International and Public Affairs

| Peer-Reviewed |

An Examination of Some Key Issues on Legal and Policy Environment in the Mining Sector After the Economic Reforms in Tanzania

Received: Jun. 24, 2019    Accepted: Jul. 18, 2019    Published: Aug. 13, 2019
Views:       Downloads:

Share This Article

Abstract

Due to the economic hardships Tanzania has been undergoing since the early 1980s, a wide-ranging reforms in numerous sectors of the economy have been instigated. These reforms aimed at overcoming such hardships in order to improve the prospects for development. This article examines some key issues on legal and policy environments in the mining sector after the economic reforms in Tanzania, it specifically:-(i) analyses the mining sector before the reforms, (ii) examines the legal and policy responses after the economic reforms; (iii) analyses how these policies and legislations have impacted the socio-economic and political aspects related to mining in Tanzania; and, (iv) identify the lessons learnt. A documentary review (documentary research method) was used in collecting relevant information. It was revealed that prior to the reforms the extent of minerals extraction in Tanzania was low, dominated by mineral sector development operations which were largely state owned and run by government enterprises. The legal and policy responses examined include the Mineral Policy of 1997, Mineral Act of 1998, Mining Act of 2010, New Investment Policy and the Tanzania Investment Act No. 26 of 1997, Mining (Environmental Management and Protection) Regulations of 1999, Natural Wealth and Resources (Permanent Sovereignty) Act, 2017; Natural Wealth and Resources Contracts (Review and Re-Negotiation of Unconscionable Terms) Act, 2017, the Written Laws (Miscellaneous Amendments) Act 2017; Extractive Industry Transparency and Accountability Act, 2015 and the Finance Act of 2017. These legal and policy responses in the mining sector were found to have both positive and negative impacts. It has been observed that reforms in the sector have not fully captured the expectations of Tanzanians. The role of mining sector in economic development and socio-economic wellbeing is very obvious; hence transforming this resource wealth into well-being remains essential matter for Tanzania’s economy. It is recommended that conducive legal and policy framework enhanced to transform mineral resources into wellbeing.

DOI 10.11648/j.ipa.20190302.11
Published in International and Public Affairs ( Volume 3, Issue 2, December 2019 )
Page(s) 33-42
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Legal and Policy Environment, Mining Sector, Economic Reforms, Tanzania

References
[1] Chachage, C. S. L. (1995). Mining and environmental issues under SAPS in Tanzania: Examples from three case studies. In: Proceedings of the Policy reforms and the Environment in Tanzania. (Bagachwa, M. S. D and Limbu, F-Eds) 23-27 0ctober 1995, Dar es Salaam. 251-266pp.
[2] Curtis, M., and Lissu, T. (2008). ‘A Golden Opportunity: How Tanzania is failing to Benefit from Gold Mining’. Published by the Christian Council of Tanzania and National Council of Muslims in Tanzania, Dar es Salaam, Tanzania. http://www.businesshumanrights.org/Search/SearchResults?SearchableText=Lissu+Curtis&x=0&y=0._Accessed on May, 8th 2015.
[3] Darimani, A. (2005). Impacts of activities of Canadian Mining Companies in Africa. Third World Network- Africa, Accra, Ghana. 43pp.
[4] Economist Intelligence Unit. (2000). Country Profile Tanzania. Country.eiu.com/tanzania. Site visited on 4th October 2015.
[5] Epaphra, M. & Massawe, J. (2016). Investment and economic growth: An empirical analysis for Tanzania. Turkish Economic Review, 3 (4), xxx-xxx.
[6] Fernandez, W. A. (2014). The Role of Mining in Economic Development in Namibia Post-2008 Global Economic Crisis. A research report submitted to the faculty of Engineering and the Built Environment, University of the Witwatersrand, Johannesburg, in fulfilment of the requirements for the degree of Master of Science in Engineering.
[7] Fisher, E. (2007). Occupying the margins: Labour integration and social exclusion in artisanal mining in Africa. Development and Change 38 (4): 735-760.
[8] Fraser, A and Lungu, J. (2006). For Whom the Windfall? Winners and Losers in the Privatization of Zambia’s Copper Mines. Civil Society Trade Network of Zambia and Catholic Centre for Justice, Lusaka, Zambia. 42pp.
[9] Geita Gold Mine. (2004). Community relations and social responsibility.
[10] Gibbon, P. (1993). Social Change and Economic Reform in Africa. Scandinavian Institute of African Studies. Uppsala, Sweden.
[11] Kitula, A. G. N. (2006). The environmental and socio-economic impacts of mining on local livelihoods in Tanzania: A case of Geita District. Journal of Cleaner Production 14: 3-4.
[12] Labonne, B. and Gilman, J. (1999). Towards Building Sustainable Livelihoods in the Artisanal Mining Communities: Social and Labour issues in Small scale mines. International Labour Organization, Geneva. 10pp.
[13] Lange, R. (2008) Land Tenure and Mining in Tanzania, Michelsen Institute, Bergen Norway.
[14] Lange, S. (2006). Benefit streams from mining in Tanzania. A case of Geita and Mererani. Journal of Cleaner Production 14 (22): 397-404.
[15] LEAT (Lawyers Environmental Action Team). (2003) “Robbing the Poor to Give the Rich: Human Rights Abuses and Impoverishment at the MIGA Backed Bulyanhulu Gold Mine, Tanzania”, Submission to the Extractive Industries Review of the World Bank, Maputo Mozambique, January 13-17, 2003.
[16] Lugalla, J. L. P. (1995). The Impact of Structural Adjustment Policies on Women's and Children's Health in Tanzania. Review of African Political Economy No. 63.
[17] McMahon, G (2010). The World Bank’s Evolutionary Approach to Mining Sector Reform. World Bank | Oil, Gas, and Mining Unit Working Paper. Extractive Industries for Development Series #19. 48pp.
[18] Magai, P. S and Márquez-Velázquez, A. (2011). Tanzania’s Mining Sector and Its Implications for the Country’s Development Working Paper No. 04/2011. 27pp.
[19] Maliyamkono, T. L. and Mason, H. (2006). The Promise. Tema Publishing and Siyaya Publishing (Pty). Dar Es Salaam, Tanzania. 619pp.
[20] Mogalakwe, M. (2006). The use of documentary research methods in social research. African Sociological Review, 10 (1) 221-230.
[21] Muganda, A. (2004). Tanzania’s Economic Reforms and Lessons Learned. Paper Presented at the Scaling Up Poverty Reduction: A Global Learning Process and Conference. Shanghai, May 25 – 27, 2004.
[22] Muhanga, M and Nombo, C. (2010). Local Government Authority policy responses to the Informal Sector in Morogoro Tanzania: seeing problems in an opportunity or seeing an opportunity in problems. African Affairs 28/2010.8 ISSN 1229-9308.
[23] Muhanga, M. I (2012). The Mining Sector Reforms in the Context of Fifty years of independence in Tanzania: (A book Chapter) in a book titled “A Review of 50 Years of Tanzania (Mainland) Independence”: An Analysis of Some Key Development Issues (Urassa, J, K -Ed). Lambert Academic Publishing, German. ISBN-13: 978-3-659-21059-4 ISBN-10: 3659210595 EAN: 9783659210594. 100-120pp.
[24] Muhanga, M. I and Urassa, J. K. (2013). Mining Sector Reforms in the Context of Fifty Years of Independence in Tanzania: A Reflection of Mwalimu Nyerere’s Legacy. A paper presented at Nyerere Memorial Lecture at Mzumbe University, Morogoro, Tanzania, October 2013.
[25] Muhanga, M. I. (2016). Tanzania’s Mining Sector Reforms: Towards or Away from Mwalimu Nyerere’s Ujamaa Ideology. Research on Humanities and Social Sciences, www.iiste.org, ISSN (Paper) 2224-5766 ISSN (Online) 2225-0484 (Online). Vol. 6, No. 21, 2016.
[26] Muhanga, M. I and Urassa, J. K. (2018). Mining Sector Reforms in the Context of Fifty Years of Independence in Tanzania: A reflection of Mwalimu Nyerere’s legacy. Journal of Co-operative and Business Studies (JCBS), Vol (3) 2.
[27] Mwalyosi, B. B. R. (2004). Impact Assessment and the mining industry: Perspectives from Tanzania IAIA’04, Vancouver, Canada. [http://www.iaia.org/NonMembers/Conference] site visited on 09/05/2011.
[28] Ngonyani, E. A. (2000). "Environmental Management and Protection Considerations in the Mining Industry: Examples of Contemporary Approaches to Regulations". Paper presented at the Government of Australia and United Nations Environment Programme Workshop on Environmental Regulation for Accident Prevention in Mining-Tailings and Chemicals Management 26 – 27 October 2000, Perth, Australia.
[29] Nyerere, J. K. (1974) Freedom and Development. Oxford University Press, Eastern African, Dar es Salaam.
[30] Oxford Business Group (2016). Tanzania encourages investment to broaden mining sector base. Available at: https://oxfordbusinessgroup.com/news/tanzania-encourages-investment-broaden-mining-sector-base. Site visited on 16th August 2018.
[31] Peake, A. (2000). "A perspective on the small scale mining sector in South Africa". Mining World, August, 2000, p. 7.
[32] Portelli, B. (2005). The role of foreign direct investment in the context of economic reform. evidence from Tanzania. Centre for Technology, Innovation and Culture University of Oslo.
[33] Reed, D. (1996). Structural Adjustment, the Environment and Sustainable Development (London: Earthscan, 1996): 107 – 127.
[34] Roe, A. and Essex, M (2009). Mining in Tanzania – What future can we expect? The Challenge of Mineral wealth: Using resource endowments to foster sustainable development. Oxford Policy Management. London. www.opml.co.uk/document.rm?id=1360. Accessed on May, 3rd 2015.
[35] Rugumamu, S. M. (2005). Globalization Demystified: Africa’s Possible Development Futures. Dar Es Salaam University Press, Dar Es Salaam. 238pp.
[36] Saunders, S. (2008) “Thousands Raid Barrick’s North Mara Mine” http://www.protestbarrick.net/article.hph?id=358, Retrieved on 20th February 2010 at 17: 39 Hours.
[37] Tambwe, A. (2008). Tanzania losing out on minerals. The African Newspaper Issue No. 3225. p. 1-2.
[38] Tanzania Extractive Industries Transparency Initiative. (2018). Final Report For The Period July 1 2015 to June 30, 2016. March 2018. 246pp.
[39] Tanzania Investment Report, (2013). Reports on the Study of Foreign Private Investment. Dar es Salaam.
[40] UNCTAD (2005). Prospects for Foreign Direct Investment and the Strategies of Transnational Corporations, 2004-2007. United Nations Conference on Trade and Development, Geneva. 23 pp.
[41] UNCTAD, (2008). Trade and Development Report. United Nations publications, New York and Geneva. http://www.unctad.org/en/docs/tdr2008notes_en.pdf. Accessed on May, 19th 2015.
[42] URT (1997). The Mineral Policy of Tanzania. Ministry of Energy and Minerals. Dar Es Salaam, Tanzania. 32pp.
[43] URT (1998). The 1998 Minerals Act. Dar Es Salaam, Tanzania.
[44] URT (2011). Investments Benefits Study Final Report, (Sustainable Management of Minerals Resources Projec.) Oxford Policy Management in association with Economic and Social Research Foundation (ESRF) and MTL Consulting Company Ltd. 160pp.
[45] UNCTAD, (2015a). World investment Report 2015 - reforming international investment governance. United Nations Conference on Trade and Development. Geneva, Switzerland.
[46] UNCTAD, (2015b). Economic development in Africa: rethinking the role of foreign direct investment. United Nations Conference on Trade and Development. Geneva, Switzerland.
[47] Wanzala, P. N. (2007) Whose Development Counts? Political and Ecological Displacement of Bulyanhulu Mining Community in Tanzania, MA. Thesis, Norwegian University of Science and Technology, Norway.
[48] Zamora, A. (1999). "Small Scale Mining: A Social and Environmental Problem Turned into an Opportunity for Economic Development". [http://www.dundee.ac.uk/cepmlp/journal/html/article6-6.html].
[49] Muhanga, M. I. and Malungo, J. R. S. (2017). The what, why and how of health literacy: a systematic review of literature. International Journal of Health, 5 (2) (2017) 107-114. doi: 10.14419/ijh.v5i2.7745.
[50] Mutahaba, G; Baguma, R and Halfani, M. (1993) Revitalizing African Public Administration for Recovery and Development; Kumarian Press.
[51] World Bank and ICMM, Community Development Toolkit, ESMAP Formal Report Series, Report No. 310/05, World Bank, Washington, D. C., 2005.
[52] World Bank, Characteristics of Successful Mining Legal and Investment Regimes in Latin America and the Caribbean Region, Mining Staff Working Paper, World Bank, Washington, D. C., 1996.
[53] World Bank, Large Mines and Local Communities: Forging Partnerships, Building Sustainability. Mining, and Development Series, World Bank, Washington, D. C., 2002.
[54] World Bank, Latin America and the Caribbean: A Mining Strategy, World Bank Technical Paper No. 345, World Bank, Washington, D. C., 1996.
[55] World Bank, Mining Reform and the World Bank: Providing a Policy Framework for Development, Mining and Development Series, World Bank, Washington, D. C., 2005.
[56] World Bank, Strategy for African Mining, World Bank technical paper number 181, World Bank, Washington, D. C., 1992.
[57] Masanja, C. R. (2018). The Extent To Which Foreign DirectInvestment (Fdi) Contribute To The Growth Of Host Economies: Evidence From Tanzania. Business Management Review 21 (1), pp. 1-22 ISSN 0856-2253 (eISSN 2546-213X).
[58] Dupasquier, C. & Osakwe, P. N. (2005). Foreign direct investment in Africa: performance, challenges and responsibilities. Journal of Asian Economics, 17 (2), 241-260. doi. 10.1016/j.asieco. 2005.07.002.
[59] Chuhan-Pole, P, Andrew L. Dabalen, A. L and Land, B. C. 2017. Mining in Africa: Are Local Communities Better Off? Africa Development Forum series. Washington, DC: World Bank. doi: 10.1596/978-1-4648-0819-7.
Cite This Article
  • APA Style

    Muhanga Mikidadi. (2019). An Examination of Some Key Issues on Legal and Policy Environment in the Mining Sector After the Economic Reforms in Tanzania. International and Public Affairs, 3(2), 33-42. https://doi.org/10.11648/j.ipa.20190302.11

    Copy | Download

    ACS Style

    Muhanga Mikidadi. An Examination of Some Key Issues on Legal and Policy Environment in the Mining Sector After the Economic Reforms in Tanzania. Int. Public Aff. 2019, 3(2), 33-42. doi: 10.11648/j.ipa.20190302.11

    Copy | Download

    AMA Style

    Muhanga Mikidadi. An Examination of Some Key Issues on Legal and Policy Environment in the Mining Sector After the Economic Reforms in Tanzania. Int Public Aff. 2019;3(2):33-42. doi: 10.11648/j.ipa.20190302.11

    Copy | Download

  • @article{10.11648/j.ipa.20190302.11,
      author = {Muhanga Mikidadi},
      title = {An Examination of Some Key Issues on Legal and Policy Environment in the Mining Sector After the Economic Reforms in Tanzania},
      journal = {International and Public Affairs},
      volume = {3},
      number = {2},
      pages = {33-42},
      doi = {10.11648/j.ipa.20190302.11},
      url = {https://doi.org/10.11648/j.ipa.20190302.11},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ipa.20190302.11},
      abstract = {Due to the economic hardships Tanzania has been undergoing since the early 1980s, a wide-ranging reforms in numerous sectors of the economy have been instigated. These reforms aimed at overcoming such hardships in order to improve the prospects for development. This article examines some key issues on legal and policy environments in the mining sector after the economic reforms in Tanzania, it specifically:-(i) analyses the mining sector before the reforms, (ii) examines the legal and policy responses after the economic reforms; (iii) analyses how these policies and legislations have impacted the socio-economic and political aspects related to mining in Tanzania; and, (iv) identify the lessons learnt. A documentary review (documentary research method) was used in collecting relevant information. It was revealed that prior to the reforms the extent of minerals extraction in Tanzania was low, dominated by mineral sector development operations which were largely state owned and run by government enterprises. The legal and policy responses examined include the Mineral Policy of 1997, Mineral Act of 1998, Mining Act of 2010, New Investment Policy and the Tanzania Investment Act No. 26 of 1997, Mining (Environmental Management and Protection) Regulations of 1999, Natural Wealth and Resources (Permanent Sovereignty) Act, 2017; Natural Wealth and Resources Contracts (Review and Re-Negotiation of Unconscionable Terms) Act, 2017, the Written Laws (Miscellaneous Amendments) Act 2017; Extractive Industry Transparency and Accountability Act, 2015 and the Finance Act of 2017. These legal and policy responses in the mining sector were found to have both positive and negative impacts. It has been observed that reforms in the sector have not fully captured the expectations of Tanzanians. The role of mining sector in economic development and socio-economic wellbeing is very obvious; hence transforming this resource wealth into well-being remains essential matter for Tanzania’s economy. It is recommended that conducive legal and policy framework enhanced to transform mineral resources into wellbeing.},
     year = {2019}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - An Examination of Some Key Issues on Legal and Policy Environment in the Mining Sector After the Economic Reforms in Tanzania
    AU  - Muhanga Mikidadi
    Y1  - 2019/08/13
    PY  - 2019
    N1  - https://doi.org/10.11648/j.ipa.20190302.11
    DO  - 10.11648/j.ipa.20190302.11
    T2  - International and Public Affairs
    JF  - International and Public Affairs
    JO  - International and Public Affairs
    SP  - 33
    EP  - 42
    PB  - Science Publishing Group
    SN  - 2640-4192
    UR  - https://doi.org/10.11648/j.ipa.20190302.11
    AB  - Due to the economic hardships Tanzania has been undergoing since the early 1980s, a wide-ranging reforms in numerous sectors of the economy have been instigated. These reforms aimed at overcoming such hardships in order to improve the prospects for development. This article examines some key issues on legal and policy environments in the mining sector after the economic reforms in Tanzania, it specifically:-(i) analyses the mining sector before the reforms, (ii) examines the legal and policy responses after the economic reforms; (iii) analyses how these policies and legislations have impacted the socio-economic and political aspects related to mining in Tanzania; and, (iv) identify the lessons learnt. A documentary review (documentary research method) was used in collecting relevant information. It was revealed that prior to the reforms the extent of minerals extraction in Tanzania was low, dominated by mineral sector development operations which were largely state owned and run by government enterprises. The legal and policy responses examined include the Mineral Policy of 1997, Mineral Act of 1998, Mining Act of 2010, New Investment Policy and the Tanzania Investment Act No. 26 of 1997, Mining (Environmental Management and Protection) Regulations of 1999, Natural Wealth and Resources (Permanent Sovereignty) Act, 2017; Natural Wealth and Resources Contracts (Review and Re-Negotiation of Unconscionable Terms) Act, 2017, the Written Laws (Miscellaneous Amendments) Act 2017; Extractive Industry Transparency and Accountability Act, 2015 and the Finance Act of 2017. These legal and policy responses in the mining sector were found to have both positive and negative impacts. It has been observed that reforms in the sector have not fully captured the expectations of Tanzanians. The role of mining sector in economic development and socio-economic wellbeing is very obvious; hence transforming this resource wealth into well-being remains essential matter for Tanzania’s economy. It is recommended that conducive legal and policy framework enhanced to transform mineral resources into wellbeing.
    VL  - 3
    IS  - 2
    ER  - 

    Copy | Download

Author Information
  • Department of Development Studies, College of Social Sciences andHumanities, Sokoine University of Agriculture, Morogoro, Tanzania

  • Section