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TRANSCRIPT
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
Reproduction of this publication for educationalor other non commercial purposes is authorised
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of the copyright holder.
Citations WWF and TCME 2012 Kathryn Brooks and JonathanHobbs; Integrating Environment into Investment Decisions:
Introductory Guidance for Tanzania’s Mining Sector.
c 2012 WWF Coastal East Africa Initiative and Tanzania Chamber ofMinerals and Energy
Disclaimer: Information contained within this document is correct to thebest of the authors’ knowledge at the time of publication.
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Chapter 5 Investment Pathway Flow Diagram of Investment Process 59
Environmental Checkpoint Reference Database 60
Chapter 6 Challenges Introduction 65
Challenges for Investors in Tanzania 66
Challenges for Government 70
Chapter 7 Key Checkpoints Introduction 73
Checklist for Government and Investors 73
Chapter 8 Towards an Investment Screening Process Introduction 75
Draft Screening Template 76
Chapter 9 Roles and Responsibilities Government 79
Civil Society 79
Industry 80
Media 80
Chapter 10 “Beyond Compliance” Case Studies 83
Resources 85
Annex 1 The Project Methodology 87
Annex 2 Key Actor Contacts 88
About the Authors 91
Acronyms 92
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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Executive Summary 5
Chapter 1 Introduction Overview 9
The Challenge 10
The Goal and Objectives 12
Sources of General Guidance 12
The Scope 14
The Intended Audience 15
Summary 16
Chapter 2 The Minerals Industry Overview 19
Benefits of the Mining Sector 20
Brief History 21
Current Situation and Future Prospects 22
Mining Operations and Projects 27
Key Actors 33
Beyond 2012 36
Conclusion 36
Chapter 3 Environmental Sensitivities Overview 39
Key Environmental Issues in Tanzania 39
Environmental Challenges for the Mining Sector 40
Policy and Legislation 44
Key Actors 45
Standards, Guidelines and Fora 49
Beyond 2012 51
Conclusion 51
Chapter 4 Environmental Procedures and Introduction 53
Requirements for the Mining Sector SEA 53
Major Impacting Activities 55
EIAs and EMPs 55
Biodiversity Action Plans 57
Mine Closure and Legacy Issues 57
Conclusion 57
Contents
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A collaboration between the Tanzania Chamber of Minerals and
Energy (TCME) and WWF, ‘Integrating Environment into
Investment Decisions: Introductory Guidance for Tanzania’s
Mining Sector’, is designed to facilitate both the mainstreaming
and upstreaming of environmental considerations into the
mining sector, for the benefit of industry and the Tanzanian
population. This means the incorporation of environmental
factors into strategic and policy level decisions, as well as during
detailed project formulation.
The environment is of vital import in Tanzania; its stunning
landscapes and wildlife generate large revenues through
tourism, while at the same time a large proportion of the
population – living near or below the poverty line – depend
directly on the country’s natural resources for their survival, and
are vulnerable to the impacts of environmental degradation.
Tanzania also possesses a vast array of mineral deposits, the
exploitation of which has been a key driver for the country’s
recent economic development. In a global climate of increasing
demand for resources, Tanzania is presented with a set of
opportunities and challenges that need to be managed carefully
to ensure that its development is sustainable.
This Guidance therefore aims to promote greater compatibility
between the goals of mineral exploitation and environmental
conservation. The emphasis is placed on the importance of
planning and action with regards to environmental
considerations at the beginning of the development of an
investment, allowing it to inform the strategic decision-making
processes that follow.
The Guidance document provides an overview of the mining
sector, the environmental context and the current regulatory
framework in Tanzania. It also introduces relevant international
standards, guidelines and organisations, utilising case studies to
demonstrate best practice. Links to the relevant websites,
organisations and documents will be found in the live version of
the document when published.
Beyond being informative the document provides a brief
overview of the key challenges facing mining companies and
government, and provides guidance as to how these challenges
might be met and best practice facilitated and acknowledged. It
also lays out a checklist of factors that should be considered
before key strategic decisions have been made, and provides a
Executive Summary
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through their operation. A comprehensive reference database
provides the reader with a spring board to further and more in-
depth information at the national and international level.
The purpose of this Guidance, however, is not only to
mainstream environmental and sustainability factors into project
level decision-making, but also to upstream these factors into
the strategic and policy level decisions that are made prior to
detailed project formulation, and which ultimately frame the
project. Strategic Environmental Assessments (SEAs) are
therefore considered as a tool to encourage the systematic and
comprehensive evaluation of broad development options and
help identify new opportunities, in contrast to the predominant
focus of EIA on mitigating negative impacts. The EMA of 2004
details the instances in which an SEA is required, and the
Government is undertaking capacity development in this
respect, suggesting that SEAs will increasingly become part of
Tanzania’s strategic planning and policy landscape.
Challenges facing both Government and investors are
identified and analysed in the Guidance document. By listing
and detailing them it is hoped that parties will be better able to
prepare in advance to meet them successfully. The mining sector
faces significant challenges, including the difficulty in
communicating the link between investment in the mining
industry and Tanzania’s broader economic development, the
perceived environmental impact of operations, strained
community relations and suspicion of the private sector. The
Government, on the other hand, faces the challenge of
ensuring that sufficient benefit is derived, and seen to be
derived, for Tanzanian citizens from mining activities, whilst
maintaining an attractive investment climate to ensure the
industry, and its contribution to growth and development, is
sustainable in the long-run. A further obstacle currently facing
Government is limited capacity, which hampers its ability to
meet the former. In each case the challenge should be
recognised and addressed early in the process, when key
strategic decisions have yet to be made. A failure to do so may
result in environmental damage and unsustainable
development, which not only weakens the long-term growth
prospects and profit margins of the industry, and thereby the
revenue received by government, but also damages the
company’s reputation and prospects.
Screening and checklists are included within the Guidance
document. In particular, the Guidance presents a draft screening
system that provides a suggested basis for discussions with
government about how such a tool might be developed and
utilised so that the suitability of investments, and their
compatibility with Tanzania’s long-term goals, is ensured. It is
not intended that this process will create a new legal obligation
on mining companies, but that it will instead act as a
mechanism to promote and facilitate best practice. Industry has
a vested interest in facilitating the introduction of such a
process, which could strengthen the relationship between
government, industry and civil society, by providing for a clearer
understanding from the outset as to the expected actions to be
taken and benefits generated.
Conclusion
The proper integration of environmental considerations benefits
both Tanzania and the mining industry, and should help
facilitate the compatibility of mineral exploitation and
environmental conservation. The emphasis of the Guidance is
on the importance of planning and action at the beginning of
the investment process, before key strategic decisions have
been made. In this way it is not intended to create further
burdens on decision-making efficiency, but to help streamline
later requirements.
This is a ‘living’ document and a platform for discussion,
development and further contributions. The document has been
developed through a combination of research, consultation and
feedback with three groups of experts whose members consist
of various government, industry and international actors with
expertise in the mining sector and/or environmental issues. It is
hoped that the document will serve as a platform for further
debate and multi-partner collaboration on mining and the
environment to the benefit of government, industry and
Tanzanian citizens. As a ‘work in progress’ this draft will be
followed by further stakeholder collaboration and engagement.
TCME and WWF welcome all feedback and inputs in this
respect.
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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draft investor screening tool that could be developed by
government and utilised in the early stages of project planning
to assess investor company and proposal compatibility with the
sustainable development of Tanzania.
In More DetailThe mining sector in Tanzania is a key driver of growth,
contributing approximately 2.7% to GDP, which, according to
the vision laid out in the Mineral Policy of 1997, the
Government hopes to increase to over 10% by the year 2025.
Tanzania is the fourth largest gold producer on the continent,
and has an array of minerals and resources, amongst which are
gold, diamonds, coal, uranium and various gemstones,
including Tanzanite for which Tanzania is the only source.
Although artisanal mining has been an omnipresent feature of
the country’s socioeconomic landscape since the late 19th
century, the period following the mid-1990s has seen the
opening up and liberalisation of the sector, resulting in the
influx of international mining companies and investors and the
commencement of large scale mining activities. The rapid
growth of the mining sector has made the challenge of securing
the sustainability of Tanzania’s economic development even
more pressing.
The sector is currently governed by the 2010 Mining Act. The
Act increased royalties levied on precious and base metals and
diamonds, included provisions on the required level and nature
of ownership and involvement of Tanzanian citizens in
gemstone and small-scale operations, permitted the minister to
negotiate a stake on behalf of government and requires the
Minister for Minerals to direct mining companies to post
Environmental Performance Bonds. The previous Mining Act of
1998 placed less onerous demands on investors. However, this
fuelled criticism as to the level of economic benefit the industry
was generating for Tanzanians.
The environment in Tanzania includes large areas under
protection in the form of National Parks, Game Reserves, Game
Controlled Areas, Conservation Areas, Marine Parks and Marine
Reserves, which total over 25% of the country, as well as areas
of world-famous natural beauty, including Mount Kilimanjaro
and the Serengeti. Tanzania attracts approximately 650,000
tourists each year, and the tourism sector contributes
approximately 6% to GDP; more than double that of the mining
sector. The environment also supports the livelihoods of most
Tanzanians, as the majority of the population is dependent on
subsistence agriculture. Its preservation is, therefore,
instrumental to the prevention and alleviation of poverty and
fuelling economic growth, and as a consequence development
of the mining sector is also sensitive to the continued
preservation of the environment. The Guidance document
considers how investors might best ensure good environmental
practice in Tanzania, as well as how they might identify and
seize opportunities to go beyond compliance.
Environmental challenges facing Tanzania include deforestation,
land degradation, pollution, the threat to wildlife and
biodiversity, access to clean water and the deterioration of
marine and freshwater systems. The impacts of mining
throughout the lifecycle on these factors can be significant but
varied according to location, project type and methods and
mechanisms employed. Consequently, early assessment and
planning are important to maximise the likelihood that solutions
and alternatives to environmental risk can be properly managed,
and opportunities to go beyond compliance in a manner that
generates strategic efficiencies are identified.
The Guidance document details the Environmental
Management Act (EMA) of 2004 and the Environmental Impact
Assessment (EIA) Regulations of 2005, as well as relevant
government policy. It also identifies and introduces the key
national and international actors, and their areas of
responsibility in this respect, with international standards and
guidelines serving as a reference point for those who wish to
understand how they might go beyond national requirements
and learn from best practice elsewhere.
Current procedures in Tanzania determine what the investor is
required to do to obtain and maintain the necessary permits
and licences for operation. The EIA process, which includes an
Environmental Management Plan and Mine Closure Plan, is
clearly laid out in the Guidance document, and is currently the
focal point for environmental assessment and planning. The
processes of monitoring and auditing are also detailed, as the
awarding of an EIA is not permanent and can be withdrawn or
suspended. The ongoing nature of such processes increases the
benefit to investors of planning ahead when it comes to
environmental considerations, and incorporating them at the
earliest stage possible. Biodiversity Action Plans, off-setting and
mine legacy projects are also highlighted as providing
opportunities for mining companies to explore ways in which
they might make a positive contribution to the environment
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OverviewTanzania is one of the world’s poorest countries. Seventy five to
eighty per cent of its population of about 40 million people are
dependent upon subsistence agriculture, and it remains heavily
dependent on international aid - which totalled US$2.5 bn in
the financial year 2010/2011. In 2009 Tanzania was the top
recipient of aid in Africa and third in the world. Any investment
in the country must take account of these development needs.
Although poor, paradoxically Tanzania is also richly endowed
with impressive natural resources, both renewable and finite.
The past decade has seen a surge in interest in exploiting these
resources, particularly mineral wealth. The purpose of this
Introductory Guidance is to help investors, government and civil
society ensure that developments in mineral exploitation are
realised in a sustainable manner.
Tanzania has a myriad of significant areas and ecosystems which
support rich biodiversity, as well as a tourism sector attracting
approximately 650,000 people a year. Some of Tanzania’s
natural features are iconic – Serengeti National Park, Ngorongoro
Crater, Selous Game Reserve, Mount Kilimanjaro, whilst other
areas, for example the Eastern Arc Mountains, are internationally
less well known but nonetheless recognised by biologists as
significant centres of endemism, home to species found
nowhere else on Earth- though these sites are rarely visited.
Tanzania is the only country in the world to allocate more than
25% of its total area to national parks and other protected area
status, with 14 National Parks, 17 Game Reserves, 50 Game
Controlled Areas, 1 Conservation Area, 2 Marine Parks and 2
Marine Reserves. It includes the second largest protected area in
the world, in the Selous Game Reserve, a World Heritage Site.
For the past decade, the resurgence in global demand for
natural resources, including minerals, has been escalating,
driven by Europe, America and Asia (and in particular by China).
The search for minerals is now expanding into ever more
remote, and often extremely fragile, regions. With so much land
protected for conservation purposes, and demands for mineral
resource exploitation expanding, the scene is set for a
concomitant increase in potential land use and community
conflicts that need to be avoided or managed.
Characteristically, interested and affected parties only hear
about investment decisions once they reach the media.
Notwithstanding the need for commercial confidentiality, this
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Chapter One: Introduction
Traditionally, preliminary assessments undertaken by investors
take into account factors such as governance, infrastructure,
and the macro-economic climate. Environmental factors are
rarely sufficiently considered at this stage. If they are, it is only in
terms of suitability for project engineering and design, not
environmental sensitivity requiring appropriate safeguards.
Nevertheless, investors are increasingly aware that disputes
surrounding environmental issues will result in costly conflicts,
delays and even permit refusals. It therefore makes business
sense to incorporate environmental considerations into the
earliest stage of decision-making. This is not only to reduce
costs and liabilities, and to anticipate potential negative
impacts, but also to help identify opportunities “to do good”
and contribute to Tanzania’s sustainable development, and thus
the attainment of the Millennium Development Goals (MDGs).
In Tanzania leading companies have long since recognised the
opportunity to move beyond minimising the negative impacts of
their operations, and seek out ways to enhance their positive
contribution to development and poverty reduction.
Government, on the other hand, generally focuses on the
potential contribution of investors to generate financial returns
through taxes and royalties. In assessing investment proposals,
governments need also to consider the possible social,
economic, political and environmental opportunities and risks
posed by potential investments. When inviting investors to
consider investing in their country, governments rarely consider
environmental factors beyond project specific Environmental
Impact Assessment (EIA) requirements that are triggered at later
stages – after key strategic decisions have already been made.
There are rarely pre-decision ”scoping” hearings, where key
issues up for negotiation can be openly discussed and investors
and investments comprehensively and publicly vetted, within
the bounds of commercial sensitivities. In fact, a situation of
asymmetrical bargaining or negotiating often exists, and
overloads the capacity of government to strike the best deal (i.e.
the most sustainable in environmental and business terms). In
such circumstances environmental considerations will never be a
serious factor.
The advantages to government of ensuring environmental
issues are included at the investment stage are considerable, as
it can help identify the most responsible investors and
investments likely to achieve the best developmental outcomes.
It creates an opportunity for creating competition amongst
bidders to demonstrate their environmental credentials and
commitments- thereby truly integrating environmental factors
into decision-making. Neglecting environmental factors until
after key strategic decisions have been made, is a recipe for
reactive and adversarial responses by those championing
environmental responsibility and thus protracted conflicts,
avoidable costs and delays and exposure to reputational risks.
Too often, resource exploitation”boom times” have been short-
lived, generating quick growth but leaving legacies of
environmental degradation. By introducing environmental issues
into investment decision-making, the prospects for more
sustainable long-term investments improve.
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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Guidance stresses the need to open up strategic decision-
making about mining investments to greater scrutiny, and thus
contribute to improving governance. The lack of transparency
and dialogue at the strategic decision-making point, mixed with
the delayed consideration of environmental implications in
mining investment planning, often results in reactive and
adversarial relations between companies and third parties.
Beyond protected areas, Tanzania is a country where those
trapped in poverty depend more directly on natural resources
than other groups in society. They are the first to suffer when
resources such as water, land, forests, wildlife, and atmosphere
are damaged or become less accessible. Tanzania has one of the
highest poverty rates in the world, with an estimated 33.6% of
the mainland population living below the poverty line in 2007 .
Although this figure represents a percentage decrease from
36% in 2002, as a result of strong population growth it
translates to an overall rise in the absolute number of people in
poverty. For these people, the environment and the continued
availability of its natural resources are not luxuries but
necessities for survival.
It is therefore vital that environmental considerations are
integrated into mining investments from the outset, to prevent
today’s economic development opportunities from becoming
tomorrow’s environmental and social problems. This makes
sense for investors as much as it does for environmental
professionals, governments and communities.
Tanzania’s mineral wealth and natural gas deposits present
strong prospects for fuelling economic growth. The major
mineral resources are gold, diamonds, base metals (nickel,
cobalt, copper) and gemstones (ruby, sapphire and tanzanite-
the latter being only sourced in Tanzania). Industrial minerals
include soda ash, kaolin and phosphate, iron ore and coal. The
potential for uranium mining is also in the process of being
developed. In total over half of Tanzania’s exports come from
the mining sector.
“So far there has been far less resource prospecting in
Africa than richer regions, Africa’s resources are grossly
underestimated... technological progress and stronger
global demand may mean a four-fold increase in Africa’s
known natural resource base”
Former World Bank Head of Research, Paul Collier
EITI Global Conference, Paris 2011
The growing demand for, and rising prices of, some natural
resources presents Tanzania with a window of opportunity, but
poor governance and limited capacity to manage trade and
investment processes and implement environmental policy
remains a significant handicap.
This Guidance is aimed at ensuring greater compatibility
between the goals of mineral exploitation and those of
environmental conservation in Tanzania. Nowhere is this more
pertinent than at the strategic decision point of whether to
invest in mineral exploitation or not, and, if so, how to identify
the investors and projects that will contribute to sustainable
development in Tanzania and reject those that do not.
The ChallengeWhen weighing up potential investment opportunities investors
assess whether a country has a conducive investment climate,
which minimises risks and lessens the bureaucratic burdens of
building a successful business venture. As in most situations,
environmental factors represent both a risk and an opportunity
for investors in Tanzania, and are therefore considerations that
should be incorporated at the earliest stages of investor due
diligence procedures. At the outset, it must be stated that this is
not to create an added burden on decision-making efficiency;
on the contrary, it is to help streamline later requirements.
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101 2007 Household Budget Survey, Tanzania
Natural Resource Charter
This Guidance is intended to be a contribution towards
the improvement of governance of natural resources
and makes reference to the Natural Resource Charter
(NRC) as a guiding framework.
Countries with non-renewable natural resource wealth face
unique opportunities and challenges. Used well, these
resources can create greater prosperity for current and future
generations; used poorly, they can cause economic instability,
social conflict and lasting environmental damage.
The NRC contains Twelve precepts. Ten of these offer
guidance on core decisions that governments face, beginning
with the decision to extract the resources and ending with
decisions about using the revenues generated. The remaining
two precepts are addressed to other important actors and
their responsibilities. To make the Charter easy to use, there
are three different levels of detail. Level One sets out the
precepts. Level Two contains an elaboration of what they
mean. If readers wish to pursue the discussion of issues in
greater depth and technical detail, they are referred to Level
Three.
The purpose of the Natural Resource Charter is to assist the
governments and societies of countries rich in non-renewable
resources in managing those resources in a way that
generates economic growth, promotes the welfare of the
population, and is environmentally sustainable.
The Guidance supports the African Union’s Mining
Vision for Africa 2050 and Tanzania’s own Development
Vision for 2025.
Africa Mining Vision 2050
“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”
African Union, 2009
The Tanzania Development Vision 2025
“A strong and vibrant, well-organised private sector-led large
and small-scale mining industry conducted in a safe and
environmentally responsible manner, contributing in excess of
10% of the GDP.”
Government of the United Republic of Tanzania, 1997
generic guidelines are listed below as reference points for
application to Tanzania.
Many international guidelines and good practice references
exist, that advise on environmental matters that need to be
given due consideration in the mining sector, and on how
environmental best practice might be achieved. These generally,
however, provide voluntary guidance, or serve as conditionality
once a decision to invest has already been made.
While adherence to these standards might be conditional on
getting a loan to action an investment, this is not equivalent to
ensuring that environment is mainstreamed into the more
upstream strategic decision on whether or not to invest in the
first place.
International Financial Institutions have environmental and
social performance standards that they expect clients to adopt
as conditions for securing and maintaining loans and
investments. The main reference point for these is the
International Finance Corporation’s (IFC’s) Environmental and
Social Performance Standards. In 2006, the IFC adopted the
Sustainability Framework, which articulates IFC's strategic
commitment to sustainable development, and is an integral part
of their approach to risk management and the credit review
process. IFC’s Performance Standards, part of their Sustainability
Framework, have become globally recognised as a benchmark
for environmental and social risk management in the private
sector. Effective from January 1, 2012, recent updates reflect
the evolution in good practice for sustainability and risk
mitigation.
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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The mining sector in Tanzania, as elsewhere, has been subject to
the criticism that the majority of the population have not
benefited sufficiently from the sector’s operations, and that on
the contrary, negative environmental impacts can often leave
local communities with significant problems. This Guidance has
been developed as a contribution to improving governance of
mineral wealth in Tanzania, and therefore as a contribution to
improving Tanzania’s investment climate.
The Goal and Objectives
“Bad actors...that are involved in corruption or make a
mess environmentally, socially or from a safety
perspective, not only drag their own reputation down,
they taint the entire industry. So as an industry we need
to do more in terms of outing bad actors.”
Tom Albanese, CEO, Rio Tinto, quoted in interview in “Critical
Resource” September 2011 (www.c-resource.com). Critical
Resource Strategy and Analysis
This Guidance document is aimed at assisting two main interest
groups:
• Investors contemplating mining investments in Tanzania but
wanting to understand environmental risks and
opportunities, as well as those already operating in the
country but wanting to embark on new investments.
• Tanzanian Government officials responsible for assessing the
merits of potential investments and their proponents in
terms of sustainability criteria.
The document is also intended to be useful for civil society
groups in providing them with factual information, as well as
promoting transparency and thereby accountability in the
sector.
The document was conceived as a response to two
observations:
• First, the frustrations expressed by a steady and increasing
stream of risk assessors visiting Tanzania when carrying out
assessments of the business climate for extractive
investments. These assessors increasingly require insights
into the environmental rules and regulations, and risks and
opportunities that confront investors in Tanzania. The
environmental information currently made available to such
investors in investment guidance is very general, partial and
cursory at best.
• Second, the apparent lack of assessment of the
environmental credentials of both prospective investors and
their investment proposals. Details of both of these are
needed to ensure that mining investments employ the
highest level of international performance standards that
the sensitivities of a country like Tanzania require from the
outset. The heavy reliance upon Environmental Impact
Assessment (EIA) procedures later in the decision-making
stage, once key strategic decisions have already been made,
results in suboptimal outcomes in environmental terms. This
Guidance serves this need- albeit identifying entry points for
further research, rather than in-depth data.
Mining can be compatible with sustainable development and
poverty reduction, so long as appropriate measures are put in
place by both government and companies to ensure that the
benefits of mining are equitably distributed, rights are
protected, and appropriate environmental (and social)
performance standards are employed.
The goal of this Guidance is, therefore, to facilitate the
integration of environmental considerations into mining
investments in Tanzania from the outset so that they contribute
to sustainable development. Sustainability in mining will be
achieved through the conversion of non-renewable natural
capital (mineral wealth) into more sustainable opportunities and
livelihoods.
Sources of General GuidanceCurrent barriers to the incorporation of environmental
considerations into mining investment decisions include the
difficulty of locating and accessing relevant and up-to-date
country specific information. As a result, investor due diligence
and risk assessments can lack adequate information to seize
environmental opportunities and effectively manage risk. This is
often compounded by the lack of coordination between
stakeholders across government and industry, presenting a
further challenge to any “environmentally-minded” investor.
This Guidance is focused on the biggest gap in information –
namely, information specific to Tanzania. However, examples of
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Guidance Objectives
• To promote and facilitate understanding and consideration of key environmental issues and sensitivities in
Tanzania, and thereby encourage sustainable investments and better informed decision-making.
• To provide a basis for collaboration with the Government of Tanzania to develop a framework for investor
screening, that can help communicate Tanzania’s commitment to environmental protection to investors, and
screen out those who fail to show adequate commitment to sustainable development.
• To combat current deficiencies in dialogue and coordination between key stakeholders and interested parties, and
to provide a platform for further work.
• To promote ‘beyond compliance’ measures in the inclusion of environmental considerations into decision-making
within the mining sector.
• To motivate actors to incorporate environmental considerations into mining proposals where they are not already
doing so.
• To maximise the contribution of the mining sector to sustainable development through environmental, and not
purely financial, means.
• To build on and contextualise guidelines produced at the international level and contribute to the uptake of
international developments, such as the Natural Resource Charter’s (NRC) Precepts in Tanzania.
• To encourage greater transparency over decision-making.
• To add to a wider debate on the integration of environmental considerations into investment decisions that
extends to other countries and sectors.
intervals to ensure it captures developments in government
policy, environmental understanding and the mining sector. It
will exist in “live” format on the website of the Tanzania
Chamber of Minerals and Energy (TCME), to facilitate the
inclusion of necessary updates.
When reading the Guidance, it is important to remember that
the knock-on effects and indirect impacts of proposed mining
investments must also be evaluated. For instance, in many
cases, the impacts of infrastructural developments can be very
significant. Similarly, exploration activities prior to investment
decisions need to be evaluated, as roads may open up
previously inaccessible areas with implications such as increasing
levels of poaching and illegal timber harvesting.
Finally, in order to systematically and comprehensively assess the
environmental credentials of investors and investments an
investment screening system will be required. The intention of
which would be to help gauge the environmental commitment,
and responsibility of investors and the sensitivity of their
proposals to environmental risks and opportunities. The
development of this system is underway as a separate activity. A
dialogue is in progress between government and environmental
professionals to develop such a system and ensure governments
ownership of it. For current purposes this Guidance outlines
why this is necessary but is not prescriptive on how this could
be developed. This is a work in progress.
The Intended AudienceInward investors: The inclusion of environmental factors at
the earliest stages of project planning makes good business
sense. It enables a company to be proactive in its environmental
strategy, and to avoid conflicts, protracted delays, legal battles
and judgement errors caused by inadequate preparation, which
are not only costly but some of which may also result in the
rejection of an investment proposal, or a withdrawal of permits.
This could have further negative impacts through damaging the
company reputation and potentially its stock market value.
Investors require clear and accessible information and guidance
to aid their understanding of the country-specific context. By
highlighting the relevant considerations, regulations and
opportunities for best practice these guidelines will enable
investors to make better informed decisions which take into
account the long-term implications of their operations and
factors such as cost, efficiency and sustainability. In addition,
prospective investors will save time collating and amalgamating
information. By referring to the information provided here
investors stand to benefit not only from improved relationships
with the Government of Tanzania and other national
stakeholders, but may achieve a competitive advantage as
leaders in environmental performance.
Government decision-makers: Government needs to
understand and respond to the environmental concerns of its
citizens and investors in order to make informed decisions about
the environmental opportunities and costs of potential
investments. Environmental quality and mineral wealth are both
public goods, and government is the custodian of this shared
wealth. They have to make the difficult calculation of whether
the potential economic and social developmental benefits of
exploiting a mineral resource will outweigh the short-term costs.
Any specific government department also needs to understand
how its sector-specific policies will enhance or detract from
other sectors implementing their own policies. Ultimately,
government must have the foresight to ascertain and impose
conditions on investors that will manage the negative impacts
of investments so that they will be avoided, minimised or
ameliorated and the positive impacts of investments maximised.
By adopting a clear and proactive stance with regard to
environmental concerns from the outset, government would
communicate its commitment to sustainable development,
enhancing its reputation amongst national and international
stakeholders, whilst at the same time signalling to investors the
need to treat such concerns sincerely.
Civil society: Clear country-specific guidance will help address
the opaque manner in which investment decisions are currently
made within the mining sector. In so doing it will better enable
civil society to hold government and investors to account for the
environmental consequences of their decisions and the
exploitation of that public good. In particular, it should have
relevance to those organisations representing the interests of
local communities that live in close proximity to proposed
mining and/or exploration sites. It is also hoped that in ensuring
this document is in the public domain, it will open up
opportunities to share knowledge and ideas concerning the
incorporation of environmental considerations into mining. It
should, therefore, reduce resistance to environmentally sound
mining projects, which in the absence of adequate information
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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Private sector banks have developed the Equator Principles (EPs)
based on the IFC’s Performance Standards. They are a credit risk
management framework for determining, assessing and managing
environmental and social risk in project finance transactions.
Project finance is often used to fund the development and
construction of major infrastructure and industrial projects. The
EPs are adopted voluntarily by financial institutions and applied
where total project capital costs exceed US$10mn. The EPs are
primarily intended to provide a minimum standard for due
diligence to support responsible risk decision-making.
Although related more to project planning than strategic
decision-making, the International Council of Mining and
Metals (ICMM) produces issue-specific guidance on numerous
challenges and good practice for the sector. These have
included reports and guidance on biodiversity, human rights,
chemical use, indigenous people engagement and community
relations. ICMM was established in 2001 to improve sustainable
development performance in the mining and metals industry.
Today, it brings together 21 mining and metals companies as
well as 31 national and regional mining associations and global
commodity associations.
While many national guidelines exist for project planning and
management, the generally accepted benchmark is a series of
handbooks produced by the Department of Resources, Energy
and Tourism in Australia, entitled ”Leading Practice in
Sustainable Development for the Mining Industry”. These
handbooks address key issues affecting sustainable
development in the mining industry on topics, including
Biodiversity Management, Community Engagement, Mine
Closure and Completion and Risk Assessment and
Management.
This short list serves as a reference point for both investors and
government. It is not the intention of this Guidance to replicate
these initiatives, but simply to guide investors who may not be
familiar with them.
This Guidance builds on an unpublished generic guide produced
by Canadian consultants Wesley Cragg and Jim Cooney for the
Intergovernmental Forum on Mining, Minerals, Metals and
Sustainable Development (IGFMMMSD) (Company Risk
Assessment Template, 2007). Tanzania is a member of the
IGFMMMSD (Intergovernmental Forum on Mining, Minerals,
Metals and Sustainable Development).
The ScopeIt is important to clarify the scope of this document in order to
understand its strengths and what other work may be done in
support of it.
Although this document is focused on natural or biological
”environmental” factors, these are perceived as being,
especially in developing countries where poverty and
environment are inextricably interlinked, inseparable from social
and economic factors. There is a strong interdependence
between all facets of the environment- bio-physical, socio-
economic, political and cultural. The emphasis in this Guidance
falls on the bio-physical aspects of environment, but when
methods such as EIA are referred to, this assumes the inclusion
of social factors, which some erroneously see as a separate
assessment and management activity.
The Guidance starts from the basis that every investor must be
in compliance with Tanzanian legislation and seeks to illuminate
the processes and measures necessary to fulfil these
requirements. This is non-negotiable. It also provides
information and insight to help investors and government go
further in the promotion of best practice and ‘beyond
compliance’ measures. In particular, it makes reference to
international standards, guidelines, and best practice, but
focuses on the needs of Tanzania. It provides information, or
links to information that will aid better informed decision-
making.
This Guidance seeks to not only mainstream environmental
considerations, but also, importantly, to upstream them. It is
aimed primarily at incoming investors, who may be unfamiliar
with Tanzanian legislation, regulation and the environmental
context. However, it should also prove instructive for those
considering project expansions, and for contractors and sub-
contractors alike.
The Guidance is not targeted at Artisanal and Small-Scale
Miners (ASMs), important as this sector is in Tanzania. This is
because for now, artisanal mining is not a major sector of
investment interest- although there are signs of change in this
regard. The Sustainable Management of Mineral Resources, led
by the World Bank, includes a heavy focus on this area and
companies such as AngloGold Ashanti and have tailored
strategies in place targeted at assisting the ASM community.
It is imperative that this document will be updated at regular
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Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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may be ill informed and even hostile.
“In our work to date, we have found that collaborative
approaches involving companies, communities,
governments, inter-governmental organisations, and
NGOs are the key to attaining socio-economic benefits for
developing economies. In Tanzania in particular, this was
found to be a crucial need.”
Professor Tony Hodge
President of the International Council on Mining and Metals
(ICMM)
Comment on the report “The Challenge of Mineral Wealth-
Using Resource Endowments to Foster Sustainable
Development”
SummaryThe goal of this Guidance is to promote the integration of
environmental considerations into investment decisions in
Tanzania’s mining sector. As a sector, mining has a significant
impact on a number of environmental issues. It is, therefore,
particularly important that the consequences of mining activity
are analysed through a well-informed lens that is framed by
international guidance on best practice, and at the same time
properly understands the specifics of the Tanzanian context. By
considering the impact of proposed activities at the very
beginning of the investment process, the investor can best
avoid, minimise and ameliorate negative results. Simultaneously,
the investor will be better able to identify opportunities that
exist to go beyond legal compliance, and thereby make a
measurable contribution to the socio-economic development of
the country.
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“Tanzania is richly endowed with natural resources such
as minerals, gas, forestry, fishing etc. So far exploitation
of minerals, particularly gold and gemstones as well as
natural gas, is the most significant of them all. At an
average growth rate of 12.4 per cent for the past decade,
mining is one of the fastest growing sectors of the
Tanzanian economy. Unfortunately, mining accounts for a
meagre 2.3 per cent of the GDP but contributes a
significant one-third of foreign exchange earnings for the
country.”
President of the United Republic of Tanzania,
H.E. Dr Jakaya Kikwete, 2011
Overview
Tanzania has a vast array of mineral resources, which the
Tanzania Ministry of Energy and Minerals (MEM) categorise into
five main groups:
1 Metallic: gold, iron ore, nickel, copper, cobalt, and silver.
2 Gemstone: diamond, tanzanite, ruby, garnets.
3 Industrial minerals: limestone, soda ash, gypsum, salt and
phosphate.
4 Energy-generating: coal and uranium.
5 Construction: gravel, sand and dimension stones.
19
Chapter 2: The Minerals Industry
ICMM Resource Endowment Initiative
Undertaken in three stages the ICMM Resource Endowment
Initiative sought to identify and analyse the ways in which
countries may better leverage their natural resources to derive
wide-ranging socio-economic benefits, and protect against
the trappings of the ‘resource curse’. In Tanzania the ICMM
contracted researchers to analyse the positive and negative
impacts of the extractives industry, using North Mara mine as
a case study.
The 2007 report recorded that Tanzania was not suffering
from the ‘resource curse’ and that in fact the mining sector
was driving growth, although its impacts were largely
localised. In this respect the report noted several areas in
which steps could be taken to improve the performance of
the sector and its contribution to Tanzania’s wider socio-
economic development. In particular, the report pointed to
the need for better government communication, and links
between local mining operations and the national economy.
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Brief History
Mining activities date back to the pre-colonial period, when
ASMs and Arab traders engaged in the mining and trading of
gold, iron, copper and salt. It was during German colonial
occupation, however, that the first relatively large-scale mining
operation was undertaken, in 1894, near Lake Victoria for gold,
following which private companies were encouraged to explore
and extract Tanzania’s natural resources. Throughout the 1920s
and 1930s, under British rule, there was an influx of British and
South African operations in the Lake Victoria, Mara, and
Musoma areas. It was also during this period that diamonds
were first discovered at Mwadui. However, mineral production
fell into decline during the Second World War, with gold
prospecting banned until 1945.
Tanzania gained independence in 1961 with Julius Nyerere as
the first president. President Nyerere had a strong socialist
agenda of state control and Ujamaa7, meaning extended family
or brotherhood in Swahili, and put an end to foreign ownership
in several economic sectors. As a result, the development of the
mining sector during this period was largely driven by public
bodies and the activities of artisanal miners (ASM). In 1969 the
Mining Ordinance Bill (MOB) allocated areas of land specifically
for ASM operations, which finally received official recognition
from the state in 1980. State control of the mining sector
during this period was established through several steps. The
1969 MOB gave ministers the power to issue, renew, or refuse
mining licences, mineral resources were state-owned through
the National Development Corporation (NDC), created in 1965,
and the extraction, distribution and sale of these minerals was
conducted under the public corporation STAMICO (the
Tanzanian state mining corporation), created in 1972. The
Mining Act of 1979 put all mineral resources into the hands of
the state under these two bodies.
Following President Nyerere’s retirement in 1985, Ali Hassan
Mwinyi became President, and embarked on a programme of
economic liberalisation, which included the reduction of import
tariffs and the promotion of private enterprise. In 1986,
Tanzania adopted a Structural Adjustment Policy at the behest
of International Finance Institutions (IFIs) such as the World
Bank and the International Monetary Fund (IMF). Following this,
in 1990 the Investment Promotion Policy was enacted, leading
to the creation of the Investment Promotion Centre (later the
Tanzania Investment Centre or TIC), and the Government
adopted a commitment to buy all minerals produced by ASMs,
further fuelling the development of the sector and the activity
of artisanal miners. Another key development in this era was
the ‘World Bank 1992 Africa Strategy for Mining’ Technical
Paper, which advocated significant measures to privatise and
liberalise mining in order to promote growth. The mineral policy
and legislation which followed in 1997 and 1998 respectively
represented a concerted effort on the government’s part to do
just that.
The Mineral Policy of 1997
The Mineral Policy of 1997 was the result of a five-year
development project by the World Bank and the Tanzanian
government, which addressed the legal and fiscal environment
under which mining companies operated. Key aspects of this
policy included:
• Government role defined as regulator and promoter of the
industry and its development.
• Government commitment expressed to foster the use of
Best Practice in environmental management.
• Mineral rights allocated on first come, first served basis.
• Security of tenure guaranteed, providing a feasibility study is
prepared and environmental regulations are met therein.
• Termination of mining licenses limited to cases of default.
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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Tanzania is the fourth biggest gold producer in Africa, after
South Africa, Ghana and Mali, and has a vast reserve of mineral
resources, as well as a number of gas reserves that have recently
been discovered and for which exploration is still underway.
However, the most significant development of the mining sector
in Tanzania has occurred in the last 20 years. Since the early
1990s, changes in Government policy and approach to the
mining sector, and increasing international investment, have led
to its rapid growth and the influx of international mining giants.
This, coupled with the stable political climate and improved
business environment, has made Tanzania an increasingly
attractive destination for foreign direct investment (FDI).
There are now a large number of mining operations across
Tanzania, with gold production standing at roughly 45 tonnes a
year, copper at 2,980 tonnes, silver at 10 tonnes, and diamond
at 112,670 carats.2 Production of gold and diamonds has
increased significantly since the late 1990s, with the former
accounting for 44% of the value of exports in 2007. In total,
the mining sector contributes 2.7% to Tanzania’s GDP each
year, but this could rise considerably in future years, with
Business Monitor International (BMI) forecasting average annual
growth in the sector of 7.7% between 2011 and 2015. BMI
also predict a doubling in value of the sector between 2010 and
2015, from US$0.64bn to US$1.28bn. In 2010, total gold
output rose 9% from the previous year to 44.6 metric tonnes3
with the value of gold exports at US$1.8bn. Exploration has also
revealed significant natural gas deposits in Tanzania in addition
to promising prospects for oil discovery.
The gold mining industry in Tanzania has benefited in particular
from reforms to mining laws introduced since 1997. The most
significant contribution that gold mining provides to Tanzania’s
economy is its effect on foreign direct investment (FDI). In the
early 1990s, prior to large-scale gold mining, Tanzania would
have appeared near the bottom of rankings of African countries
as a destination for FDI. Today, however, the country is in the
upper-middle rankings, with over US$2bn (nearly two thirds) of
the surge in FDI after 1998 shown to have come from five gold
mines alone.
Benefits of the Mining Sector
”By providing direct employment and initiating the
multiplier effects to create significant indirect
employment, the presence of large-scale mines has
almost certainly helped to reduce poverty in the areas in
which they operate in Tanzania.”
Resource Endowment Initiative: Tanzania Case Study,
ICMM, July 2007
Tanzania derives considerable benefits from the mining sector.
In addition to the contribution the sector makes to GDP, for
example, members of the Tanzania Chamber of Minerals and
Energy (TCME)4 pay taxes and royalties totalling over
US$150mn5 every year. TCME members employ locally where
possible, and the presence of mines and local procurement of
goods and services has a positive knock-on effect in the
economy. Infrastructure created for the mining operations also
derive benefits for the local community: for example, at North
Mara and Bulyanhulu, power distribution has been extended to
local villages. Additionally, several companies have undertaken
extensive Corporate Social Responsibility (CSR) programmes
focusing on provision of health and education services, skills
and capacity-building training, along with environmental
initiatives. For example, Resolute have undertaken a
collaboration with the University of Dar es Salaam to conduct a
fauna survey which identified sixty-two additional species to
those already registered at the Golden Pride mine. A more
detailed critical analysis of the benefits that Tanzania derives
from mining can be found in the ICMM Resource Endowment
Initiative Case Study Report.6
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207 Ujamaa refers to the concept that formed the basis of President Nyerere’s plan for social and economic development in Tanzania. The concept was multi-fold butincluded a plan for villagisation and the nationalisation of key economic institutions.
2 BMI Q3 2011, 2010 estimates3 Central Bank of Tanzania, February 2010
4 Established in 1994, the TCME represents the interests of its members in the Tanzanian mineral sector. It has close to 60 members in total.5 TCME website
6 Resource Endowment Initiative: Tanzania Case Study, ICMM, July 2007
Case Study: Bulyanhulu Gold Mine Jatropha Farm
At Bulyanhulu, African Barrick Gold (ABG) has undertaken a
pioneering agriculture project to establish a Jatropha farm.
Jatropha, although not without its critics, is a highly resilient
source of biofuel, which only requires low grade soil for
growth and prevents soil erosion once planted. The farm
currently covers an area of 121 hectares, up from 11 hectares
in 2007 when the project commenced.
The project was conceived of to derive multiple benefits for
both the community and ABG. For the latter the conversion
of non-productive land within the mining lease into
productive land was intended to prevent encroachment,
whilst the bio-diesel produced could contribute to ABG efforts
to mitigate greenhouse gas emissions from other sources of
fuel. The local community benefit comes in the form of
training, employment and the development of by-product
home industries such as soap and candle making.
• Permits the Minister to negotiate a stake in the project on
behalf of the United Republic of Tanzania, and requires the
government to own a stake in all future mining projects.
• Requires mining companies to list on the Dar es Salaam
Stock Exchange.
• Includes a mandatory requirement for the government to
set aside specific areas for small-scale miners to avert
conflicts between artisanal miners and big mining
companies.
• Introduces Smelting, Processing and Refining Licenses for
different minerals (Section 60).
• Licence holders are obliged to prepare and update Mine
Closure Plans (MCPs) to ensure safety and proper
rehabilitation after operations cease.
• Requirement for the Minister for Minerals to direct the
mining companies to post Environmental Rehabilitation
Bonds (Section 47).
• Environmental Protection Plan (EPP) for small-scale miners
provided in Regulations 3, 4 and 5 made under this Act, on
Environmental Protection for Small-Scale Mining of 2010.
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The Mining Act of 1998
The Mining Act of 1998, and its regulations of 1999, was a
comprehensive piece of legislation that provided for a number
of benefits for private mining companies, including monetary
incentives and guarantees of fiscal stability. The main aspects
were:
• Removal of requirement of 1979 Act for mineral rights
holders to present a plan for local procurement of goods
and services.
• Subsidies provided to foreign investors, including five-year
tax holidays, 100% transferability of profits, 100% foreign
ownership, and exemptions from a wide range of taxes and
EIAs.
• Ministers to be able to construct Mining Development
Agreements (MDAs) with private foreign companies. MDAs
provide specific guarantees to mining companies such as a
fixed tax rate, monetary allowances, profit repatriation, and
the right to hire foreign staff, amongst others.
• Small-scale miners permitted to transfer or mortgage their
rights.
• Provided guarantees of fiscal stability.
• Mineral rights for small-scale mining and licences for
gemstone mining limited to Tanzanian nationals or
companies in which Tanzanian nationals hold a majority of
the shares.
• Responsible Minister given power to declare an area
”designated for small-scale operations”.
• Companies given the freedom to procure foreign goods
even when they were available locally.
• Provided exemption from import duty and VAT on
equipment and essential materials for the first year after the
start of production.
• Set depreciation allowances of 100%.
• Allowed for repatriation of capital and profit directly related
to mining.
• Permitted 100% foreign ownership of non-gemstone
mining companies.
• Removed most of the discretionary powers by licensing
authority contained in the 1979 Act.
Current Situation and Future Prospects
The mining industry is now the most heavily regulated industry
in Tanzania. The 2009 Mineral Policy and 2010 Mining Act are
the most significant instruments in the sector which shape its
operation and governance today.
The Mineral Policy of 2009
The Mineral Policy of 2009 was formulated as a result of an
evaluation conducted during the ten years of implementation of
the Mineral Policy of 1997. This policy aims at strengthening
integration of the mineral sector with other sectors of the
economy; improving the economic environment for investment;
maximising benefits from mining and improving the legal
environment; strengthening capacity for administration of the
mineral sector; developing small-scale miners; promoting and
facilitating value addition to minerals; and strengthening
environmental management.
Under this policy, the government remains the facilitator and
regulator of the sector, participates strategically in mining projects,
and promotes private sector investment in the mineral industry.
The Mining Act of 2010
The most recent piece of legislation for the mining sector is the
2010 Mining Act. This Act strengthens the position of the State
relative to private mining companies, with increased royalty
rates, opportunities for government involvement and
requirements for Tanzanian citizen involvement in certain types
of mining projects. However, the Act does not apply to those
companies that already have contracts and agreements with the
government. The key aspects of this legislation are as follows:
• Increases the royalty paid on minerals: on precious and base
metals from 3% to 4%; on diamonds from 5% to 6%.
Uranium to stand at 5%; all other minerals remain at 3%.
• Royalties to be levied on gross, and no longer net, value of
mineral resources.
• Mineral rights and licenses for small-scale operations only to
be available to Tanzanian citizens or companies under the
exclusive control of Tanzanian citizens.
• Licences for mining gemstones only to be available to
Tanzanian citizens, except in the case that MEM determines
outside skills and/or resources are a necessary requirement.
Even in the latter case foreign involvement cannot exceed
50%.
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Artisanal Mining
Within Tanzania’s mining industry the ASM community has
played a significant role in the sector’s development, with
approximately 550,000 Tanzanians participating in this aspect of
the sector in the mid-1990s8. The relationship and interaction
between ASMs and larger mining companies has presented
challenges in several instances, due to disputes over mineral
rights, perceived preferential government treatment of large-
scale miners, and the difficultly of delineating responsibility and
blame for negative impacts in areas where their operations exist
in close proximity.
ASM and the potential for conflict is thus a significant
consideration for inward investors where they occur on or near
to the same resource to be exploited. Given that eviction is not
an acceptable solution, consideration of compensation for lost
access or some form of cohabitation needs to be considered
from the start. Large-scale mining companies also have the
potential to mentor ASM communities to help introduce some
basic health, safety and environmental management
programmes, which are frequently absent from ASM
operations.
In an attempt to address these concerns and to increase the
capacity of artisanal miners, the government has started a
training programme on commercial mining and
entrepreneurship for local and small-scale miners, and set up a
Small-Scale Miners Development Fund to enable ASMs to access
soft loans.
In order to combat these tensions, some of the larger mining
companies operating in Tanzania have implemented
programmes specifically designed to foster more cooperative
and mutually beneficial relations between ASMs and their own
operations, including the provision for training and capacity
building sessions. However, a best practice template for framing
the interactions between large-scale miners and ASMs in
Tanzania is yet to be established, and will likely involve the
further consideration and close co-operation of Local
Government, representative ASM organisations and mining
companies. International guidance can be found in the ICMM’s
report “Working Together- how large-scale miners can engage
with small-scale miners”.
Other Developments
The Extractive Industries Transparency Initiative in
Tanzania9
Tanzania has been accepted as an Extractive Industries
Transparency Initiative (EITI) candidate country, and is in the
process of undertaking validation. This will put an onus on all
extractive operators in the country to declare the various
revenues paid to government to allow citizens to evaluate if this
correlates with what government declares it has received. Any
discrepancy represents a loss of resources that could otherwise
have been invested in the sustainable development of Tanzania.
In 2011, the EITI Board found that although ‘meaningful
progress’ had been made during the stipulated candidacy
period, further action is required to meet ‘compliant’ status. The
Government of Tanzania disclosed its mining revenues for the
first time in an EITI report released in February 2011. The report
showed that mining companies reported having paid US$84.4m
in 2008/09. However, government entities reported having
received only US$48.3m. The reconciler of the EITI report, Hart
Group and BDO East Africa, notes that the unresolved
discrepancies of US$36.5m might be explained by a number of
factors and sets out a clear set of recommendations for future
reports.
Mining companies reporting to EITI include Anglo American,
AngloGold Ashanti, Barrick Gold, Xstrata, Iamgold, Resolute
Mining, IMX and BHP Billiton. All TCME members currently
disclose payments made to the Government.
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8 Resource Endowment Initiative: Tanzania Case Study, ICMM, July 20079 EITI sets a global standard for transparency in mining, gas and oil and aims to strengthen governance by improving transparency and accountability in the extractivessector through the verification and publication of company payments and government revenues in the sector. To be made a member of the EITI a candidate must meetthe required standards of disclosure.
Case Study: African Barrick Gold (ABG) North Mara Mine
In Tanzania, ABG have developed an Artisanal Mining
Initiative which reaches out to ASM communities surrounding
the North Mara Mine. In providing assistance and support to
these miners the project seeks to ensure artisanal mining
activities are properly, efficiently and safely conducted and are
in accordance with the relevant regulation. Participating
miners are provided with access to financing supporting their
legal application for land on which to mine, training, efficient
tools, and cleaner technologies.
Source: Barrick website: Artisanal Mining Initiative
Existing Legal Framework
Legislation
1963 The Explosives Act
1964 The Antiquities Act (amended 1979)
1966 The Road Tolls Act
1967 Land Acquisition Act
1969 The Graves (Removal) Act
1972 The Stamp Duty Act and 2000 The Stamp Duty (Validation) Act
1976 The Customs Tariff (Amendment) Act
1990 National Promotion and Protection Act
1992 Finance Bill and Amendment
1997 The Financial Laws (Miscellaneous Amendments) (No.27)
1997 The National Social Security Fund Act
1999 The Land Act
1999 The Village Land Act
2002 The Forest Act
2002 The Atomic Energy Act
2003 The Industrial and Consumer Chemicals (Management and Control) Act (2003)
2003 Occupational Health and Safety Act 2003
2004 The Employment and Labour Relations Act
2004 The Environmental Management Act
2004 The Income Tax Act
2009 The Water Supply and Sanitation Act
2009 The Water Resources Management Act
2009Wildlife Conservation Act
2010 The Mining Act
Policies
1997 The National Environmental Policy
1998 The National Poverty Eradication Strategy
1996 The National Investment Promotion Policy
1997 Agriculture and Livestock Policy
1998 National Forest Policy
2009 The Mineral Policy of Tanzania
Regulation
2001 Land (Compensation Claims) Regulation
2010 The Mining (Mineral Beneficiation) Regulation
The Mining (Environmental Protection for small-scale miners) Regulation
The Mining (Mineral Rights) Regulation
The Mining (Radioactive Minerals) Regulation
The Mining (Safety, Occupational Health and Environmental Protection) Regulation
The mining industry is the most heavily regulated industry in Tanzania:
Mining Operations and Projects There are numerous mining projects and operations underway in Tanzania, at various stages of the development and operational
process.
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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The Masha Commission 2006
For many African countries the rise in price and demand for
mineral resources has raised governments’ bargaining power for
increasing the amount of revenues and royalties a government
can expect in return for granting mining rights. The Masha
Commission was appointed by President Kikwete to review
mining contracts and the taxation system in 2006. The
recommendations of the Commission included the abolishment
of the 15% additional capital allowance for mining companies.
The full list of recommendations from the Masha Commission
can be found in Annex 7 of the Bomani Report below.
The Bomani Report 2008
In addition, the 2008 Bomani report, also commissioned by the
President, reviewed the operations of the mining sector, as well
as current government regulation and oversight. It
recommended raising the royalty rates for minerals, which was
subsequently actioned under the 2010 Mining Act, and
discussed the difficulties involved in mine closure procedures,
with particular reference to social factors such as the rights of
local communities surrounding the mine site.
Sustainable Management of Mineral Resources (SMMRP)
2007
In 2007, the Ministry of Energy and Minerals conceived the
Sustainable Management of Mineral Resources Project
(SMMRP). The project, supported by the World Bank, is aimed
at promoting the principles of good governance to increase the
transparency of the mining sector’s legal and regulatory
framework.
Framed by Tanzania’s Vision 2025 and the MKUKUTA Poverty
Reduction Strategy, the objective is to ensure that mineral sector
development and investment conforms to international best
practice, adjusted to the particular conditions of Tanzania.
The project focuses on spurring local economic development
through development of the mining sector, reducing conflict,
improving management of environmental and social issues,
increasing growth, and enhancing competitiveness in the sector.
The scope of the SMMRP includes attention to the ASM sector,
with the aim of improving their performance and associated
social, economic and environmental impacts, improving
governance, increasing inter-agency linkages, strengthening
promotion of the sector through improved mining information
systems and stimulating mineral sector investment and
coordination.
Key Issues and ‘Hot Topics’
• The expected impact of the United States Dodd-Frank Wall
Street Reform and Consumer Protection Act if objections
submitted by the TCME are overruled (see below for more
details).
• Influx of new investors, particularly from BRICS countries,
interested in a number of resources including uranium and
coal.
• The possibility of further royalty rate rises to increase the
sector contribution to GDP: Tanzania’s mining sector
currently contributes 2.7% to GDP, whereas Botswana’s
diamond mining industry contributes around 30% alone,
and levies a 10% royalty rate on precious stones.
• The extent of government involvement in mining projects,
following the 2010 Mining Act, as some mining companies
have expressed their concerns about the potential for
increasing involvement in their operations following this
legislation.
• The nature of government involvement in mining projects
following agreements between the government and
international mining companies for the Buckreef Gold Mine
and Mchuchuma and Liganga projects.
• The test case of Mantra (a Russian-led investment) to exploit
uranium deposits just inside the World Heritage Site (WHS)
of the Selous Game Reserve. With de-proclamation of a
WHS currently under consideration, alongside the offset
conditions imposed to enable mining to proceed.
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Case Study: A New Model for Government Involvement?
Tanzanian Royalty Exploration Corporation (TRE), a Toronto listed company, has recently signed a joint-venture agreement with
the Tanzanian government to redevelop the Buckreef Gold Mine. The TRE will have a 55% stake in the new mine, with the other
45% owned by STAMICO. The Tanzanian government has held up this agreement as a potential model for future deals.
A different framework for future agreements can be seen in the Mchuchuma and Liganga projects in which the government
currently owns a 20% share to increase to 49% once the Chinese-based Sichuan Hongda Corporation has recouped its investment.
The Mining Act of 2010 includes the requirement for government to have a stake in all future mining projects, although the
nature and extent of such involvement has been a source of speculation.
Gold Mines and Projects in Tanzania
Bulyanhulu Gold Mine
• African Barrick Gold (subsidiary of the Barrick Gold Company)
• Located in the Kahama district, Shinyanga region
• Production start date: 2000
• Estimated life expectancy: 2036
• Proven and probable reserves: 10.32 million ounces (31/12/2009)
• Underground
• Stock Exchanges: Toronto, New York, London, Switzerland, and Euronext Paris (Barrick)
• ICMM Member
• Produces an annual Mine Responsibility Report for Bulyanhulu
Geita Gold Mining Ltd
• AngloGold Ashanti Ltd
• Located in the Geita district, 100km south-west of Mwanza
• Production start date: 2000
• Estimated life expectancy: 2025
• Mine reserves estimated at 20 million ounces
• Open pit with underground potential
• Stock Exchanges: New York, Johannesburg, Accra, London, and Australia
• ICMM Member
• Produces an annual Sustainability Report AngloGold Ashanti Ltd
North Mara Gold Mine
• African Barrick Gold (subsidiary of Barrick Gold Corporation)
• Located in Tarime District, Mara region
• Production start date: 2002
• Estimated life expectancy: 2019
• Proven and probable mine reserves: 3.6 million ounces
• Open pit and underground
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• Stock Exchanges: Toronto, New York, London, Switzerland, and Euronext Paris (Barrick)
• ICMM Member
• Produces an annual Mine Responsibility Report (2010)
Tulwaka Gold Mine
• Joint venture between Pangea Minerals Ltd, 70% ownership, (subsidiary of Barrick Gold) and Minières du Nord, 30%
• Located in Biharamulo district, Kagera region
• Production start date: 2005
• Estimated life expectancy: 2012-2014
• Estimated mine reserves: 1.7 million ounces
• Combined underground and open pit
• Stock Exchanges: Toronto, New York, London, Switzerland, and Euronext Paris (Barrick)
• Barrick is an ICMM Member
• Produces an annual Mine Responsibility Report (2010)
Golden Pride Gold Project
• Resolute Tanzania
• Located at Lusu, Nzega district, Tabora region
• Production start date: 1998
• Estimated life expectancy: late 2012
• Estimated proven and probable reserves: 4.3 million tonnes
• Production for the 2011 financial year: 122,921 ounces
• Open pit
• Stock exchanges: ASX (Australian)
• Resolute Annual Report (2010) includes a corporate responsibility section
• Statutory Mine Closure Plan (SMCP) completed making the Golden Pride Gold Project the first mine to have a SMCP approved
Buzwagi Gold Mine
• Pangea Minerals Limited (subsidiary of Barrick Gold Corporation)
• Located in Kahama district, Shinyanga district
• Production start date: 2009
• Estimate life expectancy: 2022
• Estimated proven and probable reserves: 3.4 million ounces (31/12/2009)
• Open pit
• Stock Exchanges: Toronto, New York, London, Switzerland, and Euronext Paris (Barrick)
• Barrick is an ICMM Member
• Produces an annual Mine Responsibility Report (2010)
Buckreef Gold Mine Re-Development Project
• Tanzanian Royalty Exploration Corporation acquired the mine from STAMICO in December 2010. Tanzania. Tanzania Royalty
has the right to earn 55% interest in Buckreef with STAMICO holding the remainder.
• Located 35 km south west of Geita gold mine
• Production start date: 1960
• Estimated mine reserves: 2 million ounces
• Underground
• Stock exchanges: Amex
Golden Ridge Gold Mine
• Pangea Minerals Ltd (subsidiary of Barrick Gold Corp)
• Located 100km South of Mwanza
• Estimated mine reserves 679,000 ounces
• Production start date: 2013
• Stock Exchanges: Toronto, New York, London, Switzerland, and Euronext Paris (Barrick)
• Barrick is an ICMM Member
Buhemba Gold Project (Abandoned)
• TanGold-Meremeta (joint venture between Trinnex (a South Africa company) and the Government of Tanzania
• Located in Musoma
• Production started in the 1930s
• Estimated mine reserves as of 1997: 747,000 ounces
• Open pit
• Minimal information available
Chunya Gold Project
• Shanta Mining Corporation Limited
• Located in Chunya Administrative District in the Lupa goldfields, Mbeya region
• Total resource prospect: 845,519 ounces
• Mining Licence application submitted
Mgusu Gold Project
• Shanta Mining Corporation Limited
• Located in Ilemela Administrative District, Mwanza region
• Total resource prospect: 741,000 ounces
• Advanced project status but delays due to access issues
Singida Gold Project
• Shanta Mining Corporation Limited
• Located in Singida Administrative District, Singida region
• Total resource prospect: 1,031,926 ounces
• Nine prospecting licenses covering 345km2
Songea Gold Project
• Shanta Mining Corporation Limited
• Located in Mbinga and Songea Administrative Districts, Ruvuma region
• Early project status - exploration underway
Imweru and Igurubi Projects
• Joint venture between Peak Resources Ltd and Zari Exploration Limited
➢ Located in the Lake Victoria Goldfield area
➢ Resource prospect at Igurgubi between 400,000 and 720 000
➢ Stock exchanges: Australian (Peak Resources)
Energy-Generating Mining and Projects
Tanzania faces a serious energy crisis, which poses a threat to
the country’s future economic development. In an attempt to
address power shortages, Tanzania has embarked upon various
developments, with gas, coal and hydro investments planned
and being developed, often under joint venture arrangements
between the Tanzanian NDC and foreign companies.
In 2010 Tanzania’s electricity demand from the national grid
was estimated to be 832.55 MW, which represented an increase
of 10% on the previous year. However, the total power
generation capacity is currently considerably less than actual
demand. Only 145MWs of a projected need of an additional
645MWs of electricity was added to the national grid in 2010.
Tanzania’s energy crisis has unleashed unprecedented demands
for energy resources. This is coupled with the increasing
contribution these resources are making to exports into
international and regional markets. There have been a number
of significant offshore gas discoveries. However, this guidance
document is confined to minerals and so the focus here is on
coal and uranium.
Coal is set to become one of the fastest growing mining sectors
in Tanzania. Most of the proven coal reserves occur in the south
of the country, where the rush for energy resources is being led
by emerging BRICS (Brazil, Russia, India, China and South
Africa) countries, in particular China and Brazil.
Associated with these developments are significant
infrastructure plans. Road and rail links are opening up in new
areas, power generation facilities are already being built; and
plans for new port facilities and LNG (Liquified Natural Gas)
plants are well advanced in both Mozambique and Tanzania.
The volume and scale of recent agreements and projects in this
area provide strong evidence of the growing interest in
Tanzania’s energy resources. In 2010, a contract was signed
with the Machinery Engineering Corporation (CMEC) of China
to develop a coal mine and associated 300MW power facility in
the Mnanzi Bay region. Following this, in 2011 the Government
of China and the Government of Tanzania signed a US$1bn
loan agreement, of which China Export-Import Bank is
providing 90% of the financing, to build a 532km natural gas
pipeline to transport gas from Mnazi.
The Mchuchuma Coal to Electricity (Mchuchuma Concession)
and Liganga iron ore (Liganga Concession) projects, located in
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Gemstone Mines
Williamson Diamond Mine
• Joint venture between Petra Diamonds Ltd, 75% ownership, and the government of Tanzania, 25% ownership
• Located in Kishapu district, Shinyanga region
• Production start date: 1940
• Estimated life expectancy: 2030
• Estimated mine reserves: 40 million carats
• Open pit
• Stock exchanges: AIM (LSE)
• Petra Diamonds Ltd produces an annual Sustainability Development Report (2010)
El-Hilal Diamond Mine
• Owned by El-Hilal Minerals Ltd
• Located in Mwadui area, Shinyanga region
• Production start date: 2004
• Limited information available
Meralani/TanzaniteOne Mine
• TanzaniteOne Group (a wholly-owned subsidiary of Richland resources Ltd since 2011)
• Located in Simanjiro district, Manyara region
• Production start date: 2001
• Estimated life expectancy: 2030
• Estimated mine reserves: 44 million carats
• Underground
• Processing and sorting takes place on site
• Stock exchanges: LSE (London)
• Secondary listing on Dar es Salaam stock exchange by end of 2011
• Website provides information on community and projects
Other Projects
Kabanga Nickel Project
• Joint venture between Xstrata company, 50% ownership, and Barrick Gold Corporation, 50% ownership
• Located in Ngara district, Kagera region
• Production start date: 2009
• Estimated life expectancy: 30 years
• Estimate mine reserves: 9.7 million tonnes
• Underground
• Stock exchanges: London (Xstrata), Toronto, New York, London, Switzerland, and Euronext Paris (Barrick)
• Xstrata releases an annual Sustainability Report (2010)
Liganga Project (iron ore, iron and steel)
• Details provided below
Ngualla Project (Rare Earth Oxide, niobium-tantalum and phosphate)
• Joint venture between Peak Resources Ltd, 80%, and Zari Exploration Limited, 20%
• Located in Mbeya region
• Exploration commenced in late 2009
• Details of alluvial deposits identified can be found at www.peakresources.com.au/exploration/tanzania/projects/ngualla.aspx
• Stock exchanges: Australian (Peak Resources)
not see the benefits of such a project, and that there would be
a considerable impact on wildlife, and loss to government
revenue derived from tourism, as a result. In reaction,
supporters have pointed to the considerable benefits to be
derived from the project in terms of increased infrastructure and
employment, and offers by the investors to contribute to game
reserve management financing in compensation.
Key Actors
National
Ministry of Energy and Minerals
The Ministry of Energy and Minerals (MEM) is the ministry
responsible for the administration and implementation of
energy and mineral policy. Established in its current form in
2008,11 it is charged with the following responsibilities:
• Development of energy and mineral policies, programmes
and projects
• Implementation of energy and mineral policies, programmes
and projects
• Performance improvement
• Development of human resources
• Co-ordination and supervision of institutions under the
Ministry
Within the Ministry there is an appointed Commissioner for
Minerals, a Mining Advisory Board and an appointed Chief
Inspector of Mines.
Tanzania Chamber of Minerals and Energy (TCME)
Created in 1994, the Tanzania Chamber of Minerals and Energy
represents the private sector participants in the mineral sector
and seeks to mediate between the mining investment
community and key stakeholders, including the Government of
Tanzania and the public. Chamber members include both large
and small-scale mining companies.
Tanzania Minerals Audit Agency (TMAA)
The Tanzania Minerals Audit Agency is a semi-autonomous
institution, established on May 6 2009 under the Executive
Agencies Act. The TMAA took on the functions that were
previously held by the Minerals Auditing Section of the MEM.
The institution’s mandate includes the monitoring and auditing
of large, medium and small-scale mining operations and playing
an advisory role to government. Within its remit for audit and
monitoring are revenue generation, capital and operating costs,
environmental management, environmental budgeting and
expenditure for progressive rehabilitation and mine closure.
Geological Survey of Tanzania (GST)
The Geological Survey of Tanzania is a government agency
which sits under the MEM, and was established in 1997. It is
responsible for the identification of sites with minerals, the
preparation, modification and retention of geo-scientific data,
the monitoring and evaluation of geological impacts, the
provision of geological laboratory services and library services,
and providing government with professional advice on
exploration and mining activities.
STAMICO (State Mining Corporation)
Formed in 1972 STAMICO is a parastatal with the following
aims and functions:
• To engage in mineral prospecting and mining and any other
activities related thereto;
• To acquire by agreement and hold interests in any
undertaking, enterprise or project associated with
exploration, prospecting and mining;
• To acquire shares or interest in any firm, company or other
body of persons, whether corporate or unincorporated,
engaged in the mining of, or in prospecting, refining,
grading, producing, cutting, processing, buying, selling or
marketing of minerals;
• To carry on its business, operations and activities whether as
principal agent, contractor or otherwise, and either alone or
in conjunction with any other persons, firms or bodies
corporate; and
• To oversee the transformation of the ASM sub-sector into
regulated, environmentally friendly, safe, productive and
sustainable operations.
International
World Bank
The World Bank is an IFI, owned by 187 member countries that
provides financial and technical assistance to developing
countries across the globe. Support is provided through
provision of resources, knowledge-sharing, building capacity
and the fostering of public-private partnerships.
The World Bank has a history of involvement in Tanzania
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
3311 The Ministry has taken many forms since 1964: the Ministry of Industry, Minerals and Electricity (1964–1966); Ministry of Water, Energy and Minerals (1976–1981,
1984–1985, 1991–1995); Ministry of Minerals (1982–1983); Ministry of Energy and Minerals (1986–1990, 1996 to date).
Ludewa district, Iringa region, are anchor projects in the Mtwara
Development Corridor, a project designed to attract private
sector investment in Tanzania, Mozambique, Zambia and
Malawi. Recent studies indicating that Mchuchuma/Katewaka
coal deposits should be connected to the coast by rail to
facilitate export, necessitates the upgrading of Mtwara port,
and the creation of new electricity transmission networks.
Uranium
Uranium exploration and mining is a particularly controversial
area within the industry. Current projects are being undertaken
by a number of companies including Uranex NL, Omegacorp Ltd
and Uranium Exploration.
Uranium One/Mantra Resources Ltd, Uranium Resources plc,
and Indago Resources Ltd, to name a few10, have applied to
exploit uranium deposits that will put Tanzania in the top ten
global producers of uranium, if approved. These have run into
considerable opposition and criticism from bodies such as
CESOPE (Civil Education is the Solution for Poverty and
Environmental Management).
One particular project that has been in the spotlight is the
Mantra project whose proposed site, Mkuju River, encroaches
into the Selous Game Reserve, a World Heritage Site (WHS),
requiring de-proclamation of 35,000 hectares. The EIA for
Mantra is currently being revised, after initially being rejected. In
October 2011, the Parliamentary Committee on Lands, Natural
Resources and Environment, advised the Government to
suspend exploration in the Selous Game Reserve. The Committee
expressed concern that the majority of citizens in the area could
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10 Full list: Uranex NL, Omegacorp Ltd, Mantra Resources Ltd, Uranium Resources plc, Indago Resources Ltd, Sabre Resources Ltd, Uranium Hunter Corporation, TrimarkExplorations Ltd, IBI Corporation, Gambaro Resources, Douglas Lake Minerals Inc., Canaco Resources Inc., Sub-Sahara Resources NL, East Africa Resources Ltd,
Tanganyika Uranium Corp., Troll Mining Ltd, Jacana Resources Ltd, Globe Metals & Mining Ltd, Atomic Minerals Ltd, Universal Power Corp, Central Iron Ore Ltd, VIPRIndustries Inc., Minergy Tanzania Ltd (Mauritius), Peak Resources Ltd, Kinti Mining Ltd, Kilimanjaro Mining Company, Inc., Edenville Energy Plc, Japan Oil, Gas and Metal
National Corporation.
Coal Mines and Projects
Kirwira Coal Mine
• Kiwira Coal Mines Company (STAMICO, Tanzanian State Mining Corporation)
• Located in Mbeya region
• Production start date: 1980s
• Previously owned by TanPower Resources Ltd, a private company co-owned by former President Mr Mkapa and former Energy
and Minerals Minister Daniel Yona
• Limited information available
Mchuchuma and Liganga Project
• Joint venture between NDC, 20%, and Chinese-based Sichuan Hongda Corporation, 80%. The NDC stake will increase to
49% once Sichuan Hongda Corporation has recouped its investment
• Located in Ludewa district, Iringa region
• Production start date: 2012
• Estimated life expectancy: 100 years
• Estimated mine reserves: 480 million tonnes of coal (enough to generate 600MW of electricity)
• Iron ore extracted is to be locally processed
• Sichuan Hongda Corporation using reserves as security to borrow money from banks in China
Ngaka Coalfields Project
• Developed through TanCoal Energy Limited (a joint venture between Atomic’s 85% owned Tanzanian subsidiary, Pacific
Corporation East Africa (PCEA), which owns a 70% stake in TanCoal and the NDC which has a 30% stake)
• Located in Mbinga district
• Awaiting special mining licence from MEM to start exploration
• Estimated coal reserves: 200 million tonnes
gemstones. Greater levels of investment and competition are
welcome developments. However, as some of the countries
from which these increased investment pressures are coming do
not necessarily subscribe to the international standards listed
above, Tanzania needs to be increasingly cautious to ensure its
national environmental regulations obligate them to meet an
acceptable standard of practice, and that they are encouraged
to exceed the minimum standards set by environmental
legislation. For example, companies originating from Canada,
Australia and the UK have to comply with OECD MNE
Guidelines, whereas those from China, India and Brazil do not
have such accountability mechanisms in place. There should also
be a focus on promoting best practice and going beyond
compliance to maximise benefit for Tanzania’s development,
whilst at the same time securing reputational dividends for
mining companies and minimising potential disruptions or
objections to their operations.
WWF have a programme which addresses the activities of
Chinese investors in Africa. This includes helping build the
environmental understanding and capacity required of financial
intuitions working in Africa. Banks involved in this programme
include China Export-Import Bank (EXIM), Sinosure (China’s
export credit insurance agency) the Industrial and Commercial
Bank, and the People’s Bank of China. Details can be obtained
from wwf.panda.org.
Other Initiatives
United States Dodd-Frank Wall Street Reform and
Consumer Protection Act
The Dodd-Frank Act of 2010 stands to have a significant impact
on Africa’s mining industry. This piece of US Legislation covers a
number of issues relating to the financial operations of Wall
Street and consumer protection, including advance warning
systems, transparency, corporate governance and bank bailout
action. Within the Act there is a specific provision for
transparency in the extraction industry and minerals originating
from the DRC and surrounding countries.
The provision on Congo conflict minerals impacts DRC and any
adjoining country, which includes Tanzania and applies to the
following minerals, identified in Section 1502 of the Act:
columbite- tantalite (coltan), cassiterite, gold, wolframite, and
any of their derivatives. However, the provision is yet to be
implemented, as many objections have been raised by actors
including the TCME, which has expressed concerns that it could
result in a 10% reduction in demand for Tanzanian gold, the
loss of 2000 jobs and a fall in government export earnings from
gold by US$75mn12. A final verdict on whether it will be
implemented is forthcoming.
The European Union (EU) Initiative for Raw Materials
2008
The European Commission’s Raw Materials Initiative aims to
ensure a level playing field for access to resources, to support
measures to ensure the sustainability of the supply of raw
materials and to promote resource efficiency and recycling
throughout the EU and with trading partners. The initiative
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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through the Structural Adjustment Policies of the 1980s. The
1992 Africa Strategy for Mining Technical Paper, which
encouraged trends in, and moves towards, liberalisation and
privatisation, was highly relevant to the government of Tanzania
at the time.
Relevant World Bank loans trigger the World Bank
environmental and social safeguards policies. The objective of
these policies is to prevent and mitigate undue harm to people
and their environment in the development process. These
policies provide guidelines for bank and borrower staffs in the
identification, preparation, and implementation of programmes
and projects.
The effectiveness and development impact of projects and
programmes supported by the Bank has substantially increased
as a result of attention to these policies. Safeguard policies have
often provided a platform for the participation of stakeholders
in project design, and have been an important instrument for
building ownership among local communities. They cover issues
such as; environmental assessment, natural habitats, physical
cultural resources, involuntary resettlement and indigenous
peoples.
International Finance Corporation (IFC)
The IFC is a global development institution, focused on the
private sector in developing countries, and is a member of the
World Bank Group. The IFC makes financial investments and
provides funding to business alongside advisory services to
promote development. The IFC has a number of commitments
in Tanzania, including investments into some of the country’s
mining operations. See www.ifc.org for further details on the
environmental and social performance standards employed by
the IFC.
IFC Investments in Tanzania Mining Sector
Project Name Status
SMP Gold Active
http://www.ifc.org/ifcext/spiwebsite1.
nsf/ProjectDisplay/SPI_DP27746
Williamson Active
Diamonds http://www.ifc.org/ifcext/spiwebsite1.
Limited nsf/ProjectDisplay/ESRS28574
Dutwa Nickel Pend FAP
http://www.ifc.org/ifcext/spiwebsite1.
nsf/ProjectDisplay/SPI_DP29062
International Council on Mining and Metals (ICMM)
See Chapter One for further information.
International Organization for Standardization (ISO)
The International Organization for Standardization develops
international standards for governments, business and society
on a number of topics, including social responsibility and
environmental management, and represents a network of
national standard institutes in 162 countries.
Organisation for Economic Co-operation and
Development (OECD)
The OECD consists of 34 member countries, and is involved in
research and standard creation in four main areas: confidence in
markets and institutions, healthy public finances, growth
through environmentally friendly strategies and technologies
and labour force skill-sets. It has produced a number of papers
and recommendations on key issues including the OECD
Guidelines for Multinational Enterprises which apply to
companies operating in or from member counties – the latter
being the signatories. Although Tanzania is not an OECD
country, all companies domiciled in OECD counties have to
comply with the appropriate guidance.
“Enterprises should within the framework of laws,
regulations and administrative practices in the countries
in which they operate, and in consideration of relevant
international agreements, principles, objectives and
standards, take due account of the need to protect the
environment, public health and safety, and generally to
conduct their activities in a manner contributing to the
wider goal of sustainable development.”
OECD Guidelines, Paris 2008
BRICS
Investment pressures are currently flowing from the BRICS
countries, in particular China and India, which are resource-
hungry and keen to ensure future energy and mineral flows to
fuel their continued economic growth. Examples of investments
include the $3bn deal to mine coal and iron-ore with Chinese
mining company Sichuan Hongda at Mchuchuma, and a $1bn
loan with the Chinese Government to build a gas pipeline has
also been agreed. India is also a big player with the NMDC
(National Mineral Development Corporation), investing in the
Kahama Gold Mine and soda ash at Lake Natron, as well as
smaller Indian companies mining and processing various
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TRANSPARENCY FOR EXTRACTION INDUSTRY
Public Disclosure: Requires public disclosure to the SEC of
payments made to the U.S. and foreign governments relating
to the commercial development of oil, natural gas, and
minerals.
SEC (Securities and Exchange Commission) Filing
Disclosure: The SEC must require those engaged in the
commercial development of oil, natural gas, or minerals to
include information about payments they or their subsidiaries,
partners or affiliates have made to the U.S. or a foreign
government for such development in an annual report and
post this information online.
Congo Conflict Minerals
Manufacturers Disclosure: Requires those who file with the
SEC and use minerals originating in the Democratic Republic
of Congo in manufacturing to disclose measures taken to
exercise due diligence on the source and chain of custody of
the materials and the products manufactured.
Illicit Minerals Trade Strategy: Requires the State
Department to submit a strategy to address the illicit minerals
trade in the region and a map to address links between
conflict minerals and armed groups and establish a baseline
against which to judge effectiveness.
Dodd-Frank Wall Street Reform and Consumer Protection Act,
US Congress, 2010
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takes a strong stance against certain protectionist measures,
such as taxes levied by developing countries on mineral exports.
However, in several countries the revenues generated through
these measures contribute a considerable percentage of the
Government’s total budget, and therefore potentially represent
an important resource in efforts to reduce poverty and support
development.
There are a number of other foreign governments and donor
agencies with a considerable presence in Tanzania undertaking
various projects related to the extractives industry and/or
environment.
Visions Beyond 2012
Tanzanian Mining Vision 2025
The Tanzania Government has laid out its national vision for the
mining sector in 2025, which was included in the 1997 Mineral
Policy and reads as follows:
“The vision for the next 25/30 years for the mineral sector is to
have a strong, vibrant, well-organised, private sector-led, large-
and small-scale mining industry conducted in a safe and
environmentally-sound manner, contributing in excess of 10 per
cent of the GDP; a well-developed gemstone cutting and
jewellery industry, making Tanzania the gemstone centre for
Africa, and providing dependable employment to Tanzanians.”
There is still a long road ahead to meeting the targets set out in
this Vision, not least in the contribution of the mining sector
towards GDP, which still compares poorly with other mining
countries in Africa, such as Botswana. Nevertheless, as Tanzania
has extensive quantities of natural resources, these have an
enormous potential to contribute to the country’s development
through their extraction by mining operations of all sizes, given
the right context in terms of both regulatory environment and
collaboration between stakeholders, to leverage this benefit.
African Mining Vision 2050
The African Union (AU) has also set out an Africa Mining Vision
for the continent’s mining sector in 2050, with the overall goal
being to establish a:
“Transparent, equitable and optimal exploitation of mineral
resources to underpin broad-base sustainable growth and socio-
economic development”
The Vision places great emphasis on the importance of having a
‘knowledge-driven sector’, in which there is ‘equitable
participation’ and which constitutes an ‘integrated approach to
mineral resource exploitation’. With regards to the environment
specifically, the Vision states that the industry should aspire to
be sustainable, well-governed, and both environmentally
friendly and socially responsible. It calls for action to ensure
compliance, with the highest stewardship standards.
Conclusion
The development of Tanzania’s mining sector and the influx of
large-scale international mining companies has largely taken
place in the last 20 years, following the liberalisation and
opening-up of the sector by government. The sector is largely
governed by the 2009 Mineral Policy and the 2010 Mining Act,
but there is plenty more to be done to improve regulation of the
sector, thereby ensuring that maximum benefit is derived to the
Tanzanian economy and people, and that all mining companies
meet a minimum standard in the way they conduct their
operations. It is already one of the most heavily regulated
sectors in the country, but recent agreements between the
government and mining companies, and the Mining Act of
2010, suggest that government involvement in, and interaction
with, the sector is set to increase.
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OverviewCovering 945,000km2, the Tanzanian landscape ranges from the
Serengeti plains to Mount Kilimanjaro and from the mangrove
forests and coral reefs to dense woodlands. With such a rich
environment, full of natural resources, there are a number of
significant and diverse ecosystems, species, and climates, the
value of which needs to be considered, understood and
protected as the country continues to develop.
Protection of the environment, both now and in the future, is
important for several reasons. The conservation of Tanzania’s
rich biodiversity and ecosystems is necessary to ensure future
economic growth and potential. At the most basic level,
ecosystems support the livelihoods of most Tanzanians, and are
therefore key to preventing poverty and fuelling economic
growth. Food, water, medicine and raw materials are the
cornerstones of socio-economic development.
Additionally, in Tanzania, the revenues generated by tourism
make a significant (and sustainable) contribution to GDP,
approximately 6%, which far exceeds the 2.7% contributed by
the mining sector. It is therefore imperative that mining
operations recognise and engage with the tourism sector and
ensure operations do not impact this important source of
income and job creation. Whilst various national parks, forest
conservation areas, and marine and game reserves provide a
degree of protection, many areas remain exposed, and a lack of
information augments the challenge to identify further areas for
conservation efforts. In addition to the direct and indirect
economic values of Tanzania’s ecosystems in supporting
livelihoods, for many people the environment has an intrinsic
value which makes pursuit of its conservation worthwhile in
itself, in isolation from other considerations. For all these reasons,
development should not be at the expense of the environment.
Key Environmental Issues in TanzaniaAs a developing economy with significant natural assets,
Tanzania faces a number of environmental challenges, which
need addressing if the country is to protect its natural assets
whilst at the same time, advancing economically. These
challenges include the six identified by the Ministry of Tourism
and Natural Resources when they published the National
Environmental Action Plan in 1994.
1 Deforestation
2 Land degradation
3 Pollution
4 The threat to wildlife and biodiversity
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Chapter 3 EnvironmentalSensitivities
significant during the operational stage of the project life cycle
but in planning operations the use of alternative energy sources
should be considered alongside the potential to incorporate
neighbouring communities as beneficiaries in energy provision,
thereby taking pressure off surrounding vegetation currently
used for fuel wood.
Water Issues
The quality and accessibility of water are of vital importance
when considering the environmental impact of mining. Pollution
of water resources can occur as a direct result of mining
activities, through tailings leakages, acid drainage, and failure
to properly manage storm water. Such pollution has a serious
impact on surrounding communities and wildlife. Restricted
access to drinking water can present another environmental
issue, with mining operations requiring significant resources,
limiting those available to local communities and wildlife. The
rates of deforestation and forest degradation are leading to
further stresses on the water situation, which also has
implications for the water requirements of mining operations.
In securing water resources for mine sites it is not sufficient to
only manage the impacts on quality and supply to neighbouring
communities. Helping secure supplies to these communities
would do much to improve livelihoods and gain good
community relations.
Of critical importance to investors is the ability to establish
baseline water quality from the outset, providing a good
reference for assessing the impact of their operations. As
mineralised areas will likely have different chemical parameters
to other geographical regions, it is necessary to establish
baseline levels prior to operation to ensure good planning and
credible monitoring.
In Tanzania there are nine water basins which the Ministry of
Water utilises as planning units. These were introduced
following the 1981 10th Amendment to the 1974 Water
Utilisation Act. Each basin is administered by Basin Water
Officers, who are engaged in water resource management,
surface and groundwater resource assessment and exploration,
water resource planning and research, regulation and
enforcement. The basins are as follows: Pangani River Basin
(1991), Rufiji River Basin (1993), Lake Victoria (2000), Wami-
Ruvu (2001), Lake Nyasa (2001), Lake Rukwa (2001), Internal
Drainage Basin to Lake Eyasi, Manyara and Bubu depression
(2004), Lake Tanganyika (2004), and Ruvuma and Southern
Coast (2004). A map of these can be found at www.maji.go.tz.
Waste Disposal
Various types of waste matter are produced throughout the
mining process. If solid and liquid waste is not properly treated,
it can cause pollution, sickness and ill health in local
communities and wildlife, as well as damaging the aesthetic
qualities of the natural landscape, which could have serious
knock-on effects, given the scope of the tourism industry in the
country. The negative effect of badly disposed waste can
continue to impact upon communities and habitats decades
after the mining companies have left. Another issue arising from
waste disposal in the mining sector is the removal and/or use of
waste materials by communities, where local government
service provision is usually insufficiently developed. In this
respect, there have been a number of incidences when scrap
material from mine sites has ended up in the hands of poachers.
Hazardous Materials
The handling, storage and transportation of hazardous
materials, including cyanide, require careful management to
avoid harm to public health and the environment. Miners need
to be educated on the potential dangers of the various
substances used within the mining process to avoid harm, and
companies need to coordinate storage and transportation in
accordance with international standards and the Tanzanian
Industrial and Consumer Chemicals Act 2003. In Tanzania,
mercury pollution is a serious issue in gold mining in ASMs
communities where proper handling techniques are not always
understood and/or employed.
Investors considering projects in Tanzania should be aware that
there are limited facilities available for the disposal of hazardous
or other waste in the country, and that they may therefore need
to invest in building capacity or facilities in this respect, such as
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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5 Access to good quality water
6 Deterioration of marine and freshwater systems
A map of the changing environment in Africa can be found on
the United Nations Environment Programme (UNEP) website,
and a map of biodiversity hotspots can also be found on the
Conservation International website. The IUCN (International
Union for the Conservation of Nature), which works on the key
issues of biodiversity, climate change, sustainable energy,
human well-being and the green economy, by bringing together
government, NGOs and industry with the UN to develop
pragmatic solutions, has conservation databases available on
the website which record endangered species, protected areas,
environmental experts and environmental law.
Environmental Challenges for the Mining SectorMining investments will encounter inherent environmental risks
and impacts throughout the lifecycle of a project. We are only
concerned in this Guidance with the strategic planning aspects,
but good planning at the outset ensures benefits at the later
stages. Actual impacts be evident as early as the first physical
presence on site, during exploration, when new roads,
infrastructure and activities may open up often pristine and
remote areas, and lead to speculation amongst communities.
There are massive environmental challenges facing the mining
industry in Tanzania. Not only is over 25% of the country under
some kind of protection, including seven World Heritage Sites,
but companies also operate in the context of abject poverty,
with 33.6% of the mainland population living below the
poverty line. The impacts of poorly managed mining operations
can lead to devastating consequences for people who live close
to or below the poverty line and rely on the ecosystem services,
such as clean water, and access to materials for shelter and
energy, for their daily survival.
It is vitally important that mining companies plan their
operations from the outset in a way that is sensitive to the
situation and that looks to make a positive contribution where
possible. Such planning should be both proactive and
precautionary. Good results can be achieved through careful
planning of infrastructure, vigilant management of operations,
and designing offsets where there are impacts that cannot be
avoided. The earlier such considerations are introduced into the
planning process, the better, and ideally they should be
considered from the very beginning when evaluating a
proposed area for exploration or operation.
There are a number of environmental challenges of specific
relevance to the mining sector.These are identified in this
section, with their main impacts explained for ease of reference.
As the focus of this guidance document is on strategic
considerations, investors are advised to consult the sources
identified on the Environmental Checkpoint Reference Database
in Chapter Six for further details.
One advantage of addressing environmental issues at the
investment decision making stage is the greater opportunity to
‘seek to do good’ as well as the usual emphasis on ‘doing as
least harm as possible’. This Guidance encourages investors and
those appraising investments to favour those investors who look
at environmental issues differently and propose ways not just of
mitigating negative impacts but rather offering fundamental
changes that will contribute to development outcomes.
Investors should be sought who are going to serve as examples
of good environmental management practice and who
contribute to the raising of environmental performance standards.
Air Quality
Airborne emissions resulting from mining operations have the
potential to significantly impact upon air quality, with
consequences for surrounding wildlife and communities. The
various types of airborne pollution that should be evaluated and
protected against include dust and gaseous emissions, as well as
those pollutants generated during the smelting and refining
processes. Environmental impacts on air quality tend to be most
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Best practice case study: water use
African Barrick Gold (ABG) has reduced their water use at Bulyanhulu mine by introducing a surficial paste tailings technology (a
dense, viscous mixture of tailings and water), making it the first gold mine of its size to adopt the technique. Through a process
of filtration additional water from the tailings slurry is removed which can then be re-used, thereby enabling the mine to recycle
more than 70% of its water requirement.Lake
Victoria
IND
IAN
OCE
AN
LakeTanganyika Wami
Rufiji
Ruaha
LakeNyasa
LakeRukwa
0 100 200 km
Dodoma Zanzibar
Pemba
Mafia
Dar esSalaam
Arusha Moshi
TangaTaboraKigoma
Mbeya
Iringa
R WA N D A
B U R U N D I
U G A N D A
D . R .C O N G O
Z A M B I AMALAWI
M O Z A M B I Q U E
K E N YATANZANIAProtected Areas
(not an authority of boundaries)
D. R
.CO
NGO
Morogoro
Lindi
Mtwara
Mwanza
Bukoba
Songea
Pangani
Malagarasi
Cartography by Mike Shandc
MANJESI
LUKWIKALUMESURELIPARAMBA
KIPENGEREKITULOPLATEAU
MIKUMI
UDZUNGWA
KILOMBERO
MAHENGE
RUAHA
USANGU
RUNGWE
KISIGO
MUHESI
LUKWATI
RUKWAKATAVI
LUAFI
MAHALEMTS
UGALLARIVER
GOMBE
MOYOWOSI
KIGOSI
PANDE
SAADANI
UMBA
MKOMAZITARANGIRE
SWAGASWAGA
RUMANYIKA
KIMISI
BIHARAMULO
RUBONDOISLAND
MASWANGORONGORO
SERENGETI
IKORONGO
BURIGI
GRUMETI
IBANDA
KILIMANJAROARUSHA
SELOUS
Biodiversity offsets are one option, where certain negative
impacts are accepted as unavoidable and the company chooses
to proactively undertake conservation activities to accrue
measurable positive environmental impacts in compensation. In
some cases, offsetting may be a more efficient way to generate
significant benefits with greater ease.
Investors should remember that the impact of mining on
biodiversity occurs through both direct and indirect channels, as
the changes effected in the socio-economic environment resulting
from project operations produce their own knock-on effects.
Social
The social impacts of mining are considerable, and usually
project specific. Community relations with mining companies
have been problematic in some instances, with disputes over
land rights, displacement and compensation, and community
aftercare and rehabilitation. Mining operations sometimes result
in the displacement of local communities, and inevitably result
in the creation of new communities around mine sites, which
can stimulate the development of economic hubs. However,
when mining operations cease and the companies leave the
area, the community may remain.
This is, therefore, a key issue for the mine closure stage, but
such matters need to be factored into the earliest stages of
investment, and planned for, rather than being left as an
afterthought. It is necessary to ensure that the local community
is not completely dependent on mining, and that the local
economy is sufficiently diverse to support the population
afterward and not leave a legacy of dereliction and the “ghost
towns” that characterised mining booms in former years. The
terms of aftercare and rehabilitation following mine closure is a
significant and contentious issue. Education and awareness of
the rights of local communities is vital to ensure they have
realistic expectations about what benefits they can expect to
accrue from local mine sites, and that they are adequately
equipped to negotiate agreements with mining companies to
the benefit of both parties. Health issues such as HIV/AIDS
prevalence, worker safety, and the impact of mining operations
upon these should also be considered, monitored and planned
for.
Artisanal Mining
ASM also has specific impacts upon the environment. The
extent and cumulative impact of this sector in many African
countries means it can be more physically damaging than large-
scale mining. In some cases an immediate and serious
environmental problem results due to a lack of sophisticated
tools and training which could provide basic health, safety and
environmental awareness and compliance. Mining, Minerals and
Sustainable Development (MMSD) listed potential issues as
follows:
• Mercury pollution
• Direct dumping of tailings and effluents into rivers
• Threats from improperly constructed working apparatus
• River damage in alluvial areas
• River siltation
• Erosion damage and deforestation
• Landscape destruction
Unfortunately, it is not always easy to discern which impacts are
the result of large-scale or ASM operations, which poses serious
accountability issues and presents a source of conflict.
The ICMM and the World Bank hosted the Communities and
Small-Scale Mining Initiative, and have produced a guidance
document specifically tailored to the relationship between large-
and small-scale miners entitled ‘Working Together- how large-
scale miners can engage with small-scale miners’.
For all the above issue areas, it is important to not only consider
how to avoid, mitigate and ameliorate negative impacts, but
also how to exploit the opportunities available to make a
positive impact - for example by building healthcare facilities for
local communities, running training and educational courses,
sourcing materials from local suppliers or setting aside areas for
biodiversity projects.
In the case of artisanal mining there is scope for training and
mentoring ASM communities to improve their standards and
possibly provide a source of revenue, which would allow
investment in technological improvements, by encouraging
them to supply large-scale operations. ASM communities are
often the location of serious development issues, including child
labour and gender discrimination. They are invariably vulnerable
communities driven by poverty; however, they have a far longer
history of mining in Africa than multinational mining
corporations.
Although not yet working In Tanzania, WWF have a programme
addressing ASM issues in and around protected areas and
critical ecosystems called ASM-PACE. Details can be found at
www.asm-pace.org.
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incinerators. This should be considered during the procurement
process, where investors may be able to negotiate disposal with
chemical suppliers. However, opportunities to contribute to
waste management standards and the management of
hazardous materials more generally should also be sought.
Land Clearance
Land clearance is usually required at various stages of the
mining process, from exploration through to mine closure, as
infrastructure and people are moved in and out of different
areas. Land not only has to be cleared for the site of extraction
itself, but also for the roads and rail links in and out, and the
construction of buildings to house site and community facilities,
as well as accommodation. This process results in habitat
fragmentation, which may have significant adverse effects on
community and wildlife, including migratory species.
Land rights are often contentious and can be a major source of
conflict between the local community and the mining company.
The 2008 Bomani Report identified several conflicting issues in
this respect, including the failure of government to establish a
timeline for compensation; the limited awareness amongst
citizenry of rights and responsibilities regarding compensation;
the insufficient consideration given to local communities and
their use of the land; and the neglect of citizen involvement in
the decision-making process, as well as in the process of valuing
the land.
Energy Use and Climate Change
Mining operations require high levels of energy consumption,
which negatively impact upon the environment. It is therefore
necessary for mining companies and governments to
encourage, promote, and facilitate efficient methods of
exploration and extraction, which not only minimise costs for
the operating company but also minimise harm to the
surrounding environment and global systems, and thus limit the
overall contribution to climate change. The impacts of climate
change both now and in the future present a further challenge
to mining companies that may have to prepare for and react to
droughts and other extreme weather events, which are likely to
get worse with time, as the impacts of climate change intensify.
As Tanzania faces an acute energy crisis, there are also access
questions to consider. Nevertheless, mining companies can use
any opportunity to extend power infrastructure to the benefit of
local communities.
In South Africa, faced with grid electricity supply blackouts,
several mining companies are tapping into renewable resources
through measures such as increasing the use of solar
installations for project needs. Such measures serve the dual
purpose of reducing operational reliance on inadequate national
power supplies and demonstrating the company’s commitment
to sustainability.
Noise and Vibrations
Loud noises and vibrations are a feature of the mining process,
particularly during the drilling, blasting, and construction
processes. This has an impact on workers’ health, as loss of
hearing and permanent damage may occur. It also has further
safety implications, as the noise of mining activities can obscure
other important sounds, such as emergency alarms and worker
communications. There is also a knock-on effect for the
surrounding wildlife and local communities, which will be
disrupted, resulting in impacts on migration etc.
Biodiversity
The United Nations Convention on Biodiversity defines
biodiversity as: “The variability among living organisms from all
sources including inter alia, terrestrial, marine and other aquatic
ecosystems and the ecological complexes of which they are
part; this includes diversity within species, between species and
of ecosystems”. Biodiversity is of vital importance given the
inter-connectedness of life and living organisms, and its neglect
can have a series of knock-on effects which may have
unintended consequences. The ICMM has produced a guidance
document specifically tailored to biodiversity considerations in
the mining process entitled Good Practice Guidance for Mining
and Biodiversity.
Tanzania is one of the most unique places in the world, with
famous migrations of large numbers of herbivores and
accompanying predators. These routes rely on connectivity in
the landscape, and such important corridors act as passageways
for species to move from one area to another, although they are
not always protected.
Biodiversity is a key consideration at all stages of the mining
process, as the exploration stage often involves clearing land
and creating access routes, although mine closure and
rehabilitation may present an opportunity to make a positive
impact on biodiversity in the area if sensitively done, as the
importation of flora and fauna foreign to the local environment
has, in the past, resulted in further damage.
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• Preservation of any outstanding geological, physiographical,
ecological, archaeological, or historical features of the
burdened land
• Preservation of scenic view
• Preservation of open space
• To permit persons to walk in a defined path across the
burdened land
• Preservation of the natural contours and features of the
burdened land;
• Prevention/restriction of the scope of any activity on the
burdened land which has its object in mining and working
of minerals or aggregates
• Prevention or restriction of the scope of any agricultural
activity on the burdened land
• Creation and maintenance works on burdened land so as to
limit or prevent harm to the environment
• Creation and maintenance of migration corridors for wildlife
In relation to mining the Act specifies the requirement for EIA
with the following 2005 regulations prescribing the process for
EIA. The Act also stipulates that the National Environmental
Standards Committee, established under the Tanzania Bureau of
Standards (TBS) in 1997, should develop and present the Minister
with standards for water quality, discharge of effluent into water,
air quality, control of noise and vibration pollution, sub-sonic
vibrations, soil quality, control of noxious smells, light pollution,
and other. However, this process is still in its formative stages.
Other Acts of particular relevance include:
The Industrial and Consumer Chemicals (Management and
Control) Act (2003)
This Act details the procedure for registration, certification,
restriction, inspection and management, disposal, prevention of
spills and dealing with spills.
Land Acquisition Act 1967, Land Act 1999, and Village
Land Act 1999
These Acts detail the rights and procedures for dealing with
claims to and ownership of land, as well as assigning
responsibility for governance and regulation of relevant activity
and disputes.
The Water Supply and Sanitation Act No.1 2009
This Act provides for the sustainable management, and
adequate operation and transparent regulation of, water supply
and sanitation services.
Key Actors
Government
Several structures have been set up within the Ministry of
Environment (MOE) and Vice President’s Office (VPO) to
administer the Environmental Management Act, No 20 of 2004.
These are:
• The National Environmental Advisory Committee (NEAC)
• The Directorate of Environment (DOE)
• The National Environment Management Council (NEMC)
In addition, environmental management is the responsibility of
regional administrations and local government authorities (see
Section 15.2.6, EMA 2004). The Minister of Environment has
the overall responsibility for all matters relating to the
environment and for the formulation of policy for the
promotion, protection and sustainable management of the
environment in Tanzania.
Directorate of Environment (in the Vice-President’s Office)
The Directorate of Environment in the Vice-President’s Office
(VPO) is mandated to coordinate, advise and monitor with
regard to various environmental issues and areas. In the
Environmental Management Act (EMA) of 2004 the Director’s
functions are laid out as follows:
1 Coordination of various environmental management
activities;
2 Promotion of the integration of environmental
considerations into development policies, plans,
programmes, strategies and large development projects,
through the use of strategic environmental assessment
(SEA);
3 Providing advice to the government on legislative and other
measures for the management of the environment or the
implementation of relevant international agreements
relating to the environment;
4 Monitoring and assessment of activities to ensure that
environmental management objectives are being adhered
to;
5 Preparing of State of the Environment reports;
6 Coordination of the implementation of NEP.
The Directorate publishes a “State of the Environment2 report
once every two years, as required by the EMA, and is mandated
to co-ordinate plans to undertake Strategic Environmental
Assessments (SEAs). The Directorate retains the right to
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Policy & Legislation
National Environmental Policy 1997
The Ministry of Tourism and Natural Resources took the first
step towards incorporating environmental concerns into
national planning and development in Tanzania, with the
publication of the National Environmental Action Plan in 1994.
The NEAP laid the foundation for the National Environmental
Policy (NEP), adopted in 1997, which seeks to provide the
framework for making the fundamental changes that are
needed in order to incorporate environmental considerations
into the mainstream of decision-making.
The NEP attempts to provide guidance and planning strategies
in determining how actions should be prioritised, and provides
for the monitoring and regular review of policies, plans and
programmes (see SEA). Furthermore, it provides for sectoral and
cross-sectoral policy analysis, so that compatibility among
sectors and interest groups can be achieved, and the synergies
between them exploited.
The overall objectives of the NEP are, therefore, the following:
1 To ensure the sustainability, security and equitable use, of
resources, in meeting the basic needs of present and future
generations, without degrading the environment or
jeopardising health and safety.
2 To prevent and control the degradation of land, water,
vegetation and air, which constitute our life support systems.
3 To conserve and enhance our natural and man-made
heritage, including the biological diversity of Tanzania’s
unique ecosystems.
4 To improve the condition and productivity of degraded
areas, as well as rural and urban settlements, in order that
all Tanzanians may live in safe, healthy, productive and
aesthetically pleasing surroundings.
5 To raise public awareness and understanding of the essential
links between the environment and development, and to
promote individual and community participation in
environmental action.
6 To promote international cooperation on the environment
agenda, and expand participation and contribution to
relevant bilateral, sub-regional, regional, and global
organisations and programmes, including the
implementation of treaties.
The Environmental Management Act of 2004
The National Environmental Management Act (EMA), No 19 of
1983 started the process of regulating environmental
management in Tanzania. Although draft EIA guidelines and
procedures were produced in 1997 and amended in 2003, the
country lacked a coherent code of supporting legislation to
enable effective environmental management. Therefore a study
was initiated with funding from the World Bank, known as the
Institutional and Legal Framework for Environmental
Management Project.
This culminated in the promulgation of the Environmental
Management Act (EMA), No 20 in 2004. The EMA repeals the
National Environmental Management Act of 1983 and is in
accordance with the East African Community (EAC) Treaty on
the Environment and Natural Resources. At the outset this Act
clearly states the right of Tanzanian citizens to a ‘clean, safe and
healthy environment’, the implication is, therefore, that
violations of these regulations can be construed as being
violations of human rights. The EMA also states that decisions
taken under this Act must be in accordance with a set of
environment and sustainable development principles as follows:
• Precautionary Principle
• Polluter Pays Principle for full social and environmental cost
incurred
• Ecosystem Integrity
• Public Participation in developing policies, plans and
processes for the management of the environment
• Principle of Access to Justice
• Principle of Inter-Generational Equity and Intra-Generational
Equity
• Principle of International Co-operation in management of
resources shared by two or more states
• Principle of Common Differentiated Responsibility
The Act assigns responsibilities for environmental management
in Tanzania, including the role of local standing committees,
local government, and village development committees. Under
the Act, each local authority is required to prepare an
Environmental Action Plan to fit below the current NEAP. There
is also a provision included for the issuing of conservation orders
in the following cases:
• Preservation of flora and fauna
• Preservation of the quality and flow of water in a dam, lake,
river or aquifer
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body has an upwards and downwards advisory role, whilst local
governmental authorities are responsible for devising
Environmental Action Plans (EAPs) in accordance with the
National Environmental Action Plan (NEAP).
Section 36(1) of the EMA specifies that each city, municipality,
district, and town council must appoint an Environmental
Management Committee and an Environmental Management
Officer who will be responsible for:
1 The enforcement of the EMA in his/her area of responsibility
2 Promotion of environmental awareness regarding the
conservation and utilisation of natural resources;
3 Gathering and managing environmental information;
4 Preparing State of the Environment reports;
5 Monitoring the preparation, review and approval of EIAs.
The EMA also allows for the establishment of township, ward,
village, mtaa and kitongoji development committees and
officers to manage the natural resources of their areas and to
ensure compliance with the EMA However, these lower tier
government committees do not have any responsibility for the
EIA process. (Source: Handbook on Environmental Assessment
Legislation in the SADC Region)
Non-Governmental Organisations
Tanzania Natural Resource Forum TNRF
TNRF was formed in 2001 as the Wildlife Working Group
(WWG) by a small, informal group of people wishing to
promote a new rights-based approach for addressing critical
natural resource management issues in Tanzania. This approach
holds that natural resource management challenges should not
be simply addressed as technical, or isolated 'conservation'
issues. Instead, resource management needs to be approached
holistically, taking into consideration the integrated
management of different resource bases, such as forests,
fisheries, wildlife and rangelands.
Critically, there is a great need to engage with the fundamentals
upon which the management of natural resources are
dependent - governance, democracy and livelihoods. These key
factors are integral to TNRF's promotion of a devolved “rights-
based” approach, necessary for achieving its vision of equitable,
sustainable and transparent management of Tanzania's natural
resources.
In October 2005, the Wildlife Working Group became the
Tanzania Natural Resource Forum, in recognition of the fact that
many of the issues that the WWG was working on were
common to all natural resources, and that a holistic and cross-
sectoral approach was required. In February 2006, the TNRF
became an independently registered NGO, with its own
membership and governing steering committee.
The TNRF is a collective civil society-based initiative, dedicated to
improving the management of natural resources in Tanzania
through increasing the information flow, facilitating collective
action and advocating action in support of this.
Lawyers' Environmental Action Team (LEAT)
The Lawyers' Environmental Action Team, established in 1994,
claims to be the first public interest environmental law
organisation in Tanzania. Its mission is to ensure sound natural
resource management and environmental protection in
Tanzania.
The LEAT carries out policy research, advocacy, and selected
public interest litigation. Its membership largely includes lawyers
concerned with environmental management and democratic
governance in Tanzania.
The LEAT publishes research reports and policy briefs on
environmental issues facing Tanzania and East Africa, and
champions the cause of the “citizens of Tanzania, who have
had their lives and livelihoods destroyed or expropriated in
favour of foreign mining interests”. LEAT activities include the
representation of groups of small-scale miners from the
Bulyanhulu mine area that were allegedly forcibly evicted from
their mines in 1996 to make way for development by the
Kahama Mining Corporation Ltd, for which LEAT has called on
the Tanzanian government to allow an independent
international investigation of alleged human rights abuses
during the eviction. The LEAT has also campaigned against the
alleged removal of artisanal miners from the Mererani Tanzanite
Mine area, the only place in the world where tanzanite
gemstones are mined, and which has, for many years, been the
site of conflicts between the artisanal miners and a South
African-owned company, AFGEM.
PAMS Foundation
An NGO that helps sustain and conserve biodiversity,
wilderness, habitats and ecological processes through actions
that benefit nature and communities.
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intervene when concerned about activities that are negatively
impacting upon the environment, meaning that the Directorate
of Environment is a key stakeholder in all mining projects.
National Environment Management Council (NEMC)
The NEMC was established in 1983 following the enactment of
the National Environmental Management Act, No. 19. Its role is
to oversee the management and monitoring of environmental
issues. In 2004, the National Environmental Management Act
was repealed with the enactment of the Environment
Management Act, No.20. This Act provided NEMC with the
mandate to “undertake enforcement, compliance, review and
monitoring of environmental impacts assessments, research,
facilitate public participation in environmental decision-making,
raise environmental awareness and collect and disseminate
environmental information”.13 However, the NEMC lacks the
capacity to adequately fulfil its functions.
NEMC comprises a Board, including a Chairman appointed by
the Minister, the Director of Environment and seven other
members. The Director-General acts in the capacity of Chief
Executive Officer.
The National Environmental Advisory Committee (NEAC)
Part III (a) of the Environmental Management Act (EMA), No.
20. of 2004, sets out the composition, powers and functions of
the National Environmental Advisory Committee. The NEAC is
an advisory body to the Minister on all matters relating to the
protection and management of the environment, and
environmental degradation (see Figure 15.1). The NEAC is
composed of members representing various fields of
environmental management from the public and private sectors
and civil society.
Wildlife Division (Tanzania Ministry of Natural Resources
and Tourism)
The Wildlife Division is responsible for the management of
wildlife resources and their habitats to ensure the sustained and
equitable benefit of Tanzanians.
Tanzania National Parks (TANAPA)
The TANAPA Manages Tanzania’s 15 national parks.
Inter-sectoral Cooperation
Inter-sectoral co-operation is achieved through the
establishment of an Environmental Section in each line ministry,
headed by a Sector Environmental Co--ordinator.258 Each
Environmental Section is responsible for:
1 Ensuring compliance or the line ministry with the EMA;
2 Ensuring all environmental matters contained in other laws
falling under the jurisdiction of the sector Ministry are
implemented and reported to the DOE;
3 Liaising with the DOE and NEMC on all environmental
matters in order to achieve cooperation and shared
responsibility for environmental governance
Of specific relevance to the administration of EIAs, the
Environmental Sections must:
1 Conduct Strategic Environmental Assessments (see the
section on SEAs) on sectoral legislation, regulations, public
participation and strategies developed by the sector
ministry;
2 Ensure that sectoral standards are environmentally sound;
3 Oversee the preparation and implementation of EIAs for
investments in their sector;
4 Ensure compliance with various regulations, guidelines and
procedures relating to environmental management; and
5 Submit a biannual report to the DOE on the state of
environmental management in their sector.
Regional and Local Administration
The EMA aims to ensure that environmental management is
devolved down to the regional, town and village levels of
government through the creation of the EMA 259 Part III (f) of
the EMA on administrative structures responsible for the
environment in each tier of government.
The regional secretariats are responsible for the coordination of
all advice on environmental management in their respective
regions as well as for liaison with the DOE and the Director
General on the implementation and enforcement of the EMA.
The tasks of the Regional Secretariat are performed by the
Regional Environmental Management Expert, who acts as the
link person between the region and the DOE.
District Authorities
The responsibilities and mandates of district authorities are in
accordance with the 2004 EMA and the 2010 Mining Act,
under which there is a decentralised management system in
place for natural resource management, making it imperative to
engage at the district and village level. A regional secretariat
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Tanzania and Mozambique – to implement the following
strategies:
1 Strengthening natural resources, governance for effective
management of marine fisheries and coastal forest resources
and improved effectiveness of institutions in the
implementation of policies and regulations.
2 Adoption of a sustainable trade and investment approach.
3 Securing the remaining high value conservation areas in
Coastal East Africa, through a number of initiatives,
including protected areas and land use planning.
It engages in extractive industries work through its work
programmes in Trade and Industry, China and Africa and
Natural Resources Governance.
Standards, Guidelines and Fora
International
Intergovernmental Forum on Mining, Minerals, Metals
and Sustainable Development
Tanzania is a member of the 50 country Intergovernmental
Forum on Mining, Minerals, Metals and Sustainable
Development.
At the world summit held in Johannesburg in 2002, a number
of countries and private sector leaders with an interest in mining
decided to take action to change the perception of mining as a
threat to development and to demonstrate that the mining
sector is a potentially significant driver of development. A
section on mining/metals was included in the negotiated text of
the Johannesburg Plan of Implementation (JPOI). This projects a
positive perspective on the contribution of mining to sustainable
development. It also identifies priorities that need to be
addressed in order to enhance the potential contribution of
mining to sustainable development.
To mobilise and coordinate efforts to put the JPOI into more
widespread effect, a partnership was formed amongst
interested countries. Their efforts led to the 2005 inauguration
of the Intergovernmental Forum on Mining, Minerals, Metals
and Sustainable Development, formerly known as the Global
Dialogue on Mining/Metals and Sustainable Development. The
Forum is now the leading global intergovernmental policy
forum on mining and sustainable development.
The objectives of the Forum are to improve, enhance, and
promote the contribution of the mining, minerals and metals
sector to sustainable development and poverty reduction.
Through sharing experiences and developments across the
sector, the Forum helps enhance capacity for the improved
management of member countries’ mineral wealth.
IFC Performance Standards
The IFC has a series of eight performance standards which set
out client roles and responsibilities for project management, and
which must be met to attain and/or retain IFC support.
Performance standards cover Social and Environmental
Assessment and Management Systems, Labour and Working
Conditions, Pollution Prevention and Abatement, Community
Health, Safety and Security, Land Acquisition and Involuntary
Resettlement, Biodiversity Conservation and Sustainable Natural
Resource Management and Indigenous Peoples and Cultural
Heritage. These performance standards form part of the IFC’s
Sustainability Framework (2012 edition).
IFC Environmental, Health and Safety Guidelines for
Mining
This document provides guidance on addressing and mitigating
environmental impacts that may arise, either directly or
indirectly, from mining activities, from exploration through to
mine closure. It refers readers to other IFC guidance documents
in some cases e.g. the management of hazardous materials.
Several mining companies, for example AngloGold Ashanti at
Geita Gold Mine, use these standards alongside national
environmental management requirements, and seek to ensure
their practice meets whichever is the most stringent. The IFC
also uses these as a basis for screening potential investments
and evaluating their environmental impact.
ISO
The International Standards Organisation has produced several
series of standards of relevance to the mining sector. The ISO
26000:2010 series provides guidance on social responsibility
and the ISO 14000:2004 series provides a standard on
environmental management systems.
Berlin II 2002
This is a review of original Berlin guidelines which were
developed following the 1992 United Nations Conference of
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Its aims is for Tanzania to be a country where the value of its
natural resources, and their benefits, are understood and
upheld by all, and for best practice management principles to
be applied in conserving natural resources in an ethical manner
in all the areas where they work internationally.
It does this by helping identify new, and ensuring appropriate
management of existing conservation areas in Tanzania, playing
a leading role in helping improve management effectiveness in
East Africa, building the capacity of rangers in Tanzania to
improve the effective functioning and conservation status of the
Ruvuma Wilderness Trans-boundary Conservation Area.
It is in this last area that it has been addressing mining-related
issues – by monitoring the uranium mining proposal for the
periphery of the Selous Game Reserve and World Heritage Site.
Policy Forum
Policy forum is a network of over 100 NGOs in Tanzania that
collaborate to promote poverty reduction, equity and
democratisation, through influencing policy.
Tanzania Wildlife Research Institute (TAWIRI)
TAWIRI conducts research on wildlife in Tanzania to provide
scientific information and advice regarding the sustainable
conservation of wildlife.
Wildlife Conservation Society of Tanzania (WCST)
Founded in 1998, the Wildlife Conservation Society of Tanzania
operates at the local and national level to promote conservation
through education, information-sharing, advocacy and capacity
building.
WWF Tanzania
The World Wildlife Fund has an office in Tanzania, which works
on a number of conservation projects in areas such as the
Udzungwa Mountains and the Mara River.
Areas of concern in Tanzania include the following:
Illegal and unsustainable deforestation: A majority of
Tanzanians rely on wood and agricultural residues for their
energy needs, which leads to deforestation and environmental
degradation. In 2007, TRAFFIC showed that organised illegal
timber crime is causing millions of dollars’ worth of timber
revenue to be lost each year in Tanzania. Furthermore,
deforested areas no longer provide a home for wildlife, leading
to biodiversity loss, and are also susceptibility to soil erosion.
Overgrazing and unsustainable range management: Large
cattle herd size and many goats may be a blessing for farmers,
but when their numbers exceed the area’s natural carrying
capacity, this can turn into a serious disadvantage. When
vegetation disappears, the ground becomes exposed to soil
erosion, greatly reducing its ability to grow new plants. Eroded
soil also runs into rivers and out to sea, where it smothers
sensitive corals.
Pollution: In Tanzania’s major towns and cities, solid and liquid
wastes are left untreated. As a result, air and water are
contaminated with pollutants, a major health hazard for those
who live in under-privileged areas. An example is Dar es Salaam,
where few people are connected to a sewage system. The few
sewage systems that exist disgorge their waste directly into the
ocean, affecting marine habitats and the species that live there.
Illegal and unsustainable wildlife exploitation: In village
areas, people often resort to poaching. Sometimes, this
happens in retaliation to wildlife attacks which involve the
destruction of crops, and hence livelihoods. Such conflicts
between humans and wildlife are also straining relations
between wildlife authorities and local people.
WWF Coastal East Africa Initiative
The WWF has established a major regional programme - the
“Coastal East Africa Initiative” (CEA-I), which is based in Dar es
Salaam, Tanzania, but works on biodiversity conservation and
sustainable development issues across the Kenya, Tanzania and
Mozambique region.
The Coastal East Africa Initiative (CEA-I) is one of fourteen
large-scale programmes that the WWF Network has established
to achieve transformational change by working at local,
national and international levels, linking work on the ground
with advocacy work and engagement.
The vision for the CEA-I is that Coastal East Africa’s unique and
globally significant natural resource base provides the essential
goods and services that support biodiversity as well as economic
development and the livelihoods of present and future
generations. In order to achieve this vision, WWF will works
with governments and other key partners in the region – Kenya,
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and anti-corruption policies. The initiative has in excess of 8,700
corporate participants and stakeholders, from more than 130
countries that are committed to aligning their operations and
strategies around these principles. The goal of the initiative is to
ensure that industry progresses in a way that derives socio-
economic benefits for a wider audience. Global Compact
objectives to achieve this goal are to mainstream the principles
in business activities globally, and to catalyze actions in support
of MDGs. Participants also commit to a transparency and
accountability policy to ensure continued membership. Out of
the 10 principles, 3 focus specifically on the environment. These
are as follows:
• Businesses should support a precautionary approach to
environmental challenges.
• Businesses should undertake initiatives to promote greater
environmental responsibility.
• Businesses should encourage the development and diffusion
of environmentally friendly technologies.
Equator Principles
Launched in 2003, the Equator Principles is a voluntary
framework for credit risk management in determining, assessing
and managing environmental and social risk in project finance,
which applies to participating financial institutions themselves,
rather than to the underlying investments. They were revised in
2006 to have a greater focus on social issues such as enhanced
consultation, disclosure and grievance mechanism requirements.
An additional principle was also included requiring public
reporting, and the threshold for applicable projects was lowered
to US$10mn. The vast majority of project finance is now issued
by EP banks, and a list of members can be found at
www.equator-principles.com.
Leading Practice Sustainable Development Program for
the Mining Industry
See Chapter One for more details.
Beyond 2012A possible review of the EIA process in Tanzania, to make it
more efficient, is under consideration, as is a revision of the
2004 EMA; both of these could have a significant impact of the
environmental management of the mining sector.
ConclusionDespite the existence of both national and international
regulations, standards and guidelines, comprehensive
implementation of these is not universal within the mining
sector in Tanzania. Government bodies overseeing
implementation of regulations, standards and guidelines lack
the resources required to fully support investors in
understanding the necessary requirements, or to hold to
account investors that fail to do so. This means there is an
implementation deficit, and mining investors must be aware
that the onus will therefore fall upon them to proactively ensure
compliance and demonstrate good practice. Actors in the
mining sector need to clearly understand the role of both the
Directorate of the Environment and the NEMC, who are
ultimately responsible for the awarding or refusal of an EIA
certificate and its continued validity, without which operations
will not be permitted to continue.
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Environment and Development, held in Rio de Janeiro, and the
1991 Berlin round table on Mining and Environment. The
document details processes that may be used in regulating,
monitoring and controlling the incorporation of environmental
considerations into mining operations through various means,
from the legally-binding to the voluntary.
GRI Guidelines - Mining and Metals Supplement
The most recent version of the GRI Sustainability Reporting
Framework was released in March 2011, reworked from the
original 2006 version. Developed by a multi-stakeholder group
which included representatives from industry, charities, NGOs
and international organisations, such as the World Bank, the
Mining and Metals Sector Supplement applies general G3
guidelines on reporting to the mining and minerals sector
specifically, and covers projects from the exploratory to closure
stages. The guidance contained within the document sets out
standards for reporting principles and performance indicators
for economic, environmental, and social disclosure. From the
end of 2011 companies in the sector must adhere to these
guidelines in order to achieve GRI Application Level 1.
Topics covered within the supplement include:
biodiversity/ecosystem services, emissions, effluents and waste,
labour, indigenous rights, community, artisanal and small-scale
mining, resettlement, closure planning and materials
stewardship
ICMM Good Practice Guidance for Mining and
Biodiversity, Sustainable Development Framework,
Climate Change Programme, Good Practice Guide:
Indigenous Peoples and Mining, Community Development
Toolkit, Planning for Integrated Mine Closure Toolkit
In 2002 the ICMM adopted the ICMM Toronto Declaration
which asserted the link between successful mining and metals
operations, good practice community engagement and
environmental practice. The ICMM Sustainable Development
Framework consists of 10 principles and 7 related position
statements for members to implement in their company and
operations, a public reporting commitment which directly
relates to the 10 principles and position statements in line with
the GRI Sustainability Reporting Framework, and independent
assurance to ensure third-party verification of company
adherence to the principles. ICMM member companies are
required to implement these steps as a condition of
membership. Member companies are also required to make
public their commitment to improving sustainability in their
operations and are committed to report their progress in this
respect on an annual basis. By becoming members they sign up
to ICMM sustainability principles.
The ICMM has produced a number of guidance documents and
tools relating to the environmental considerations in the mining
sector as listed above such as the Good Practice Guidance for
Mining and Biodiversity which focuses on risks and measures
specifically related to biodiversity in the mining sector, providing
a more detailed analysis and level of information, as well as
incorporating a large number of case studies on the topic.
International Cyanide Management Code
Developed by a multi-stakeholder steering committee under
UNEP, the International Cyanide Management Code is a
voluntary programme for gold mining companies, aimed at
ensuring the safe management of cyanide by members. Third-
party auditing is required for certification.
UN Global Compact
Supported by the UN General Assembly, the UN Global
Compact is a strategic policy initiative framed around 10
principles concerning human rights, labour, the environment
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The 10 Principles
1 Implement and maintain ethical business practices and
sound systems of corporate governance
2 Integrate sustainable developments considerations within
the corporate decision-making process
3 Uphold fundamental human rights and respect cultures,
customs and values in dealings with employees and others
who are affected by our activities
4 Implement risk management strategies based on valid
data and sound science
5 Seek continual improvement of our health and safety
performance
6 Seek continual improvement of our environmental
performance
7 Contribute to conservation of biodiversity and integrated
approaches to land use planning
8 Facilitate and encourage responsible product design, use,
re-use, recycling and disposal of our products
9 Contribute to the social, economic and institutional
development of the communities in which we operate
10 Implement effective and transparent engagement,
communications and independently verified reporting
arrangements with our stakeholders
Equator Principles
Principle 1: Review & Categorisation
Principle 2: Social and Environmental Assessment
Principle 3: Applicable Social and Environmental Standards
Principle 4: Action Plan and Management System
Principle 5: Consultation and Disclosure
Principle 6: Grievance Mechanism
Principle 7: Independent Review
Principle 8: Covenants
Principle 9: Independent Monitoring & Reporting
Principle 10: EPFI Reporting
IntroductionInvestors in other sectors are first required to register with the
Tanzania Investment Centre (TIC), a body designed to promote
and facilitate investment in Tanzania. However, in the case of
the mining sector, the TIC can only provide an advisory role to
the investor and they will be referred to the Ministry of Minerals
and Energy (MEM) in order to seek the required permits and
mineral rights for their proposed operations. Without approval
from the Ministry, the investors cannot proceed with their
operations. To obtain approval to commence mining, the
investor must obtain an EIA certificate which is required for
certain projects under the 2004 EMA. A list of project types for
which an EIA certificate is mandatory can be found in the 2005
EIA and Audit Regulations, and includes those in the extractives
industry. Some other projects associated with mining projects,
e.g. roads, power generation and reticulation may be subject to
screening to determine whether or not they require an EIA, and
what level of EIA must be undertaken. These are also listed in
the same document. The Government has also set aside large
areas which have been divided into Primary Mining Licenses and
are intended for small-scale miners. These are issued without an
EIA despite of the cumulative impacts frequently being very
significant.
SEA
“In harnessing depleting natural assets for the well-being
of ordinary citizens there is no critical decision, there is a
decision chain. You might suppose that the first and
overarching decision would be whether to extract natural
resources at all”
Paul Collier, “The Plundered Planet”, 2010
The purpose of this Guidance is not only to mainstream
environmental and sustainability factors into project level
decision-making, but also to upstream those factors into the
strategic and policy level decisions that are made prior to
detailed project formulation, and which ultimately frame project
implementation. As such this Guidance employs some of the
principles of Strategic Environmental Assessment (SEA).
SEA procedures help decision-makers broaden high-level
planning from single sector approaches to a more integrated
approach so that policies in tourism or conservation, for
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• Identification of ecologically sensitive and protected areas;
• Identification and description of communities around the area;
• Existing socio-economic conditions;
• Existing economic activities and infrastructure;
• Proposed developments, including long-term scenarios and
the cumulative effects of a number of different
developments in the same sector;
• Infrastructure and resources required to service these
developments;
• Potential environmental and social impacts of the proposed
development;
• Recommendations for land reclamation and limitations on
development in different areas.
The SEA is reviewed by the DOE, who prepares a report on the
adequacy of the SEA and makes recommendations to the
Minister. If favourable, the Minister will approve the SEA report
and will forward his or her comments and recommendations to
the ministry responsible for the development.
Tanzania is developing the capacity to apply SEA to important
strategic decision-making. It can be anticipated that SEA will be
increasingly applied to the development of, inter alia, mineral
policies in Tanzania, and work is already underway, led by the
World Bank, to build the capacity for this.
Major Impacting ActivitiesThe nature and extent of environmental impacts depend on the
categorisation of the mining project, and there is a significant
distinction to be drawn between the potential and/or actual
impacts of various kinds of mining operation. Firstly, this
depends on location i.e. whether the project is based offshore,
by the coast, or near rivers, forests, mountains and/or deserts.
However, it also depends on the relative volume and value of
the mineral. For example, small volume but high value
operations such as diamond, gold and gemstone mining will
undoubtedly have different characteristics to high volume low
value projects, for example for coal, iron ore, copper and nickel.
Cumulative and indirect impacts must also be carefully
considered in the identification, assessment, planning and
monitoring phases. Environmental risks and impacts should not
be evaluated in isolation of one another, or the full cost of
proposed activities will not be understood and the opportunity
for potential positive synergies might be missed.
EIAs and EMPsThe EIA process is conducted and supervised by NEMC and is
designed to take into account environmental, social, cultural,
economic and legal considerations. As stated in Clause 16 of
the 2005 EIA and Audit Regulations, the EIA study will:
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example, take cognizance of policies and proposals in the
extractives or agricultural sector. Through broader and more
transparent and participatory approaches across sectors SEA’s
can identify cumulative impacts, potential synergies and more
coordinated ways to achieve sustainability. They can also better
align decisions with over-arching national strategies such as
Poverty Reduction Strategies
SEA principles and procedures are applied at the very earliest
stages of decision-making to help formulate policies and plans
and to assess their potential development effectiveness in the
context of sustainability. In broad terms, SEA is applied to
policies, plans and programmes, whereas EIA procedures are
applied much later in the decision-making hierarchy, to project
level decision-making. SEA is a complement to EIA, not a
substitute for it, but by addressing the key strategic issues prior
to project specific details it serves to help streamline and frame
EIA processes- a big advantage in a country like Tanzania which
has very limited capacity for comprehensive EIA systems and
reviews that can delay project level decision making. SEA
assesses the capacity of government institutions to effectively
manage the policy, plan, programme, or indeed investment in
its implementation.
SEA encourages the systematic and comprehensive evaluation
of broad development options and helps identify new
opportunities, in contrast to the predominant focus of EIA on
mitigating negative impacts. Further benefits of SEA are that it
provides the environmental evidence to support more informed
decision-making. It helps build stakeholder engagement in the
earliest stages of planning and at the investment decision-
making point. In this way it helps civil society to engage in
proactive discussions about investment proposals, rather than
limiting reaction to decisions already made where the only
recourse may be campaigns, conflicts and adversarial relations.
The key reference on SEA is the OECD’s 2006 DAC Guidelines
and Reference Series ‘Applying Strategic Environmental
Assessment- Good Practice Guidance for Development Co-
operation’.
A contribution to supporting improved governance of natural
resources, SEA supports the first precept of the 2010 Natural
Resource Charter: “The development of a country’s natural
resources should be designed to secure the greatest social and
economic benefit for its people”. However, it brings in the
environmental dimension to ensure those benefits are sustained.
SEA is primarily a government activity rather than private sector.
According to Part VII of the 2004 EMA, a detailed statement
regarding SEA shall be conducted and submitted when
preparing a Bill for enactment of any law that is likely to affect
environmental management conservation, and enhancement, or
the sustainable management of natural resources. The Act
specifically calls for an SEA when “any major mineral or
petroleum resource is identified or when a major hydro-electric
power station or water project is being planned.”
The SEA for a policy, Bill, legislation, strategy, programme or
plan must contain the following information:
1 A full description of the policy, Bill, legislation, strategy,
programme or plan being considered;
2 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;
3 The identification, description and assessment of the likely
effects of alternative means to meet the objectives of the
proposed instrument;
4 The identification, description and assessment of a range of
practicable measures that could be taken to avoid, mitigate
or remedy any adverse (268 Section 101 of the EMA, 269
Section 104(3) of the EMA, 270 Section 105(2) of the EMA)
effects that may result from the implementation of the
proposed policy, Bill, legislation, strategy, programme or
plan being considered.269 The SEA must be submitted to
the Minister once completed, who will direct the DOE to
review the proposed policy, Bill, legislation, strategy,
programme or plan. The DOE must then provide the
Minister with his/her 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 or she must
raise an objection within 30 days with the drafting team of
said document.
The SEA process for a major mining or petroleum project,
hydro-electric power station or water development must be
undertaken by the responsible sector ministry.
The SEA for such a development must include:
• Baseline environmental conditions and status of natural
resources;
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EIA Process
Registration & Submission of Project Brief along with the prescribed fee.
Screening: The screening process determines the level of EIA to be undertaken i.e. full or preliminary and may take up to 45
days from submission of the project brief.
Scoping Stage: A scoping process is undertaken which includes the terms of reference (TORs) to be used in the EIA.
Review of Scoping Report: The scoping report is reviewed and requires approval, including approval of the TORs set out.
EIA Field Visit: A consultant is sent to the site to conduct an EIA. The consultant commissioned must be registered with NEMC
or seek NEMC permission if non-Tanzanian based.
Submission of EIA: At this stage 15 copies of the EIA report must be submitted to NEMC for review.
Review: The submitted EIA report is reviewed. The review process includes a site visit, the cost of which is borne by the investor.
Technical Advisory Committee: A Technical Advisory Committee (TAC) of experts from various relevant fields is convened. They
check the site visit report and evaluate the limitations and restrictions of the EIA conducted.
Feedback: The Committee communicate their findings to the investor, highlighting any inadequacies that exist in the report.
Fine-tuning & Re-submission: The investor has the opportunity to fine-tune the report following feedback provided by the
Technical Advisory Committee.
Submission: The report is submitted to the Vice-President’s Office.
Approval: Following submission, approval for the permit is given or withheld. When issuing an EIA certificate NEMC include
project-specific conditions in addition to the general conditions which come with EIA certificates as standard practice. The
number and content of these conditions vary based on the project and the issues raised during the EIA process.
In addition to standards, the scope of EIAs and EMPs conducted
is also of key importance. A failure by the mining company
and/or consultant conducting the EIA to identify the total area
which may be impacted by operations could result in multiple
problems for the company.
The difficulty in fully delineating project-related impacts,
particularly in the case of cumulative or indirect impacts, or
where several projects exist in close proximity further underlines
the need for SEAs.
Biodiversity Action Plans (BAP)A BAP is a programme that records the biological resources of
an area or region and details a programme for conservation,
addressing threats posed to wildlife and habitats. The Office of
the Vice President (VPO) developed a National Biodiversity
Strategy and Action Plan in 2001. Of related interest, the
Business and Biodiversity Offsets Program is a partnership of
companies, financial institutions, governments and civil society
which undertakes projects to demonstrate how biodiversity
offsets can lead to a more optimal conservation outcome.
Mine Closure and Legacy IssuesMCPs are a necessary requirement as part of the EMP. and are
also subject to regular review. Information on MCPs can be
found in Regulation 206 of the Mining (Safety, Occupational
Health and Environmental Protection) Regulations, 2010. As
there are currently no specific guidelines or criteria on which
mine closure should be made, some companies adopt standards
from other countries, such as Australia. The 2004 EMA also
provides for Environmental Performance Bonds (EPBs),
mandated under the DOE in the VPO, to be deposited in a fund
as security for meeting the conditions of the EMP and
completion of the project to agreed environmental standards.
The Director of Environment retains the right to confiscate this
deposit in the case of a violation of the terms of agreement,
and use it to fund rehabilitation efforts. However, the official
process for this is yet to be established.
International guidance on mine closure can be found in the
ICMM Mine Closure Toolkit, the 2002 World Bank and IFC
report It's Not Over When It's Over: Mine Closure Around the
World and the Post Mining Alliance website
(www.postmining.org)
ConclusionMining companies must ensure they fully understand and
comply with national legislation pertaining to EIAs, EMPs and
MCPs, and more recently EPBs. However, in order to avoid
frustration, delays and ultimately costs, companies should look
to ensure that their operations and review processes meet
international standards.
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a) Identify the anticipated environmental impacts of the project
and the scale of the impacts;
b) Identify and analyse alternatives to the proposed project;
c) Propose mitigation measures to be taken during and after
the implementation of the project; and
d) Develop an Environmental Management Plan (EMP) with
mechanisms for monitoring and evaluating the compliance
and environmental performance which shall include the cost
of mitigation measures and the time frame of implementing
the measures.14
If the EIA certificate is not awarded, the investor has a period of
thirty days from the date of the decision to appeal to the
Environmental Appeals Tribunal. In the case that the investor is
aggrieved by the decision of the Environmental Appeals
Tribunal, there is a period of thirty days in which they may
appeal to the High Court.
Certification is not permanent, and the EIA certificate can be
suspended or revoked if the investor contravenes the
agreement, or the project, or if the manner of project
implementation changes significantly, the project is shown to
pose a serious environmental threat previously unforeseen, or
the information provided in the EIA process is shown to have
been “false, incorrect or intended to mislead”. Where the
project or manner of operation is changed, there may be a
requirement for a new EIA process according to the NEMC’s
decision. The EMP is a necessary part of the EIA process and
must include a Mine Closure Plan (MCP).
Auditing and Monitoring
Auditing is a necessary requirement in order to measure actual
performance against the activities approved in the EMP, help
identify how performance might be improved, and promote
accountability and transparency. As the project lifecycle
progresses and time passes, the nature and extent of
environmental impacts may vary. Auditing is therefore a way of
ensuring that EMPs address such changes, and may also help to
identify, mitigate, ameliorate and compensate for the results of
cumulative and indirect impacts, which may be less
comprehensively achieved in the original EMP. Where projects
are ongoing the investor is required to undertake an initial
environmental audit followed by subsequent environmental
control audit studies as “may be necessary at such times as shall
be agreed upon by the Council and the proponent”. Audits are
conducted by the TMAA. Since environmental audits began in
2010, the TMAA has audited all large-scale mines and twenty-
five medium- and small-scale mines. The audits evaluate project
impact and the success of existing measures and controls to
address potential negative impacts of operations on the
environment and/or health and safety of workers. They also
review the existence of environmental awareness and
sensitisation measures. The EMP documents are reviewed by the
TMAA on site, and are followed by a physical inspection, after
which the findings are communicated and a report is sent to the
MEM and the NEMC. Given the TMAA’s role in the auditing
process, a representative from the body now participates in the
TAC of the EIA process.
There is also a requirement for annual self-auditing, for which a
report must be produced, based on EIA criteria, and submitted
to the NEMC. The self-audit must be conducted by a registered
or NEMC- approved consultant. Further guidance on what
should be included in the audit can be found in the 2005 EIA
and Audit Regulations.
The NEMC is also in control of the monitoring process, in
partnership with the sector ministry, in this case the MEM.
Environmental criteria and phenomena must be assessed for
change, potential change and impact, as well as projects already
underway in respect of their immediate and long-term impacts
on the environment.
The sector Minister also has the power under the 2004 EMA, to
make regulations providing for various areas, including pollution
in consultation with the Minister responsible for the
environment (EMA, 2004, p.134).
International Standards
For many investors, for example the Equator Banks, EIAs must
be completed to international standards, and a peer review is
required for all category A, and appropriate category B, projects
to qualify for financing. The extent to which EIAs fail to meet
international standards will likely correlate to the extra work
that is required in the peer review to fill the gaps. Consultants
should therefore be encouraged to meet international
standards, with the support from experienced external
consultants if required, and it should be a priority to ensure that
these standards and their implications are properly understood,
and resourced with adequate capacity and capability. This will
help companies seeking project financing to avoid delays,
frustrations and resulting cost implications.
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Case Study: Mine Closure
Vale’s Mine Closure and Rehabilitation Centre, Brazil
Vale set up a Centre for Biodiversity Research and
Conservation when the Córrego do Meio mine in Brazil closed
in 2005. The centre is designed for research development and
is focused on conservation and recovery. The project includes
water, waste and revegetation monitoring and will provide
employment to around 140 people from the surrounding
area.
Replanting of original flora, over 3 million seedlings and
revegatation will be undertaken to transform the area with
recycled materials used in any building or rebuilding
processes. In addition, part of the site has been developed
into a museum on the history of mining and the processes
and techniques involved.
Source: ICMM Case Study
Flow Diagram of Investment Process
OPERATIONS COMMENCE
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
Chapter 5 Investment Pathway
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INVESTOR GOES TO TIC
WITH FEASIBILITY STUDYINCLUDING STARTEGIC
ENVIRONMENTALOVERSIGHT AND
SCENARIOS
INVESTOR DIRECTED TO MEM TO OBTAIN
LETTER OF NOOBJECTION
INVESTOR DIRECTED TO NEMC
ENVIRONMENTALIMPACT
ASSESSMENT
EIACertification
FINAL APPROVALGIVEN
EIA Rejected
Suggested Environmental Entry Point - Investor screening
Current Environmental Entry Point
MONIT
ORIN
G
AUDIT
ING
International:
IFC EHS Guidelines for Mining p.5
OECD Waste Management
Australian Government, Department of Industry, Tourism and Resources: Tailings
Management
Air Quality and Management
National:
EMA , 2004, VPO/NEMC
The Environmental Management (Air Quality Standards) Regulations, 2007, VPO/NEMC
The Environmental Management (Control of Ozone Depleting Substances) Regulations,
2007, VPO/NEMC
National Environmental Standards Compendium, Tanzania Bureau of Standards
International:
IFC EHS Guidelines for Mining p.11
Australian Government, Department of Resources, Energy and Tourism: Airborne
Contaminants, Noise and Vibration
Biodiversity
National:
Wildlife Conservation Act, 2009
The Forest Act, 2002, Ministry of Natural Resources and Tourism
Ngorongoro Conservation Area Act, 1978
National Biodiversity Strategy and Action Plan, 2001, VPO, URT
International:
IFC EHS Guidelines for Mining p.9
GRI Biodiversity Criteria GRI biodiversity criteria
OECD Publications on Biodiversity
ICMM Good Practice Guidance for Mining and Biodiversity
UNEP
Australian Government, Department of Industry, Tourism and Resources: Biodiversity
Management
IFC Performance Standards: Biodiversity Conservation and Sustainable Natural Resource
Management
International Convention on Biological Diversity
Business and Biodiversity Offsets Program
Climate Change
International:
OECD Climate Change
ICMM Policy on Climate Change
UNEP
United Nations Framework Convention on Climate Change
Clean Development Mechanism
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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Environmental Checklist Reference Database
Environmental checklist Relevant guidelines/legislation
Permits and Licences
National:
Ministry of Energy and Minerals
Ministry of Water
National Environmental Management Council
Government Chemistry Laboratory Agency
Tanzania Atomic Energy Commission (TAEC)
Energy and Water Utilities Regulatory Authority
Water Management
(Quality, Quantity/Access and Disposal) National:
EMA , 2004, VPO/NEMC and The Environmental Management (Water Quality
Standards) Regulations
Water Supply and Sanitation Act, 2009, Ministry of Water
Water Resources Management Act, 2009, Ministry of Water
National Environmental Standards Compendium, Tanzania Bureau of Standards
Mining (Environmental Protection for Small-Scale Mining) Regulations, 2010
International:
ICMM Guidance on Water Accounting
IFC EHS Guidelines for Mining p.2
WHO
Australian Government, Department of Resources, Energy and Tourism: Water
Management
Noise & Vibrations
National:
National Environmental Standards Compendium (Tanzania Bureau of Standards)
Occupational Health and Safety Act, 2003, MITD/OSHA
International:
IFC EHS Guidelines for Mining p.13
Waste Management
National:
EMA , 2004, VPO/NEMC
Environmental Management (Solid Waste Management) Regulations, 2009, VPO/NEMC
Environmental Management (Hazardous Waste Control and Management) Regulations,
2008, VPO /NEMC
Mining (Safety, Occupational Health and Environment Protection) Regulations, 2010, MEM
Mining (Environmental Protection for Small-Scale Mining) Regulations, 2010, MEM
Industrial and Consumer Chemicals (Management and Control Act (2003), GCLA
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Geology (Soil and Rock Chemistry)
National:
National Environmental Standards Compendium, Tanzania Bureau of Standards
World heritage sites
ICMM members have committed not to mine/ explore World Heritage sites.
Kondoa Rock-Art Sites (2006); ruins of Kilwa Kisiwani and Ruins of Songo; Stone Town
of Zanizbar (2000); Kilimanjaro National Park (1987); Selous Game Reserve (1982);
Serengeti National Park (1981); Ngorongoro Conservation Park(1978)15
UNESCO
Mine Closure and Rehabilitation
National:
The Mining Act, 2010 and Mining Regulations, 2010
EMA , 2004, VPO/NEMC
International:
ICMM Mine Closure Toolkit
It's Not Over When It's Over: Mine Closure Around the World, 2002, World Bank & IFC
Australian Government, Department of Industry, Tourism and Resources: Mine Closure
and Completion
Australian Government, Department of Industry, Tourism and Resources: Mine
Rehabilitation
Health and Safety
National:
Occupational Health and Safety Act, 2003, MITD/OSHA
The Mining Act, 2010 and Mining Regulations, 2010
International:
IFC EHS Guidelines for Mining p.14
OECD Health Policies
ICMM Health and Safety
IFC Performance Standard: Community Health, Safety and Security
Community Engagement
International:
Australian Government, Department of Industry, Tourism and Resources: Community
Engagement and Development
Australian Government, Department of Industry, Tourism and Resources: Working with
Indigenous Communities
IFC Performance Standard: Indigenous Peoples
ICMM Community Development Toolkit
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
6315 UNESCO World Heritage List
Hazardous Materials
National:
EMA, 2004, VPO/NEMC
The Explosives Act, 1963
The Atomic Energy Act, 2002
Industrial and Consumer Chemicals (Management and Control Act), 2003
Environmental Management (Hazardous Waste Control and Management) Regulations,
2008
International:
IFC EHS Guidelines for Mining p.8
International Cyanide Management Code
Global Mercury Project
OECD Chemical Safety
UNEP: Harmful substances
Australian Government, Department of Resources, Energy and Tourism: Cyanide
Management
Australian Government, Department of Resources, Energy and Tourism: Hazardous
Materials Management
Australian Government, Department of Industry, Tourism and Resources: Managing
Acid and Metalliferous Drainage
Energy Use
National:
Electricity Act, 2008, MEM/TANESCO
Petroleum (Exploration and Production) Act, 2008, MEM/TPDC
Petroleum Act, 2008, MEM/ TPDC
Energy and Water Utilities Regulatory Authority Act, 2001, MEM and MOWI
Rural Energy Act, 2005, MEM/REA
Guidelines for Sustainable Liquid Biofuels Development in Tanzania, 2010, MEM
International:
International Institute for Environment and Development: Mining, Minerals and
Sustainable Development p.250
UNEP Resource Efficiency
IFC Performance Standard: Resource Efficiency and Pollution Prevention
Land Use
National:
Land Acquisition Act 1967
Land Act 1999
International:
International Institute for Environment and Development: Mining, Minerals and
Sustainable Development p.141
IFC Performance Standard: Land Acquisition and Involuntary Resettlement
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IntroductionThe mining sector faces significant challenges, including the
difficulty in communicating the link between investment in the
mining industry and Tanzania’s broader socioeconomic
development, the perceived environmental impact of
operations, strained community relations, and a suspicion
towards the private sector that still characterises many parts of
Tanzanian society and is indicative of the country’s legacy of
socialism. This chapter explores such challenges in more depth.
The government’s main objective is the sustainable
development of the country. Investments in mining should seek
to contribute to this goal and minimise negative impacts on the
environment. The purpose of a government risk assessment or
screening of a potential investor is to ensure that the investor
and investment are compatible with the country’s development
goals. By ensuring this compatibility exists from the outset,
project progress should be facilitated.
Investors, on the other hand, will likely have profit maximisation
as their main objective. However, assurance of long-term profit
requires sustainable development, and it is therefore in a
company’s interest to facilitate the process. Recognising this
many companies have CSR schemes in place and/or disclose
relevant information pertaining to the environment and/or
development in sustainability reports, or similar.
The objectives and motivations of companies will differ case by
case, but some general distinctions may be usefully drawn. One
category of company consists of those that are publicly traded.
In this case, the firm’s goals are often firstly to increase
shareholder value, including that of institutional investors, and
secondly to protect the reputation of the company, the sector
and the countries in which they are based, and operate. Value
in the long term will be determined by the company’s ability to
continue to produce efficiently and at low cost. These business
goals and environmental goals are not incompatible, because
cutting costs through increasing resource efficiency, reducing
liabilities and identifying new business opportunities makes
good environmental sense as much as it does good business
sense. The reputation of any company is based on, inter alia,
past performance in managing social, economic, environmental
and political aspects associated with projects. Information on
publicly traded companies is readily available to governments.
Disclosing some of this information is a legal obligation required
by the stock exchanges on which they are listed, but many
Chapter 6 Challenges forGovernment and Investors
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1 Relationship with Artisanal and Small Scale Miners
One and a half million Tanzanians are engaged in artisanal
mining. In many cases, these citizens were mining long before
the influx of new investors. Such miners often operate close to
large-scale mines, meaning it is difficult to delineate environmental
damage as caused by one or the other, throwing up issues of
accountability and responsibility. As ASMs have fewer resources,
less training and less advanced technology the ways in which
they extract and process minerals can have a detrimental effect
on the surrounding area, whether this is through destruction of
forestry, as in the Eastern Arc Mountain area of Tanzania, or the
use of hazardous materials without due safety measures – for
example ASM use of mercury in gold ore processing.
A further issue relating to ASMs can be fractured relationships
between the larger mining companies and ASMs, either as a
result of a disagreement over land rights issues, or perceived
unfair treatment of ASMs in relation to large-scale miners. Such
tensions can lead to difficult working conditions, and even acts
of sabotage and criminality.
In order to not only mitigate, or prevent, such negative impacts,
but also to leverage opportunities to derive benefits for both
parties, mining companies and incoming investors should look
for ways in which they can work together to sustainably
develop the mining sector. Such collaboration could take the
form of agreements to buy up produce by the large-scale miner,
provision of safety and environmental good practice training,
sharing of tools, and/or investment into wider community
relations programmes. Donor support has been forthcoming for
some of these awareness raising programmes, for example the
UK’s Department for International Development (DFID) support
for AngloGold Ashanti’s awareness-raising programme at Geita.
Barrick currently have a programme targeted at ASMs in the
area surrounding North Mara Mine, through which local miners
have access to financing in order to help them legally acquire
land for mining, training, and the appropriate tools and
technology for their operations. The goal of the project is the
promotion of good relations, the safety of workers and
protection of the environment. Further information can be
found at www.barrick.com.
2 Challenging Media Environment
The media can be hostile towards investors in Tanzania. The
legacy of socialism is evident in the commonplace antipathy
towards private sector activities, and in particular towards large
international corporations. This sentiment is amplified within
some of the media, and thus the news spotlight often focuses
on accidents, cases of non-compliance and negative impacts
generated by the sector, or speculation thereupon, rather than
on the benefits that accrue as a result of the mining sector, such
as the contribution made to GDP and the efforts of several
mining companies to support Tanzania’s broader socio-
economic development.
Mining companies therefore have to be extra cautious to not
only ensure compliance but to communicate this successfully to
others. By being proactive in developing and communicating
company messaging on environmental considerations, they will
be able to exercise greater control over how stories develop.
Strong examples or case studies are needed to ensure the
tangibility of this messaging, and thereby its credibility.
The Journalists Environmental Association of Tanzania (JET)
brings together individuals focusing on environmental matters.
JET is an environmental NGO watchdog, dedicated to raising
public awareness on sustainable management of natural
resources. It was registered in 1991 to collect information on
the environment and sustainable development, and disseminate
this through JET publications and other media. It provides a
forum for people to learn and exchange ideas on environment
and sustainable development, and to disseminate environmental
education and stimulate public debate on sustainable
management of natural resources. WWF has a programme in
place to help develop media capacity throughout the Coastal
East Africa region, and develop journalists’ expertise in reporting
on the extractives sector.
A list of Tanzanian media outlets can be found in Chapter Nine
of this document.
3 Community Relations: Perceptions, Expectations and
Effective Consultation
Local communities often have high expectations as to the
benefits they expect to derive in both the short- and the long-
term from being part of the surrounding community of a mine.
However, there is a low level of awareness as to their rights in
this respect, with particular reference to land ownership. This
can cause considerable issues for mining companies that may
have been granted a licence which locals perceive as being
illegitimate.
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companies now produce voluntary Sustainability Reports or
similar, such as Barrick’s Responsibility Report and AngloGold
Ashanti’s Sustainability Report. EIAs and site-level reports
produced during the auditing process may also provide further
information, companies so structured thus have shareholder
accountability mechanisms built in and have different pressures
from others on disclosing and accounting for sensitive
environmental issues and/or situations. Consultation of the
Global Reporting Initiative requirements, as referenced in
Chapter Three, may assist companies and governments to
establish a suitable level of disclosure.
Many privately owned companies are also driven by wealth
maximisation for the benefit of the owners. However, this may
be focused on generating maximum cash flow from projects,
rather than maximising net asset value. As these companies are
not generally required by law to disclose the details of their
activities it is generally more difficult for government and other
stakeholders to get information on their policies, priorities and
performance.
State-owned enterprises (SOEs) often have a different primary
objective, which may be to channel revenue to governments or
to serve the strategic interests of government, such as securing
a strategic mineral or metal resource. Alternatively, the objective
could be to serve a specific development need. Generally,
information on SOEs requires government-to-government
dialogue.
Each type of investor presents a different challenge to
government in managing the relationship between investor and
country to ensure benefit is sufficiently leveraged for both.
Challenges for Investors
1 Relationship with Artisanal and Small-Scale Miners
2 Challenging Media Environment
3 Community Relations: Perceptions, Expectations and
Effective Consultation
4 Inadequate Capacity, Facilities and Government
Oversight
5 Implementation Deficit
6 Lack of Data and Information
7 Scope Definition
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Case Study: The “China-Angola Model”
Angola is China’s biggest supplier of oil, alongside Saudi Arabia, exporting over US$15bn worth of oil to China in 2009. Angola
also imports a large amount of Chinese goods, with imports increasing from around US$500mn in 2007 to over US$1.5bn in
2009, making China Angola’s third most important trade partner.
Chinese investment in Angola has increased over recent years following the end of the civil war, with around 450 Chinese firms
operating in the country. Investment represents 20% of credit lines in Angola, most of which are for projects at least ten years in
duration and targeted at improvement and development of public works, including the construction of new cities such as
Kilamba Kiaxi.
Many of these large investments represent a different development modality and/or template for investment referred to as the
“China-Angola model”. Under this model concessional loan structures are used in which infrastructure is provided in exchange
for resources and/or the right to explore and extract resources. However, this framework raises some uncomfortable questions
regarding transparency in the extractives industry, as trade-offs are difficult to quantify at the point of negotiation and do not
represent figures that can be disclosed and easily compared to the relative benefit that will be accrued to China from the
resources extracted. This could allow the investor to achieve high returns over a long period, in exchange for the discrete
infrastructure projects undertaken.
Although this model is helping Angola to build much-needed infrastructure, few employment opportunities have been created
for Africans and only limited skills transfer has occurred, thus fuelling speculation on the relative contrast between the long-term
benefits to be accrued by each party.
facilities to support mining companies in efforts to achieve best
practice. Shortages or deficiencies can include everything from
limited access to energy and water to a lack of recycling
facilities. These factors potentially present a further barrier to
company efforts to perform environmentally, and can result in
negative reputational impact for the company, as well as
damage to the environment. However, such deficiencies also
present the investor with an opportunity to implement systems
based on international best practice and/or beyond compliance
methods.
To address this issue, incoming investors need to be aware of
the disconnect between understanding and expectation of the
sector at different levels within government. Mining companies
can work to support the development of government capacity
in order to allow them to better fulfil the oversight role.
However, this must be done sensitively and strategically so as
not to compromise government’s ability to stand in objective
oversight of the sector. The ICMM has produced a Community
Development Toolkit which investors might find instructive in
this respect. Additionally, the CommDev Group, or Oil, Gas and
Mining Sustainable Community Development Fund, funds
capacity building, training, technical assistance, implementation
support, awareness-raising and tool development mechanisms,
and promoted trilateral partnerships between communities,
local governments, and extractive industry companies.
Several steps have been taken to address these issues, such as
the creation of the TMAA to lead the monitoring and auditing
function, with an MOU to share information with NEMC.
5 Implementation Deficit
The above identified that inadequacy of resources, facilities,
oversight and government experience lead to an
implementation deficit regarding sectoral regulations. The
government, with donor support, is continually evaluating its
own performance in implementing the standard environmental
policies, regulations, and procedures that it has in place, and
works to strengthen them where necessary.
Implementation and government capacity is important because
risk assessment does not solely relate to the policies and
practices of inward investors; it also relates to the ability of
government to adequately manage and respond to the risks
posed by a company and an investment.
However, it is a matter of course for a company to state as a key
objective that it will comply with host country legislation. This is,
however, not particularly challenging as it is a non-negotiable.
No company is going to go into a country with a stated aim of
not complying with the host countries legislation. Any investor
genuinely committed to contributing to the growth and
sustainable development of Tanzania should set challenging
objectives of exceeding compliance, which will provide
competitive advantage to those companies operating from, or
supplying into, consumer-conscious and competitive markets.
The costs of efforts beyond compliance and attention to detail
in EIAs in the planning stage, regularly reduce the need for later
re-engineering and repair.
In order to protect against reputational and environmental
damage in this respect mining companies need to be proactive
in developing their internal policies, standards of practice and
where national regulation is missing or insufficient, consider
adopting international standards in their stead. They also need
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‘Insufficient understanding of the nature of the mining
industry itself, including the timeframe in which benefits
may be realized, can lead to unrealistic expectations on
the part of communities, civil society and governments.’
Research Report: Stakeholder Perceptions and Suggestions
Responsible Mineral Development Initiative, 2010
World Economic Forum
Poor community relations can lead to severe disruption and
even be a catalyst of environmental damage itself, as sabotage
efforts can destroy safety mechanisms, such as linings in tailings
dams. Environmental damage can also be a catalyst for
worsening community relations, and therefore it is clear that
efforts by mining companies should pay due consideration to
both environmental and social conditions, in order to have an
effective strategy. Whilst several mining companies have
extended the provision of local services and structures, such as
healthcare and electricity, to the surrounding community, there
is a danger that the expectation becomes that mining
companies should always fulfil these functions, meaning that
where service provision is lacking or inadequate, blame is laid at
the feet of the mining company rather than with government.
African Barrick Gold has experienced particular difficulties with
the local community at North Mara Mine, which has resulted in
a number of people vandalising the mine site and ABG property.
In order to meet the above challenge, it is necessary for mining
companies to invest in effective consultation programmes.
4 Inadequate Capacity, Facilities and Government
Oversight
Another characteristic of the mining sector in Tanzania is the
inadequate capacity at various levels of government. While
NEMC lead the EIA process they have limited time and resources
for follow-up procedures and monitoring, meaning oversight is
prioritised in a reactive, and rarely proactive, manner.
This is detrimental to investors in the long-run who, for
reputational and environmental reasons, would benefit from the
oversight and validation of their mining operations by
government on a regular basis in order to boost their legitimacy
in the eyes of local stakeholders. It also creates a further reason
why investors should seek to ensure their actions meet
international standards and that consultants employed for the
EIA and auditing processes fully understand how to identify and
address environmental issues to this level. Financial institutions
which subscribe to the Equator Principles require a peer review
of impact assessments for mining projects before financing can
go ahead for all category A, and appropriate category B,
projects. Where the underlying work in the EIA is of an
appropriate quality the review is a straightforward process. If
the impact assessment work is inadequate, the review and
subsequent monitoring, including site visits, will add extra cost,
time delays and a frustration factor to the process, and will
likely increase the risk premium
Whilst Tanzanian legislation gives Local Government a
significant role in the supervisory process there is little training
and education at this level, and insufficient effort to ensure
Local Government and communities’ understanding of the
various rights and obligations pertaining to mining companies
and surrounding communities are aligned with those of national
regulatory bodies and government. The comparatively short
history of large-scale, multi-national operations in Tanzania
means that the level of institutional experience of dealing with
the mining sector is limited.
Alongside the dearth in government capacity sits a shortage of
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Case Study: Mining Companies and Civil Society
Building a Sustainable Community Development
Framework in Guinea
(Chamber of Mines, the World Bank, IFC, and others)
As a result of increasing development and exploitation of
mines and associated plants and facilities, this initiative seeks
to evaluate the experiences in Guinea through the diagnostic
experiences of six industrial operations, their developmental
impacts and lessons from successes and constraints on these
projects. Referencing international best practice in community
development associated with mining, and in particular with
bauxite, this initiative seeks to provide a tool to government
and private mining companies to increase the benefits for the
local population. Thorough consultation will be conducted
between communities, mining companies and appropriate
civil society groups. The initiative is expected to provide a
basis for the implementation of an improved community
development framework for the mining sector.
Work cited: www.commdev.org/section/projects/
framework_sd_guinea
Case Study: Participatory Environmental Monitoring at
Marlin Mine in Guatemala
Montana, World Bank and IFC
After the expression of concern by the people over the state
of the mine’s environmental impact, tensions arose between
the mining company and the community. Local water supplies
were especially at risk and in the past, Montana has tried and
failed to establish a community monitoring program as
mandated by the EIA. As a result, Montana initiated the
launch of a Community Environmental Monitoring
Association that would independently validate the
environmental impact of the mine. After thorough
consultation with the mine site’s surrounding communities
and other relevant stakeholders, a Community Environmental
Monitoring Committee was created and the first meeting
took place on September 17, 2005.
Commdev has reported that the project has “overcome early
scepticism” and “developed into an important mechanism in
the communities surrounding the mine, and the inhabitants
view it as the primary source for dealing with and responding
to environmental concerns.”
Source: www.commdev.org/section/projects/
participatory_environmental_mo
implement particular aspects of the decisions that had
been taken. Such situations are inherently conflicted and
can only be resolved if there is the highest possible levels
of understanding of the problems of individuals as well
as high-quality communication between all relevant
authorities who have responsibility for the enforcement
actions. This seems to have been absent in some of the
high profile cases of the past.”
Resource Endowment Initiative: Tanzania Case Study
ICMM, July 2007
3 Facilitate Collection of Data and Information
In order to increase the ease with which investors can identify
and understand opportunities in the mining sector, government
needs to address the dearth of relevant information and data
available. Not only does this lack of information constrict
investor attraction, but it also means that any projects and plans
that do develop are less likely to be sensitive to the
environmental specificities of the Tanzanian context. Resultant
issues and challenges are, therefore, less likely to be identified
early on in the project, limiting opportunities for mitigation or
openings for generating beneficial impacts. The GST was
established with the purpose of obtaining, updating and storing
information and data relating to the mineral resource industry.
However, the government still has a responsibility to drive
efforts in this field, and to ensure both the accessibility and the
availability of information.
4 Sectoral Education and Awareness Promotion
The government should raise awareness of the mining industry
amongst the general population, and in particular aid people to
understand the regulatory context in which companies operate
and the rights communities have in relation to mine sites and
operations.
5 Drive Improvements in the Regulatory Environment
Although Tanzanian regulation covers the consideration and
incorporation of environmental considerations into the
application for mining licences and operations, regulation is still
in its infancy compared to other mining economies. Tanzania
has a lot to learn from the regulation developed and employed
in other countries, such as Norway, where mining companies
are only able to borrow land and not to own rights to it. The
government also has a responsibility to ensure EIAs are
understood as Environmental and Social Impact Assessments
(ESIAs), in order to ensure social issues are given due
consideration, and the importance with which they are held is
strongly communicated to the investor.
6 Promote Early Consideration, Assessment and Action
The key to successful incorporation of environmental
considerations is to ensure this happens early on in the process.
Government can promote early consideration by addressing the
above challenges.
7 Externality Costs
Government needs to ensure that externalities are properly
accounted for in project planning, approval, and monitoring.
Areas of particular difficulty, but vital importance, in this respect
include climate and water, the indirect impacts and knock-on
effects of operations upon not always being easily identifiable
or quantifiable.
8 Corruption
Tanzania ranks 116 out of 178 in the Transparency International
Corruption Perception Index, and corruption presents a serious
threat to the country’s future development as a barrier to
efficiency and transparency. Tanzania is also ranked third, out of
Burundi, Uganda, Rwanda, Kenya and Tanzania, in the East
African Bribery Index in 2011, with its police force appearing on
the list of the ten most bribery-prone institutions. Tanzania
scored 31.6%, up from 28.6% in 2010, whilst the worst
offender, Burundi, scored 37.9% and Rwanda scored just 5.1%.
Amongst the five countries, Kenya and Rwanda were the only
ones to see an improvement in their 2011 score from 2010.
Corruption is a barrier to the good governance necessary for
successful management of the environment and a country’s
natural resources, and represents lost revenue for sustainable
development.
Several efforts to tackle corruption have been made, including
the Presidential Commission of Inquiry Against Corruption in
1996, following which a National Anti-Corruption Strategy was
prepared, requiring all institutions to devise action plans with
the Good Governance Coordination Unit of the President’s
Office coordinating activity. The Tanzania Corruption Tracker
System provides more information on the current state of
corruption and attempts to combat it.
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to be cautious to ensure cumulative and indirect impacts are
accounted for that may not be fully understood in the initial EIA.
Several companies currently operating in Tanzania have adopted
international standards of best practice, which they use in
conjunction with national regulations and requirements, such as
the AngloGold Ashanti’s Geita Gold Mine. In this instance
whichever is the most stringent applies to the company’s
operations. Barrick utilise their own Environmental Management
System Standard which they developed in 2005 and goes beyond
the requirements of ISO 14000. Barrick was ranked a global
leader in CSR in 2010 by the Dow Jones Sustainability Index.
6 Lack of Data and Information
There is a lack of information and/or data that presents further
difficulty for investors in fully understanding proposed mining
operations, both in terms of actual/potential cost and profit, as
well as in terms of environmental impact. The absence of good
baseline studies and data increases the challenge facing
environmental consultants and investors to fully understand the
extent of the risks that they face, and later on the impact that
their operations have had.
New international tools are being developed to increase
capacity in this respect; detailed maps of conservation areas,
endangered species and biodiversity hotspots, for example, and
the GST is responsible for developing capacity on a national
level. By producing good EIAs mining companies can both
benefit from and contribute to this international resource, and
although the lack of data and intelligence may be frustrating to
incoming investors, it represents an opportunity to provide a
positive contribution. Inevitably, this results in a bigger
responsibility for the investor when assessing the environmental
context and potential impacts of their planned operations.
Challenges for Government
1 Inadequate Capacity at all Levels
2 Clear Allocation of Responsibility
3 Facilitate Collection of Data and Information
4 Sectoral Education and Awareness Promotion
5 Drive Improvements in the Regulatory Environment
6 Ensure Early Consideration, Assessment and Action
7 Externality Costs
8 Corruption
1 Inadequate Capacity at all Levels
A key priority for the government should be to target current
inadequacies in capacity and ensure that the relevant
institutions have the appropriate capacity and resources to
properly fulfil their role. In this way they can ensure the full
benefit to Tanzania, that development is leveraged by sectoral
operations, and that a minimum standard for environmental
performance exists and is universally applied. Current
inadequacies in capacity not only lead to negative
environmental impacts, as government agencies are called in
too late, when damage has already occurred, but this issue also
impacts upon Tanzania’s reputation as a potential investment
destination. If multi-nationals and foreign investors are
concerned they might suffer reputational issues as a result of
deficiencies in government capacity, they will be less inclined to
invest. Inadequate capacity also undermines the government’s
ability to hold companies to account, and reflects poorly on
their own abilities and competence. The government must
therefore reconsider its resource allocation to oversight bodies
such as the NEMC, as well as how it can work with partners
such as the World Bank and industry actors to meet the
challenge.
2 Clear Allocation of Responsibility
Another element causing difficulty and confounding investors, is
the allocation of responsibility. This is an issue that applies at
and between the national, regional and local levels. These
relationships should be made more readily understandable to
investors, and government should ensure that while power and
decision-making may be devolved (a useful arrangement where
regional areas experience differing environmental contexts),
there is an aligned, over-arching strategy within which individual
bodies understand both their own and others’ responsibilities.
This also entails co-operation and alignment with regard to
policies that have a cross-sectoral impact, particularly on issues
of high sensitivity, such as land rights. The mining companies
then have a strong responsibility to undertake stakeholder
engagement at all levels. Government should also ensure that
penalties for non-compliance are better communicated and
enforced, and that they are understood and respected.
‘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
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IntroductionInvestors and government should ensure the following
processes are initiated and/or enacted during the early stages of
the investment process:
1 Research and due diligence by which the environment and
related regulation is properly understood, and areas where
the proposed project may result in environmental impacts
are identified.
2 Application of company level standards to the Tanzanian
context that should be in compliance with national
regulations and standards, and in line with international
standards as identified in this document.
3 The opening of a dialogue with national and local
stakeholders.
4 Payment of taxes.
5 Environmental protection measures are identified and
proposed.
6 The EIS, EMP and MCP in which all actions meet company
and national standards at a minimum.
7 The obtaining of certification.
8 Undertaking due monitoring and auditing of environmental
impacts.
9 Regular reviewing of EIS, EMP and MCP.
Checklist for Government and InvestorsIn order for an investor to have fully understood and planned
for environmental considerations, the below need to have been
addressed:
Environmental
4 Water quality, quantity and access/hydrology and
hydrogeology
4 Noise and vibrations
4 Air quality
4 Biodiversity/flora and fauna (availability and management)
4 Climate change (impact on local natural resources and
communities)
4 Hazardous materials/chemicals management
4 Energy use
4 Land use
4 Cultural heritage sites and protected areas
4 Rehabilitation and closure
4 Waste management
4 Geology/soil and rock chemistry
Social
4 Displacement
4 Disturbance
4 Community relations and consultation
4 Relationship with artisanal miners
4 Shared benefits
4 Local employment and economic diversification
4 Labour rights
4 Occupational and community health and safety
Process
4 Stakeholder engagement and consultation
4 Licences and permits
4 Training with reference to environmental and social issues
4 EIA
4 EMP
4 MCP
4 Posting of Environmental Performance Bond (EPB)
4 Incident reporting process
4 Monitoring and auditing of progress as relating to standards
and requirements
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
Chapter 7 Key Checkpoints
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IntroductionThe assessment of the potential social, environmental, economic
and political risks posed by exploration and mining companies
consists of several facets:
• Government needs to ascertain the policies and practices
espoused by a company and its leadership and evaluate the
strength of their commitment to environmental
responsibility. It has to establish monitoring process to alert
it to any changes that may occur in these policies or
practices.
• Government needs to assess the authenticity of the
company’s claims in practice by checking their performance
in other investments in other countries. Wherever possible
this should be in countries with similar circumstances of
regulatory implementation deficit.
• There may also be specific factors to be considered related
to the company and the investment proposal. Clearly, the
recent surge in investors from BRICS countries has diversified
the nature and business culture of potential investors,
making it increasingly important for government to verify
the sincerity of their environmental commitment and
authenticity of feasibility studies and other technical reports,
and confirm that they have been prepared by professionals
with international credibility.
A simple screening procedure could help to level the playing
field amongst diverse potential investors, and clearly
communicate to them government expectations in terms of
environmental commitment and performance standards.
There are several different approaches to screening that exist,
such as all or nothing; proportionate impact, best of industry,
primary vs. secondary involvement; actual vs. potential
problems. Each has its merits and demerits, and the system
proposed below seeks to draw the positive aspects from the
above in a way that is appropriate to the context of mining in
Tanzania.
Chapter 8 Towards an InvestmentScreening Process
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Why is Screening Important?
• To identify and exploit environmental opportunities.
• Identify and manage environmental risks
• Ensure consistency with other sector policies and
international and national commitments.
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To complement the screening procedure a series of questions are listed that slot into certain stages of the screening process. An
indicative checklist of questions is provided here.
B. Government evaluation of potential environmental scenarios and sensitivities of the proposed location and
surrounding area.
• Does the proposed location of investment include any area currently under some form of protection?
• Is the proposed location of investment home to any protected or endangered species?
• Does the proposal potentially conflict with any land rights issues?
• How many, and which communities will need to be consulted?
C. Investor submission of identified environmental risks and opportunities and proposed actions to avoid, mitigate
and ameliorate the former and maximise the latter
• What are the potential risks to the environment of the proposed investment?
• Are these risks reversible?
• What are the potential knock-on and cumulative impacts?
• What are the potential positive environmental impacts, or opportunities to generate positive environmental outcomes?
• What risk reduction actions can be undertaken to ensure potential environmental risks are managed?
• What actions can be undertaken to ensure that potential environmental benefits are maximised?
• Which communities will need to be considered in developing the investment proposal, and how will the consultation process
proceed?
• In what ways might offsetting be used to compensate for potential unavoidable negative impacts?
• What proposed training will be undertaken, and expertise sought should the investment proceed?
• Which stakeholders will be consulted and what is the process for consultation?
• Who is responsible for oversight of the above identified actions?
E. Government research into company commitments, track record and disclosure
• Does the company have internally developed standards on environmental issues, transparency, community relations and CSR?
If so, what are they?
• How do company standards compare to internal standards?
• What international mining and/or environmental standards is the company signatory of?
• What information does the company disclose and where?
• What is the company’s track record in terms of environmental performance?
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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This section contains a draft investor screening system that can serve as a basis for discussion with the Government of Tanzania and
other stakeholders.
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7614 This template is also applicable to companies already operating in Tanzania and expanding their operations.
Key Points on the Environmental Screening Process at the Investment Appraisal Stage
1 Consider Environmental issues early.
2 Screening is an essential first step to identify risks and opportunities and determine the level of detail of any further studies.
3 Ensure issues identified are reflected in the relevant investment documentation.
4 Recognize that environmental assessment is an iterative process- with new issues arising frequently.
5 Monitoring is important to ensure opportunities and risks raised during screening and design are managed effectively.
Actions likely to follow on from the Screening Process:
• No further action is needed if no significant environmental issues were identified.
• Identified environmental risks and opportunities will need to be managed to ensure the investment is sustainable.
• Identified need for further studies to inform subsequent decisions and to help shape the TORs for the EIA.
• Allocation of staff responsibility and accountability for follow up actions.
• Decision that the proposal is inappropriate: if a serious risk or incompatibility has been identified then the recommendation
should be that the investment does not gain approval in its current form.
Draft Proposed Investment Screening Process
A
B
C
D
E
F
Investor submits proposal
Government and Investor dialogue on potential environmentalcharacteristics and sensitivities of the proposed investment
and its locale
Government evaluation and review of proposal
Government research into company
Government requests any further information or details required from the investor
Investor submission of identified environmental risks andopportunity scenarios and proposed actions to avoid, mitigate
and ameliorate the former and maximise the latter
Approval given with recommendationsand/or health warnings
RejectionApproval
GovernmentGovernment has a responsibility to ensure the responsible
development of the mining sector. Part of this responsibility lies
in promoting, supporting and enabling its sustainable growth so
that Tanzania can benefit from the number of positive resulting
impacts, such as the contribution to GDP, employment, and
infrastructure development.
Specific responsibilities include:
• Providing support and information to investors.
• Leading efforts towards capacity development.
• Promoting awareness of and educating people in
community rights with respect to mining operations, thus
enabling them to better negotiate agreements with
investors to the benefit of both parties.
• Infrastructure development.
• Service provision.
Profiles of relevant government actors and bodies can be found
in Chapters Two and Three, and contact details can be found in
Annex Two.
Civil SocietyCivil society has a vested interest in supporting the mining
sector, in order to help ensure sustainable development is
advanced in an equitable manner that fairly represents the
wants and needs of citizens.
In particular, civil society should seek to do the following:
• Help hold industry and government to account against their
commitments and promises.
• Ensure investors have a fair hearing in the case of any
disputes.
• Support incoming investors by providing them with
information, thus enabling them to understand the
operating context and how their operations might pose a
threat, or an opportunity to benefit, environment and
society.
Civil Society Organisation (CSO) capacity to effectively engage in
dialogue in Tanzania is low. However, several initiatives are
underway to help develop capacity in this sector. For example,
the EITI implementation process includes in-depth CSO capacity
development to encourage a full multi-stakeholder dialogue.
Norway provides financial support for CSO development,
especially in connection with the oil and gas sector.
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Chapter 9 Roles and Responsibilities
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Approximately 370,000 Tanzanians belong to a trade union,
with the Trade Union Congress of Tanzania (TUCTA) acting as
an umbrella organisation. The Trade Union Act of 1998 made
trade unions independent from government and permits any
group of twenty workers or more to create a union, providing
registration is approved by the Registrar of Trade Unions.
A list of relevant CSO organisations in Tanzania can be found in
Chapter Three and contact details can be found in Annex Two.
Industry Mining companies must acknowledge that their responsibilities
extend beyond immediate project operations, and recognise
that by constructively engaging with surrounding communities
they will benefit in the long run from less conflict and fewer
reputational issues; and, that in supporting government to
monitor and regulate the industry they can help themselves to
clearly demonstrate compliance.
Specifically, industry should look to do the following:
• Support efforts to collect industry data.
• Be transparent in operations and planning, and promote
transparency through disclosure.
• Share experience and insights.
• Find ways to collaborate and work with local communities
and artisanal miners.
• Seek out pro-poor initiatives to support.
• Explore local procurement opportunities in the interest of
helping develop Tanzania’s small business sector.
Key industry figures are identified in Chapter Two.
MediaThe media can play a responsible and supportive role to
government, industry, and society in covering industry
developments in a way that is factual and sensitive to the goal
of sustainable sectoral growth, and maximisation of benefits to
the country.
Media should contribute through:
• Holding individuals and organisations to account for the
management of public goods.
• Promoting awareness of industry rules, regulations and
impacts.
• Promoting instances of best practice.
• Applying pressure on those who fail to meet established
standards.
• Giving a fair hearing to investors.
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Tanzanian Media Outlets
English Dailies Swahili Dailies Weeklies Radio Stations Television Stations
Daily News Habari Leo The East African Radio Free Africa TBC1
The Citizen Mwananchi Business times Radio One ITV
The Guardian Nipashe The Express RadioUhuru Clouds TV
The African Mtanzania Rai TBC Taifa EATV
Jambo Leo Mwanahalisi TBC FM Channel 10
Tanzania Daima RaiaMwema Clouds FM Star TV
Magic FM
East Africa Radio
Capital Radio
Complying with the law in the host country is non-negotiable. It
is, after all, the minimum standard by definition. Some
companies also agree to abide by the legislation of their country
of origin or the requirements of the stock exchanges on which
they are listed. In the Internet age, the legal penalties may not
always be as significant as the impact on the reputation of
transgressors. It is also to the investor’s advantage to ensure
international standards are demonstrably adhered to, in order to
ease the process of project financing, which may otherwise
become delayed and frustrated.
“EITI will help build trust among Tanzania’s public and
reduce their scepticism about the role and contribution of
the extractive sector in their socio-economic well-being.
And, if, the practice of corporate social responsibility is
observed, more trust will be engendered between
investors and the people living around the mining
operations, because both of them will be benefiting.”
President Kikwete
Speech at the EITI International Conference, Paris, 2011
Reputations are best served by aiming at standards beyond legal
compliance, and this Guidance seeks to encourage government
to identify and favour companies which surpass the minimum
legal requirements in their investment decisions, as it is these
companies that will best serve the goal of sustainable
development.
One way to ensure mining operations meet national and
international environmental standards and to enable companies
to reach best practice is through the acknowledgement and
publication of good practice case studies. Below are some
examples in addition to those provided throughout this
document, with links to further information.
• 2010 Green Mining Award winner AfriSam's CO2
Footprinting Initiative
• Joint winner of socio-economic category in the 2010 Green
Mining Awards: Exxaro Zikulise SME development and skills
training centre
• Joint winner of socio-economic category in the 2010 Green
Mining Awards: Lonmin Plc Eastern Cape Province
infrastructure project
• Winner of the Sustainability category: E Oppenheimer and
Son and De Beers Consolidated Mines Diamond Route
Project
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Chapter 10 “Beyond Compliance”Case Studies
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Acts of Parliament and Regulation:The Explosives Act, Parliament of Tanzania, 1963
The Antiquities Act, (amended 1979), Parliament of Tanzania,
1964
The Road Tolls Act, Parliament of Tanzania, 1966
Land Acquisition Act, Parliament of Tanzania, 1967
The Graves (Removal) Act, Parliament of Tanzania, 1969
The Stamp Duty Act and The Stamp Duty (Validation) Act,
Parliament of Tanzania, 1972 and 2000
The Customs Tariff (Amendment) Act, Parliament of
Tanzania, 1976
National Promotion and Protection Act, Parliament of
Tanzania, 1990
Finance Bill and Amendment, Parliament of Tanzania, 1992
The Financial Laws (Miscellaneous Amendments) (No.27),
Parliament of Tanzania, 1997
The National Social Security Fund Act, Parliament of
Tanzania, 1997
The Land Act, Parliament of Tanzania, 1999
The Village Land Act, Parliament of Tanzania, 1999
The Forest Act, Parliament of Tanzania, 2002
The Industrial and Consumer Chemicals Act, Parliament of
Tanzania, 2003
Occupational Health and Safety Act, Parliament of Tanzania,
2003
The Employment and Labour Relations Act, Parliament of
Tanzania, 2004
The Environmental Management Act, Parliament of
Tanzania, 2004
The Income Tax Act, Parliament of Tanzania, 2004
The Water Supply and Sanitation Act, Parliament of
Tanzania, 2009
The Mining Act, Parliament of Tanzania, 2010
The Mineral Policy of Tanzania, Government of Tanzania,
2009
Land (Compensation Claims) Regulation, 2001
The Mining (Mineral Beneficiation) Regulation; The
Mining (Environmental Protection for small-scale miners)
Regulation; The Mining (Mineral Rights) Regulation ; The
Mining (Radioactive Minerals) Regulation; The Mining
(Safety, Occupational Health and Environmental
Protection) Regulation, 2001
Government of Tanzania Policies and PlansThe National Environmental Policy, Vice President’s Office,
1997
The National Poverty Eradication Strategy, Vice President’s
Office, 1998
The National Investment Promotion Policy, President’s
Office, 1996
Agriculture and Livestock Policy, Ministry of Agriculture and
Cooperatives, 1997
National Forest Policy, Government of Tanzania, 1998
National Biodiversity Strategy and Action Plan
International Guidance and InitiativesPlanning for Integrated Mine Closure Toolkit, ICCM, 2008
Good Practice Guidance for Mining and Biodiversity,
ICMM, 2006
Good Practice Guide: Indigenous Peoples and Mining,
ICMM, 2010
Planning for Integrated Mine Closure: Toolkit, ICMM, 2008
Guidance on Water Accounting, ICMM
Resource Endowment Initiative: Tanzania Country Case
Study, ICMM, 2007
It's Not Over When It's Over: Mine Closure around the
World, World Bank & IFC, 2002
IFC Performance Standards, IFC
Environmental, Health and Safety Guidelines, IFC, 2007
Environmental, Health and Safety Guidelines for Mining,
IFC, 2007
Responsible Mineral Development Initiative,World
Economic Forum, 2010
Environmental Management of Offshore Oil
Development,WWF, 2008
Minerals, Mining and Sustainable Development,
International Institute for Environment and Development (IIED)
A Guide to Leading Practice Sustainable Development in
Mining, Australian Government, Department of Resources,
Energy and Tourism, 2011
Principles of Environmental Impact Assessment,
International Association for Impact Assessment (IAIA)
Africa Mining Vision, African Union, 2009
Berlin II Guidelines for Mining and Sustainable
Development, United Nations, 2002
Dodd-Frank Wall Street Reform and Consumer Protection
Act, US Congress, 2010
Toronto Declaration
Equator Principles
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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The ICMM website contains a number of case studies,
particularly concerning biodiversity, from across the globe at
different stages of the mining project, it includes the following:
• BHP Billiton Community Engagement Policy
Requirement
This case study sets out the requirement for communication,
consultation and participation with local communities;
business conduct, human rights and indigenous affairs;
incident reporting and investigation; and crisis and
emergency management.
• Minerals and Metals Group (MMG) Initiative to support
crocodile conservation
MMG formed a partnership with the Government of the Lao
PDR Wildlife Conservation Society and utilised funding from
its environmental and biodiversity offset programme to
support an initiative to protect the crocodylus siamensis
species which is listed by the IUCN as a critically endangered
species.
• Alcoa’s Carbon Capture Process
Through mixing CO2 into the bauxite residue of aluminium
production Alcoa has developed a carbon capture
technology process which enabled it to not only reduce
emissions but to transform waste into a value-added
resource.
One further, much rewarded case study in Kenya is the 35 year
old Bamburi Cement Quarry rehabilitation showcase. In a
worked out limestone quarry adjacent to the Lafarge cement
plant this project has a complex that incorporates a Nature
reserve, fish farm, forest trails, game farming, mangrove
protection scheme, bio fuel project and crocodile farm.
The Tanzania Chamber of Minerals and Energy (TCME) also has
a number of good environmental practice case studies from
amongst its members.
• The Golden Pride Tree Nursery operated by Resolute
• African Barrick Gold (ABG) runs training and capacity-
building initiatives in areas including agriculture, carpentry
and artisanal mining.
• ABG also has a microfinance programme in partnership with
leaders across 13 villages, which is used to invest in local
development projects.
Finally, there are several examples of best practice in developing
operational toolkits or systems for assessing and/or managing
wider issues. For example, Anglo American have developed a
“Socio-Economic Assessment Toolbox”, which sets out a
comprehensive process for assessing socio-economic factors at
all stages of the mining process that represent international best
practice in sustainable community development. Such a process
not only helps to align efforts made across Anglo American
operations, but also supports the company’s reputation in the
eyes of key stakeholders.
“It shows the village that we are taking [development]
seriously and want to have a positive relationship with
the community.”
Managing Director, Anglo Subsidiary, China, SEAT, 2007
Resources
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The Project Methodology
Through consultation of stakeholders, experts and current
international and national best practice and best practice
guidelines this document provides guidance to facilitate the
integration of environmental considerations into the mining
industry in Tanzania.
This document has been produced through a combination of
research, and stakeholder engagement and input. Using
international and national case studies and examples of best
practice WWF and TCME have consulted a range of actors, both
within and externally to Tanzania, to gather information, input
and develop a draft guidance document which has then been
circulated amongst a reference, oversight and consultation
group for feedback and comment before producing the final
document. The process has included dialogue with mining
companies, Government officials, and international actors from
development and private investment perspectives.
Acknowledgements
The authors would like to express their thanks to the Tanzanian
and International reference panel and others who have
contributed to the development of the Guidance with their
expertise and insights. Our discussions and research has
involved outreach to organisations and individuals, including,
but not limited to, the following:
Tanzania Minerals Audit Agency
International Council on Mining and Metals
Andrew Parsons, Environmental Policy Advisor, AngloGold Ashanti
Chacha Magige, Health and Safety Officer, Geita Gold Mine
Clara Makenya, Country Officer for Tanzania, UNEP
Denis Maringo, Executive Director, Centre for Justice and
Democracy
Gareth Taylor, Chief Executive Officer, Shanta Mining Company
Ltd
Gidion Kasenge, Head of the Environmental Management Unit,
Ministry of Minerals and Energy
I.A. Mchallo, Head of EIA, National Environment Management
Council
Jared Duhru, Senior Development Officer, CIDA
Karin Ireton, Director Group Sustainability Management,
Standard Bank
Kevin D’Souza, Director Community Relations, Barrick Global
Korodias Shoo, Environmental Manager, Barrick Gold
Li Nan, Trade and Investment Program Officer, WWF China
Mark Ekstein, Managing Director, International Finance, WWF-US
Merja Makela, Counsellor Natural Resources, FINNIDA
Nigel Beck, Head: Environmental, Mining, Energy and
Infrastructure Finance, Corporate and Investment Banking,
Standard Bank
Patricia Mhondo, Investment Promotion Manager, Tanzania
Investment Centre
Rebecca Stephen, Environmental Superintendent, Geita Gold
Mine
Roman Novozhilov, Senior Environment and Social Development
Specialist, IFC
Semkae Kilonzo, Policy Forum, Tanzania
Wilson Mutagwaba, Managing Director, MTL Consulting
Company Limited
The listing of these organisations should not be taken as an
endorsement of the document or any of the details here
contained, and feedback provided by individuals should not be
taken as representative of that organisation’s position.
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
ANNEX 1
87
OECD Health Policies
Africa Atlas, UNEP, 2008
International Cyanide Management Code
Strategy for African Mining, Mining Unit, Industry and
Energy Division, World Bank Technical Paper Number 181, 1992
International Institute for Environment and Development:
Mining, Minerals and Sustainable Development
Country Assessments or CommentaryThe Extractive Resource Industry in Tanzania, Society for
International Development (SID), 2009,
Mining in Tanzania- What future can we expect?, ICMM,
2009
Performance of EIA in Tanzania: An Assessment,
International Institute for Environment and Development (IIED),
1998
The Political Economy of the Investment Climate in
Tanzania, Cooksey and Kelsall, 2011
The Investment and Business Environment for Gold
Exploration and Mining in Tanzania, Cooksey, 2011
Tanzania in Figures 2010, National Bureau of Statistics, 2011
Other:Socio-Economic Assessment Toolbox, Anglo American, 2007
The Socio-Economic Impact of Newmont Ghana Gold
Limited, Professor Kepstein, 2011
Environmental Law Handbook for Businesses, AGENDA for
Environment and Responsible Development and Lawyers’
Environmental Action Team, LEAT
UNEP/UNDP Joint Project on Environmental Law and
Institutions in Africa: The East African Sub-Regional
Project, UNEP/UNDP, 1999
Tanzania Investment Guide: 2008 and Beyond, Tanzania
Investment Committee (TIC), 2008
AngloGold Ashanti Annual Report 2010: Sustainability
Report, 2011
Responsibility Report, Barrick, 2010
Report of the Presidential Mining Review Committee to
Advise the Government on Oversight of the Mining
Sector, 2008
Bomani Report, 2008
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NEMC National Environmental Management Council Regent Estate +255 222 774 852
Plot No. 29/30 +255 222 774 889
Dar es Salaam [email protected]
P.O. BOX 63154
Tanzania
TCME Tanzania Chamber of Minerals and Energy PO Box 13369 +255 222 601 214
Plot No: 1119
Chole Road
Msasani Peninsula
Dar es Salaam
Tanzania
OECD Organisation for Economic Co-operation 2, rue André Pascal +33 145 248 200
and Development 75775 Paris Cedex 16
France
STAMICO State Mining Corporation Plot No: 417/418 United Nations Road +255 222 150 029
P.O. Box 4958 [email protected]
Dar es Salaam
Tanzania
TANAPA Tanzania National Parks Tanzania National Parks +255 272 504 082
P.O. Box 3134 +255 272 503 471
Arusha [email protected]
Tanzania
Tanzania Bureau of Standards Ubungo Area +255 222 450 298
Morogoro Road/Sam Nujoma Road +255 222 450 200
P.O. Box 9524 +255 222 450 949
Dar es Salaam [email protected]
Tanzania
TAWIRI Tanzania Wildlife Research Institute P.O.Box 661 +255 272 549 571
Arusha [email protected]
Tanzania
TIC Tanzania Investment Centre Tanzania Investment Centre +255 222 116 328-32
Shaaban Robert Street [email protected]
P.O. Box 938
Dar es Salaam
Tanzania
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
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Key Actor Contacts
Organisation Address Contact Number
Directorate of Environment Environment Division +255 222 116 995
Luthuli Street
Plot No. 10
P.O.Box 5380
Dar es Salaam
Tanzania
GST Geological Survey of Tanzania Kikuyu Avenue +255 26 2323020
P.O.Bpx 903 [email protected]
Dodoma
Tanzania
ICF Investment Climate Facility 2nd Floor +255 222 129 211
50 Mirambo Street [email protected]
P.O.Box 2054
Dar es Salaam
Tanzania
ICMM International Council on Mining and Metals 35/38 Portman Square +44 (0)207 467 5070
London
W1H 6LR
United Kingdom
IFC International Finance Corporation c/o World Bank Office
Mirambo Street
P.O.Box 2054
Dar es Salaam
Tanzania
ISO Organisation for Standardisation 1, ch. de la Voie-Creuse +41 227 490 111
CP 56
CH-1211 Geneva 20
Switzerland
LEAT Lawyer’s Environmental Action Team Mazingira Street [email protected]
Mikocheni Area
Dar es Salaam
Tanzania
MEM Ministry of Energy and Minerals Sokoine/Mwepu Street +255 222 117 153
P.O. Box 2000/9152 +255 222 137 138
Dar es Salaam +255 222 137 138
ANNEX 2
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TMAA Tanzania Minerals Audit Agency Plot No. 1129 +255 22 260 1819
Chole Road - Masaki [email protected]
P.O. Box 23400
Dar es Salaam
Tanzania
WCST Wildlife Conservation Society of Tanzania WCST Arusha +255 (0)744 626 570
P.O. Box 2160 [email protected]
Arusha
Tanzania
Or WCST Dar es Salaam +255 222 112 518
P.O.Box 70919 [email protected]
Dar es Salaam
Tanzania
Wildlife Division P.0 BOX 9372 +255 222 111 0614
Tanzania Ministry of Natural Resources and Tourism Dar es Salaam
Tanzania
World Bank The World Bank +255 222 163 200
50 Mirambo Street
P.O.Box 2054
Dar es Salaam
Tanzania
WWF Tanzania Coastal East Africa Initiative Plot No. 350 +255 22 270 0077
Regent Estate +255 22 277 5535
Mikocheni
Dar es Salaam
Tanzania
Kathryn BrooksKathryn is a strategy and communications consultant
experienced in working with both public and private sector
clients in Africa. She has an MSc in African Studies and a BA in
Philosophy, Politics and Economics from the University of
Oxford. Kathryn’s research paper on investor perception of
African countries entitled ‘Unmasking the Lions’ can be found
on the africapractice website.
Email: [email protected]
Jonathan HobbsJonathan is Senior Advisor on Trade and Investment issues with
WWF, with a particular interest in Chinese investments in Africa
and environmental performance in the oil, gas and mining
sectors. Formerly he led the UKs’ Department for International
Development’s (DFID’s) extractives industries policy work, in
which capacity he chaired the Natural Resources Canada-hosted
Inter- Governmental Forum on Mining, Minerals, Metals and
Sustainable Development and the World Bank-hosted
Communities and Small-Scale Mining (CASM) initiative. He
served on the Management Committee of EITI, Chaired the
OECD’s Environet Group and was a member of the EU’s
delegation to the Kimberley Process. Jonathan was also the
inaugural Executive Director of two regional offices of the World
Business Council for Sustainable Development and served on
the Environment Committee of the International Chamber of
Commerce (Paris). Earlier posts include Director of UNEP’s
Cleaner Production Programme (Paris) and Corporate
Consultant on Environmental Policy and Strategy at Eskom,
South Africa.
Email: [email protected]
WWFWWF is one of the world’s largest and most experienced
independent conservation organizations with almost 5 million
supporters and a global network active in more than 100
countries. WWF’s Mission is to reverse the degradation of the
planet’s natural environment and to build a future in which
humans live in harmony with nature, by:
• Conserving the world’s biological diversity
• Ensuring that the use of renewable natural resources is
sustainable
• Promoting the reduction of pollution and wasteful
consumption
TCMEEstablished 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.
With close to 60 members the Chamber 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.
africapracticeafricapractice is a pan-African consultancy dedicated to
supporting responsible business and informed investment in
Africa.
We combine professional strategic and communications
consultancy with an intimate knowledge of the political, media
and business environments in which we live and work, to
support our clients’ information and communications needs.
Our clients have one thing in common – they each face
significant challenges in competitive environments where the
margin for error is small and the rewards are great.
africapractice has eight offices and affiliated partners in a
further seven cities. We have clients in more than thirty five
African countries.
Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
About the Authors
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Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
9393
ABG African Barrick Gold
ASM Artisanal and Small-Scale Miner
AU African Union
BAP Biodiversity Action Plan
BMI Business Monitor International
CESOPE Civil Education is the Solution for Poverty and
Environmental Management
CMEC China Machinery Engineering Corporation
CSO Civil Society Organisation
CSP Centre for Science in Public Participation
CSR Corporate Social Responsibility
DAC Development Assistance Committee
DFID Department for International Development
EAC East African Community
EAP Environmental Action Plan
EIA Environmental Impact Assessment
EIS Environmental Impact Statement
EITI Extractive Industries Transparency Initiative (EITI)
EMA Environmental Management Act
EMP The Environmental Management Plan
EPB Economic Performance Bond
EPP Environmental Protection Plan
ESIA Environmental and Social Impact Assessment
FDI Foreign Direct Investment
GRI Global Reporting Initiative
GST Geological Survey of Tanzania
IAIA International Association for Impact Assessment
ICMM International Council on Mining and Metals
IFC International Finance Corporation
IFI International Finance Institution
IGFMMMSD Intergovernmental Forum on Mining, Minerals,
Metals and Sustainable Development
IIED International Institute for Environment and
Development
IMF International Monetary Fund
ISO International Organization for Standardization
IUCN International Union for Conservation of Nature
LEAT Lawyers’ Environmental Action Team
LNG Liquefied Natural Gas
MCP Mine Closure Plan
MDA Mining Development Agreement
MDG Millennium Development Goal
MEM Ministry of Energy and Minerals
MMG Minerals and Metals Group
MMSD Mining Minerals and Sustainable Development
MOB Mining Ordinance Bill
MoE Ministry of Environment
MOU Memorandum of Understanding
NDC National Development Corporation
NEAC National Environmental Advisory Committee
NEAP National Environmental Action Plan
NEMC The National Environment Management Council
NMDC National Mineral Development Corporation
NRC Natural Resources Charter
OECD Organisation for Economic Co-operation and
Development
SEA Strategic Environmental Assessment
SEC Securities and Exchange Commission
SOE State-Owned Enterprise
STAMICO Tanzanian State Mining Corporation
TAC Technical Action Committee
TAEC Tanzanian Atomic Energy Commission
TBS Tanzania Bureau of Standards
TANAPA Tanzania National Parks
TAWIRI Tanzania Wildlife Research Institute
TCME Tanzanian Chamber of Minerals and Energy
TIC Tanzania Investment Centre
TMAA Tanzania Minerals Audit Agency
TNRF Tanzania Natural Resource Forum
TORs Terms of Reference
TRE Tanzanian Exploration Corporation
UNEP United Nations Environment Programme
VPO Office of the Vice President
WWF World Wildlife Fund
Acronyms
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Photo
: Hen
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Integrating Environment into Investment Decisions: Introductory Guidance for Tanzania’s Mining Sector
For further information:
Kathryn Brooks
Jon Hobbs
www.panda.org
www.tcme.or.tz