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Mining and CSR: Case studies from Tanzania

Mining and CSR: Case studies from Tanzania. Siri 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

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Mining and CSR: Case studies from Tanzania

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  1. Mining and CSR: Case studies from Tanzania Siri Lange, Chr. Michelsen Institute

  2. 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

  3. 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%

  4. 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%

  5. 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

  6. 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)

  7. 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

  8. 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

  9. 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

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