Overview
of the Tanzania Mineral Policy 2009
A new mineral policy was implemented during 2009 to
replace the 1997 version.
The
policy is divided into seven parts as presented below
The
first part is introduction; in this part the policy introduces
the implementation of mineral policy of 1997 in terms of its achievements and
weaknesses and redresses the major concern of the new mineral policy of 2009.
The
second part presents the mineral endowments of
Tanzania by giving a brief abundance of minerals in Tanzania and the
competitive advantages to the access of mineral resources in Tanzania
In
the third part the current mineral policy presents the
vision and mission of the mineral sector in Tanzania
In
the fourth part, the policy presents the policy
objectives which are stated in outline form
The
fifth part of the policy presents the 2009 mineral policy
statements which are described according to each objective stated in the policy.
Also this part presents the strategies that government had put forward to achieve
the altered objectives in the mineral policy.
In
the sixth part the policy presents the cross cutting
issues to dealt in the implemented by the mineral policy. Environmental issues,
healthy, safety measures and the issues of women participation and prohibit of
child labour in mining had been presented in depth.
Part
seven: This is the last part of the policy which had
tackled the issues concern the role of government in the mining sector. Role
such as government as regulator, promoter and facilitator, as service provider
and as investor had been described in this part
Ultimately the policy closes with the conclusion
that gives a short insight on the comparison of the 1997 mineral policy and the
major focus of the new mineral policy of 2009.
Objectives
of the 2009 Mineral Policy
The new mineral policy objectives are predominantly
concern with promoting economic integration between the mineral sector and
other sectors of the economy, so as to maximize the contribution of the mineral
sector to the economy.
Other objectives include a strengthening of the legal
and regulatory frame work for the mineral sector to enhance the capacity for
monitoring income and employment opportunities and strategic by the government
in viable mining projects
Also supporting and promote development of artisan
in participation of with other Tanzanians in gemstone mining so as to increase
its contribution to the economy.
Strengthening of involvement and participation of
local communities through transparent and adequate land compensation and
re-settlement schemes to increase corporate social responsibilities; to promote
and develop a marketing system of minerals to ensure right values of minerals
traded in formal markets
More objectives are through developed local base for
technical capacity there should be promotion of research development and
utilization of minerals through trainings required in the sector.
Furthermore promotion of safety and hygiene
conditions and environmental conservation can be attained through improved
communication on the mineral sector to the public by providing education to the
public and giving accurate and timely information.
Other more objectives include a strengthening
institutional capacity of geological survey of Tanzania (GST) to effectively
and efficiently perform its role and functions and strengthening cooperation
with the regional and international bodies to take advantages of facilities,
resources and information provided by the organizations.
And the objective of the 2009 national mineral
policy is to encourage and promote women participation in mining activities and
restricting child labor in mining activities through laws and regulations(URT, 2009)
Strength
of the national mineral policy of 2009
The new policy identified opportunities for revised
taxation and royalties. A new act came into force in November 2010 and paved
the way for mainstreaming taxation of mineral production to align it with the
Income Tax Act 2004 and other laws(Muganyizi, 2012).
Under the 2009 policy, the minister power to enter
agreement with mining companies was removed and in turn the company must have
invested capital of more than US$100 million (International Business
Publications, 2013).
The Minerals Policy of 2009 is a people centered
policy that recognizes artisan and small-scale mining operations operating
alongside large-scale operations.The 2010 act establishes state ownership of
minerals and allows the government to grant rights to explore, develop and
produce minerals(TMAA, 2011).
Weaknesses
of the 2009 mineral policy
The mining policy of 2009 does not mention any
intents of bringing transparency in the governance of the sector this is a
great setback to a policy that seeks to get rid of the current ills in the
mining sector(URT, 2009).
Through the mineral policy of
2009 acknowledges the inadequate contribution of the mining sector to the
economy which is not proportional with what is actually reaped from the sector.
It does not capture tentatively measures that will be employed to curb the
situation. The policy in vague language expresses some wishful endeavors of
making sure that a fiscal regime that maximizes benefit to the economy is in
place(Krelove, 2011).
On paper the government has strong laws prohibiting
child labor in mining areas but the government has done far too little to
enforce them. A number of children in mining areas is increasing day after day
as per 2013 Tanzania has more the 800, 000 small scale gold miners, thousands
of whom are children(HRW, 2013).
Implementation
of the 2009 mineral policy
The objectives stated in the 2009 mineral policy,
had been in implementation stages whereas, some had met while others not.
Sector
Growth and Contribution to GDP
The contribution of the mining sector to Gross
Domestic Product (GDP) increased steadily from 1.4 per cent in 1998 to 3 per
cent in 2008, but declined to 2.5 per cent and 2.4 per cent respectively
between 2009 and 2010 during the onset of the Mineral policy. In terms of
growth, the mining sector has recorded two-digit growth rates for most of the
period, but saw a significant decline between 2008 and 2010, mainly due to the
world economic crises. For 2008, 2009 and 2010, growth was 2.5 per cent, 1.2
per cent and 2.7 per cent respectively. Operationally, the gold sector has
continued to outperform, though revenue accrued to the government has been
below expectations, particularly given the significant increase in gold
production(Muganyizi, 2012, p. 15).
The reforms undertaken in mining taxation have
resulted in a sound fiscal regime. The Income Tax Act has mainstreamed the taxation
in the mining sector and the VAT Act has reduced multiple concessions granted
to mining and drilling operations. The Minerals Policy 2009 and the Mining Act
2010 have also placed emphasis on the need to have a fiscal system that
generates adequate revenue for the government(Krelove, 2011).
Environmental
impacts in mining areas
Outcry of people surrounding gold mine projects
about pollution has been a characteristic of many mining projects in Tanzania,
North Mara Gold Mine project being one of them. In 2009 during the onset of the National
mineral policy there was a heavy metal and Cyanide leakage from the mining
tailing dam.
The environmental situation in North Mara is very
worrying. For a while people have claimed that the tailing dam is leaking and
so fear contamination of the area. The area surrounding the tailing dam is not
fenced. In May 2009 a major spill occurred at the mine affect River Tighite and
Nyabigenacausing fatal health hazards to human beings, livestock, and land in
Kebasula Ward in Tarime, where the mine is located.The spills had edverse
impact on the villages whereby more than 40 people died while plants and
domestic animals died after contaminated with the water of Tighite and Nyabigena.
Although the government was not able to disclose the number of people animals died
(The Daily News, November 2, 2009).
The picture below shows impact of
chemical spill from NMGM on people and domestic animals
The
status of child labour in mining areas
In 2009 the Tanzanian government launched the
National Action Plan on the elimination of child labour. Under its mining child
protection and employment law of 2010 the government also prohibits children
under the age of 18 years from engaging in hazardous work including mining.
Occasionally government officially inspects mines for child labour.
Despite these positive actions, the government 2009
mineral policy remains unimplemented, its child labour inspection process is
flawed, and key ministries are failing to priotise and devote resource to
enforce child labours laws(HRW, 2013).
Taking Geita gold mine as a case study, in 2013 the
Human Right Watch (HRW) conducted a survey Tanzania on child labour and admits
that about 40% of all children ranging from 5-17 of age are in hazardous child
labour and mining area inclusive, in Geita for instance, about 40% of all
children are in gold mine under cheap labour services(HRW, 2013).
