Government cheats artisanal miners

Fred Okoth

As one traverses through the dusty road from Kalalani village bus stop to Kigwasi Juu where the mining activities take place, the mood on the faces of the villagers is apathy, deep resentment as they feel cheated by the government.

Government officials are on record offering what analysts see as empty promises to artisanal miners that bring operational difficulties and understanding in mining areas.

The artisanal miners formed a mining company named Umba Mining Co-operative Society Ltd on the 10th April, 2006 with Registration Number HQ-p 24403 in an effort to own a legal mining right as promised by the regional authorities.

The idea of the villagers forming a mining co-operative union was floated to them by the then Tanga Regional Commissioner; Jaka Mwambi who had visited the village to sort out recurring conflicts between Amazon Mining company and the villagers that had seen rape, destruction of property, killings and torture in 2008.

Oloronyo Tulakani, chairman of Kigwasi Juu sub-village says the government has left unattended its own people at a time they really need the mining right for their socio-economic development.

The mining license according to a document from Tanga Region Mining Commissioner dated 13/07/2012, recommended Umba Mining Co-operative Society Ltd to be legible inheritor of the mine from Africa Asia Precious Stones and Mining Ltd (AAPS) which left the mining fields in 2011, five years after the villagers had formed and duly registered their mining company. AAPS held license number GML 101-111/2001.But the Ministry turned down the Umba's request saying the area has already been offered to Najimu Company Limited.

The conflict between villagers and the investors goes back to 2008 when the then Tanga Regional Commissioner, Abdul Aziz formed a probe team that was headed by the former Korogwe member of parliament , Lelous Mhina to investigate the animosity between the villagers and then investor, Amazon mining company but the report is yet to be released five years down the lane.

The villagers and village leaders I interviewed say that they strongly believe that the unreleased report must have revealed the atrocities they have faced through Amazon Mining Company.

With constant conflict tainted with human rights abuse emitted to the people of Kalalani village, Amazon Mining Company opted to call it quits in 2011 when AAPS contract which they had prematurely inherited finally expired.

In 2011, Najimu Mining Company took the mining area together with some senior officials from the defunct Amazon an act that angered the villagers who believe the underhand of Amazon is still at work through merger with the new investors.

Tulakani says that they refused to acknowledge the investor by questioning the district authority but all in vain.

In the same year, the then Korogwe district commissioner, Erasto Sima led the district security team to the village in an effort to find a solution to the conflict but to date nothing has been achieved as the legal interests of the two parties are so apart that are legally irreconcilable within the legal context.

The artisanal miners and villagers now loiter around in hunger and anger with their hope of getting justice dashed by turn of events.

Villagers and miners complain that they feel cheated by the government officials who had promised them if they formed a company, they would be given mining rights but that has not happened but rather a late comer, Najimu Mining Company has the legal right to mine in the area.

On the 15th August, 2012, Ministry of Energy and Minerals wrote a rejection letter REF: MEM-C/M/100/86B/22 to Umba Mining Co-operative Society Ltd and a copy to Tanga Regional Commissioner, Korogwe District Commissioner and Tanga Regional Commissioner of Minerals denying the Cooperative their requests but the members still insist the mine is rightfully theirs by historical reasons.

Previously, in a letter dated 3rd of February 2012 Ref: D.30/167/60 from the office of the Korogwe district commissioner to the director of Korogwe  municipal council, Korogwe district security committee stated that there was an agreement during a meeting held on the 20/12/2012. The letter that we have, states that Amazon Mining Company was to forego a portion of its mining to the community. But those have remained only wishes that are yet to bear fruits.

Contradictory to the matter, a letter posted that dates 15th August, 2012 from the Ministry of Energy and Minerals however stated otherwise; that Umba Mining Co-operative society Ltd could not be given any mining area because the area with 11 blocks was already given to Amazon Mining Company which has collaborated with Najimu Company.

The artisanal miners and village leaders are bitter and blame the government for sidelining them in favour of moneyed investors who just hoard the area and use very small area given to them.

The contradictions starts with the law itself  whereby while the small miner needed permission from the village authorities to get a primary mining license, big miners don't  have to. According to the Mining Act of 1999, the land belongs to the village government but the minerals in the same land belong to Central Government!

According to the Ministry of Energy and Minerals, there are some concerns of small miners that are very genuine and the government is working to address them a stand that has been the same for quite some time.

In December last year, the Ministry held a meeting with artisanal miners in Dodoma to learn about the challenges they encounter while conducting their activities. The small mining operators highlighted some of the challenges such as lack of permanent mining areas and meager budget which do not benefit majority of them.

They said that the government should address the challenges to make the sector contribute fairly to the country's Gross Domestic Product.

Experts' are calling for policy changes that will bring simple and transparent licensing system and new law that will clearly indicate access and use of mineral rights and land.

According to the ministry's Medium Term Strategic Plan 2012-2016, recognizes that although the government has taken efforts to provide extension services to small scale miners, small scale mining is still underdeveloped due to the use of inappropriate technology and lack of capital.

In 2010, the mining sector contributed a paltry 2.8 per cent to Tanzania's GDP and employed about 14,000 people which some politicians and experts argue that the contribution is too small taking into accounts the big mining deposits the country is endowed with.

Chairperson of Tanzania Women Miners Association (TAWOMA) Eunice Negele says there are many areas in the country which are owned by large scale miners who do not develop them. “It is high time the government repossessed them and allocated the same to small scale miners”.

Negele said unfortunately artisanal miners were supposed to register at the village offices but large scale miners do not go to the village because they secure big areas whereby a site can involve almost 10 villages thus it is not possible for them to go and register in each village as a result they took the areas of small scale miners as a consolidated lot.

She criticizes the entire system of issuing license to small scale miners saying the responsible ministry should collaborate with the zonal mineral offices to identify small scale miners and henceforth issue them with licenses.

“More education should be provided to local government leaders who do not have mining ideas and encourage them not to harass small scale miners,” Negele adds.

“If artisanal miners will have a joint market they will sell their minerals at justifiable prices without any inconveniences,” says Negele.

Tawoma Secretary General Shamsa Diwani stresses the need for the government to organize mineral trade fairs in the country to enable small scale miners to advertise and sell their minerals.

The government should also establish minerals marketing centers where the miners could sell the minerals, says Diwani.

“We want people from outside the country to come and buy the minerals from our country this will help the miners to benefit as well as the country,” she says.

Diwani says value addition to the minerals was crucial for the miners to earn more.

Another small scale miner at Kalalani one Jumanne Mtobi says that lack of permanent areas for the artisanal miners is a big challenge facing them and therefore asks the Ministry of Energy and Minerals to address conflicts that occur between them and large scale miners by allocating permanent mining areas for artisanal mining.

He says most of the mineral rich areas are in the hands of the large scale miners leaving them with poor and no permanent areas to conduct their activities.

“As a result, we have witnessed an increased number of conflicts between small scale miners and the large ones fighting for the ever decreasing land,” he says.

 

This is not good for the development of the economy,” he said.

In order to avoid such disagreements, he says, the government should conduct a countrywide land survey and allocate specific areas for small scale miners.

Chairman for Tanzania Mineral Dealers Association Sammy Mollel asks the government to eliminate taxes on machines used for cutting and polishing of minerals in lapidary industry so as to add value to the country's minerals.

Mollel says Mineral Policy of 2009 encourages small scale miners to add value to their minerals. He says if the government will exempt taxes on cutting and polishing machines as well as establishing mining colleges for lapidary to learn value addition it will help to improve the performance of the sector in the country.

Late last year, Minister for Energy and Minerals Sospeter Muhongo said that the government has started addressing some of the challenges facing artisanal miners.

He said that although the budget 8 billion shillings set aside for small scale miners were small some miners have benefited from it.  

The minister however admits the prevailing disputes between small scale and large scale miners saying the government has started working on them including directing those who were hoarding big areas to return them for relocation to other people.

Activists say that though the government promises to continue supporting small scale miners through provision of supportive extension services the same is ineffective as they lack establishment of mechanisms for accessing capital, the critical ingredient to succeed.

In February last year while launching the Presidential Award on the Extractive Industry Corporate Social Responsibility and Empowerment (CSRE) programme President Jakaya Kikwete called upon large-scale mining companies to use their economic strength and technological capacity to help small mining operators improve their operating systems, increase productivity, and production.

“I believe, this will reduce jealousies, minimize friction, and avoid unnecessary hostility and increase friendship and cooperation. If large companies assist small operators and treat each other as partners, instead of competitors or contenders, it will very much improve relations between the two players.”

Mining industry observers say that the government should move rapidly and decisively provide a solution to the teething problem of between major investors and local communities’ conflicts.

Investors should be urged to wholly participate without constraints in providing adequate corporate social responsibility by prioritizing the well-being of the communities surrounding them by providing outreach services and encourage peerage.

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