Mining and industry

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Sera ya madini
(Jamhuri ya Muungano wa Tanzania, Wizara ya nishati na madini, 1997-10)
Serikali ya Tanzania inatambua umuhimu wa kuandaa mazing ira ya uwekezaji yenye ushindani kimataifa kwaajili ya sekta ya madini. Mwelekeo na malengo ya Serikali ni kuwa na sekta ya madini yenye nguvu, tija na ufaniisi kwa manufaa ya Watanzan.ia. Inatarajiwa kwamba sekta ya madini itachang.ia ipasavyo katika maendeleo ya viwanda, utoaji wa ajira,maendeleo ya mitmdombinu ya kijamii na kiuchumi (hususan katika maeneoya vijijini), kuzalisha mali, ku.ingiza fedha za k.igeni na mapato kwa Serikali. Shughuli zote za sekta ya madini zitafanyika kwa kuzingatia usalama na uhifadhi wa mazingira (kwa ajili ya uendelevu). Utafiti wak.ijiolojia uliofanyikakwazaidi yam.iaka sitini, pamojana taarifa na takwimu za madini zilizopo, tmaonyesha kwamba Tanzania inahazina kubwa yaaina nyingi za madini yenye thamani kubwa kiuchumi. Hata hivyo, nchi bado haijafaidika ipasavyo kutokana na mchango wa hazina lui kubwa ya madini.
The mineral policy of Tanzania
(United Republic of Tanzania, Ministry of energy and minerals, 1997-10)
The governemt of tanzania recognizes the need to put into place internationally competitive investiment environment for mineral sector. The government ‘s vision and mission is to have a strong, efficient and profitable mining industry for the benefit of Tanzania people. It is envisaged that the mineral sector should contribute significantly towards industrial development, employment creation, social and economic infrasructural development (particularly for the rural areas); income generation, foreign exchange earnings and government revenue. All mineral sector activities shall be carries out on basis of safe and enviromnentally-sound practices ( for sustainability). Geological investments carried out over a period of more than sixty years, together with available nineral production statistics and information, show that Tanzania has rich and diverse mineral resources base with high economic potential. However, the country has yet to realize a benefitting contribution from the vast mineral endowment.
Tanzania's precious minerals boom: issues in mining and marketing.
(EAGER, 2001) United States Agency for International Development Bureau for Africa (USAID)
Since Tanzania began liberalising and privatising the mining sector a decade ago, the substantial economic potential of the industry is more and more apparent. Two key policy decisions set off a mining boom. One was the decision in the late 1980s to end the State Mining Company (STAMICO) monopoly and allow any Tanzanian to register a claim and sell minerals. The second was the liberalisation of currency controls, beginning with permission to exporters to use their export proceeds and culminating in the floating of the currency in 1994. This doubled the benefits of mining, as the foreign exchange proceeds could be used to finance imported consumer goods, equipment and spare parts, which had long been scarce. These all set off an immediate artisanal mining boom. The purpose of this study is to provide an understanding of artisanal marketing patterns, their logic and their economic impact. This study has come at a time of sweeping changes in Tanzania’s mining sector, and in the larger national economy. Tanzanian policy-makers face a unique opportunity in the swelling mining boom. They also have to prepare for its inevitable subsequent decline. The liberalization of mining has brought poverty alleviation to rural areas in the 1990s on a scale far surpassing the impact of donor-funded job-creation efforts. Working with that trend, future donor-funded efforts can multiply their impact. On the other hand, if this sudden growth is neglected or misunderstood, the benefits of sudden growth in mining could be transitory. The impact could be negative if future inflation and other economic distortions are not controlled, if arms or drug dealers, or money launderers infiltrate the trade, or if greed, corruption or ethnic tensions are allowed to build around resource riches. None of these negative situations is currently an imminent trend in Tanzania, but all have occurred in other mineral-rich countries.
The mining industry and the future development of Tanzania
(ECONOMIC AND SOCIAL RESEARCH FOUNDATION (ESRF), 2002) Campenhout, Bjorn Van
One would be inclined to think that the possession of significant natural resource reserves is a blessing. This would especially be so for developing countries; it provides them with the necessary foreign currency and potentially increases savings, making natural resources the key to economic growth. But the reality seems different. Researchers have been discovering a very robust negative relationship between different measures of development and different measures of resource endowments. Only recently, this negative relationship has been questioned. It is argued that the relationship between growth and natural resources is a complex one, and the significant negative relationship is attributed to the use of weak data. Tanzania has a considerable stock of natural resources. Given the liberalisation efforts of the government started in 1986 and the economic globalisation, these natural reserves are likely to be exploited in the near future. The government is heavily encouraging private investment in the sector, and the first signs of an upcoming boom are there. Bearing in mind the above facts, one might ask whether Tanzanians should be happy or be afraid.
Small and medium enterprise development policy
(United republic of Tanzania, Ministry of Undustry and Trade, 2002)
It is now increasingly recognised that the Small and Medium Enterprises (SMEs) play a crucial role in employment creation and income generation in Tanzania. SMEs all over the world and in Tanzania in particular, can be easily established since their requirements in terms of capital; technology, management and even utilities are not as demanding as it is the case for large enterprises. These enterprises can also be established in rural settings and thus add value to the agro products and at the same time facilitate the dispersal of enterprises. Indeed SMEs development is closely associated with more equitable distribution of income and thus important as regards poverty alleviation. At the same time, SMEs serve as a training ground for emerging entrepreneurs. In Tanzania, the full potential of the SME sector has yet to be tapped due to the existence of a number of constraints hampering the development of the sector. They include: unfavourable legal and regulatory framework, undeveloped infrastructure, poor business development services, limited access of SMEs to finance, ineffective and poorly coordinated institutional support framework etc. It is for this reason that this SME Development Policy was formulated so as to address the constraints and to tap the full potential of the sector. Ad hoc and piecemeal measures will then be replaced with sustainable, integrated and coordinated interventions. This policy will serve as guidelines to all stakeholders and thus stimulate new enterprises to be established and existing ones to grow and become more competitive. The expected outcome is to have a significantly increased contribution of the SME sector to economic development of Tanzania
Mining Cadastre in Tanzania
(FIG Working Week, 2003) Hernandez, André
Tanzania is following modern worldwide trends to reform their Mining Act and set up a Mining Cadastre. The theory describes the Mining Cadastre as a cadastral system defining objects, subjects and rights, but overlapping other surface rights like private or state properties, reserves, farms and villages. The cadastre is then defined as a superposition of rights with interrelated rules concerning overlapping, right of construction, right of use and compensation. The Tanzania experience shows that the coordination with the National Cadastre and the Registrar is necessary to solve conflicts with possessors or holders of other rights. Localization of rights, implementing bacons on the field or solving underground disputes are new tasks for surveyors. And legal background is necessary for surveyors to negotiate with miners, villagers, local authorities and large mining industries.
Community development services: quarter 1 report 1st January - 31 March 2006
(Barrick (Bulyanhulu), 2006) Barrick gold mine
During the First Quarter of 2006 Community Department focused mainly on project planning and implementation of some plans that ranged from in-house operations and visits to the communities. The department had maintained a close interaction with local communities as well as with policy makers at district, regional as well as national levels. In an effort to strengthen the above interactions, the Department had embarked on a consultative process to inform itself of community development engagements through information sharing (submission of monthly reports, Bulletins and discussions). The challenges during the course of the first quarter had been a prolonged dry spell which affected most of our communities. It had been difficult for the community members to exercise a self-help attitude through both cash and in-kind contributions to their development plans. The department had then employed a number of initiatives aimed at giving support to local communities -focusing on food shortage. The supports referred here include supply of drought resistant seeds (sorghum) and short duration maize seeds worth 31,000$. KMCL also authorized funds (15,000$) to be donated to be donated to Kahama District Council to support the government initiatives for food relief. Within the Participatory Rural Appraisal (PRA), the finalization of a number of tasks and especially the compilation of a 6 year plan of programmes took up a considerable time and we have the plans ready. Currently the department is busy with capacity building activities through a series of training programmes such as train PRA committees formulated during PRA Phase I. other training include leadership, small scale enterprising, gender and farm management. The focus of such training had been to equip various committee members and local leaders with basic skills to be able to manage their community development plans. We also implemented various on site activities during this period and this included provision of support in community construction and infrastructure development, social services like water rehabilitation, donations and site visits.
Community development department: June — July monthly report 2006
(Barrick (Bulyanhulu), 2006) Barrick
During the months of June and July Community Department focused mainly on capacity building through training. We have and are still conducting training to enable village councils, PRA committees and other production group to be able to implement and manage development plans developed during PRA phase I and II. Men and women are the targeted audience during the training. The department had maintained a close interaction with local communities as well as with policy makers at village and district levels. To start with, the housing scheme is progressing relatively well; Electrification project is also going on well, some houses have been connected with power and TANESCO have opened an office at Sodexho where LUKU meters are being sold to customers. Within the Participatory Rural Appraisal (PRA), the department is currently busy with capacity building activities through a series of training programmes such as train PRA committees formulated during PRA Phase II. Other training includes, Food Vending, gardening and farm management. The focus of such training had been to equip various committee members and local leaders with basic skills to be able to manage their community development plans. In its mission to empower farmers, The Community Development Department through the farmer's supporting scheme have engaged itself to improve agricultural practices in the communities by making sure that all gardeners in Bugarama ward are supported by being trained on improved gardening practices, providing them gardening inputs and finding them a market for their products. In July Food vendors drawn from all villages received training on PHAST, food preparation and nutrition. The PHAST approach helps people to feel more confident about themselves and their ability to take action and make improvements in their communities. Feelings of empowerment and personal growth are as important as the physical changes, such as cleaning up the environment or building latrines. The need to conduct training to food vendors was felt due to the fact that Mining activities tend to attract a large number of people and hence periodic rapid population increase. There is a large number of immigrants in villages around Buly mine site ( Kakola village in particular). Majority of these people including KMCL'S workforce rely on food vendors for food and drinks. Food quality and nutrition issues remain a challenge to be tacked if we need a healthy and happy workforce and the community at large. It is on the above ground that community development conducted the said training to enable food vendors prepare quality and nutritious.
Monthly social development compliance report April – May 2007
(Bulyanhulu gold mine Ltd, 2007) Barrick
Bulyanhulu Gold Mine (BGM) Ltd, a wholly owned subsidiary of Barrick Gold Corporation based in Canada, is responsible for development and management of Bulyanhulu Gold Mine Project. The project is located in northwest Tanzania, approximately 45 km south of Lake Victoria at an elevation of 1,200 meters above sea level. Construction of the project commenced in 1999 and was commissioned in March 2001. Apart from mining activities, BGM is highly committed to support rural development initiatives undertaken in line with the Government of Tanzania's community development goals. BGM aims at assisting communities in promoting participatory development and self-help spirit to reduce dependence. This is done by development of a tripartite relationship and approach, whereby BGM, District Council and the Community at large work together to solve problems facing them. This initiative is expected to raise standard of living of the people and increase ownership through community active participation to achieve sustainable Development. Community engagement at BGML is a continuous process began during exploration phase over construction through operations and will go to the time of closure. Effective community engagement facilitates cooperative relations with local stakeholders, provides a mechanism for monitoring public perception and enables the adaptation of project plans in response to community concerns. It also creates an understanding of the needs of the community which can be used to develop appropriate socio-economic development programs that will provide benefits beyond the life of the mine. An effective community engagement process, especially at the early stages, can set the tone of the relationship with the community for the entire mine life, and is therefore of critical importance. BGML's investments in community development activities aims at developing long-term partnerships with communities, employees, Government agencies, Non-Governmental Organizations (NGO) and other stakeholders in order to deliver significant and sustainable benefits to the communities and employees. Community Department at BGML through the Social Development Policy is to ensure that community development programmes are designed to promote sustainable economic growth, environmental protection, education, community capacity building, health and welfare of people directly or indirectly affected by mining activities. The focus is on the following key issues: In partnership with other key community stakeholders, BGML through community development services undertake programmes and activities which will lead to sustainable and integrated local development, and improvement in the quality of life for mine workers and existing residents in the area; to comply with all relevant Tanzanian legislation, as well as with the policies of Barrick Gold Corporation and BGM and the guidelines of the World Bank, regarding social development; and to build on BGML's strong reputation both within the country and in the international mining communities.
Quarterly social development compliance report April - June 2007
(Barrick (Bulyanhulu), 2007) Barrick
Social responsibility for BGML includes an array of programs and initiatives involving dialogue, communications, social effect assessments, community infrastructure development and charitable donations. This comprehensive approach is aimed at achieving two primary objectives as outlined in Barrick's Corporate Social Responsibility (CSR) Charter. To acquire and maintain broad stakeholder support for the company's operations. To ensure that affected stakeholders gain net positive benefits from the mine development and operations. The dialogue and communication approach is based on carefully listening to the issues raised by the people and involve them in developing solutions to give them some ownership of the outcome. Consultation processes are organized, typically meetings with local community members on an on-going basis to discuss their concerns as well as to identify local resources, needs and their priorities on Health care, Education, Infrastructure development, Social facilities, Agriculture, Small Micro-Enterprises and Shelters development. The major outcome of the engagement to the community has been the design of a sustainable community development program to mitigate potential impacts risks which could provide benefits to the community and the business. Through a thorough stakeholder identification and analysis, BGM has in many occasions formed a partnership with non-governmental organizations so as to collectively facilitate community initiatives on long-term and beneficial resources development. As a major part of its community development efforts, BGML routinely identifies the potential social effects of the project to the community. As a result, through priorities and needs identification, BGML has developed comprehensive programs for employees and surrounding community. The benefits earned by the community under such community development programs have been in areas such as: Improvement of Education standards. Improvement of infrastructure. Upgraded health care facilities. Increased agricultural productivity. Technical innovations. Social service development. Human skills development ( capacity building).Enhancement of the local Capacities. Local procurement, and Employment of indigenous & local community members. The mutual benefits which have come along to the company following a committed Social Responsibility effort include the following: Reduction of social/business risk by identification of potential concerns of local communities. Facilitated strong relations with local, regional and national authorities which may aid business expansion. Maintain strong ties with local businesses which have a significant impact on operation cost reductions. Support the development of communities. Reduction of community overdependence to BGML. Enhancement of employees' satisfaction and improve the overall reputation of the company. Firming sustainable linkages with communities bordering BGML as a mechanism to reduce in built tension and creates trust as partners in development. The experience shows that; in areas where there is no vivid effort on social responsibility commitment the situation results into:- Lack or little support from the community on matters like sabotage crimes management. Negative publicity in the local, national or international press. Public criticism and protest. Work stoppages and strikes. Potential legal actions. As such, BGML looks at the community development programs and community support as fundamental components of business success. Therefore a trustworthy commitment to community sustainable development programs remains a viable on going challenge and commitment.
Monthly social development compliance report, July 2007
(Bulyanhulu gold mine (BGM), 2007) Barrick
Bulyanhulu Gold Mine (BGM), a wholly owned subsidiary of Barrick Gold Corporation based in Canada, is responsible for development and management of Bulyanhulu Gold Mine Project. The project is located in northwest Tanzania, approximately 45 km south of Lake Victoria at an elevation of 1,200 meters above sea level. Construction of the project commenced in 1999 and was commissioned in March 2001. Apart from mining activities, BGM is highly committed to support rural development initiatives undertaken in line with the Government of Tanzania's community development goals. BGM aims at assisting communities in promoting participatory development and self-help spirit to reduce dependence. This is done by development of a tripartite relationship and approach, whereby BGM, District Council and the Community at large work together to solve problems facing them. This initiative is expected to raise standard of living of the people and increase ownership through community active participation to achieve sustainable Development. Community engagement at BGML is a continuous process began during exploration phase over construction through operations and closure. Effective community engagement facilitates cooperative relations with local stakeholders, provides a mechanism for monitoring public perception and enables the adaptation of project plans in response to community concerns. It also creates an understanding of the needs of the community which can be used to develop appropriate socio-economic development programs that will provide benefits beyond the life of the mine. An effective community engagement process, especially at the early stages, can set the tone of the relationship with the community for the entire mine life, and is therefore of critical importance. BGML's investments in community development activities aims at developing long-term partnerships with communities, employees, Government agencies, Non-Governmental Organizations (NGO) and other stakeholders in order to deliver significant and sustainable benefits to the communities and employees. Community Department at BGM through the Social Development Policy is to ensure community development programmes are designed to promote sustainable economic growth, environmental protection, education, community capacity building, health and welfare of people directly or indirectly affected by mining activities. The focus is on the following key issues: In partnership with other key community stakeholders, BGM through community development services undertake programmes and activities that will lead to sustainable and integrated local development, and improvement in the quality of life for mine workers and existing residents in the area; To comply with all relevant Tanzanian legislation, as well as with the policies of Barrick Gold Corporation and BGM and the guidelines of the World Bank, regarding social development; and To build on BGM's strong reputation both within the country and in the international mining community.
Land tenure and mining in Tanzania
(Chr. Michelsen Institute, 2008) Lange, Siri
Tanzania is a relatively new mining country. This study argues that unclear land and mining rights, and conceptual differences in how land and mining rights are perceived, contribute to considerate conflict in the country and to a feeling among both local people and human rights advocacy groups that the government has betrayed ordinary people.1 The main challenge with the current legislations is that there was little or no coordination between the lawmakers at the time when the land and mining laws were drafted in the late 1990s. The Village Land Act goes far in providing ordinary people with customary rights to land – but since there has been no surveying or registration, these rights are fluent and unclear. Moreover, since all land is under the president/state, people don’t own land, but have use rights. In cases where the government needs the land for “development purposes” like mining, the law allows the government to order people to move. According to the law, occupants of the land will be paid compensation for the investment/work that they have done on the land, but not for the land itself.
Quarterly social development compliance report January to March 2008
(Barrick community development department, 2008) Barrick
Bulyanhulu Gold Mine Limited (BGML) social responsibility includes an array of programs and initiatives involving dialogue, communications, social effect assessments, community infrastructure development and charitable donations. This comprehensive approach is aimed at achieving two primary objectives as outlined in the Barrick Corporate Social Responsibility (CSR) Charter i.e. to acquire and maintain broad stakeholder support for the company's operations and to ensure that affected stakeholders gain net positive benefits from the mine development and operations. During the reporting report of January — March 2008 different Social responsibility activities and engagements were undertaken by community development department at BGML. Housing scheme projects continued to provide BGML employees with decent uptown in two villages Ilogi and Bugarama. More employees continued to register for interest free House Loans; some employees withdrawn and returned their houses this month for several reasons such as resignation and termination from BGML employment. Farmers continued to supply fruits, vegetables and grains products to Sodexho. Monthly meetings were also held and price lists reviewed during the reporting period. Bio—Energy project paved path in progress by involving more members from the community for the out grower program. The demonstration farm continued very well by the end of first quarter. Students Sponsorship Initiatives have showed a better continuation by supporting more students in Bugarama, Lunguya, Kharumwa, Segese and Kakora wards. Community meetings, Consultations and Community engagements were done to various Community groups including Kakola Mushroom Farming, Bulyanhulu Carpentry, Ari Mpya kilimo, Aggregate crushing group, PRA committees and UWABU Agricultural Marketing Co-operative Union. BGML during the period provided material support on education to Kakola and Bugarama primary school children. In the period of January to March 2008 BGML hosted visitors including Presidential committee, Carlos & Ines from the Government of Canada. Bulyanhulu Gold Mine nursery school children visited Bugarama primary school pupils in order to support learning materials and interacting each other.
Taratibu za utunzaji wa mazingira katika uchimbaji mdogo wa madini
(Jamuhuri ya Muungano wa Tanzania,Wizara ya nishati na madini, 2009)
Maswala ya usimamizi wa mazingira, afya na usalama katika migodi ni miungoni mwa mambo ambayo yameelezwa kwa kina katika sera ya madini ya mwaka 2009 ambayo imepitishwa na Bunge la Jamumhuri ya Muungano wa Tanzania mwaka 2009 Sera ya madini imeainisha kuwa serilali itaendelea kutoa mafunzo na ushauri kwa wachimbaji wadogo katika maswala ya afya na usalama, HIV,AIDS na usimazi wa mazingira. Ili kuhakikisha shughuli za uchimbaji madini unakua endelevu, serikali itahitaji kuchukua hatua ili kupunguza au kutokomeza athari za mazingira kwa kubarasha hali ya afya na usalama na kushughulikia maswala masuala ya kijamii yanayowaathiri wanajamii pia ni muhimu kwa serikari kuchukua hatua za makusudi kuongeza ufahamu na kuhamasisha masuala ya mazingira miongoni mwa wachimaji wadogo Shughuli za wachimbaji madini zisiposimamiwa ipasavyo huweza kusababisha uharibifu mkubwa wa mazingira kama vile ukataji wa miti na uchafuzi wa vyanzo vya maji na kusababisha muingiliano wa masuala ya kijamii katika mweneo yanayozunguka mgodi.
Ubendian mineralisation in the Lupa Goldfields, south-western Tanzania: new discoveries and geochronology
(2009) MacKenzie, Chris; Moore, John; Selby, David
The Lupa Goldfield of south-western Tanzania produced over 23 tonnes of gold during colonial times, and an unrecorded amount since independence. The New Saza Mine was the second largest pre-Independence gold producer in the country after the Geita Mine. Despite that, and unlike the Archaean granite-greenstone terrain of the Lake Victoria Goldfields, the Lupa Goldfield has not received significant modern exploration. This is mainly due to a perception that high-T metamorphism during the Ubendian Orogeny meant the Lupa Goldfield was only prospective for narrow, high-grade gold vein mineralisation (e.g. see de Klerk, 2001). However recent exploration by Helio indicates this perception is false. Re-evaluation of the timing and genetic relationships of the gold mineralisation in the area indicates that good potential does exist in the Lupa Goldfield for a world-class gold deposit.
Mining in Tanzania – What future can we expect? The challenge of mineral wealth: using resource endowments to foster sustainable development.
(International Council on Mining and Metals (ICMM), 2009) Roe, Alan; Essex, Mark
This paper is the latest in a series on mining and its social and economic impacts that have been prepared under the auspices of the Resource Endowments initiative (REi) of the International Council of Mining and Metals (ICMM). It provides an objective basis to help the Tanzanian government to examine the debate between (1) the need to encourage the mining sector as a dynamic contributor to economic growth and (2) the alleged failure of the mining sector to contribute sufficient revenue to the public purse and to make an appropriately large socioeconomic contribution to local communities. In doing so, it represents an input into government decision-making regarding the Bomani Committee Report and other recent suggestions for reforming the sector.
Report on the Lunguya mineral exploration property of Tanzanian royalty exploration corporation in the Kahama district, Shinyanga region of the united republic of Tanzania, East Africa.
(Tanzanian Royalty Exploration Corporation, 2010) Geo, Martin Taylor, P.
Tanzanian Royalty is a publicly-traded financial gold company whose business strategy is to acquire royalty interests in gold production from its core assets in the Lake Victoria Goldfields of Tanzania. As of December 31, 2008, the company had 88,793,958 common shares issued and outstanding. Tanzanian Royalty’s head office is in South Surrey, British Columbia, Canada and it trades on the TSX Exchange under the symbol TNX and on the AMEX as TRE. The company operates in Tanzania through two wholly-owned, Tanzanian-registered companies, TANCAN Mining Company Ltd. and Tanzam 2000 Ltd. The Lunguya Project is at an early exploration stage and, as of October 31, 2009, consisted of 11 granted Prospecting Licences plus 6 approved applications covering a total area of approximately 428.79 km². The property is located in the Lake Victoria Goldfields area within one of the principal Archaean greenstone belts of Tanzania and lies 15-30 km south of Barrick Gold Corp’s. Bulyanhulu Mine. The Lunguya Project includes northwest-trending magnetic lineaments and shear sets that are parallel to those hosting Bulyanhulu. Areas of current or historic artisanal workings contain surface quartz rubble zones, exploited by the artisanal miners.
Tanzania’s gold sector: from reform and expansion to conflict?
(Foundation for Environmental Security and Sustainability (FESS), 2010) Hall, Aaron
Over the last decade, Tanzania has become Africa’s third largest producer of gold, behind South Africa and Ghana. In the 1990s, in an effort to transform itself into an economically viable, investor friendly state, the government of Tanzania (GoT) reformed its investment and tax code to attract multinational mining companies vying for mineral extraction rights. These reforms included allowing companies to repatriate 100 percent of profits, pay a royalty rate of only three percent on gold, and owe no duty on imports of mining-related equipment. Unlike any other companies in Tanzania, mineral companies also remain exempt from paying capital gains taxes (Curtis and Lissu 2008). While these actions opened the door for rapid development of the country’s mineral sector, particularly in the gold rich Lake Victoria region, they also created widespread instability and confrontation with artisanal mining communities that were displaced to make way for the operations of multinationals.
Gold mining investment incentives in Tanzania: current issues and the possible remedies.
(Dalian University of Technology, 2010) Lu, Yuduo; Marco, Kung’unde G.
In recent years Tanzania has seen a rapid growth of its gold mining sector, the trend which has made the country the third largest gold producer in Africa. This growth is attributed much to the favorable investment climate created by the government for Multinational mining companies through the provision of various tax incentives and the ongoing discovery of new mining locations. Although tax incentives are attributed much for the promising trend of the mining sector, but, there is a controversy linking the granted incentives and the actual benefits the country realizes. The provided tax incentives seem to be way too generous causing the country to lose substantial amount of much-needed tax revenues. The practices of the incoming mining companies and local tax authorities are largely blamed for the ongoing trend.
The land factor in mining gold reserves in Tanzania.
(The South African Institute of International Affairs (SAIIA), 2011) Lugoe, Furaha
After three decades (following independence) of being overwhelmed by command-economy policies, in the 1980s Tanzania’s gold mining industry benefited from policy reforms that started with the economic recovery programmes (ERP). These reforms freed in part the major means of production from state ownership. The accompanying paradigm shift allowed ASMs to register claims and retain much-needed foreign currency for rural development long before mining companies started operations. The reforms also translated into rises in gold production, which reached a level of over one million ounces (oz) per year in the new millennium.2 Tanzania has re-entered large-scale gold mining with a bang, with six gold mines opening up since 1998. Production is high and rising, and today the country is the third-largest gold producer on the continent after South Africa and Ghana. In 1995 the adoption of the National Land Policy was followed in 1999 by enactment of the Land Act and Village Land Act. These acts came only a year after a new Minerals Policy and the Mining Act came into force, and all took on board the essentials of the ERP. However, the two frameworks remained separate and contradictory, to the detriment of the relationship between stakeholders.

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