Labour Inequalities in Society Mining contribution to GDP Comments from the floor Dangerous chemicals are the

source of much water pollution so it was argued that this is the most important issues. There were also discussions on the loss of land and water should be

There are existing conflict between LSM and SSM. There is a feeling that LSM are favoured over SSM. The LSM are given PML in the properties of SSM.

There was a strong debate of the importance of women in small scale mining and why their role diminishes as mining becomes more formalised and move to LSM operations.

Institute strengthen personnel and finance to empower SSM Ancestral Rights of Mining and law enforcement to be included in this section and stakeholder participations.

the top priority in this area. There is a need to review the existing policies in order to safeguard the interests of SSM. Lack of enforcement of child labour and child rights issues. Provision of PML is not part of community since they don’t know their rights. Some people do not want to move from the land because they fear that they would lose the immediate benefit from the mines if they are located far away from the area. HIV/AIDS should be included in this section. The issue of issuing license was discussed in length and there was no consensus. The participants think the LSM are favoured and SSM ignored It was elaborated that the procedure used is first come first served. They proposed the LSM should also channels their request to the local leader as with SSM.




Large Scale Mining Loss of Land or Water Resources for Existing Uses

Preparation of a comprehensive village land use plan and implementation plan (consideration of public private partnerships).

Participatory, LGA, Central Government, Ministry of Lands, National Land Use Commission

Maji, Mandini, Agriculture, NGOs, Private Companies, natural resources and tourism.

Under 2 years

Under $25,000

Reduce potential for land conflicts; It will achieve fair resettlement; Proper planning and sustainability; Security of tenure.

EIAs should be better linked to the local authorities and recommendations should be enforced.

NEMC Consultancies and related ministries and LGAs

2 years Proper mitigation measures

Small Scale Mining Land Degradation

Comprehensive Land Use Plan

Participatory, LGA, Central Government, Ministry of Lands, National Land Use Commission

Maji, Mandini, Agriculture, NGOs, Private Companies, natural resources and tourism.

Under 2 years

Under $25,000

Reduce potential for land conflicts; It will achieve fair resettlement; Proper planning and sustainability; Security of tenure.

Organisation and integration of livelihoods and formalisation of SSM.

LGA in liaison with MEM

NGOs and private investors, companies

Under 2 years

More than $100,000

Formalisation and hence potential for enforcement.

Formalisation and enforcement of bylaws

LGA NGOs, Private Companies

Continuous

Under $25,000

A more regulated approach and a more sustainable approach

towards small scale mining; reduced conflicts




Large Scale Mining Forced Eviction

Joint provision of mining license (local and central government).

Local and Central Government

Government and NGOs

1 year More than $100,000

Reduces conflict between Miners and communities

Areas demarcated for Mineral reserves should be publicised.

Central and Local Government

NGOs and Government Organisations

6 months Between $25,000 – 100,000

Reduces time wasted producing licenses; Proper land use planning at local levels.

Small Scale Mining Areas Set Aside for SSM.

Allocation of SSM in the demarcated areas for mineral reserves.

Central and Local Government

6 months $25,000 – 100,000

Easy provision of government services; Income and employment provided; Reduces contradictions.

Formulation/ strengthening of SSM groups.

SSM 3 months Below $25,000

Easy access of loans; Easy to be supported by government organisations; Easy to be trained.

Comment: The current policy is not well understood by SSM. The Mine Act is contradictory, there must be a consultation.




Large Scale Mining Role of Local Authorities

Participatory approach of policy and law review

MEM, LAG CSO, Development Partners

5 years More than $100,000

Harmonisation of policies and law

Awareness creation District Executive Director

CSO, Development Partners

5 years More than $100,000

Community participation enhanced

Monitoring and Evaluation District Executive Director

CSO 5 years More than 100,000

Positive results enhanced and negative results mitigated.

Small Scale Mining Local Authorities Finance

Formulation of by-laws regarding SSM mining sector.

PMO -RALG, LAG

CSO Under 2 years

$25,000 Revenue from mining collected

Enforcement of by-laws of financial management system.

LAG More than 5 years

$25,000 More funds available





Legislate Laws / Acts. Parliament AG Chamber

CBOs, Media, LGAs

Continuous

$100,000 + Increase revenue, GDP, royalty; Employment; Benefits environmental conservation; Reduction of conflicts; Transparency of Act.

Review contracts of mining companies.

Parliament AG Chamber

CBOs, Media, LGAs

Continuous

$100,000 + Transparency and accountability; Increase GDP and royalty; Improve community benefits, Sustainable environment.

Law review (of existing laws).

Parliament AG Chamber

Law review commission, NGOs, CBOs and other stakeholders

Continuous

$100,000 + Community awareness, LGAs linking with Mining Department.

Small Scale Mining Liberalisation of Mining Codes

Law review Parliament AG Chamber

LGAs Continuous

$100,000 + Reviewed law, changes in fees and charges and royalty

Mass education and awareness

LGAs CSOs, LGAs, NGOs

Continuous

$100,000 + Mining practices changes; Improved environment and safety

Empowerment and Technology

Government

STAMICO Continuous

$100,000 + Improved mining environment; Productivity improved; Women’s participation enhanced.



L-GOV CSO SSM PRIV

1 Alex Magayane MEM-Dar es Salaam X 2 Nkini E. James DED-Kongwa X 3 Reginald M. Lyimo DNRO-Kisarawe X 4 Eng. Robert Nkini RMO-Dodoma X

5 Mwinyi alli Y.R.S RAS-Lindi X 6 Godwini Adani Uledi Uvumilivu Group-Kogwa X 7 Arafa M. Halifa DC-Kilosa X 8 Anord C. Mzigo DC-Kilosa X 9 Sihaba O. Singa Kibaha District Council-Coastal X 10 Felix C Mwedipando RAS-Dodoma X 11 Theddy P.Chuwa Temeke Municipally-Dar X 12 Gidion Kasege MEM-Dar es Salaam X 13 Charles P. Lawisso Mkurunga District Council X 14 Jumanne Jabu Mchimbaji-Mpwapwa X 15 Hayesh Ramadhani Dodoma-Quarry X 16 Saidi Salim Sino Hydro-Dodoma X 17 William Mageni Mpwapwa X 18 Yusuph Mwandami SSM-Kondoa X 19 Elieshi Lema Mchimbaji- Lindi X 20 Didas Shirima Kinondoni Municipal-Dar X 21 Grace Kakama Kinondoni Municipal-Dar X 22 Kinana Musa District Council-Mkurunga X 23 Julieth Mboneko Twiga Cement- Dsm X 24 Baldwin Lema WIGU HILL - Dsm X 25 Eugine Meshi Dar es salaam ? 26 Deus Mchele DC-Bahi X 27 Elice Engelbert Ruvuma River & Southern Coast Basin X 28 Melkizedeki B. Huruma Ulanga District X 29 Joseph Mkude Ulanga District X 30 Krisostom Msakamba Ulanga District X 31 Charles Chami Ulanga District X 32 Bilhida Maliyaga UNGO - Ngerengere X 33 Juma Chipaya Dodoma ? 34 Kisa Mwakapya SSM-Masasi X 35 Kitwa Masami Morogoro X 36 Tadeus Macha Morogoro X 37 Kiberiti Stephen Morogoro X

38 Euphrasia Shayo Envirocare X 39 Praxeda P. Kalugendo Ruvu Basin X 40 Visetas Kididge Madini MDK X 41 Bentamini Kyahe Madini Morogoro X 42 Laini O. Kasigwa RMO-Morogoro X 43 Catherihe John Madini-Morogoro X 44 L.K.Msuya Ras-Morogoro X 45 Mohamed Menzu TBC X 46 Penford Mohamed MAJI X 47 Nicolaus Mizambwa RAS X 48 Frank D. Mwalembe Kibahe Distric Council X 49 Michael M. Chamo Ulange District Council X 50 S. Vamme Kibahe District Council X 51 Dr. Lillian Mkombachepa Morogoro Regional Hospital X 52 Luces Mawadsaka Morogoro RS X 53 B. Msahams RAS Morogoro X 54 Ibrahim Mukili MEM X 55 Juliane J. Msagica Morogoro DC X 56 Geophrey Pyunpa Morogoro DC X 57 Aidan G. Mhando Morogoro DC X 58 Mawwamwgo Ande Morogoro DC X 59 Anthony Chacanica Morema X 60 V.J.Kiweme Ras-Morogoro X 61 F.C.Mwedipando Ras Dodoma X 62 Philip P. Ngereja RMO Morogoro X 63 Eng F.G. Nkini RMO Dodoma X 64 Josepha Micusa Ag. DEDE Mtwara X 65 John Olalokum Dangote Industries Ltd Tanzania X 66 Mekledek Hunduant Ag DEMO Langa District Council X 67 Chris Mseakaamba - ? 68 Alex Wagayane MEM X 69 S.L.Bollonzi Municipal Council X 70 Zahoro Mtiwa MANISPAA X

71 Charles P. Lawisso Mwanga District Council X 72 Seph Said Mwanga District Council X 73 Illuminata Numumi Mvomero District Council X



Local Government 49



Private 6 Unknown 3 Total number of participants 73

Mbeya Regional Workshop Proceedings Held at Paradise Hotel on 1st November 2012 Group Discussions Priorities for Action: Results




Residents Rights Valuation and Compensation




Urban Development and Development


3 Use of Dangerous Chemical

Role of Legislations Local Authorities Finance Mining Contribution to GDP

4 Dust and Air Pollution Forced Eviction Mining Companies Liberalisation of Mining Codes 5 Land Degradation Mine and Community

Security Role of Local Authorities Media Activities

Comments from the floor Priority 5 should be

ranked no. 2 Priority one should be Loss of Land Currently there are very strict rules about how to mitigate the land degradation and its going to be in practice in the near future. Water pollution is the result of the use of dangerous chemicals then it is inter-linked. Therefore water pollution should be one of the top priorities in the environmental issues.

Workers safety should be priority No.1. Forced eviction should be No 1 for LSM since they supposed to respect the existence of SSM in the mine areas to avoid unnecessary conflicts.

Mining companies to standby their obligations as stipulated in the EIAs. In LSM there is currently growth of women unlike before. There are women Engineers, Geologists etc. and do have equal opportunity as men.

Media activities as a priority, 5 should be replaced by International Investors and Globalization issues. Why NGO is not featuring here as an issues?



1 Water Pollution Areas Set Aside Related Role of Parliamentarian

Development 2 Use of Dangerous

Chemical Licensing in SSM


Liberalization of Mines Codes


Child Labour Urban Development and Development



Community health and safety

Women in Mining

Media Activities

5 Creation of Land Slide Role of legislations



Comments from the floor Use of chemical should

be priority 1. The SSM do not have EIA hence land degradation should be included as an issues Noise should be added as an issue in the SSM mine sites. Loss of land v’s land degradation is not an issue in the legal mine areas since they are located with small plots.

The current mine policy is prohibiting child labour in the mines areas but still common to find them in the mine areas. Alcoholism, Drug and STI should be included as an issue and this has been revealed in many studies that stipulated that once the SSM get money from mines production they celebrate by drinking and

Women in SSM is an issue due to the harsh life with their babies on the back while performing the mine activities. Employment should be priority 1 since its creating employment opportunities and increase livelihood for the local community and national economy.

drugs uses which make them to be susceptible to STI diseases. The STI is at a high rate in mine communities. Role of legislation is not as big an issue as alcoholism and drug/STI


Topic Action Lead agent Support How long How much Achievement Large Scale Mining Destruction of Vegetation and loss of Biodiversity

EIA baseline data needed

NEMC MEM Investor

LGAs MDAs Other stakeholders

6-12 months 40-100 thousand Usd

Environmental baseline data in place increased to environments impact of the project and mitigation measures.

Environment management program

Investors NEMC MEM

LGAs Activists

Project life time

Approved budget by NEMC

Land reclamation and rehabilitation Biodiversity preserved

M&E NEMC MEM

LGAs Activists

Project lifetime

- Land reclamation and rehabilitation Biodiversity preserved

Small Scale Mining Water Protect water NEMC LGAs Project Governmen Preserved water source

pollution sources Water Authorities

Other stakeholders lifetime t budget approved

increase biodiversity Reduced health hazards

Proper handling of chemical

Project Owners NEMC MEM

Water authorities LGAs

Project lifetime

Project owner budget and government budget

Improves health standards and maintained biodiversity

Create awareness on local community on water pollution

LGAs and other stakeholders

Water authorities LGAs

Before and during project implementation

Budget approved by the NEMC

Reversed water and maintained biodiversity


Topic Action Lead agent Support How long How much Achievement Large Scale Mining Resident Rights to Resettlements and Compensation

Mass awareness creation MEM Ministry of Information culture and sports MDAs

1 year Medium Informed community

Preparation of popular versions of Laws and Regulations

Ministry of Constitutions and Justices

MEM MDAs

2 years Medium People understand laws and regulations

Regular review of compensation rates

Ministry of Lands and Human Settlements Development

MEM MDAs

2 years low To get reviewed compensation rates

Resettlement Ministry of Lands and Human Settlements Development

MEM MDAs

5 years High To get proper settlement and infrastructures

Small Scale Mining Area Set Aside for SSM

Preparation of land use plan

MOLHSD LGAs NGOs CBOS Communities at large

3 years large Land use plan with reports and maps

Preparation of geological and exploration survey

MEM Geology survey of Tanzania, STAMICO, NDC

10 years large Geological survey maps

Existing laws and legislation

Ministry of Constitution and Justice

MEM Land reform commission and ministerial departments and MDA

5 years medium Compliance with laws and regulations.

Inventory of SSM MEM Regional Miners Associations LGAs Communities

1 year medium To get the number of SSM together with their groups

Promoting other livelihood activities apart from mining

Ministry of Labour & Youth Development

Ministry of Industries and trades Planning Commissions LGAs MDAs TCCIA

3 years Medium To get alternative livelihood activities

Awareness Creation MEM Ministry of Information culture and sports

1 year Medium To get informed community

NGOs Media CBOs LGAs

Action Plans for Priorities – Local Economy

Topic Action Lead agent Support How long How much Achievement Large Scale Mining Valuation and Compensation

Testing of existing legislation

MEM NGO and Investors

18 month $50,000 Fair and effective legislation

Valuation and compensation of the affected community

LGA MOL

Investors 12 months $50,000 Proper settlements for affected communities

Evaluation of the compensation process

LGA, MEM MOL

NGO 6 months $10,000 Enable to get the status of new legislation in term of its effectiveness Good working environment for investors

Small Scale Mining Creation of sustainable

socio economic services LGA NGOs

PPP On-going process

Social economic well beings

Infrastructural development

LGA Investors, PPP

Create opportunities of other development

Comments: In the past there was no compensation valuation and resettlements plan but the current Mine Act includes these. The current legislation is for the benefits of the lawyers and not for the beneficiaries.

Action Plans for Priorities: Legal and Institutional

Topic Action Lead agent Support How long How much Achievement Large Scale Mining Role of Parliamen

Review of Existing laws and Regulations

MEM Ministry of

Parliament NGOs

1 year Large Increase revenue Increase of Tanzanians in the

tarian Eg. Employment restrictions Mining Royalty Mining development Agreements Tax Exemption Mineral Value Addition Compensation package

Work Ministry of Land

Public mineral sector


TEITE Education public about the responsibility for supporting TEITE

TEITI NGOs 1 year Medium Enhance transparency in the mineral sector and restoration of public confidence

Media activities

Regulation of Journalist activities and registrations

Ministry of Information and sport

Media associations

1 year Medium Objective and impartial and accurate information

Comments: The media is not currently giving the correct information to the community. One stakeholder has been left behind and it is a Water Basin Board as a leading organizations. The role of Finance is not covered and its very substantial and crucial ministry in the mining sector



L-GOV CSO SSM PRIV

1 Eng. Amos Byemerwa Iringa Regional Secretariate X 2 David E. P. Kilonzo Rukwa Regional Secretariate X 3 Nicholaus Mchome Rukwa Regional Secretariate X 4 Kibua A. Kakolwa Ruvuma Regional Secretariate X 5 Khadija M. Haroun Iringa Regional Secretariate X 6 Shenal S. Nyoni Iringa Regional Secretariate X 7 Andrew P. Tarimo Ruvuma Regional Secretariate X 8 Florence C. Kundy Ruvuma Regional Secretariate X 9 Mdoe Elias Mjema Ruvuma Regional Secretariate X 10 Donald Mremi Regional Mining Officer Chunya X 11 Nkwera Egid F. Njombe Regional Secretariate X

12 Eng. David Mulabwa Asst. Commissioner of Mining Mpanda X 13 Kilasi E. Mwakilasi Iringa Regional Secretariate X 14 Fred M. Kazembe Iringa Regional Secretariate X 15 Eng. Genes S. Kimaro Ruvuma Regional Secretariate X 16 Kamba Emmanuel Ruvuma Regional Secretariate X 17 Amos D.K Muhehe Tazara Kongolo Quarry X 18 Lucas Ngaillo Iringa Regional Secretariate X 19 Eather Mrema anaweza NGO Sumbawanga X 20 Athanas Lwazilo Zonal Mines Officer Mbeya X 21 Moshi Katole Zonal Mines Officer katavi X 22 Abdul Selemani Regional Mining Officer Chunya X 23 Ulimbaka Tuntufye SMCL (Shanta) X 24 Steve Quighey SMCL (Shanta) X 25 Alloyce G. Mawere Iringa Regional Secretariate X 26 Vianney M. Dionise Zonal Mines Office Mbeya X 27 Eng. Fredis Magid Mbeya Regional Secretariate X 28 Isaya Mhagama SSM X 29 Eliud Swillah Mbeya Regional Secretariate X 30 Enock C. Bujah Ruvuma Regional Secretariate X 31 Dr. Thomas Lujuo Njombe Regional Secretariate X 32 Eng. Rev. Patrick Banzi MBEREMA X 33 Neema Katamba Secretary (Regional Mines office Mbeya) X 34 Nyasebwa E. Chimagu Mbeya Regional Secretariate X 35 Pt. Olemy Samwel KIHUMBE NGO X 36 Oswald Charles KIHUMBE NGO X 37 Eng. Emmy George Rukwa Regional Secretariate X 38 Schola Mbalila Rukwa Regional Secretariate X 39 Geofyey Mackenzie Mbeya Regional Secretariate X 40 Joseph M Butuyuyu Mbeya Regional Secretariate X 41 Nice K. Rutta Secretary (Regional Mines office Mbeya) X 42 Brighton Mapugilo Rukwa Regional Secretariate X 43 George Mpanji Mbeya Regional Secretariate X 44 Peter L. Meleki Mbeya Regional Secretariate X

45 Kungulilo A. Salum Resident Mines Office Mbeya X 46 Ewald B. Mtui Resident Mines Office Mbeya X 47 Costantine Machibya Resident Mines Office Mbeya X 48 Salime Martin Resident Mines Office Mbeya X 49 Cheva John Resident Mines Office Mbeya X 50 Eng. John I. Shija Asst. Commissioner of Mining Mbeya X 51 Ephraim G. Malesa Resident Mines Office Mbeya X 52 Peter P. Nyakigera Resident Mines Office Mbeya X



Local Government 0




Appendix 2 National Workshop Attendance

Attendance for National Workshop for Strategic Environmental and Social Assessment (SESA) of the Minerals Sector – 5th December 2012

NAME OF PARTICIPANTS

ORGANISATION

1 Mary Mbeyela African Women in Mining Network - Tz

2 Richard Kasesela Ministry of Energy and Minerals - MAB

3 Catherine Lyombe Ministry of Energy and Minerals - MISF

4 Gary Davis Geta Gold Mining Ltd

5 Kamligenyi p. Luteganya NEMC

6 Dacharia Bongole Ministry of Energy and Minerals

7 Mastara Mrembos Ministry of Energy and Minerals

8 Caroline Lyimo Ministry of Industry and Trade

9 Mwahne Ambari Tanzania Women Miners Association (TAWOMA)

10 Leila G. Jumbe TAWOMA

11 Winnifrida Mrema Ministry of Energy and Minerals

12 Dorcas Moshi Ministry of Energy and Minerals

13 Owden Kwangota Swivier

14 Peter John Deroun

15 Musa Mnasizu LEAT

16 Momburi P. Bazil GSF – Dodoma

17 Lautlian Rwebembetla Ministry of Energy and Minerals – Zonal

18 Abdallah H. Kisujutu MCDGC

19 Rosemary M. Ndesamburo TBS

20 Theresia T. Ntake Ministry of Energy and Minerals - Ezone

21 Gareth Taylor Read Dillon Ltd (Shanta Gold)

22 Johnson Jasson PMO - RALG

sesa of the tanzanian sustainable management of mineral resources...

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