IMPROVING THE ENVIRONMENTAL AND SOCIAL ASPECTS OF … · Abbreviations 7 Introduction 9 1. Tanzania—a backgrounder 10. Mining in Tanzania 14. 2. Laws, policies and the institutional

1Centre for Science and Environment

TANZANIAIMPROVING THE

ENVIRONMENTAL AND SOCIAL ASPECTS

OF MINING SECTOR

TanzaniaImproving the Environmental and Social Aspects of Mining Sector

Research direction: Chandra Bhushan

Writer and photographs: Sujit Kumar Singh

Research support: Ashutosh Srivastava and Rahul Kumar

Editor: Arif Ayaz Parrey

Design: Ajit Bajaj

Cover design: Kirpal Singh and Ritika Bohra

Layout: Kirpal Singh

Production: Rakesh Shrivastava and Gundhar Das

© 2018 Centre for Science and Environment

Material from this publication can be used, but with acknowledgement.

Citation: Sujit Kumar Singh 2018, Tanzania: Improving the Environmental and Social Aspects of Mining Sector, Centre for Science and Environment, New Delhi

Published byCentre for Science and Environment41, Tughlakabad Institutional Area, New Delhi 110 062Phones: 91-11-40616000Fax: 91-11-29955879E-mail: [email protected] Website: www.cseindia.org

Printed at Avantika Printers, New Delhi

This document has been produced with the support of the Swedish International Development Cooperation Agency (Sida). The views herein shall not necessarily be taken to reflect the official opinion of the donor.

Acknowledgement: This report is an outcome of the collaboration between Centre for Science and Environment (CSE), New Delhi and Mineral Resources Institute (MRI), Tanzania

Abbreviations 7Introduction 9

1. Tanzania—a backgrounder 10 Mining in Tanzania 14 2. Laws, policies and the institutional framework 17 Key provisions of the Mining Act and regulations 19 Institutional framework 20 National Environment Management Council 21 Tanzania Bureau of Standards 21

3. The policy framework—an assessment 22 Salient features 23

4. Socio-economic benefits 26 Salient features 27

5. Environmental management 31 Environmental Management Act, 2004 31 Salient features of EIA 33 Salient features of environmental management 33 Salient features of mine reclamation and restoration 36

7. Recommendations 38 Permit systems and compliance 38 Socio-economic benefits 38 Environmental impact assessment 40 Environmental management 41 Reclamation and restoration 41

Annexure 43 References 46

Contents

List of figures1. Economic contribution of different sectors 11

List of maps1. Tanzania—political 112. Mineral distribution in Tanzania 143. Active mining zones in Tanzania 15

List of tables1. Country profile—Tanzania 122. Zone-wise mineral rights distribution 163. Mineral reserves in Tanzania 164. Mineral rights concessions in Tanzania 185. Types of audit 33

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TANZANIA: IMPROVING THE ENVIRONMENTAL AND SOCIAL ASPECT OF MINING SECTOR

CIA Central Intelligence Agency, USA

EITI Extractive Industries Transparency Initiative

GDP Gross Development Product

GNI Gross National Income

LSM Large-scale mine

MDA Model development agreement

MEM Ministry of Energy and Minerals, Tanzania

MSM Medium-scale mine

NEMC National Environmental Management Council

SSM Small-scale mine TIC Tanzania Investment Centre

Abbreviations

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Tanzania, located in eastern Africa, is a low-income country heavily dependent on agriculture, which accounts for more than 30 per cent GDP and 67 per cent workforce of the country. The country has been

blessed with abundant minerals reserves that include gold, diamonds, precious stones, coal, and uranium.The government has envisaged a grand programme to develop the mineral sector. The sector is one of the most regulated one, a fact clear from the exhaustive and comprehensive list of mining and environment-related acts and regulations. However, implementation of policies on ground is far from satisfactory. Tanzania lacks manpower and institutional capacity to ensure effective compliance, inspection and enforcement. The mining sector also lacks guidelines, manuals and exposures to international best practices.

The Mining Act, enacted in 2010, is the centrepiece legislation governing the sector. Subsequently, five regulations were also enacted to regulate the sector. Earlier acts and regulations were seen as industry-centric and focussed on boosting investment in the sector. In 2017, the government amended the Mining Act to address shortcomings and strike a balance between interests of the industry and society. The new amendment act incorporates provisions for corporate social responsibility, local content plans, statement of integrity pledge, insurance against damages, losses of environment, community etc. to make the sector more environmentally and socially responsible.

Legally, mines are classified into large-, medium- and small-scale mines. In addition, there is a special class of mines which do not find a place in the statute but are common. They are called artisanal mines. Small-scale and artisanal mines provide employment to millions in rural areas and are perceived by the government as a means to alleviate poverty. To streamline this process, the government has set a target to formalize artisanal mines as small-scale mines. The Mining Act reserves areas for small-scale mining in order to support the livelihood of the artisanal workers. However, due to poor mining practices, small-scale mining sector lacks compliance with laws and regulations and records the maximum number of mining accidents.

This report by CSE attempts to study the mining sector in Tanzania, predominantly its environmental and social aspects, including provisions and practices related to health and safety, and the regulatory framework. The document tries to identify the strength and weakness in the policy framework and also identifies areas which need improvement to make mining environmentally and socially more responsible. Wherever relevent, the document also draws comparision between the scenarios in India and Tanzania. This report does not take into account of oil and gas sector. It incorporates the study and analysis of different acts and regulations and desktop research. Along with site visits, the CSE team has conducted comprehensive interactions with different stakeholders for their views.

As a country that has woken up to the challenges and opportunities provided by its rich mineral wealth, Tanzania presents a panoramic view on the mining sector, from which others could take home valuable lessons. At the same time, Tanzania could learn from examples of other countries and leapfrog into a new era of prosperity.

Introduction

TANZANIA—A BACKGROUNDER1The United Republic of Tanzania is a country located in Eastern Africa within the African Great Lakes region. It is bordered by Kenya and Uganda to the north; Rwanda, Burundi, and the Democratic Republic of Congo to the west; Zambia, Malawi, and Mozambique to the south; and by the Indian Ocean to the east. Dar-es-Salaam is the capital city, with an estimated population of 4.36 million. Tanzanian mainland is divided into 25 regions and there are five regions in Zanzibar (see Map 1: Tanzania—political).

EconomyTanzanian economy is heavily dependent on agriculture (including fishing), which accounts for 31 per cent gross domestic product (GDP) and 67 per cent workforce.1 Industry and construction is another major and growing component of the Tanzanian economy, contributing 26 per cent GDP in 2015. This component includes mining and quarrying, manufacturing, electricity and natural gas, water supply, and construction (see Figure 1: Economic contribution by different sectors).

Based on a 2015 World Bank report, Tanzania comes under the category of countries with low-income countries, with a per capita income of US $920. In terms of income inequality, the Gini-coefficient of the country is 0.38, showing

Tanzania is blessed with vast natural wealth, both above and below the surface of the earth

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a quite equitable distribution of wealth, yet 28 per cent population lives below the poverty line.2 Child labour is also a major problem affecting the economy. As per estimates, 25.1 per cent population in the age group of 5–14 years is employed as child labour.3 The education sector is doing fairly well in Tanzania, with the government spending 3.5 per cent GDP on education, and the literacy rate has climbed up to 70.6 per cent.

Map 1: Tanzania—political

Figure 1: Economic contribution of different sectors

Source: National Bureau of Statistics, Tanzania 2015

31%

26%

43%

Agriculture, forestry and fishing Industry and construction Services

Source: www.africaguide.com and www.beautifulworld.com

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Only 15.3 per cent Tanzanians had access to electric in 2012.4 In 2013, 49.7 per cent of Tanzania’s electricity generation came from natural gas, 28.9 per cent from hydroelectricity, 20.4 per cent from thermal sources, and 1 per cent from outside the country.5 The government’s goal is to increase domestic capacity to at least 10,000 megawatts by 2025.The electric power consumption was 99 kWh per capita in 2016.

Travel and tourism contributed 12.7 per cent to the Tanzania’s GDP in 2013 and employed 11.0 per cent of the country’s labour force. The communications sector is the fastest growing sector in Tanzania, expanding by 22.8 per cent in 2013 and accounting for 2.4 per cent of the GDP.

Environment and healthTanzania has a total area of around 945,087 sq km, 883,749 sq km land (881,289 sq km in the mainland and 2,460sq km in Zanzibar), and around 59,050 sq km inland water bodies.6 As per a 2011 Central Intelligence Agency (CIA) report, 44 per cent land in Tanzania is under agriculture, 37 per cent is under forests, and the rest is used for other activities like housing, tourism and as public spaces. About 15.2 per cent land is arable, as per a 2014 report of the World Bank.7

There has been a dip in the total forest area of Tanzania to 460.6 thousand sq km in 2016, from 559.2 sq km in 1990. The country has 16 National Parks and a variety of game and forest reserves, including the Ngorogoro Conservation Area.

Table 1: Country profile—Tanzania

Vital statistic 1990 2000 2010 2016

Population (millions) 25.46 34.18 46.1 55.57

Population growth (annual per cent) 3.2 2.6 3.2 3.1

Surface area (thousand sq km) 947.3 947.3 947.3 947.3

Life expectancy at birth 50 50 62 65

Fertility rate 6.2 5.7 5.4 5.1

Forest area (thousand sq km) 559.2 519.2 479.2 460.6

Terrestrial and marine protected areas (per cent of total area)

21.6 22.8 .. 26.1

Population with access to clean drinking water (per cent)

54 54 55 56

Population with access to toilets (per cent) 7 9 13 16

Urban population growth (annual per cent) 4.9 4.3 5.6 5.3

Energy use (per capita kg oil equivalent) 382 394 448 475

Electric power consumption (per capita kWh) 51 58 93 99

CO2 emissions (per capita metric tonnes) 0.09 0.08 0.15 0.21

Agriculture (per cent GDP) 46 33 32 31

Industry (per cent GDP) 18 19 22 27

Source: World Development Indicators Database

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Tanzania has the largest population in East Africa, with the lowest density; almost one-third of the population is urban. Tanzania’s youthful population—about two-thirds of the population is under 25 years—is growing rapidly because of a high total fertility rate of 5.1 children per woman.8 The maternal mortality rate has declined since 2000, yet it remains very high because of early and frequent pregnancies, inadequate maternal health services, and a lack of skilled birth attendants—problems that are worse among poor and rural women. Malaria is a leading killer of children under five.9

Tanzania spend 5.6 per cent GDP in the health sector in 2014.10 Life-expectancy at birth is 65.11 HIV remains a major problem, with 4.7 per cent population affected by it.12

The percentage of population with access to safe drinking water is low and stood at 56 per cent in 2016. In 2016, only 16 per cent population had access to toilets, which is dismal, but still a marked improvement over the abysmal 7 per cent in 1990.

The CO2 emissions have gone up at a consistent rate—from 0.09 metric tonnes per capita in 1990 to 0.21 metric tonnes per capita in 2016. This highlights the increasing carbon footprint of the country (see Table 1: Country profile—Tanzania).

The government of Tanzania realized the seriousness of environmental degradation way back in the 1990s and identified six core areas which required immediate attention:(a) Degradation of land (b) Lack of access to good quality water for both urban and rural inhabitants(c) Environmental pollution(d) Loss of wildlife habitats and biodiversity(e) Deterioration of aquatic systems(f) Deforestation.13

The reason cited for the deteriorating state of the national environment were poor management of land and water, lack of financial and human resources, fast growth of rural and urban population, inadequate coordination among various institutions, and poor involvement of major stakeholders etc.

The National Environment Policy of Tanzania of 1997 was the outcome of the concern over the deteriorating state of the environment. It laid the foundation of the endeavour to strike a balance environment protection and economic development. The concepts of environment sustainability, environmental impact assessment (EIA), legislation and standards, resource pricing, and the precautionary principal were instruments suggested to prevent further environment degradation. Subsequently, the Environment Management Act, 2004, was enacted. The government also recognized that environmental management is a multi-sectoral and multi-disciplinary, and to carry it out fruitfully requires cooperation of many government agencies. Hence, sector-specific laws and regulation enacted under allied ministries mandate environment management.

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Mining in Tanzania

A brief historyLike most countries in Africa, mining in Tanzania largely took off during the colonial period, particularly during the earlier part of the twentieth century. At that time, mining was mostly in the hands of privately-owned foreign mining companies actively engaged in the exploration, development and production of minerals. In the period following the country’s independence in 1961, particularly after the Arusha Declaration in 1967, there was a shift towards state control over the mining sector.

From early 1970s, as the mining sector became predominantly state-owned, private companies withdrew their investments. However, challenges started to surface. According to Tanzania Chamber of Minerals and Energy, most state mining companies fared poorly due to limited investment in exploration and development, lack of technical expertise and adequate financial resources.

In the 1980s, the government embarked upon structural economic reforms, accompanied by processes of privatization and liberalization.To revive the mining sector, the government also started to relax rules for foreign investments.

This resulted in extensive reforms in mining regulations during the 1980s–90s, introducing legal frameworks more favourable to the changing investment environment. These included reduced or eliminated state participation in mining enterprises, creation of competitive tax regimes, and assurances of investment protection. The mineral sector expanded rapidly following the mineral policy reforms of 1997, and became more sustainable after the 2009 reforms in the policy.

Map 2: Mineral distribution in Tanzania

Source: Online mining cadastre map, 2017

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An overview of the minerals and mining sector The reforms have resulted in development of the mining sector. As per annual reports, from 1997 and 2014, export earnings from minerals increased from an average of 1 per cent to 52 per cent of the total.14 During the same period, direct employment in the large-scale mining industry increased from 1,700 to 23,575,15 gold exports from less than 1 tonne to 50 tonnes,16 and contribution of mining to the GDP from less than 1 per cent to 3.7 per cent. Overall, the sector provides employment to more than 600,000 people, however, most of the employment is in the informal sector, with the formal sector contributing just 1.1 per cent to the national employment statistics.17 As per the mining cadastre map available online (as of 28 August 2017), there are 14 large-scale mines (six for gold, two for gemstone and one for coal), around 440 medium-scale mines, and more than 35,000 small-scale mines, mainly for gold, diamonds and coloured gemstones, in operation (see Map 2: Mineral distribution in Tanzania).

According to the 2014–15 annual report, 0.5 per cent land is under active mining and 31 per cent is under mineral exploration. More than 70 per cent mining licences given, especially small-scale mining, are concentrated in the northern, central, Lake Nyasa and eastern zone of Tanzania. Medium-scale mining licences are mostly concentrated in the eastern region. Exploratory licences are evenly distributed over the whole of Tanzania, a sign of the optimism towards mining in the country (see Table 2: Zone-wise mineral rights distribution).

Many upcoming mining projects like Kabanga nickel, Mantra uranium, Mchuchuma coal, Liganga iron ore, Nyanzaga gold, Canaco gold, Panda Hill niobium, Ngualla REEs, Resolute-Nyakafuru gold, Uranex graphite, Dutwa nickel, Ngwena nickel and Kiwira coal are at an advanced stage of exploration.

Map 3: Active mining zones in Tanzania

Source: Online mining cadastre map, 2017

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Table 3: Mineral reserves in TanzaniaS. no Types of Minerals Quantity

1 Gold 2,222 tonnes

2 Nickel 209 million tonnes

3 Copper 13.7 million tonnes

4 Iron ore 126 million tonnes

5 Tanzanite 12.6 million carats

6 Diamond 51 million tonnes

7 Uranium 160 million tonnes

8 Graphite 158 million tonnes

9 Rare Earth 101 million tonnes

10 Coal 5,000 million tonnes

Source: Mining Industry Investor Guide, June 2015

Most mineral reserves have been geologically surveyed at a scale of 1:250,000. Countrywide airborne coverage by magnetic, electromagnetic and radiometric survey is available. Several airborne surveys have been carried out in specific areas. High-resolution geophysical data covers 15.7 per cent of the country.

Apart from gold, gemstone and atomic minerals reserves, Tanzania also has abundant reserve of good-quality coal. Coal mining can play an important role in expanding the power base through thermal power plants. For details, see Table 3: Mineral reserves in Tanzania.

Table 2: Zone-wise mineral rights distributionZone Total

Types of Licences

Mining licence Exploration licence

Number of licences

(PL, ML, SML, and

PML)

Total area covered

Per cent total area covered

by mineral rights

Number of

licences

Area covered


by mineral rights

Number of

licences

Area covered


by mineral rights

Central 6,947 26,411 29 6,632 476 1 315 25,935 28

Central Western

2,114 18,089 20 1,541 397 0.4 573 17,691 19

Eastern 13,320 35,702 30 12,936 882 1 384 34,820 29

Northern 3,963 12,760 13 3,838 233 0.002 125 12,528 13

Lake Nyasa 3,105 30,881 39 2,692 408 1 413 30,472 38

Lake Victoria East

1,414 10,699 23 1,054 185 0.4 360 10,514 23

Lake Victoria West

2,761 25,659 50 1,727 510 2 1034 25,149 49

Southern 3,396 32,189 71 2,989 287 2 407 31,902 70

South Western

2,047 23,191 24 1,667 283 0.3 380 22,908 24

Western 2,086 26,746 65 1,834 166 0.4 252 26,580 65

Source: Ministry of Energy and Minerals, Annual Report 2014–15

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Mining is a key pillar of Tanzania’s national development strategy. With the development of the new policy, acts and subsequent regulations, the government has opened up the sector for more investment and

technological advancements. The law also provides for linking the sector with other sectors by putting an obligation on companies to agree to avail goods and services available within Tanzania.

Tanzania formulated a new Mineral Policy in 2009. The policy was envisaged after evaluation of the Mineral Policy of 1997. Subsequently, a new Mining Act was passed in 2010, replacing the old Mining Act of 1998. In the same year, the government, in order to regulate the sector, notified six regulations under the Mining Act. These are Mining (Mineral Rights) Regulations, the Mining (Mineral Trading) Regulations, the Mining (Mineral Beneficiation) Regulations, the Mining (Safety, Occupational Health and Environmental Protection) Regulations, the Mining (Environmental Protection for Small-scale Mining) Regulations, and the Mining (Radioactive Minerals) Regulations. In

LAWS, POLICIES AND THE INSTITUTIONAL FRAMEWORK2

Tagging system at a small-scale mine. Proliferation of small mines in Tanzania has put almost unbearable pressure on monitoring and enforcement

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order to increase the sector’s contribution to the national economy and to local development, the Mining act was amended in 2017 under The Written Laws (Miscellaneous Amendment) Act, 2017.

Under the Mining Act, mines are typically classified as large-, medium- and small-scale, based on the amount of investment. If the capital investment is not less than US $100 million or its equivalent in Tanzanian shillings, the mine is referred to as a large-scale mine. Similarly, if the capital investment in a mine is between US $100 thousand and US $100 million or its equivalent in Tanzanian shillings, the mine is referred to as a medium-scale mine, and if the investment is less than US $100 thousand or its equivalent in Tanzanian shillings, the mine is referred to as a small-scale mine. The Act outlines the types of mining permits obtained at different stages of development for both mines and quarries. The mining permits in Tanzania include prospecting and mining licences related to exploration and exploitation of minerals. The Mining (Mineral Trading) Regulation, 2010 defines the rights pertaining to minerals and their trading. Large, medium and small-scale mines require a special mining licence (SML), a mining licence (ML), and primary mining licence (PML) respectively. The details have been enumerated in the Table 4: Mineral rights concessions in Tanzania.

An HEMM parked at a washing bay. In recent years, the government has opened the sector to investment and technological advancement

Table 4: Mineral rights concessions in TanzaniaType of licence Description

Mining licenceIssued for operating a medium-scale mine for a period of 10 years and can be renewed for a further 10 years. Investment above US $1 million and up to US $1 billion have to apply for a mining licence

Special mining licence

Issued for operating a large-scale mine for a period of 25 years or life of the mine, whichever is less, and investment above US $1 billion have to apply for a special mining licence

Prospecting licence

Initially issued for a period of four years, can be renewed for three years for the first time and for two years for a second time. The prospecting licence shall not be renewed after the second period of renewal. The Mining Act puts a financial obligation on the licence holder to spend a minimum stipulated amount every year.

Primary mining licence

Issued for operating small-scale mines for a period of seven years, it is not subject to renewal. Includes all the mining investments below US $1 million. PML holders can convert their licences into mining licences.

Source: Mining Act, 2010 and The Written Laws (Miscellaneous Amendment) Act, 2017

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Key provisions of the Mining Act and regulationsThe Mining Act of 2010 empowers the Commission or any person authorized by the commission to inspect legal compliance. The Commission or an authorized officer may, at any time, enter an area over which mineral rights has been granted, or any premise or working place, except residential houses to examine the prospecting or mining operation, check compliance status, and take soil samples or specimens of any rock, ore, concentrate, tailing or mineral. The Act also stipulates that obstruction or hindrance to an authorized officer in the discharge of these functions is an offence and liable for fine or jail term of up to a year. The Act has put the following obligation on licence holders:• Complying with mining operation and environmental management plans• Preparing and updating mine closure plans• Implementing the proposed plan for relocation, settlement and payment of

compensation• Providing a rehabilitation bond to finance the costs of rehabilitating and

making the mining area safe on termination of mining operations

According to the Mining (Mineral Beneficiation) Regulation of 2010, any person who holds an SPL, ML or PML and performs mineral beneficiation such as processing, smelting and refinery under the regulation, has to obtain a processing, smelting or refinery licence, depending on the type of beneficiation.

The Mining (Safety, Occupational Health and Environment Protection) Regulation of 2010 regulates safety, health and environment in all mines and quarries during exploration, evaluation, development, construction and production, and closure and reclamation. The regulation defines the power and duties of an inspector with regard to compliance assurance. In addition, the inspector also has some special emergency powers. If an inspector is of the opinion that a part of a mine is dangerous or defective and can threaten human health and life, it may be ordered that the danger be rectified within a stipulated time period.

The Mining (Environmental Protection for Small-scale Mining) Regulations of 2010 stipulates that an applicant, prior to commencing mining operations, shall conduct a baseline environmental investigation and social study (i.e., presence of human settlement, identification of burial sites, presence of cultural heritage sites, water, vegetation, etc.) Based on the finding, the applicant has to prepare Environment Protection Plan (EPP) to mitigate those impacts and has to submit the plan to the Commission four month prior to the grant of PML. In case of non-compliance with the EPP and other provisions of the said regulations, a holder of an SML is to take all reasonable action to mitigate those impacts and inform the Commission or pay a fine of up to TSH 1,00,000 (US $44.6) for every breach. The regulation also stipulates that the licensee shall not knowingly discharge, deposit or emit liquid, solid, gaseous or particulate matter, or noise or vibration from the mine. Further, a licence holder is not allowed to use cyanide in the leaching process without written approval from the Chief Inspector, failing which he is liable for a fine and a prison term of up to six months.

In addition, there are a number of other important other acts relating to mining governance in Tanzania. These include, the Explosives Act, 1963; the Land Act, 1999 and the Village Land Act, 1999 (to addresses issues of resettlement, rehabilitation and compensation); the Water Resources Management Act, 2009; the Income Tax Act, 2004and the Finance Act 2016 (dealing with the tax to be levied upon mining firms); and Worker’s Compensation Act, 2008 (the basis for providing compensation to workers in case of any accident).

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Institutional frameworkThe Minister for Energy and Minerals is responsible for preparing policy strategies and legislative framework, implementing government policies, monitoring the operation of all bodies, reporting to the cabinet, monitoring the issuance of licences by the commission etc. The Minister, in consultation with commission, appoints chief inspector of mines, resident mine officers and inspector of mines.

The mandated Commission will be responsible for overall licencing; ensuring implementation of the Act and regulations; monitoring compliance with health, safety and environment norms; monitoring and auditing the environment budget of mines, including expenditure on progressive reclamation and mine closure; conducting research and development; monitoring mineral smuggling; examining and monitoring the implementation of the feasibility report, mine plan and EMP; monitoring and auditing the quality and quantity of minerals produced and exported by mines; and suspending and revoking licences in cases of non-compliance.

Besides the ministry and the commission, other agencies providing support to boost the mineral sector in the country are the Tanzania Investment Centre, State Mining Corporation, Geological Survey of Tanzania and various training institutions.

Entrance of a small-scale mine. Mining, particularly at the diminutive level, remains perilous in Tanzania, with accidents being reported regularly

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National Environment Management CouncilThe Tanzanian National Environment Management Council (NEMC) is an institution constituted in 1983 with the enactment of the National Environment Management Act of 1983. The Environmental Management Act of 2004 (EMA 2004) re-established the NEMC. EMA 2004 gives NEMC mandate to undertake enforcement, compliance, review and monitoring of environmental impact assessments, research, and to raise environmental awareness, and to collect and disseminate environmental information.18 NEMC is headed by the Director General (DG) and operates with the assistance of five directorates (Environmental Compliance and Enforcement, Environmental Impact Assessment, Environmental Research and Planning, Environmental Information, Communication and Outreach, Finance and Administration). It has five regional offices (Northern Zone, Lake Zone, Southern Highland Zone, Southern Zone and Eastern Zone) to ensure effective environmental administration.

Tanzania Bureau of Standards Tanzania Bureau of Standards is a nodal agency to formulate and revise standards for environmental protection. Section 140 of the Environmental Management Act (EMA) of 2004 mandates Tanzania Bureau of Standards (TBS) to make standards for protection of environment. The Bureau of Standards has formulated the following environmental protection standards:• Municipal and industrial wastewater discharge standard • Effluent discharge inland surface water—tanning industry • Discharge standard for phosphate fertilizer into surface water • Standard for drinking water, air quality, noise vehicular emission • Standard for ionizing radiation (occupational)

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Key acts and regulations:• The Mining Act, 2010• The Written Laws (Miscellaneous Amendment) Act, 2017• The Mineral Rights Regulation, 2010• The Income Tax Act, 2004• The VAT Act, 1998

Penalties and punishment for defaults (including non-payment of taxes and royalties, irregularities in documentation, illegal mining activities, fraud, and health and safety violations) are laid out in great detail. Tanzania is working towards creating guidelines for regular monitoring and inspection of mines so as to increase transparency in the mining sector. Tanzania also became a signatory to Extractive Industries Transparency International, thereby providing transparency in accountancy in the mining sector.

The mining sector generates revenue through a mix of royalties, taxes, permitting fees and other levies. The Act clearly states the payment of royalties depends on the type of mineral mined. Corporate taxes are fixed at 30 per cent. Value

THE POLICY FRAMEWORK—AN ASSESSMENTPermitting system and financial provisions3

An HEMM plying on a haul road. Investments and technology have unearthed their own set of problems, as the country struggles to mine in manner that is socially and environmentally sustainable

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added tax (VAT) is levied on imports and supplies, but not on exploration and prospecting. Salient features• Permitting process is robust, with detailed description of required

documentation, obligations and timelines for issuance, renewal and rejection. The procedure and the concerned issuing authority for obtaining permits have been clearly laid out.

• The President may declare a mining controlled area (MCA) and prescribe conditions for administration of MCA and the Minister makes regulations.

• Provision of government shares in mining company, applicable for large- and medium-scale mines.

• Government is entitled to acquire up to 50 per cent shares in a mining company. The acquisition of shares is determined by total tax expenditure enjoyed by the company

• The government has taken a strong stand on the question of the benefits enjoyed by the mining company, hence all development agreements completed prior to the enactment of The Written Laws (Miscellaneous Amendment) Act are subject to review and negotiation.

• All large-, medium- and small-mines have to submit (a) statement of integrity pledge (b) local content plan. The objective of the local content plan is to create employment, build skills and boost local economy of the country by making it mandatory to use goods and services produce within the country by mineral right holders. Under the local content plan, the mineral right holders shall prepare and submit five-year procurement plan and compliance status to the Commission, including the annual achievements in utilizing local good and services.

• Establishment of a National Gold and Gemstone Reserve under the Bank of Tanzania. According to the said Act, one-third royalty has to be paid to the government in refined minerals, and has to be deposited in the Reserve.

• Mining cadastre is a centralized body for processing licence applications, and the cadastre map is used to obtain mineral rights licence.

• In order to strengthen compliance, the Act mandates stationing a mines resident officer at each mine site area to (a) monitor day-to-day production processes, (b) verify records, (c) authorize entry into the mineral storage facility, and (d) monitor removal of minerals.

• Establishment of a Gems and Minerals House responsible for auction and exchange, and to act as a mineral clearing house.

• Minimum expenditure and 50 per cent area relinquishment in case of renewal of a prospecting licence as provided by Section 30 and Section 32 (4)(b) of the Mining Act of 2010, which puts an obligation on the licence holder to work on the area and not leave it unused after a permit has been granted. Further, a prospecting license shall not be renewed after the second period of renewal. If the prospecting licence is not renewed, the area is return to government.

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• No trading of minerals can be carried without having a dealer’s licence. As per the Mineral Trading Regulation of 2010, for any kind of export or import of minerals, the mineral right or dealer licence holder has to take export or import permits and is directly answerable to the licencing authority. Filing of returns is compulsory.

• Ring fencing in mining has been introduced under the new Finance Act of 2016. Section 65 F (1)(c) of the Finance Act limits the deduction of losses from separate mining operations, thereby ensuring that taxes to be generated from a mine are paid from the same mine without assistance from other mines of the company. This may further boost the efficiency of the workforce and also put an obligation on the owner to take such steps which may increase the productivity of the mine.

• The Act and the subsequent regulation stipulate that the licence holder must maintain an accident register and all the particulars of the accident must be recorded in it. The register needs to be made available at the time of inspection and, if the licence holder is found non-compliant with the legal provisions, the inspector will investigate the accident.

• The regulation also stipulates that it is the manager’s duty to ensure safety in places like generating stations, winding engine rooms, main substations and pump stations. A notice should prominently display that:

(a) Unauthorized persons are prohibited from entering the premises (b) Directions in case of fire (c) Directions for treating a person suffering from electric shock

• Regulation stipulates holding a valid permit defining the type and amount of explosive used, including the storage area for placing explosive and accessories.

A first aid kit at a gold mine. Recent legislative reforms stress the need of safe mining practices

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• Licence holders shall not use cyanide in the leaching process without prior written approval of the Commission.

• Use of external combustion engines is avoided in underground mines, with clear provisions laid for the use and storage of diesel underground.

• Part 4 of the Mining (Safety, Occupational Health and Environment Protection) Regulation deals with emergency preparedness. It explains the duty of the manager to provide first aid supplies and services. To ensure rescue in case of an emergency, a team has to be set up in every mine. Development of a mine rescue emergency plan and procedures for safe evacuation of the mine have been conferred upon the manager. Maintenance of instruments for detection of flammable gases and periodic checking of the gases has been provided. The Regulation, together with the Fire and Rescue Services Act, enlists the procedure and precautions to be taken in fire-fighting.

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Key acts and regulations:• The Mining Act of 2010• The Written Laws (Miscellaneous Amendment) Act, 2017• The Mineral Rights Regulation of 2010• The Mining (Safety, Occupational Health and Environment

Protection) Regulation of 2010• The Land Act of 1999 and The Village Land Act of 1999• Workers Compensation Act of 2008

Historically, local communities have benefitted little from mining in Tanzania. Communities in the mining areas suffer from forced eviction, inadequate or no compensation and poor resettlement. There is no provision of sharing of benefits of the mineral wealth. Such factors have contributed to discontent and distrust about mining companies. The Bomani Commission Report, produced under chairmanship of Judge Mark Bomani in 2008, highlights several issues concerning the mining sector, among which a central one was communities being deprived of mining benefits. The report also mentioned that ‘lack of being paid the correct compensation and allocation to new settlement has led to misunderstanding, which have caused tension and insecurity in mining sites’. Emphasizing on the need to share mining benefits to improve the socio-

SOCIO-ECONOMIC BENEFITS4

A crusher plant at a small-scale mine. Local communities bear the heavy costs of mining, in the form of evictions and pollution. It is only fair that they get a big chunk of the benefits as well

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economic conditions of the local people, the committee also pointed out that the ‘people believe that these minerals can play a big role in changing their life’.

The Mining Act of 2010 and regulations not only regulate the environment but also encapsulate provisions about workspace safety, hygiene and cleanliness. It has specific provisions for compensation and resettlement. Section 96(3) of the Mining Act states that ‘where, in the course of prospecting or mining operations, any disturbance of the rights of the lawful occupier of any land or damage to any crops, trees, buildings, stock or works thereon is caused, the registered holder of the mineral right, by virtue of which the operations are carried on, is liable to pay the lawful occupier fair and reasonable compensation.’

According to Section 97(1), where ‘the rights conferred by a mineral right cannot reasonably be exercised without affecting injuriously the interest of any owner or occupier of the land’, the mineral right holder shall:19

• Advise the owner or occupier of land to vacate the area and consult relevant local government authority on amendment of the land use plan

• Submit a proposed plan on compensation, relocation and resettlement of the owner or occupier of the land as per the Land Act.

According to Section 97(2), ‘fair and reasonable compensation of land’ shall be determined following procedures as outlined in provisions with regard to calculating the market value of land, in the Land Act of 1999 and the Village Land Act of 1999 (see Box: Keys provisions of the Indian Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013).

Keys provisions of the Indian Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

• For public-private partnership mines, at least 70 per cent people must consent, whereas for private mines, 80 per cent consent is required.

• Social Impact Assessment is mandatory for acquisition and SIA must demonstrate (a) Acquisition serves public purpose (b) Absolute bare minimum acquisition of land (c) Estimation of the number of affected families and families likely to be displaced (d) Extent of public, private and common properties to be affected (e) Alternative site(f) Potential benefit of project outweighs the social cost and adverse social impact

• No irrigated multi-cropped land can be acquired, except as a last resort. In case of diversion of multi-cropped irrigated land, an equivalent area of cultivable wasteland shall be developed for agricultural purposes or an amount equivalent to the value of land acquired has to be deposited with the appropriate government authority.

• Public participation (public hearings) are conducted at two stages:(a) During SIA (b) When draft compensation, resettlement and rehabilitation (R&R) package are finalized

• Both title and non-title holders are eligible for compensation and R&R packages.• No declaration of land to be acquired shall be made unless the requiring body (proponent) deposits the cost of land

acquisition in full or part with the government.• Criteria for determining market value for compensation, including method for determining compensation package and

R&R entitlements for title and non-title holders, are provided in Act.• The compensation is four times the market value in case of rural projects and two times higher in case of urban projects. • Government can take possession of land after ensuring full payment of compensation as well as R&R entitlement to the

affected family.• A five-year development plan in case of acquisition of land in tribal areas is required.

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Salient features• Section 97 of the Mining Act requires implementation of a plan on

compensation, relocation and resettlement of the owners or occupiers of land before commencement of mining operations.

• Submission of a ‘local content plan’ by all mines, the objective which is to create employment, build skills and boost local economy of the country by mandating use of goods and services produce in the country by the mineral right holders. The mineral right holder has to submit a procurement plan and its compliance status to the commission, including annual the achievement in utilizing good and services from within the country.

• Within a year after the grant of a licence, the mineral right holder has to submit a detailed programme for recruitment and training of Tanzanian’s in accordance with the approved local content plan. The programme shall take into account gender equity, and make provisions for persons with disabilities and local communities.

• It is mandatory for mining companies to submit an annual CSR plan and get it approved by the local government (see Box: CSR in India).

• Maintenance of satisfactory and effective insurance coverage against losses, injuries or damage to communities, individual and properties due to mining operation and activities. Any person failing to comply with the integrity pledge shall be liable for cancellation or withdrawal of licence.

• Workers Compensation Act of 2008 requires creating a worker compensation fund and gives the right to workers to get compensated in case of occupational injury or disease. The procedure to properly calculate the amount of compensation has been clearly stated in Schedule 4 of the Act.

• Mining regulations restrict employment of minors (below 18 years of age) in the sector. Child labour has been strictly prohibited. Tanzania is a signatory to the International Labour Organization’s Minimum Age Convention of 1973, which prohibits child labour.

CSR in India

In India, the concept of CSR is governed by Clause 135 of the Companies Act of 2013. It is applicable on companies with an annual turnover of US $146 million or more, or a net worth of at least US $74 million, or a net profit of no less than US $0.8 million. Any company (mining, non-mining, banks etc.) meeting these criteria has to spend 2 per cent annual profit-before-tax in activities for social development. Such money must be preferentially utilized around areas where the company operates. As per government guidelines, the money has to be spent on education, healthcare, sanitation, environment, drinking water, eradicating poverty, skill development etc.

As per the Act, every eligible company has to file annual returns to the government on the expenditures. The Act also stipulates that CSR activities do not include:(a) Normal business activities of the company (b) Contribution to any political party (c) Welfare schemes for the employees and their family

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• To ensure health and safety of workers in small-scale mining, it has been made mandatory for mercury users (in processing gold) to use retort, so that exposure and contamination by mercury is avoided.

• The Mining (Safety, Occupational Health and Environment Protection) Regulation contains detailed provisions to ensure hygienic environment in mine vicinity. The Regulation stipulates provision of safe drinking water, safe and clean canteens, separate room for toilets, a cleaning room etc.

• The Regulation stipulates that a mine rescue team be maintained if the numbers of employees is greater than 10. It also stipulates that two rescue teams be provided if the number of employees exceeds 50.

• The Employment and Labour Act of Tanzania entitles female workers to at least twelve weeks (84 days) of fully paid maternity leave or 100 consecutive days (in case of multiple births) within a leave cycle of 36 months.

• The Mining Act states that workers are entitled to compensation for defined overtime, the night-shift is described as work between 20 p.m. and 6 a.m. Workers will be compensated if they work on public holidays.

• Mining regulations prescribe conditions for a lunch room, if the number of worker exceeds seven. The regulation provides the lunch room to be endowed with (a) proper lights and ventilation (b) entrance should not be provided through a toilet (c) availability of seating facility and tables (d) place should be away from any chemical processing area, and must be free from contaminants.

Mineral beneficiation process in a small-scale mine. Proliferation of chemicals into water and air around mines remains a concern

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• Housekeeping and cleanliness: The mining Regulation stipulates the following: (a) Separate enclosed accommodation, sufficiently lit, ventilated, clean and sanitary, should be provided for men and women (b) Changing rooms for workers (c) consumable items, such as soap, need to be restocked regularly (d) Any broken or damaged infrastructure and fittings (such as plumbing, and lighting) need to be repaired promptly.

• The mining Regulation stipulates for a resting or waiting room for mine worker that should be conveniently located, well-ventilated, have sufficient lighting, maintain proper hygiene, and should have all necessary facilities such as drinking water.

Benefit sharing under the district mineral foundation

In 2015, the Indian Mining Act was amended to insert the concept of benefit sharing with the local communities. Section 9 (b) of the Mining Act defines a local non-profit trust called the ‘district mineral foundation’, funded based on calculations as a certain percentage (up to 33 per cent) of the royalty of the mineral. This is over and above the royalty of the mineral paid to the government and CSR expenditure as mandated under the Companies Act of 2013. This fund will be accrued upon the local exchequer and the local authority is authorized to disburse the amount in a particular manner as stated by the government. To ensure proper utilization of the fund, the government developed guidelines to identify the affected areas and people, while also defining key areas where the funds will be utilized—60 per cent of the funds must be spend on providing clean drinking water, environment preservation, healthcare, education, welfare of women and children, welfare of aged and disabled, skill development and sanita-tion. The rest (40 per cent) will be utilized in the development of the district’s infrastructure, irrigation, energy and watershed and any other measure for enhancing environmental quality in the mining districts.

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ENVIRONMENTAL MANAGEMENT5

A large-scale operational mine. It is high time Tanzania plans how to deal with the scary landscapes mines leave behind

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Key acts and regulations:• The Environmental Management Act (EMA) of 2004• The Mining Act of 2010• The Written Laws (Miscellaneous Amendment) Act, 2017• The Mining (Environmental protection for Small-Scale Mining) Regulation

of 2010• The Mining (Safety, Occupational Health and Environment Protection)

Regulation of 2010

Taking into consideration the environmental challenges from sectoral and cross-sectoral sources, and political, institutional and social issues, the government framed the National Environment Policy in 1997 to focus on certain key areas. Subsequently, the EMA was enacted in 2004 to provide legal and institutional framework for environmental protection and management.

Environmental Management Act, 2004 The EMA of 2004 mandates obtaining EIA certificate prior to the commencement of mining. Large- and medium-scale mines have been classified as high impact projects and EIS is mandatory for them (see Box: Procedure for carrying out environmental impact assessment), while all small-scale mines have been listed as low impact projects and have to submit an EPP before they can be granted a primary mining licence.

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Once issued, a certificate is valid for three years. If the project has not been developed in that time, a developer has to re-register with the Commission reiterating the intention to develop.

For compliance with the environmental management plan and conditions of

Procedure for carrying out environmental impact assessment

Step 1: Registration and submission of project briefApplication for issuance of an EIA certificate is made in the form of project brief, along with prescribed fee, to NEMC. Step 2: ScreeningScreening is done by NEMC based on the criteria prescribed in the Regulation. The screen-ing report has to be approved by the NEMC within 45 days from the date of submission of the brief, as per Regulation 10(1). Decision of NEMC:• If NEMC is satisfied that the project does not pose significant negative impact and the

project brief discloses sufficient mitigation measures, then NEMC may recommend it to the Minister for approval

• If NEMC is not satisfied with the extent of potential environmental impact and the project brief does not disclose sufficient mitigation measures, it may ask the developer or propo-nent either undertake a preliminary assessment or EIA

• If, after the preliminary assessment, NEMC finds that the project does not have a signif-icant impact and discloses sufficient mitigation measures, it may recommend it to the Minister for approval

Step 3: Scoping• If EIA is to be conducted, then scoping and terms of reference presented by the developer

or proponent are submitted to NEMC for approval• Terms of reference have to be approved by NEMC within 14 days, as per Regulation 13(2) Step 4: Environmental assessment• EIA is conducted by experts or firms registered with NEMC• The EIS study by the consultant is conducted according to the approved terms of refer-

ence and adheres to the EMS, 2004 and the EIA Audit Regulations of 2005.Time taken to carry out EIS depends on the type and complexity of the individual project

• During the process of conducting EIA, the views of the public view are obtained through a public hearing.

Step 5: Review• Review is undertaken by NEMC directly; it may also set up a cross-sectoral technical

advisory committee (TAC) for this purpose• Within 14 days from the date of receipt of EIS, NEMC submits a copy to the relevant min-

istry and public institution and also notifies for comments from the public• A 30 days’ time limit is set by NEMC for the reception of the comments• A site visit is also undertaken by NEMC Step 6: Submission to the Minister for EnvironmentThe Consultant has to submit the improved (final) version of the EIS to NEMC for final scru-tiny. NEMC forwards its recommendations to the Minister for Environment for final approval Step 7: Approval and issuance of certificateUpon signing of the certificate by the Minister, it is brought back to NEMC for collection by the developer. The Minister may approve or disapprove the EIS within 30 days as per Section 92(1) of EMA of 2004.The signed EIS certificate, along with some specific conditions that must be adhered to by the proponent, is thus issued

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the certificate, Environmental Audit Regulation of 2005 mandates environment audits and monitoring. As per the Regulation, there are three types of audit applicable on mining as given in Table 5: Types of audit.

Salient features of EIA• Possession of an EIA certificate is a prerequisite for issuing any licence or

permit by any authority under any Act• Possession of an EIA certificate is a pre-requisite for receiving finance from

banks • The Minister is empowered to make regulations and guidelines to strengthen

the EIA framework.• Only firms and experts certified and registered under the Environment

(Registration of Environmental Experts) Regulations, 2005 can prepare the report for obtaining EIA certificate

• If the holder of an EIA certificate contravenes provisions mentioned in the EIA, being a possession of a valid EIA will not be a reason to escape liability of the contravention. EIA certificate may be transferred from one holder to another in the event of project change, ownership and notification in writing to Minister within 30 days of the transfer. The new holder will also be liable for any contravention

• Tanzania has a well-structured EIA process mandated under law with a clear timeline for each step

• In order to streamline the EIA process, different types of forms and schedules appended to the Environmental Impact Assessment and Audit Regulation, 2005, provide a ready guide to project proponents, consultants and government agencies

• The option of a site visit at the time of EIS review is mandated under law.• The Minister may delegate power to issue EIA certificates to the Director of

Environment or local government authorities or sector ministries.• Auditing and Monitoring compliance with an EIA statement is necessary.• Any person aggrieved by the decision of the Minister may appeal to the

Environmental Appeals Tribunal

Salient features of environmental managementCertain provisions of the Mining Act and the EMA Act overlap on the issue of addressing environmental and social issues.

• The Supplement Act (The Written Laws (Miscellaneous Amendment) Act, 2017), contains a ‘liability principle’ for pollution or damage caused by

Table 5: Types of auditType of audit

Validity period of report

Authority or person concerned

Control audit

Five years Conducted by NEMC

Self-audit One year Conducted by project proponent or hired registered experts in accordance with the provisions of the Environmental (Registration of Environmental Experts) Regulations, 2005

Audit petition

On filing of the complaint by an aggrieved person

Complaint or petition filed by aggrieved person with NEMC for conducting an audit of the project for causing harm

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mining operation. Any grievance on compensation for pollution damage shall be heard in a local court. The law stipulates for the involvement of only licenced contractors in the management of transportation, storage, treatment and disposal of waste arising produced during mining operation.

• The Supplement Act also mandates maintenance of satisfactory and effective insurance coverage against losses, injuries or damage to environment.

• EIS is mandatory for large- and medium-scale mines and prepared only by registered consultants. Section 81 of the EMA Act mandates obtaining EIA certificates prior to project financing.

• The process of obtaining EIS, documented in EMA 2004 and Environment Audit Regulation, 2005—like the requirement of a timeline by NEMC for appraisal, structure of a project brief, public participation, site inspection, issuance and transfer of certificates, information disclosure, cancellation of licence, appeal for cancellation, post monitoring and its frequency.

• Section 102 of EMA, 2004 mandates safe decommissioning and rehabilitation on expiry of a project. The project proponents have to undertake safe decommissioning, site rehabilitation and ecosystem restoration at their own cost before the closure of the project. The Director of Environment shall not discharge the environmental performance bond until the holder fulfils the stipulated conditions.

• A key provision of the integrity pledge related to environment and community protection is maintenance of satisfactory and effective insurance coverage against losses, injuries or damage to environment, communities, individual and properties due to mining operation. Failure to comply with the integrity pledge can result in cancellation or withdrawal of the licence.

• Special attention has been paid to environment protection in the Written Laws (Miscellaneous Amendment) Act Supplement Act, 2017. The Act includes a ‘liability principle’ for pollution caused by mining operations and compensation provided against the damage.

• The Mining (Environmental Protection for Small-scale Mining) Regulations, 2010 stipulate an applicant for small-scale mining prior to commencing mining operation:(a) Prepare an environment protection plan (EPP) to mitigate impacts(b) Conduct investigation or generate baseline environmental and social

Effects of mercury on health

According to scientific studies, including those cited by the UN, it is estimated that about 27

kg of mercury is released into the environment in the Rwamgasa area each year. The impact is

evident in epidemiological studies. For instance, a 2010 study Health Assessment of Artisanal

Gold Miners in Tanzania, showed that mercury levels in the blood of adults involved in

working with mercury including smelting, was as high as 33.3 micrograms per liter (μg/l), with

95 per cent having mercury levels about 15.5 μg/l. This far exceeds the normal level of mercury

in blood, 0–5 μg/l. The researchers have also concluded that working for many years in the

amalgamation process, especially amalgam burning, results in severe symptoms of mercury

intoxication. Even people in Rwamgasa, who are not directly involved in amalgam burning,

have a higher mercury burden, averaging more than four times what people living about 30

km away have in their blood.

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data (i.e. presence of human settlement, identification of burial sites, presence of cultural heritage sites, water vegetation, etc.) before obtaining primary mining licence

(c) To not knowingly discharge, deposit or emit liquid, solid, gaseous or particulate matter, or noise or vibration from the mine. In the case of unauthorized discharge, deposit or emission, the licensing authority may direct the licensee to implement an action plan within a stipulated time.

• The existing mining regulation stipulates maintenance of setback distance (distance to be maintained from specific important installations), where the holder of mineral rights cannot exercise his right under a licence:(a) 100 metres away from a building, reservoir or land owned by the

government (b) Any reserved area protected under the Antiquities Act (c) 100 metres from any military establishment(d) Any national park, forest reserve, game or range development area or

the Ngorogoro conservation area (e) 100 metres from any petroleum drilling area (f) Any area used for public purposes

• For small-scale mines, it has been made obligatory for the holder to backfill an abandoned or previous working area prior to working in a new pit or area under licence.

• The use of retort for processing of gold is a major step towards reducing mercury contamination. A provision for tailing ponds and their design and distance from other water bodies has been clearly laid out so as to reduce the contamination of water sources.

• Section 194 and 204(1)(f) of the Mining (Safety, Occupational Health and

A tailing pond. New regulations in Tanzania stipulate designation of specific areas for tailing

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Environment Protection) Regulation, 2010 focuses on the proper disposal of waste that may generate acids.

• The mining regulation states that toilets:(a) May be provided in underground mines or a portable toilet on the

ground must be placed in a well-ventilated area(b) Must be maintained in hygienic conditions and all the waste material

removed regularly (c) Equipped with an adequate sanitary facility and provide privacy

• Personal protective equipment: The regulation demands that worker have adequate headwear, footwear etc. and, if in an underground mine, an operable lamp of the approved type.

• Top soil conservation and its use: The regulation states that all surface soil material removed for mining purpose shall be saved for use in the reclamation programme.

• Noise: The regulation stipulates that in noise-producing areas, safety warning signs must be displayed about wearing personal hearing protectors, and appropriate information, instruction and training provided about risks to hearing, and steps to use and maintain personal hearing protector.

• The Regulation stipulates that a certain distance be maintained from waterbodies to avoid water pollution like:(a) Pit latrines are constructed at least 100 metres from water sources (b) Setback distance of 50 metres to be maintained from a river or stream

in case construction of mineral washing or settling ponds. The unauthorized discharge will be considered a breach of the regulation

(c) There is a provision of settling pond in case of mineral washing (d) There are designated storage area for tailing

Salient features of reclamation and restorationOnly a few mines in Tanzania have reached the post-mining phase. In 2014, the Golden Pride mine was reclaimed and closed but, due to lack of experience in this stage of mining, the reclamation was not proper. Some of the mines have been closed due to unviable market condition, e.g., Accacia’s Buzwagi gold mines.20

• Mine reclamation: The regulation stipulates that a programme for environmental protection and reclamation shall be simultaneous with a mine’s operation. The regulation provides standards and procedure for reclamation as follows:1. Land surface has to be reclaimed to an acceptable level that considers

previous and potential use.2. Level of land productivity cannot be less than what existed prior to

mining unless it is impractical to do so.3. Land needs to be re-vegetated to ensure good long-term stability.4. Waste dumps need to be reclaimed for long-term stability and good

land productivity, and the quality of water released from waste rock dumps must meet specified standards.

5. Water courses shall be reclaimed to ensure that the long-term water quality remains good.

6. Drainage must be restored to the original watercourse.

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• Section 196 of the Mining Regulation (safety, occupational health and environmental protection), 2010 puts an obligation on licence holders to rehabilitate and restore sites after completion of mining activities. The mineral right holder must furbish a rehabilitation bond to cover the costs of the rehabilitation as has been decided by the Committee (now Commission) during the approval of the mine closure plan. Small mines have to reclaim the previous pit to get a new licence.

• Section 102 of the Environmental Management Act, 2004 stipulates that on expiry of a project the project proponent must, at his own cost, undertake safe decommissioning, site rehabilitation and ecosystem restoration before the closure of the project. The Director of Environment shall not release the environmental performance bond until the holder fulfils the stipulated conditions.

Financial provisions for mine closure in India

Non-auction mine

Financial assurance for mine closure is US $4,698 per hectare for mechanized mine and US

$3,132 per hectare for non-mechanized mines. The Mining Policy also stipulates that the

leaseholder shall be liable to pay for any expenditure over and above the fixed amount for

mine reclamation and rehabilitation measures.

‘Auction’ mine

Financial assurance is referred to as ‘performance security’. The lease holder has to furnish an

amount equal to 0.5 per cent of the ‘estimated value of the resources’

Coal Mines

The closure cost for open cast mine is US $9,395 per hectare; it is US $1,566 per hectare for

underground mines. The said amount, which is called financial assurance, is deposited in

any scheduled bank. The computed annual cost is deposited every year as financial assurance

throughout the mine life compounded at an annual rate of 5 per cent.

Bank guarantee for auction minesFor mine leases granted through auction, the holder has to place a performance security, calculated as follows:

Performance security = 0.5 per cent x Estimated value of the reserve

Estimated value of the reserveAll active mines in India are obligated to complete the exploration of the mine lease area at G1 level within a period of five years after 2017. After exploration has been completed, total estimation of reserves is done. The total estimated reserves will then be used in calculating the total ‘estimated value’ of the reserves by multiplying the ‘estimated reserves’ with the ‘average sale price’ of the mineral. As the average sale price is dynamic, the rules provided for revision of the estimated value of the reserves after every five years.

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In order to strenghten the environmental and social aspects of the mining sector in Tanzania, CSE would like to make the following recommendations:

Permit systems and compliance• Although most of area has been mapped, but reserves have not been

proven at G1 level. In India, the government has made it mandatory for every mine lease holder to carry out the exploration at G1 level within a period of five years from the date of enactment of the Mineral Conservation and Development Rules, 2017, non-compliance with which may result in huge penalties.

• There is a serious lack of manpower to ensure effective inspection, monitoring and compliance. This has resulted in poor compliance with the mining Act and regulations and causes frequent mine accidents, especially in case of small-scale mines.21 Currently, around 60 to 70 mining engineers inspect around 440 medium-scale mines and more than 35,000 small-scale mines. Hence, one mining engineer can inspect a mine only once every two years.

• No separate court deals with redressal of grievances to ensure speedy trial of the non-compliances.

• It is recommended that some fixed cess should be charged from the mineral right holder to strengthen exploration and mineral conservation in the country.

• Lack of guidelines and manuals to ensure effective and smart compliance (health, safety, environment and audit etc.)

• For strengthening transparency and accountability in the mining sector, the following is strongly recommended: (a) Auction of mines should be encouraged(b) Creating a web portal will bring transparency in compliance assurance

and help in effective management of mines (c) An online system should be developed for filing of daily production

reports for better transparency and compliance

Socio-economic benefits• Land acquisition and compensation: The Act mandates compensation,

relocation and resettlement of affected people but the practice on ground is far from satisfactory. As per civil society organizations, the key barrier for dissatisfaction include (a) No clear deadlines are set under the law for payment of compensation

and preparing alternative residences for the displaced(b) People are not aware of the compensation process and their rights(c) The current process entails collaboration of the mining companies with

the district leadership without involving citizens who will be displaced(d) A government valuator is used in deciding the compensation amounts

for each property without involving the citizens. After the valuation, people are paid through the office of the District Commissioner.

RECOMMENDATIONS6

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• The current process of land acquisition is restricted to providing compensation, loss of assets attached to land and relocation of owner or occupier of the land. The process of free and prior informed consent is not practiced.

• There are no standard methods of estimating compensation. Non-title holder dependants of the land, like sharecroppers, tenants, or people who have shops or other small commercial enterprises on the land are not compensated.

• Unlike India, the law does not stipulate the exact limits (maximum, minimum, and fixed) on the amount which a mining company needs to spend under CSR. Tanzania has a large number of small-scale mines and implementation of CSR at the mine level will be difficult. The concept of resource pooling by a cluster of mines for CSR might be more suitable.

• The concept of benefit sharing is not mandated in Tanzania. In India, mining laws have established the institution of the district mineral foundation, which is funded by the mines in every district at the rate of not less than one third of the royalty. This fund is in addition to funds from taxes, royalty and CSR.

• A separate court has been constituted to deal with matters related to compensation and R&R issues. These courts have to dispose cases within a certain time frame.

• Lack of transparency and accountability in land acquisition, compensation and relocation.

• The land acts have over-centralized the power to transfer land in the hands of the minister and the village council. Low literacy among the villagers and their poor living conditions restrict them in taking mining company to courts in case they are unsatisfied with the compensation.

• Although many provisions have been put in place to ensure safety of workers, the informal sector, which provides maximum employment in the small-scale mining sector, remains untouched. The regulation mandates the use of retort while extracting gold by mercury amalgamation process, but on-field implementation of this provision is weak, little precaution is taken, and people work with bare hands and inhale toxic mercury vapour emitted in the process, creating a major health hazard. According to non-profit organizations and civil society groups working in the area, a large number of children are also involved in such activity and are regularly exposed to mercury pollution.

• The Act mandates preparation and submission of a local content plan, but activities listed under local plan do not include health and medical provisions. Large- and medium-scale mines can afford health and medical facilities for their workers, but not small-scale mine owner. The concept of resource pooling for clusters of mines can be a good option to maintain health and cater to injury and accident victims in small-scale mines.

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• Tanzania can learn from India to compensate for forestland diversion for non-forest purposes by planning and building capacity to carry out compensatory afforestation and forest conservation. As per the Indian Forest Conservation Act, 1980, developers have to pay for purchase of an equivalent area of non-forestland as nearby as possible to the site of diversion for compensatory afforestation. In addition to compensatory afforestation, the developer has to pay net present value (NPV) for forestland diversion, ranging from US $8,943–16,082 per hectare. Compensatory Afforestation Fund Act, 2016 seeks to restore forests which have been diverted to non–forest purposes. It establishes a Fund for compensatory afforestation, plantation and forest conservation.

• In India, there is a separate act—the Scheduled Tribe and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006—to protect the rights of tribal whose livelihood depends on forest and forest produce. The law mandates that prior to forestland diversion, the rights should settled and compensated. Tanzania should learn to address such issues to make the mining sector socially responsible.

Enviromental impact assessment• The system of registration of freelancer consultants and organization is not

robust, some key areas that need to be strengthened are:(a) Only an organization with adequate infrastructure (e.g. manpower,

laboratory, office set up, functional experts, experienced and qualified professionals for survey and data collection) should be encouraged for registration because EIA requires a multi-disciplinary approach and individual or freelancer consultants cannot not have all the desired qualifications or expertise. However, individuals or freelancer consultant, working with an NGO or research organization, may give advice in their respective domain area. At the time of empanelment, the freelance consultant domain experts must enter a written agreement with the registered organization. Such experts can apply for empanelment every three–five years.

(b) To improve the quality of EIA, sector-specific consultants and the registration of firms should be encouraged, notified on the basis of expertise and experience in that particular sector

(c) Other criteria may include infrastructure availability (laboratory, equipment, area of office)

• Project categorization: The projects listed for EIS are not properly categorized, even low-impact projects have to undertake EIS. Tanzania follows screening for all projects irrespective of size, magnitude of impacts and potential emissions. To strengthen the process of EIA certification, it is important to categorize projects based on size and potential emissions. This is achievable because Section 82 of EMA, 2004 empowers the Minister to make regulations and guidelines to strengthen EIA.

• We suggest that projects be categorized into A, B1, B2 and C. The projects falling under ‘A’ category form a mandatory list and assessment of such projects is a prerequisite. A process of screening should be applicable for type ‘B1’ projects to determine whether they should belong to category ‘A’ or ‘B2’ and whether the project requires further environmental assessment. If it is determined during the screening that EIA is not applicable, then type ‘B1’ projects shall be treated as type ‘B2’. The project falling under ‘B2’ and ‘C’ category should be cleared based on an EMP.

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• In order to streamline EIA, Schedule 3 (Form 1) needs to be amended to make it more comprehensive. Alternatively, it should be made sector-specific (to mining, power, road project etc).

1. Suggestion: Terms of reference should be made sector-specific to strengthen the assessment process. There is a need for guideline on protocol for base line data collection (where, how and when to monitor) for different categories of pollution.

2. Suggestion: Strengthen EIA certification. Currently, Form 3 of Environmental Impact Assessment and Audit Regulation, 2005 used for issuing EIA certificates contains only ‘general conditions’. There is a need for specific conditions as well, classified as follows:(a) Sector-specific conditions(b) Site-specific conditions

3. The concept of a siting guideline or site alternative is not covered under the Act or the subsequent regulation. It is a good preventive approach to control pollution and should be considered.

• The council seeks additional information and undertakes site visit: At the time of review of an EIS report, the council may request additional information to enable the Council to complete the review. This is not a good practice, since it causes unnecessary delays. All additional information should be sought prior to approving the terms of reference.

• Site visits before approving terms of reference should be encouraged, because it enhances the scope of the EIA process and makes it more efficient by ascertaining:

(a) Issues that need to be addressed(b) Extent of the analysis needed(c) The kind of infrastructure and expertise needed(d) Requirements for additional study(e) Understanding potential social risks of conflict and agitation (by

meeting local stakeholders)

Environmental management• Need for cluster EIS and common environment management plan for

cluster: Currently, small-scale mines need to submit EPP to get primary mining licences. Owing to their huge number, concentration in certain areas, large employment potential and poor environmental compliance, clusters need to be defined by authorities and a detail framework needs to be developed for them.

• Need for strengthening institutional capacity in for EIA, audits and inspection and monitoring.

• Capacitating the small-scale sector through workshops, consultation and training activities. Currently, there is a serious lack of capacity related to applicable laws and regulation, environment, and health and safety.

• Except the provision of audit, there is no tool to check environmental and social performance of mining.

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Illegal use of mercury and cyanide is still prevalent. Although, use of retort has been mandated by law, however, its implementation and its compliance are poor on ground.

Reclamation and restoration• Only a few mines have reached the closure phase, so the institutional capacity

among mine owners and government officials regarding reclamation and closure of mines is poor.

• There have been no stakeholders’ consultation before the approval of mine closure plans. Although, approval of mine closure plans is dependent on the advice of the National Mine Closure Committee, which includes representatives from all concerned ministries, there is lack of public participation and consultations.

• Clear instructions on regular updates on a mine closure plan is not in practice and depends on the discretion of the Commission.

• Mine reclamation procedure is weak. In the absence of any guidelines, the reclamation process has been made synonymous with planting trees on the backfilled areas, mine spoils and waste rocks. This has led to a lot of problems with regard to acid mine drainage in the regions surrounding the mine due to presence of pyrite in the waste rocks.

• The concept of alternative land use supporting local economy after a mine is closed should be encouraged.

• Outsourcing mine reclamation: Outsourcing the task of mine reclamation progressively with the mining operations can be a good approach to ensure better closure of mines. The following practices should be encouraged to strengthen mine closure and restoration process:1. Auctioning the area to be reclaimed 2. Choosing contractors as per domain experience3. Constituting an empanelled committee for the selection of contractors4. Disqualification of contractors in case of non-compliance.

• No guidelines have been laid down to deal with small-scale mine abandonment.

• There is lack of a clear framework for the financial costs of mine closure.

• Enforcement of mine closure plans is poor. The following provisions should be encouraged for better mine closure and reclamation:(a) Devise a methodology for estimating the cost for proper closure of

mines and implementation of mine reclamation plans.(b) Encourage national and international exposure visits on mine

reclamation(c) People’s participation must be made obligatory.

• The government shall implement the remote sensing monitoring of the progressive and final mine closure.

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Policy comparison between India and Tanzania in managing environmental and social impacts of the mining sector

India Tanzania

Mining

Permitting system

Well-defined, specified time-limit, disqualification and penalty in case of violation.

Well -defined, specific time-limit, disqualification and penalty in case of violation

Both state and Central government are empowered to issue exploration and exploitation licences

The commission issues all exploration and exploitation licences

Auctioning of mine lease has been introduced to promote transparency and accountability

There is no process of online auctioning

Classification of mines

Categorization of mine is based on:• Types of minerals, namely metallic, non-metallic, fuel minerals

and atomic minerals• Basis of mechanization—Category A (mechanized mines), and

Category B (non-mechanized mine)• For conducting Environmental Impact assessment (EIA), the

mines are categorized on the basis of size (Category A and category B)

Categorization is based on investment: Large-, medium- and small-scale mines

Safety and hygiene

Rules and regulations are properly laid down with proper benchmarks

Safety and hygiene are adequately addressed under acts and regulations

Child labour employment

The Child Labour Act prohibits the employment of child labour Child labour is prohibited under law; however, child labour is still prevalent, particularly in small-scale mines

Groundwater In case of groundwater intersection, a no objection certificate needs to be obtained from the concerned authority (Central Groundwater Board). Clearance is given subject to use of mine seepage water for agriculture and other public purposes

No such provision for effective use of mine seepage water

Social

Land acquisition

People’s consent is mandatory No consent is required

Social impact assessment is mandatory Not required

No mining in irrigated multi-crop areas except as a last resort No such provision

Both title and non-title holders are eligible for rehabilitation and resettlement package.

Only titleholders are compensated

Criteria for determining market value for compensation, including a method for determining compensation package and rehabilitation and resettlement (R&R) entitlements for title and non-title holders are provided in Act. Further, the law mandates compensation and R&R benefits which can be more but not less than what is specified in the Act. In case of relocation, the law enumerates the infrastructure facilities to be made available at the place of resettlement.The compensation is four times market value in rural areas and two times in urban areas.

Compensation is calculated as per market value

Special provisions for tribal areas: Preparation of a five-year plan for socio-economic development

No such provision

Deposits of cost of acquisition by the developer or project proponent with the government mandatory for land acquisition

No such provision

Construction of resettlement colonies having defined amenities, in case of relocation

Provisions exist, but require strengthening

CSR CSR is mandatory and capped at 2 per cent profit (i.e., net profit before taxes for CSR corpus)It is mandatory for companies to file annual return on CSR expenditure

CSR is mandatory, but no financial provision defined on annual CSR expenditure

Benefit-sharing

The Mining Act mandates the formation ‘district mineral foundations’. Funds are to be used for socio-economic development of the area around the mine. This is in addition to CSR

No provision for such a fund

ANNEXURE

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Environment

Environmental clearance

EIA is mandatory for obtaining environmental clearance. Categorization of mines requiring EIA is done on the basis of size

EIS is mandatory for obtaining an EIA certificate. Categorization of projects requiring EIA is based on investment

Clearance process is decentralized. Low-impact projects are cleared at the state level and high-impact project at the Central level

EIA certificates are issued on the basis of recommendation of the National Environment Management Council (NEMC)

Cluster approach is used for small-scale mines and EIA is done for clusters. Additionally, each mine has to prepare a management plan

There is no cluster approach, preparation of environment protection plan is required for each mine

Accreditation of consultants

Accreditation of organizations who can undertake sector-specific EIA and EMP

Registration of consultants. The process is not satisfactory

Environment clearance pre-requisite for financing by banks

No legal mandate EIA certificates are a prerequisite for getting a loan from a bank

Insurance against damage

No such provisions Liability of effective insurance coverage against losses, injuries, and damage to environment, communities, individual and properties due to mining operations

Mineral conservation

It is mandatory for every lease holder to complete the exploration of the whole area at G1 level within a period of five years from the start of the lease period

No such provision

A mining tenement system has been put in place, under which companies have to record their production daily, thereby ensuring proper conservation of minerals and reducing the scope of corruption

There is no such online system for filing daily production

To strengthen exploration, National Mineral Exploration Trust has been established and its fund are generated by levying a cess of 2 per cent on the royalty. This is in addition to mineral royalty paid to the government.

Clean energy cess is levied for coal mines at the rate US $7 per tonne of coal for development of renewable energy

There is no such provision

Acid mine drainage

There is no specific provision for controlling acid mine drainage. It is covered under water pollution laws

Mining regulations clearly define the procedure for placing the overburden dump so as to reduce chances of acid mine drainage

Mine closureA specified security amount needs to be deposited with the bank for the purpose of mine reclamation. For non-coal mines, it is US $4,800 per hectare in case of mechanized mines, and US $3,200 per hectare in case of manual mines. For coal mines, it is US $9,600 per hectare for open cast mines and US $1,600 per hectare for underground mines.

All mining companies have to submit progressive (submitted after every five year) and final closure plans

Rehabilitation bonds are to be deposited with the banks for mine closure. The value of the bond is calculated by a mine closure committee

Performance security

For mines granted lease through auction, performance security is 0.5 per cent estimated value of the reserve deposited in the bank. The security is required against any non-compliance of environmental, social, mine closure and other provisions

Rehabilitation bonds for mine closure

Compliance and monitoring

Laws mandate three agencies to ensure mine compliance, Indian Bureau of Mines (IBM) looks after mine planning and closure, Director General of Mine Safety is responsible to ensuring safety, environmental management (air, water and hazardous waste) is mainly taken care of by Pollution Control Board and partially by IBM

Commission and National Environment Management Council (NEMC) is the nodal agencies to ensure mine compliance. Lack of manpower, guidelines and standard operating procedures

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Separate judiciary

Separate environmental courts called National Green Tribunal look into environment-related complaints

No such provision

The Mining Act also establishes special courts for dealing with non-compliance with provisions of the Act or any other complaint of a public nature related to the working of a mine

No such provision

Separate courts to address grievances related to land acquisition, compensation and R&R package

No such provision

Audit Every year, companies have to disclose production and environmental compliance in form of an environmental statement. Under the EIA Notification, every mining company has to submit environmental clearance compliance status biannually

Environmental control audits are done every five years. There is also a provision for conducting self-audit, which takes place every year. An audit petition is made whenever the public complains about the project

Under the Mining Regulation, to check environmental and social performance of mining, star-rating of mines is done. The rating is based on an assessment of four components—mine management, social impacts of mining, mine closure, and reporting. It is mandatory for mine owners to achieve four-star rating, otherwise their licence might be cancelled

No such rating exercise

Local content plan

There is no such provision The Act provides for local content to boost the Tanzanian economy and provide training and employment to the host communities

Statement of integrity pledge

There is no such provision Every licensee has to submit a pledge of integrity to ethical business. Integrity pledges provide for the maintenance of effective insurance coverage against losses, injuries, and damage to environment, communities, individual and properties due to mining operations

Source: CSE

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References

1. Census of Tanzania, 2012

2. Anon 2015. National Accounts of Tanzania Mainland Publication, Tanzania National

Bureau of Statistics, Ministry of Finance, Government of Tanzania

3. Anon 2016. Tanzania—country data, The World Bank

4. Anon 2015. National Child Labour Survey, Government of Tanzania and International

labour Organization

5. Anon 2014. Tanzania—access to electricity, the World Bank

6. Anon 2006. State of Environment Report, Government of Tanzania

7. Anon 2014. Tanzania—arable land report, the World bank

8. Anon 2016. Tanzania—World Factbook, Central Intelligence Agency

9. Anon 2014. Tanzania—Health Expenditure, the World Bank

10. Anon 2014. Tanzania—life expectancy at birth, the World Bank

11. Anon 2014. Tanzania—AIDS status report, the World Bank

12. Anon 1997. Tanzania—National Environment Policy, Government of Tanzania

13. Allan Olingo 2016. ‘Tanzania leads region in earnings from minerals’, The East African,

Nairobi, Kenya

14. Available at http://www.tanzaniainvest.com/mining, as viewed on 22 September 2017

15. Anon 2014. Formal Sector Employment and Earning Survey, Tanzania National Bureau of

Statistics, Ministry of Finance, Government of Tanzania

16. Available at http://www.tanzaniainvest.com/gold, as viewed on 22 September 2017

17. Anon 2014. Formal Sector Employment and Earning Survey, Tanzania National Bureau of

Statistics, Ministry of Finance, Government of Tanzania

18. Environment Management Act of Tanzania, 2004

19. The Mineral Rights Regulation, 2010

20. Alfred Zacharia 2016. ‘Tanzania: Acacia to Shut Down Buzwagi Gold Mine’, available at

http://allafrica.com/, as viewed on 18 September 2017

21. The Mining Act, 2010

http://allafrica.com/

Centre for Science and Environment41, Tughlakabad Institutional Area, New Delhi 110 062Phone: 91-11-40616000, Fax: 91-11-29955879 E-mail: [email protected] Website: www.cseindia.org

Resting like a bookmark between the origin of the Nile and the Indian ocean, two ancient and great water bodies, the evocative name Tanganyika (“sailing in the wilderness”) could not possibly be more befitting this ancient land.

But the “wilderness” is as rich in resources as a sea, much of which are as unexplored as an ocean floor, not in the least its human and mineral wealth.

As Tanzania marches towards progress and prosperity, this wealth will be the key, both as a motor as well as a rudder. It will power Tanzania’s drive towards prosperity, but will it also steer the country towards equality and egalitarian benefit-sharing of its mineral wealth, while ensuring the protection of the environment?

The country’s new mineral policy seeks to answer these question in the affirmative. But how successful is the implementation? Are there any kinks which need to be smoothed out?

This report by CSE examines these aspects in detail to arrive at some solid conclusions and a way forward.

Documents

IMPROVING THE ENVIRONMENTAL AND SOCIAL ASPECTS OF … · Abbreviations 7 Introduction 9 1. Tanzania—a backgrounder 10. Mining in Tanzania 14. 2. Laws, policies and the institutional