Mining and CSR: Case studies from TanzaniaSiri Lange, Chr. Michelsen Institute

Notes on methodology

• Studies to be used in training courses• Collaboration with ESRF in Dar• Sensitive issue - authorities sceptical

• 5 days at each location:

– Gold mining in Geita– Tanzanite mining in Mererani

• Interviews with:– Mining companies, local authorities, artisinal miners, NGOs/CBOs

Mining in Tanzania

• 1967 state monopoly

• Structural adjustment from 1986

• Foreign investors were invited

• Minerals’ share of total value of exports:

1996: 3.8%

2003: 50%

CSR in mining – national figures

• 70% of donations to ’community devlopment’ spent on water and roads

• Percent of exports:1999: 5.1%2000: 4.3%2001: 1.2%2002: 0.3%

Geita Gold Mine – Lake Victoria

• Owned by Anglo-Gold Ashanti (SA)

• Third largest gold mine in Sub-Saharan Africa

• Full operation since 2002

• 2400 employees

• 1/3 of government’s revenues from mining

CSR at Geita Gold Mine (GGM)

• Has a good reputation – praised by the WB

• Half of the amount spent on water pipe

• $ 140 000 per year to the District Council

• Projects dis-located, money was lost

• GGM now donate ’in kind’ (buildings)

AFGEM - Mererani

• Owned by Tanzanite One (SA)

• Operated since 2001

• 450 employees

• Small scale miners ’encroach’ the mine

• Several miners killed - court cases

• Rumours about ownership

CSR at AFGEM

• 2001 offered $ 28 000 to Mererani village goverment – which refused

• Mining company favours the Maasai• $ 276 000 to Nasinyai village ($ 46 pc)• Corruption – waste material• No control function (women loose out)• Use support to build ward offices – ethnic separatism

Challenges

• No national CSR guidelines • How to define the unit of ’community’?

– GGM: District Council level– AFGEM: Village Government level

• Degree of recipient responsibility • Alliances between mining companies and authorities – the poor

suffer• Disclosure of contracts & donations