Introduction

Tanzania is endowed with mineral deposits of high economic potential. The minerals found in
Tanzania include metallic minerals such as gold, iron, silver, copper, platinum, nickel and tin;
gemstones such as diamonds, tanzanite, ruby, garnet, emerald, alexandrite and sapphire;
industrial minerals such as kaolin, phosphate, lime, gypsum, diatomite, vermiculite, salt and
beach sand; building materials such as stone aggregates and sand; and energy minerals such as
coal and uranium.
Since 1980s, Tanzania has undertaken structural economic reforms aimed at promoting socioeconomic development. The role of the Government has shifted from sole owner and operator of
mines to remain the regulator, formulator of policy, guidelines and regulations; promoter and
facilitator of private investments in the mineral sector. These reforms brought about changes in
the mineral sector, which included formulation of the Mineral Policy of 1997, enactment of the
Mining Act of 1998 and amendment of financial laws which created conducive environment for
private investment.
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. The Mineral Policy of 2009 aims at
strengthening integration of the mineral sector with other sectors of the economy; improving
economic environment for investment; maximizing benefits from mining; 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. Moreover, the Government remains as the regulator and facilitator
of the mineral sector; promoter of private sector investment in the mineral sector; and will
participate strategically in mining projects.
In the implementation of the above objectives, the Government continues to give priority to the
mineral sector in the National Strategy for Growth and Reduction of Poverty (NSGRP) and
contribute to the achievement of the National Development Vision 2025.
Mission & Vision

The Mineral Sector Policy of the United Republic of Tanzania provides a written declaration of
the framework of policy objectives and statements that will guide the Government and
stakeholders in the management of the mineral sector on a sustainable basis. Accordingly, the
policy is based on the following Vision and Mission:
Vision: Effective mineral sector, contributing significantly to the acceleration of socio- economic
development through sustainable development and utilization of mineral resources in Tanzania
by 2025.
Mission: To set policies, strategies and laws; regulate mineral exploration, production, trading,
value addition and mineral actors for sustainable development of mineral resources; and integrate
with other sectors of the economy.
The Mineral Policy of 2009 and the new Mining Act of 2010 were response to challenges
faced and experience agained during the 12 years implementation of the Mining Act, 1998.

In implementation of the Policy the following Authorities were established;

Tanzania Minerals Audit Agency (TMAA) in 2009 established under the Executive Agencies
Act Cap 245 ;2002. The Agency is mandated to monitor and audit financial and tax records of
mining entities, and ensures sound environmental management at all mining areas for large,
medium and small scale miners (for more information, you may visit www.tmaa.go.tz).
The Geological Survey of Tanzania (GST) in 2005 and the Mining Advisory Board(MAD)
State Mining Corparation(STAMICO)
REGULATION WORKING UNDER THE POLICY

Mining Act, 2010 and the regulations made there under Mining (Safety, Occupational
Health and Environmental Protection) Regulations,2010 Mining (Environmental
Protection for Small Scale Mining) Regulations, 2010

The Environmental Management Act, 2004 and the regulations made there under,
Environmental Impacts Assessment and Audit Regulations, 2005

The Employment and Labour Relations Act 2004.

SOCIO-ECONOMIC BENEFITS/ STRENGTH/UPS

In analysing the Mineral Policy 2007 the following are areas which the policy has tried to
improve and if there will

To support and promote development of small scale mining so as to increase its

contribution to the economy. This is provided under Chapter 5, para 5.6. In order to meet
this, the Policy states that; The government will develop and implement programmes to
transform and upgrade small scale mining into organized and modernized mining; cooperate
with stakeholders to facilitate small scale miners to access market for minerals, geological
information, technical and financial services; and to ensure that small-scale miners preserve
the environment.

In supporting this Objective, the Government has prepared a clear and accessible system in
application for mining licences and registration through internet from are downloaded from
www.portal.mem.go.tz dealing with small-scale mining.
Mining companies contribution into socio economic development in mining areas; Para 5.9 of
the Mineral Policy, 2009 emphasises the need for involvement of local communities in
development of mining projects and encourages mining companies to increase corporate social
responsibilities; as per December, 2010 mining companies have spent USD 8 million on CSR
initiatives which include education, infrastructure, health, water supply etc. Most of the mining
companies carry out such initiatives through consultation with local communities surrounding
the mines, Example Geita Gold Mines has construct about 25 classrooms in Geita region.
Strengthen the institutional capacity for effective administration and monitoring of the
mineral sector. The Policys strategies focus on; improving the institutional framework to
effectively administration of the mineral sector, to motivate staff responsible for mineral sector

management, and to establish minerals audit institution. There are number of institutions which
has established like TMAA, GSAT, MAB, also there are other officials like; Commissioner and
Deputy Commissioner; Chief Inspector of Mines, Zonal Mines Officers, Resident Mines
Officers, Inspector of Mines and other public officers.

Making education and employement national priority; Since education is a full-scale sector in
governance structure of Tanzania, all matters pertaining to education are addressed through the
Education and Training Policy of 1995 rather than the Mineral Policy of 2009. However, Para
5.12 of the Mineral Policy, 2009 provide general guidance for specific training to develop
Tanzanians in the field of mining disciplines. The Government through the Ministry of Energy
and Minerals is parenting Mineral Resources Institute of Dodoma training middle cadre on
mineral extraction and petroleum geo-science industries. The government also give a
sponsorship to students who wish to pursue the Masters and PhD abroad on this cadre. But also
the mineral sector now employ over 15000 people from 1781 employes in 1997.

Promoting Mineral Value Addition. As per para 5.11 of the Policy, mineral value
addition activities include gemstone cutting, polishing and jewellery as well as metal
smelting and refinery so as to enhance the quality and value of minerals. These activities
provide employment, provide Tanzanian with improved mining industry skills and
generate income. These activities are to be done by professionals, so the government
should support provision of mining education to its citizens. But also the government
should support the development of industries for such activities.

Promote women participation in mining activities; This is provided on Chapter 6 of the

Policy under para 6.2. The Policy admits that, women face economic and socio cultural

barriers to effective participate in mining activities. The government has put some
strategies to enhance women participation in mining activities under the influence of
their association Tanzania Women Miners Association(TAWOMA) now the annual
licence has been decreased to Tsh 800,000/= and that all programmes relating to mining
should base on gender equality and equity. The Act, For example, in section 23 (5) (b)
requires a Minister in appointing members of the Mining Advisory Board to ensure that,
one third of members of the Mining Advisory Board are women.

Establishing transparent and adequate land compensation, relocation and resettlement schemes in mining operations; This explains how compensation, relocation
and settlement between the mineral right holder and the occupier of the land should be
done. The provision states that, the Mineral right holder will advice the owner or
occupier of the land to vacate the area and consult the relevant local government
authority on amendments of the land use. So it is a duty of the mineral right holder to
plan for relocation and compensation to the affected land owners then amount of
compensation should depend on the market value of the land.

WEAKNESSES

Low contribution of Mining sector to the GDP This involves payment of royalties that,
every authorized miner shall pay to the government of the United Republic a royalty on
the gross value of minerals produced under his licence, uranium, gemstone and diamond
five per centum, while metallic minerals such as copper, gold, silver and platinum group

minerals a royalty of four per centum, this has improved from three per centum1,
currently mineral conribution in GDP is 6.9% while the millenium goal is to reach 10%
by 2025, Tanzania have largest gold reserve next to South Africa, it composes of 52% of
the countries tatol export, only 2.17 trillion paid to the gevernment as taxes and royalties.

Failure to integrate mineral sector with other sectors of the economy; so as to stimulate
development of other sectors. The Policy in Chapter 5, para 5.2 that, addresses local
procurement of goods and service by mining companies so as to support and promote
other sectors require all mineral holders to submit their procurement plans of goods and
service available in the country. This provision requires a mineral right holder to set aside
minerals for processing, smelting, or refining within Tanzania but unfortunately it is not a
compulsory. Since 1997 to date mining companies spend only 4.3 trillion in procurement
of goods and services.

Poor environmental management, health, and safety measures; the Policy in Chapter 6 of the
Policy under para 6.1 provides that, the Government should strengthen the institutional capacity
in monitoring and enforcing laws relating to environmental management, health and safety in
mining areas also mining companies are required to set aside funds for environmental
rehabilitation and lastly administering and monitoring exploration, mining, handling,
transporting, storage, usage and export of radio active minerals, explosives and toxic materials.
Despite the Minister being empowers to make any regulations relating to the Mining Act,
regulations relating to environmental management, health and safety inclusive.2 There is a
number of complaints from communities living around mining area that their health are in danger

A special Presidential appointed Committee suggested before the passing of the New Act to go to 5%.
Information from http://www.tanzaniainvest.com/tanzania-energy-and-mining/news/268-tanzania-miningreforms-follow-amendments-to-mining-act. Accessed in 5 July 2012
2
Section 112 (2) (h) (k) and (m) may be referred.

due to the effect of toxic and radio-active chemicals used in mining such as mercury, example in
North Mara, 2012.
Prohibition of child labour in mining activities, With regard to child labour in mining activities,
unfortunately the policy does not specifically prohibit it. It only restricts the grant of mineral
right to an individual who is under the age of eighteen years. The policy ought to have put that
because it is strictly prohibited by Employment and Labour laws, both national and International.
In Tanzania for example, section 5 (3) of the Employment and Labour Relations Act3 prohibit
employment of an individual below the age of eighteen years in a mine among other things.
Conclusion and recommendation
The new policy has tried to implement some of the odjective including estalishment of agencies
which deals with monitoring tax(revenue), enviroment protection, supervising small scale miners
ect, it has also improved in insisting the mining companies to contribute in development
activities around the mines. There are some areas in the Policy which either need an emphasis or
more elaboration;

Tanzanians to participate in ownership of medium and large scale mines. This is not
provided how will it be implemented under the Act.

Lack of reliable human resource i.e skilled manpower on the area of mining

There ought to be provisions with regard to provision of technical supports and loans to
Tanzanians. Especially those involved in small scale mining

Promoting and developing a marketing system of minerals to ensure that miners get right
value of minerals traded in formal markets.

Promoting human right in mining

Act No. 6 of 2004

Full, fair and compulsory compasation to the evicted land owers both in registered and
unregister land specifically on the value of land. Most of the people in the villages may fail
to know the real value of land, as a result, they will get little compensation while the
Mineral right holder benefit very much. It is a duty of the government to enact the laws
indicating how compensation can be paid depending on the value of the minerals which are
found underneath.

Despite the establishment of various governing institutions there is no proper management

and monitoring of the mineral sector as it contribution in GDP is not sufficient compare to
number of foreign investors as well as local miners.

The policy is silent about the orphanage or abandoned mines example those of Mwadui in
Shinyanga since 1925

Some of the material and service used in mining activities are not available in Tanzania

This provision requires a mineral right holder to set aside minerals for processing, smelting,
or refining within Tanzania but unfortunately it is not a compulsory

In conclusion, there are some objectives of the Policy which are reflected in the Act. Some of
those objectives are comprehensively provided under the Act, example, issues of institutional
framework and environmental issues. Some of them are slightly reflected, example, issues of
women participation in mining activities. But also, some of the objectives of the Policy are not
reflected in the Act, example, Tanzanians to participate in the ownership of medium and large
scale mines. The Policy formulation is good, the Act should reflect each and everything to create
a better mineral sector in Tanzania.