8 E213 Public Disclosure Authorized...legislations that will be considered include the Mining Act of...

THE UNITED REPUBLIC OF TANZANIA

MINISTRY OF ENERGY AND MINERALS

ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK

AND

INITIAL SCOPING STUDY FOR THE STRATEGIC ENVIRONMENTAL AND SOCIAL ASSESSMENT

FOR

THE SUSTAINABLE MANAGEMENT OF MINERAL RESOURCES PROJECT (SMMRP)

Prepared by: Centre for Energy, Environment, Science & Technology (CEEST)

P. O. Box 5511, Dar es Salaam, Tanzania T

E-Mail: [email protected],

APRIL 2009

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Executive Summary

This report presents an Environmental and Social Management Framework (ESMF) (PART –I) and an Initial Scoping Study for the Strategic Environmental and Social Assessment (SESA) (PART – II) for the Sustainable Management of Mineral Resources Project (SMMRP) in Tanzania.

The SMMRP is a 5-year technical assistance project anticipated to begin in mid 2009. Development objective of the proposed project is to improve the socio-economic benefits of mining for Tanzania and Tanzanians, and also to improve Government capacity to manage the mineral sector and enhance local and foreign investments. The project has four components which are: a) Improving the Benefits of the Mineral Sector for Tanzania: Artisanal and Small-Scale Mining, Local Economic Development and Skills Development; b) Strengthening Governance and Transparency in Mining; c) Stimulating Mineral Sector Investment; and d) Project Coordination and Management. The principal SMMRP implementing agency is the Ministry of Energy and Minerals (MEM) through the Minerals Division and the Geological Survey of Tanzania (GST).

The project has been classified by the World Bank as Category B, as defined in the Bank’s Operational Policy 4.01 on Environmental Assessment. The basis for this rating is that the project consists largely of technical assistance activities that may have only limited adverse impacts; however, it could lead to positive environmental and social impacts by supporting changes in the policy and regulatory framework that are likely to encourage increased commercial scale mining and artisanal and small-scale mining (ASM) activities in the future.

Where project activities and locations are well known, the National Environment Policy (1997) and Environmental Impact Assessment & Audit Regulations of 2005 prescribe details of how an EIA can be conducted. In the case of the SMMRP, the precise location of proposed project activities is not known at this time. Therefore the potential social and environmental impacts of these project activities cannot be identified and assessed in the context of a traditional EIA. Instead, this ESMF provides mechanisms for ensuring that potential environmental and social impacts of the SMMRP are identified, assessed and mitigated as appropriate, through an environmental and social screening process. In this way the ESMF complements the national EIA process.

SMMRP has many positive impacts. Some of these include; improved livelihoods of the ASM; improved environmental and social conditions of the areas where SM operates; increased benefits of mining to the communities; creation of harmony between ASM, LSM and local governments; improved and better local skill base for the mineral sector; improved capacity to manage the mineral sector; improved transparency in the sector; improved geologic infrastructure of the country leading to increased investment in the medium to longer term; better public image of the mineral industry; improved inter-agency coordination and collaboration that would enhance social accountability, good governance, transparency and client satisfaction; improved capacity to manage and monitor environmental and social issues in the mineral sector; and an overall improved management of the mineral sector;

However, some of the anticipated negative impacts of the SMMRP include: potential for disputes and wastage of SMMRP resources if (a) poor selection criteria for location of SSM demonstration centres and trainees is undertaken, (b) selection criteria for granting of the

assistance to SSM is not properly done, and (c) selection criteria for supporting districts to pilot mainstreaming of mining into e strategic development planning is not properly done. Other negative impacts include; potential for conflicts both environmental and social if stakeholders are not fully involved during SESA, benefit studies and overall implementation of the SMMRP; potential for safety, health and environmental problems if there will be poor management of the proposed TDUs operations; ineffective operations if poor matching of the TDU equipment with mineral commodity is undertaken, and; potential for the grants to amplify existing ASM problems such as environmental degradation, HIV/AIDS if training in entrepreneurship, Safety, Health and Environment (SHE) and social responsibility is not properly undertaken. Similarly, ineffectiveness of the reforms may occur if harmonization of laws and clear definitions of roles and responsibilities are not achieved.

Inadequate capacity to manage procurement, financial management and disbursement and conducting monitoring and evaluation may also hamper progress and positive impacts of the project. Needs assessment for capacity building should be done in a holistic manner since this could lead to staff dissatisfaction if key areas of capacity building are not achieved. Good governance should be adhered to avoid hampering the effectiveness of the reforms

In preparing this report, extensive consultations were held with appropriate stakeholders at the national and local levels including government ministries/agencies, mining companies, other private sector actors, artisanal miners, NGO’s, people and communities in mining areas. These consultations were made through field visits conducted in selected sites of the country, where SMMRP is expected to cover. Review of existing information and data on SMMRP project components and other previous studies were also conducted. Although the SMMRP is expected to bring improvements to the mineral sector, the following risks were identified:

• Inadequate stakeholder consultation could affect stakeholder participation and effectiveness of the projected outcomes. This risk in particular concerns such activities as financial assistance, extension service, programs for industrial minerals, legal and fiscal reforms and promotion and communication. In other cases such as the airborne geophysical survey, public consultation and awareness could determine the progress of the proposed activities;

• Poor selection criteria for small grants program, site selection for demonstration centres and selection of ASM for training of trainers under the project could create unfair competition and affect projected outcomes;

• Inadequate training of entrepreneurs and government officials, particularly with respect to transportable demonstration units (TDUs), operation of demonstration centres, and use of financial assistance could amplify existing health and safety risks in ASM and also contribute to environmental degradation. Furthermore, inadequate training and monitoring could degrade SMMRP effectiveness;

These risks will be managed through implementation of this ESMF and engagement of regulatory framework and stakeholders outlined below:

• Environment Regulatory Arrangements. All mining activities are subject to the Environmental Management Act 2004 and associated regulations. The National Environmental Management Council (NEMC) has primary responsibility of enforcing environmental legislation, including Environmental Management Plans for mining projects. All large mining projects in Tanzania are also subject to the Mining Act of

1998 and its regulations. The Mining Act has specific Sectoral Environmental requirements for holders of Mineral Rights;

• Environmental Audits and Inspections. The Environmental Impact Assessment and Audit Regulations, 2005 (Part X) directs that Environmental Audits be conducted by a qualified and authorized environmental auditor or environmental inspector who shall be an expert or a firm of experts registered in accordance with the Environmental (Registration of Environmental Experts) Regulations, 2005. Furthermore the Mining (Environmental Management and Protection) Regulations, 1999, Section 19, calls for the appointment of an independent third party or consultant acceptable to the licensing authority;

• Environmental Impact Statements. Detailed environmental impact statements, prepared to high standards, are required for all of the large-scale mining projects in Tanzania and are a prerequisite for obtaining mining licenses from MEM. Information disclosure and consultations with affected communities and landowners take place as part of the authorization process. The mining projects are typically operated by international mining companies that come under public scrutiny, in both their home country and in the countries where their operations are located, to comply with good international practice and face regulatory penalties and reputational risk if they fail abide by the rules;

• Social Safeguards. There is no single piece of legislation that governs resettlement in Tanzania. However a number of sections of legislation are applicable to any resettlement process. As such World Bank guidelines will become applicable in case safeguard issues are triggered during project implementation. Other relevant legislations that will be considered include the Mining Act of 1998; Land Act of 1999 (Cap 113); Village Land Act of 1999; Land Acquisition Act of 1967; Land Disputes Courts Act, (Cap 216); Grave (Removal) Act of 1969; Environmental Management Act of 2004; Antiquities Act of 1964 (amended 1979); Land (Compensation Claims) Regulation 2001; and the Forest Act of 2002;

• Key Players. The Ministry of Energy and Minerals (MEM) will take the leading role as the principal implementing Agency to oversee the implementation of the SMMRP. The MEM also oversees the implementation of the Mining Policy; Enforcement of laws and regulations for mining and protection of the environment; Environmental monitoring and auditing of the various SMMRP project activities; Mining projects EIS & EMP approvals (through a Multi-Sectoral committee); and Mining conflict resolutions;

Vice President’s Office (Division of Environment) is responsible for approvals of SESA and EIA certificates; formulation and articulation of policy guidelines necessary for promotion & protection of the environment; and issue general guidelines to sector Ministries & coordinates all agencies public/private institutions related to environmental management;

Holders of mining Licenses (SSM/LSM) are responsible for conducting Environmental and Social Assessment, resettlement of project affected people, Implementation of the Environmental and Social Management Plan and Project Monitoring, internal and external environmental auditing and reporting;

District, Ward and Village Environmental Committees have the role of Coordinating and advising on environmental policies and implementation obstacles, Promoting environmental awareness, Information generation, assembly and dissemination from

any person, Initiate inquiries and investigation on any environmental disputes or violation of the Act, Resolve conflicts among individual persons, companies, agencies, NGOs, Government Departments, Inspect any source of pollution in the area, and Initiate proceedings of civil nature against any person, company, and agency for failing or refusing action under the Act;

• Risk Mitigation. The Government has requested the support of the International Development Association and the World Bank to improve its ability to minimize and mitigate potentially adverse impacts of mining through (a) improved environmental and social legal and regulatory framework for mining; and (b) improved enforcement capacity of the relevant authorities involved in the sector. The support will include assistance in the preparation of regulatory frameworks, a Strategic Environmental and Social Assessment, Poverty and Social Impact Assessment, improved guidelines and procedures on consultations and training, and procedures to mitigate impacts in artisanal and small scale mining (ASM);

• P R F T

M P R

• S E S A T SE S A SESA

G TSESA

BSESA

M A• Engagement with Civil Society, Communities and key stakeholders. Consultations

were held with relevant, mining companies, Regional Miners Associations, ZMO’s and RMO’s, District Executive Directors and village governments. These consultations were made through field visits conducted in selected sites, where SMMRP covers. Table 1.1 below provides a list of stakeholders interviewed during the scoping study period.

Table 1.1: Stakeholders interviewed for SMMRP Project GOVERNMENT LOCAL

GOVERNMENTS

INSTITUTIONS

LARGE SCALE MINES

VILLAGE COUNCILS SMALL SCALE MINES

RMO – Geita Geita DED STAMICO Geita Gold Mine (gold)

Lwamgasa – Geita District

Kadeo – Lwamgasa (gold)

ZMO – Singida Singida DED NEMC TanzaniteOne Mine (gemstones)

Nyarugusu – Geita District

MWAREMA – Nyarugusu

ZMO – Arusha Babati DED Sambaru – Singida Rural District

SIREMA – Sambaru

RMO – Songea Mbinga DED Amani Makoro – Mbinga District

RUVUREMA – Ruvuma

RMO – Chunya Chunya DED Matundasi – Chunya District

Itumbi mine - Chunya (gold)

VPO-DOE Kisarawe DED Rahim Massawe – Mirerani (gemstones)

Arusha Gemstone Centre

Pugu Kaolin Mines – Kisarawe (industrial mineral)

MEM- HQ (SMMRP Office)

Richard Mutatina – Kisarawe (industrial minerals)

T ESMF A I C C PPF D

S T WB P T E SS

T C SMMRP S

ESMF

• A SMMRP MEM

• T ASM ASM V E T A VETA

S E A M C SEAMICASM SMMRP

• T N E M C NEMCSMMRP M

S CP T C

• EM A E M A EIA

SSM • U T SEA SESA SMMRP

INGO

A CT A TA

MEM I

• Artisanal and Small Scale Mining (ASM). The project activities related to artisanal and small-scale mining will positively impact the sector through (a) the formalization of ASM operations, (b) increased awareness of ASM communities on environmental and health impacts, including issues related to mercury; (c) provision of extension services and financial assistance to foster environmental protection and alternative technologies; and (d) increased awareness of ASM safety hazards and mitigation measures.

PART – I

ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK

TABLE OF CONTENTS

DESCRIPTION Page

Executive Summary………………………………………………………………………………………………. i

PART – I: ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK vii

Table of Contents ……………………………………………………………………………………………………. viii

List of Annexes………………………………………………………………………………………………………… x

List of Tables…………………………………………………………………………………………………………… xi

List of Figures…………………………………………………………………………………………………………. xii

Table of Contents for Part – II…………………………………………………………………………………. xiii

List of abbreviations……………………………………………………………………............................. xiv

Acknowledgment…………………………………………………………………………………………………... xvi

List of CEEST consultants………………………………………………………………………………………… xvii

Definitions……………………………………………………………………………………………………………… xviii

CHAPTER 1: INTRODUCTION…………………………………………………………….......................... 1

BACKGROUNDC A I B M S TA S S M L E D SDC B S G T MC C S M S IC D P C M

FRAMEWORK OBJECTIVES AND RATIONALEO ESMFJ ESMFP U ESMF

ORGANISATION OF THE REPORT

CHAPTER 2: WORLD BANK SAFEGUARD POLICIES…………………………………………….……. 7 2.1 WORLD BANK SAFEGUARD

POLICIES……………………………………………………….……. 7 2.2 SAFEGUARD POLICIES RELEVANT TO

SMMRP………………………………………………… 9 INTERNATIONAL INSTRUMENTS AND AGREEMENTS

CHAPTER AN OVERVIEW OF THE MINERAL SECTOR AND SMMRP ACTIVITIES3.1 INTRODUCTION………………………………………………………………………

……………………. 11 3.2 LEGAL

REGIME……………………………………………………………………………………………… 11

3.3 FISCAL REGIME…………………………………………………………………………………………….. 12

3.4 SMALL SCALE MINING…………………………………………………………………………………… 13

3.5 DESCRIPTION OF SMMRP PROJECT AREA & ACTIVITIES………………………………... 13

CHAPTER 4: PROJECT IMPLEMENTATION ……………………………………………………………… 21

ROLES AND RESPONSIBILITIES WITH RESPECT TO SMMRP AND PLANNING AND IMPLEMENTATION OF THE ESMFMANAGEMENT AND IMPLEMENTATION STRUCTURE

G U R TO S SMMRPSMMR P P I AR M SMMRP ESMF I

PRINCIPLES AND CONSIDERATIONSP I ESMFG R

ENVIRONMENTAL AND SOCIAL SCREENING OF SUB PROJECTSI S PS S P A SS A A E S

CS C O E S WS R A S A

ENVIRONMENTAL MONITORINGT I A E MNRDC

ANNUAL REVIEWS

CHAPTER CONCLUSION

REFERENCES

LIST OF ANNEXES

ANNEX 1: SCREENING CHECKLIST FOR THE ENVIRONMENTAL ASSESSMENT OF A PROJECT

ANNEX 2: GUIDELINES FOR PREPARATION OF AN ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN (ESMP)

ANNEX 3: TERMS OF REFERENCE FOR THE ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT

ANNEX 4: GENERAL GUIDELINES FOR THE SUPERVISION OF SMMRP PROJECTS AND ASSOCIATED BUDGET

ANNEX 5: SAFEGUARD TABLES

LIST OF TABLES

Table 2.1: World Bank safeguard

Policies………………………………………………………………………… 8

Table 2.2: International Agreements Applicable to Mineral

Resources…………………………… 10

Table 3.1: Taxes Payable in the Mineral

Sector……………………………………………………………….. 12

Table 3.2: Summary of SMMRP Activities and Proposed Approach to Mitigate Potential

Environmental and Social safeguard

Issues…………………………………………………….. 17

Table 4.1: Roles and Responsibilities with Regard to ESMF

Implementation…………………… 23

Table 4.2: Minimum Skills Needed for Management of

ESMF………………………………………….. 26

LIST OF FIGURES Figure 3.1: Area for SMMRP Project Activities Under extension services and industrial

Mining

programs……………………………………………………………………………

…....... 15

Figure 3.2: Areas for SMMRP activities under Geological

Survey…………………………………… 16

Figure 4.1: Diagrammatic representation of the SMMRP administration framework…… 21

Figure 4.2: Flow chart of the Screening and Review Process for Environmental and Social

Impact

Assessment…………………………………………………………………………

……………… 34

PART – II: INITIAL SCOPING STUDY FOR STRATEGIC ENVIRONEMENTAL AND SOCIAL ASSESSMENT (SESA)

1.1 INTRODUCTION………………………………………………………………………………………… ……. 60 1.2 SMALL SCALE GOLD MINING …………………………………………………………………………… 61 1.2.1 Technical Assistance to SSM……………………………………………………………….. 61 1.3 LSM EXTENSION SERVICES TO SSM……………………………………………………………….. 64 1.4 SMALL SCALE GEMSTONE MINING …………………………………………………………………. 65 1.4.1 Financial, Technical Assistance and Alternatives……………………………… 65 1.4.2 LSM Extension Services to SSM……………………………………………………….. 66 1.4.3 Environmental and Social Issues in Gemstones Mining Areas…………. 66 1.5 SMALL SCALE INDUSTRIAL MINERALS MINING ………………………………………………… 67 1.5.1 Issues facing SSM in Industrial Minerals…………………………………………… 68 1.5.2 Alternative Financial and Technical Assistance………………………………… 68 1.6 LSM BENEFIT STUDIES…………………………………………………………………………………. 69 1.7 MINING CADASTRAL INFORMATION MANAGEMENT SYSTEM……………………. 70 1.8 STATE MINING CORPORATION (STAMICO)…………………………………………………… 70 1.9 ARUSHA GEMSTONE AND CARVING CENTRE………………………………………………. 71 1.10 PARTICIPATION OF WOMEN AND CHILDREN IN THE MINING SECTOR…………. 72 1.11 RELATIONSHIP BETWEEN MINING, LOCAL COMMUNITIES & INDIGENOUS PEOPLE 73 1.12 IDENTIFICATION, ASSESMENT OF IMPACTS AND PROPOSED MITIGATION MEASURES…………………………………………………………………………………………………… 76 1.12.1 SMMRP Specific Impacts and Mitigation Measures ………………………………………. 1.12.2 Mining Sector Broad Sector Impacts and Mitigation Measures……………………… 80

LIST OF TABLES

Table 1.1: Stakeholders interviewed for SMMRP Project

T CT I LSM SSM T P W M M T

LIST OF ABBREVIATIONS AMD Acid Mine Drainage AREMA Arusha Regional Miners Association ASM Artisanal and Small Scale Mining/Miners CEEST Centre for Energy, Environment, Science and Technology DC District Commissioner DCDO District Community Development Officer DED District Executive Director DED District Executive Director DEMC District Environment Management Committee DEMCO District Environmental Management Officer DEO District Education Officer DFID Departmental For International Development DLO District Land Officer DMO District Medical Officer DNRO District Natural Resources Officer DPO District Planning Officer DPs Displaced People EIA Environmental Impact Assessment EMA Environmental Management Act of 2004 EMC Environmental Management Committee EMO Environmental Management Officer EMP Environmental Management Plan EPRP Emergency Preparedness and Response Plan ESIA Environmental and Social Management Plan ESMF Environmental and Social Management Framework EU European Union FINNIDA Finnish International Development Aid GEF Global Environmental Facility GGM Geita Gold Mine GOT Government of Tanzania GST Geological Survey of Tanzania HQ Headquarters

HSE Health Safety & Environment LGO-EM Local Government Officer on Environmental Matters LGRAs LSM

Local Government and Regional Authorities Large Scale Mining/Miners

MBEREMA Mbeya Regional Miners Association MCIMS Mining Cadastral Information Management System MDG Millennium Development Goals ML Mining License MLHS Ministry of Lands and Human Settlements MP Member of Parliament MWAREMA Mwanza Regional Miners Association NEMC National Environmental Management Council NEP National Environmental Policy NGOs Non-Governmental Organizations NLUPC National Land Use Planning Commission NSSF National Social Security Fund OHSA Occupational Health and Safety Act PCD Project Concept Document PMLs Primary Mining Licenses PSIA Poverty and Social Impact Assessment RAP Resettlement Action Plan RMO Resident Mines Officer RUVUREMA Ruvuma Regional Miners Association SACCOS Savings and Credit Cooperatives Society SEA Strategic Environmental Assessment SHE Safety, Health and Environment SIREMA Singida Regional Miners Association SMAP Small Miners Assistance Program SMEs Small and Medium Entrepreneurs SML Special Mining License SMMRP Sustainable Management of Mineral Resources Project SSM Small Scale Mining/Miners STAMICO State Mining Corporation TACAIDS Tanzania Commission for Aids UCC University Computing Centre UNIDO United Nations Industrial Development Organization URT United Republic of Tanzania VMAC Village Management Aids Council WB World Bank WCS World Conservation Society WGS World Gem Supplies WMAC Ward Management Aids Council ZMO Zonal Mines Officer

ACKNOWLEDGMENTS

CEEST wishes to thank the Permanent Secretary for The Ministry of Energy and Minerals (MEM), all Minerals Division staff and the SMMRP Project Team for enabling CEEST to carry out the environmental and social study with an ultimate aim of developing The Environmental and Social Management Framework (ESMF) for the Sustainable Management of Mineral Resources Project (SMMRP).

CEEST wish to sincerely thank MEM for entrusting and giving us an opportunity to develop ESMF and we are grateful for all the financial and material support offered during the course of the study. Similarly, this report would not have come to completion without the assistance and cooperation of the following persons/groups:

− T D C DC D E D DEDG S R B K M C D

− W R N G D SS R D N S D A M M D

M C D− Z R M G S A M S

C− T C E GST D G STAMICO− T M A M MWAREMA S SIREMA A

AREMA R RUVUREMA M MBEREMA− S G S A M

K S M C D− A

To you all, we extend our heartfelt appreciation and request for your further support and cooperation for future similar studies. We assure you of our professional, timely and credible output for similar assignments.

Wishing you the best

CEEST - MANAGING DIRECTOR

LIST OF CEEST CONSULTANTS

A team of CEEST - Consultants was composed of the following experts:

E S G M L CE S M M E EM V B S E CA B M LM M B R AM N R R A

DEFINITIONS

Environmental Impact

An effect (both positive and negative) on an environmental resource or value resulting from infrastructure development projects.

Environmental and Social Impact Assessment (ESIA)

A systematic procedure for enabling the possible environmental and social impacts of development projects to be considered before a decision is made as to whether the project should be given approval to proceed.

Strategic Environmental and Social Assessment:

The process of managing the environmental and social aspects of a policy, strategy, programs or sub-projects from the earliest stages of identifying the potential activities to their completion and evaluation. The process encompasses identification of potential adverse impacts, assessment of those impacts, design and implementation of measures to avoid, minimize, mitigate or compensate for adverse impacts, and development of appropriate management and monitoring measures.

Environmental and Social Impact Assessment:

An environmental and social assessment instrument to identify and assess major potential environmental and social impacts of proposed sub-projects, evaluate alternatives and design appropriate mitigation, management and monitoring measures.

Environmental and Social Management Plan:

An instrument that details the measures to be taken during and after implementation of a project to eliminate or offset adverse environmental and social impacts or to reduce them to acceptable levels; and the actions needed to implement these measures.

Environmental and Social Monitoring:

Monitoring is the systematic measuring and recording of physical, social and economic variables associated with project impacts. The objective of monitoring is to provide information on the characteristics and functioning of the occurrence and magnitude of impacts, and whether mitigation measures have been carried out.

Environmental and social Review:

An environmental assessment instrument in which the sub-projects are likely to have minimal impacts, but are to be reviewed using a standardized checklist to identify possible impacts and appropriate mitigation measures.

Environmental Screening:

A process of identifying the potential adverse environmental and social impacts of proposed sub-projects and, based on the level of impact anticipated, the corresponding level of environmental and social assessment required (i.e., the most appropriate environmental assessment instrument needed to address potential impacts and environmental and social issues associated with sub-projects). The screening process indicates whether an environmental and social assessment is required for a particular sub-project and, if it is required, which of the three environmental instruments (Environmental Review, Limited Environmental Assessment, or Environmental and Social Impact Assessment) should be applied.

Limited Environmental Assessment:

An environmental assessment instrument used to assess whether a sub-project is likely to cause environmental and social impacts that merit consideration by an environmental specialist, and which mitigation measures should be incorporated into the sub-project design. Detailed checklists, customized for different types of sub-projects, would normally be used and supplemented on a case-by-case basis.

Process Framework:

The Process Framework is an instrument of the United Republic of Tanzania prepared in compliance with the World Bank Safeguard Policy on Involuntary Resettlement (OP4.12). The purpose of the Process Framework is to clarify principles, organizational arrangements and design criteria to be applied to the implementation of SMMRP.

Environmental and Social Management Framework

Environmental and Social Management document that sets out the conditions under which Environmental and Social Management will be developed. This is usually a contextual document that defines the parameters, principles, organizational arrangements and design criteria to be applied to the implementation of SMMRP.

Public Consultation:

The process of engaging affected people and other interested parties in open dialogue through which a range of views and concerns can be expressed in order to inform decision-making and help build consensus.

Scoping:

The process for identifying the potential environmental and social impacts of the project to be evaluated. In the process, consultations with principal stakeholders are required in order to inform them about the proposed project activities, and to solicit their views.

Stakeholders:

Stakeholders are those affected by the outcomes (negatively or positively) or those who can affect the outcome of a proposed intervention. Stakeholders can include: borrowers; directly affected groups including the poor and disadvantaged; indirectly affected groups such as NGOs and private sector organizations; and the World Bank management staff, and shareholders.

Sub-Projects:

Sub-projects are initiatives undertaken as supported by the WB. Sub-projects are aimed at supporting income generation within communities in mining regions. Initiatives may include the demand of technical, physical or social services, including alternative income generating activities (AIGAs).

Artisanal and Small-Scale Miners (ASMs)

In the context of this framework, and as most people involved in the mineral sector imply, small-scale miners are those working in Primary Mining License areas and Artisanal miners are those individuals mining haphazardly without proper authority

CHAPTER 1

INTRODUCTION

BACKGROUND

The Government of the United Republic of Tanzania through the Ministry of Energy and Minerals is developing a Sustainable Management of Mineral Resources program that aims at:

(i) Improving small-scale and artisanal mining and the associated social, economic and environmental impacts;

(ii) Strengthening of good governance, transparency and operational capacity within the mineral sector;

(iii) Improving the economic and social benefits of the sector, including initiatives for local and regional developments and private sector developments; and

(iv) Strengthening of sector management and coordination including inter-agency linkages.

The formulation of the Project is in line with the Government drive of improving the overall management of the mineral sector so that there are more benefits to the investors and the nation as a whole.

As a prerequisite for the World Bank funded projects, an environmental and social impact assessments need to be carried out to identify any impacts that might be associated with the project. This report therefore, is a framework that identifies both, the various adverse and favourable impacts that may result during and after implementation of the SMMRP and builds up mitigation plans to reduce and avoid the adverse impacts and also proposes enhancements of the various positive benefits identified. The World Bank has categorized SMMRP as "Category B" in its environmental rating.

The project is designed to have four (4) components, which are:

A I B M S T

B. - Strengthening Governance and Transparency in Mining;

C. - Stimulating Mineral Sector Investment; and

D. - Project Coordination and Management

C A I B M S T AS S M L E D S D

The main objective of this component is to support the implementation of the national strategy to develop artisanal and small-scale mining1 which aims at improving sustainability of small-scale mining and addressing technical, environmental and social conditions of small-scale mining operations. The component will also address skills development required for the mineral sector. The project will support activities aiming to:

(a) Improve existing information about small-scale and artisanal mining through baseline studies;

(b) Improve extension services for artisanal and small-scale miners;

(c) Stimulate development of industrial minerals and value added activities;

(d) Improve small-scale miners’ access to credit facilities;

(e) Enable local governments to integrate mining into district economic and administration planning and

(f) Human resources development for the mineral sector.

C B S G T M

The main objective of this component is to strengthen governance and transparency in mining by:

(a) Reforming the legal, regulatory and fiscal regimes for the Mineral sector in Tanzania;

(b) Building institutional capacity for the Ministry of Energy & Minerals particularly strengthening the auditing and inspection functions of MEM and strengthening linkages and co-ordination with other government institutions that take part in the administration of the mineral sector;

(c) Improving the Mining Cadastre Information Management System (MCIMS), which manages processing and administration of mineral rights. This will strengthen good governance and transparency in mineral rights administration;

(d) Conducting an Environmental and Social Management of the project to support proactive and reactive activities aimed at addressing environmental and social aspects of mining, based on the findings and recommendations of a baseline survey for ASM and PSIA studies;

(e) Strengthening Environmental monitoring capacity in the HQ, RMO, ZMO and LGRAs through training and technical support and improving work environment;

C C S M S I

The main objective of this component is to improve geo-scientific information by acquiring new information and updating existing data and information. The upgraded information will be used

1 Mikakati ya Kuwaendeleza Wachimbaji Wadogo, 2006

to facilitate promotion of private investment in exploration and mining and to support adequate planning of the mineral development. The project will support the following:

(a) Strengthening of the Geological Survey of Tanzania (GST) to make it a geological centre of excellence in Africa. The project will support the GST to:

i. Complete high resolution airborne geophysical survey, ground follow-up through geophysical and geochemical surveys, and geological mapping;

ii. Update and publish existing geological maps for selected areas at scale of 1:100,000;

iii. Digitize and upgrade the existing Geological and Mineral Information System (MIS);

iv. Strengthen the GST;

v. Update and maintain map library, rock and core-archives; and

vi. Make geoscientific data and information readily accessible to the stakeholders.

(b) Future Role of State Mining Corporation (STAMICO): This sub-component will finance a strategic assessment of STAMICO, exploring existing institutional capacity and options for self-financing, as a pre-condition for its future role with the private sector for both, large-scale and small-scale opportunities.

(c) Strengthening of the Mineral Sector Investment Information and Promotion of mineral resources of Tanzania. The project will link up the Geological Survey of Tanzania and the Mineral Rights Registry databases.

C D P C M

T PM E

M MEM

FRAMEWORK OBJECTIVES AND RATIONALE

The purpose of the study was to develop Environmental and Social Management Framework for the SMMRP. As a prerequisite, World Bank funded projects require an environmental and social impact assessment to identify impacts that might be associated with the project. This framework outlines how potential impacts of future project activities will be identified and managed, including through site specific Environmental Impact Assessments (or ESMF’s), RAP’s and Strategic Environmental and Social Assessment (SESA) of the mining sector.

O ESMF

The objective of this ESMF is to ensure that the implementation of the SMMRP activities, the precise location of which is yet to be determined, will be carried out in an environmentally and socially sustainable manner. The ESMF will provide the project implementers with an environmental and social screening process that will enable them to identify, assess and mitigate potential environmental and social impacts of project activities including through the preparation of a site specific EIA’s and/or RAPs where appropriate.

The screening results will indicate whether additional environmental and/or social assessment will be required or not. Thus, the ESMF is designed to ensure an appropriate level of environmental and social management, which could range from the application of simple mitigation measures (through the environmental checklists) to the preparation of an EIA Report (according to Tanzania’s Environmental Impact Assessment & Audit Regulations of 2005.

The ESMF will outline the:

EIA

The screening process has been developed because the locations and types of projects to be funded under the SMMRP are not yet known at this time; and therefore potential impacts cannot be precisely identified.

It is expected that most project components will have limited negative environmental and social impacts. However, potential localized impacts that would require proper mitigation and possibly the preparation of a comprehensive EIA might occur.

Where project activities and locations are well known the National Environment Policy (1997) and Environmental Impact Assessment & Audit Regulations of 2005 prescribe details of how an EIA can be conducted. In the case of the SMMRP, the precise types and locations of proposed projects are not known at this time. Therefore the potential social and environmental impacts of these project activities cannot be identified in the context of a traditional EIA. This ESMF provides mechanisms for ensuring that potential environmental and social impacts of the SMMRP are identified, assessed and mitigated as appropriate, through an environmental and social screening process. In this way the results of the screening process can complement the national EIA process.

This Environmental and Social Management Framework (ESMF) therefore, includes procedures for meeting the environmental and social management requirements, as outlined in the EIA guidelines. The ESMF also complements Operational Procedures for environmental management of projects where specific details are not yet known.

P U ESMF

This framework has been prepared as a reference manual for use by key stakeholders to be involved in the planning, implementation, management and operation of the proposed SMMRP. As a reference material, the framework would be useful to the following SMMRP key stakeholders:

• SMMRP

• MEM

• LGRA

• S E C

• SMMRP

•

•

•

• NGO

•

•

As a technical assistance project, the SMMRP is expected to have minimal direct environmental and social impacts. However, some of the proposed Project activities (e.g., related to artisanal and small-scale mining) may have direct or indirect impacts that need to be identified and mitigated. For example the small grants program may involve grants for activities that trigger World Bank Safeguard policies. In this case a framework for identification, management and monitoring of such impacts in accordance with World Bank Safeguard policies is presented. Other proposed activities (e.g., geological mapping) may have perceived impacts that need to be recognized and managed. Still other activities (e.g., development of environmental regulations related to mining activities, establishment of an environmental management unit within MEM, etc.) are expected to have positive impacts.

ORGANISATION OF THE REPORT

Part – 1:

Chapter 2 gives World Bank Safeguard Policies; Chapter 3 provides an overview of the mineral sector and SMMRP Activities; Chapter 4 describes the project principles and implementation process; and Chapter 5 presents a conclusion.

Part – II:

Section 1.1 describes Small Scale Mining Projects; Section 1.2 describes Technical Assistance to SSM; Section 1.3 describes LSM Extension Services to SSM; Section 1.4 describes small scale gemstone mining projects; Section 1.5 describes small scale industrial minerals mining projects; Section 1.6 describes LSM benefit studies; Section 1.7 cadastral information management system (MCIMS); Section 1.8 describes the State Mining Corporation (STAMICO); Section 1.9 describes the Arusha Gemstone and Carving centre; Section 1.10 describes the participation of women and children in the mining sector; and Section 1.11 describes the identification, assessment of impacts and proposed mitigation measures.

CHAPTER 2

WORLD BANK SAFEGUARD POLICIES

WORLD BANK SAFEGUARD POLICIES

The World Bank has given increasing attention to the assessment of environmental impact of investment projects and requires environmental assessments for all projects it is to finance. Its ten safeguards policies, aimed at preventing and mitigating undue harm to people and their environment in the development process, also provide a platform for the participation of stakeholders in project design and implementation. The ten safeguard policies are:

a. Environmental Assessment (OP/BP 4.01) b. Forests (OP/BP 4.36) c. Involuntary Resettlement (OP/BP 4.12) d. Indigenous Peoples (OP/BP 4.10) e. Safety of Dams (OP/BP 4.37) f. Pest Management (OP 4.09) g. Physical Cultural Resources (OP/BP 4.11) h. Natural Habitats (OP/BP 4.04) i. Projects in Disputed Areas (OP/BP 7.60) j. Projects on International Waterways (OP 7.50)

This project triggers OP 4.01 on Environmental Assessment; however, the ESMF will screen project activities for potential triggering of OP 4.12 on Involuntary Resettlement and OP 4.10 on Indigenous Peoples. OP 4.04 on Natural Habitats and OP 4.11 on Physical Cultural Resources are not triggered because the project will take place in existing mining areas which were visited during ESMF preparation. These areas have been degraded, and no natural habitat or physical cultural property issues have been identified during site visits or desk studies, hence the risk of project affecting natural habitats or physical cultural property there is considered negligible. To eliminate any risk with respect to these policies, however, activities that could trigger them will be explicitly screened for and excluded from the project. ANNEX 5 presents tables that guide in determining which bank safeguard policies are triggered.

Environmental consequences should be recognized early in the project cycle and taken into account in project selection, citing, planning, and design by preventing, minimizing, mitigating or compensating for adverse environmental impacts and enhancing positive impacts. EA includes the process of mitigating and managing environmental impacts throughout project implementation. The Environmental Assessment Sourcebook (1993) and its updates (1996, 1997) provide technical guidance.

A classification of project impacts outlined in these and other guidelines classify all World Bank investment projects into one of three environmental assessment categories. Projects in Category "A" potentially cause significant and irremediable environmental impacts. Category "B" projects cause lesser impacts, which are remediable and can be mitigated. Category "C" projects can be expected to have little or no environmental impact.

Category A and B projects require a full and partial, respectively, Environmental Impact Assessment or equivalent. Category C projects do not require an EIA. Table 2.1 provides a summary of the WB safeguard policies. SMMRP will not finance activities that would fall into the EA category A.

Table 2.1: World Bank Safeguard Policies

P S C R P C

E

AOP BP

S

P

CNGO

C A B

NHOP BP

DS C

IROP BP

A C

IP OD

ID C

FOP BP

S C C

CPOPN

II C NGO

U

Source: WB, Simplifying Safeguards: Addressing Environmental & Social Issues in Education Projects, SMART, Feb. 1, 2004.

SAFEGUARD POLICIES RELEVANT TO SMMRP

The proposed SMMRP will trigger policy on Environmental Assessment (OP 4.01). In addition, a Resettlement Policy Framework consistent with policy on Involuntary Resettlement (OP 4.12) was prepared for potential future use. These two policies are summarized and compared with national legislation as follows:

E A

The objective of Environmental Assessment is to ensure that projects are environmentally sound and sustainable, and that decision-making is improved through appropriate analysis of actions and mitigation of their likely environmental impacts. This policy is triggered if a project is likely to have potential adverse environmental risks and impacts in its area of influence. The rehabilitation of infrastructure such as the Arusha Carving Centre and Existing GST laboratory buildings; technical assistance to the ASM such as establishment of demonstration Centres and Small Grants which are under the SMMRP may have environmental impacts, which require mitigation. Therefore, in line with this Operational Policy, this environment and social management framework for screening of the SMMRP activities has been prepared.

I R

The objective of Involuntary Resettlement is to avoid or minimize involuntary resettlement where feasible, exploring all viable alternative project designs. Furthermore, it intends to assist displaced persons in improving their former living standards; it encourages community participation in planning and implementing resettlement and in providing assistance to affected people, regardless of the legality of title of land. This policy is triggered not only if physical relocation occurs, but also by any loss of land resulting in: relocation or loss of shelter; loss of assets or access to assets; loss of income sources or means of livelihood, whether or not the affected people must move to another location. Note that the project does not have any planned resettlement but a separate Resettlement Policy Framework has been prepared to provide guidelines on land acquisition and resettlement in case this is required.

INTERNATIONAL INSTRUMENTS AND AGREEMENTS

Table 2.2 lists the international agreements relevant to management of mineral resources in the URT, identifying those on which the URT is a signatory country. All government-supported projects should be consistent with these international obligations. In some cases, there are clear linkages to SMMRP activities in support of the fulfilment of the international agreements.

Table 2.2: International Agreements Applicable to Mineral Resources

Level International Agreements

Relevant to Management of Mineral Resources

Role and Responsibility

Multilateral Investment Guarantee Agency (MIGA)

• R

• A E

• RMIGA S

• S

EITI

• B

• E

• C

• I

• A

• A

• R

Kimberly Process (Diamond)

• E D

• E

• S

International Level

Tucson Protocols for Tanzanite

• I

• M A

• E SSM LSM

• I M T M

CHAPTER

AN OVERVIEW OF THE MINERAL SECTOR AND SMMRP ACTIVITIES

3.1 INTRODUCTION

Tanzania’s mining industry has experienced a boom in the past 10 years. Notable developments during the boom period include the commissioning of Six large-scale gold mines, increase in the country’s annual gold production from less than one tonne per annum in 1998 to about 50 tonnes last year; rapid growth of the mineral sector making the mineral sector the second fastest growing sector after tourism, and increasing contribution to the GDP from 2.0% in 1998 to 3.5% in 2005 (based on 1991 prices). The cumulative total direct foreign investment (FDI) in the

mining sector in Tanzania in the past ten years now exceeds US$ 2.5 billion and employs around 1% of wage earners.

Factors that led to the achievements in the mineral sector in Tanzania include geological environment; major economic reforms which have been undertaken since mid 1980’s; a new mineral policy; enactment of internationally competitive fiscal and legal regimes for the mineral sector; and political stability of the country.

This achievement poses a challenge to Tanzania as more goods and services are needed to support this fast growing sector. Capacity building is thus essential to meet the demands in the country for essential services such as reliable power supply, mining equipment and other consumables for the mining industry.

3.2 LEGAL REGIME

T M AT A

I

Applicable legislations in the Mineral sector are The Mining Act, 1998, and the Explosives Act, 1963. The following regulations also apply:-

• The Mining (Mineral Rights) Regulations, 1999 • The Mining (Environmental Management and Protection) Regulations, 1999 • The Mining (Safe Working and Occupational Health) Regulations, 1999 • The Mining (Mineral Trading) Regulations, 1999 • The Mining (Provisional Licences) Regulations, 1999 • The Mining (Salt production and Iodation) Regulations, 1999 • The Mirerani (Controlled Area) Regulations, 2002 • The Mining (Diamond Trading) Regulations, 2003 • The Mining (Gemstone Board) Regulations, 2004. • The Explosives Regulations, 1964

3.3 FISCAL REGIME

Applicable legislations are the Financial Laws (Miscellaneous Amendments) Act, 1997 and The Value – Added Act, 1997 and their subsequent amendments. Royalty is charged under the Mining Act, 1998. The taxes in the mineral sector are shown in Table 3.1 below.

Table 3.1: Taxes Payable in the Mineral Sector

3.4 SMALL SCALE MINING

In Tanzania, more than 4000 registered artisanal and small-scale mining (ASM) operations employ a labour force of over 550,000 workers. A single mine might employ between 20 and 60 or more workers, almost exclusively men. SSM requires low investments, based on informal operational organization, and uses poor mining and processing technologies. The marketing channels are partly recognized, partly underground (Goergen et- al 2001).

According to Hinton et-al (2003) artisanal mining is used to denote all small –scale as well as medium and large scale mining that may be illegal or legal, formal or informal. Hinton notes that artisanal mining may be better characterized by a lack of long term mine planning and use of rudimental techniques.

Common features in the different definitions is that SSM are usually limited and exclusive to citizens of the country, employ rudimental technologies for mineral extraction and processing, with limited level of production, number of miners and infusion of capital, also they are highly disorganized. Despite the negative factors, artisanal mining is still an essential activity in many

No Types of taxes Applied law Authorized ministry

1 Income tax and custom duty • Income tax • Withholding tax • Import duty • Excise duty • Stamp duty ( for unregistered

companies for VAT) • Fuel levy • Natural resources tax

Income tax no. of 2004 and customs tariff act number 12 of 1976 and financial laws (miscellaneous amendments) act no.27 of 1997.stamp duty act, road toll act

Treasury through TRA

2. Employment taxes • PAYE (pay as you earn) • Benefit taxes (fringe benefit) • Directors taxes • NSSF ( National Social Security

Fund) • Skills and development levy (VETA

levy)

Income tax no. of 2004 and financial laws (miscellaneous amendments) act no.27 of 1997

Treasury through TRA and ministry of work, youth and sports development

3. Royalty Mining act no. 5 of 1998 MEM 4. Social security contributions

• National Social Security Fund Contributions

National Social Security Act

5. Other fees • license application fee • license preparation fee • Annual rental fee for mineral rights • jeweller license fee • Explosive storage license fee

Mining act no.5 of 1998

Jewellers Act; Explosives act

MEM

developing countries where economic alternatives are critically limited. (Weber-Fahar), (Hinton et-al, 2003).

During the field study in February and March 2009, it was found that, in SSM areas such as Matundasi Chunya, 75% percent of all able bodied people including children were involved in unlicensed gold mining year around. The village executive officer reported that although gold mining had created employment and resulting into increase in household income, agriculture had suffered and the village had to depend on food assistance from the government especially after depletion of near surface deposits of alluvial gold. He noted that SSM had left the village and neighbouring areas with a ruined environment full of potholes and eroded soils. In this situation the alternative livelihood and diversification of incomes are essential.

3.5 DESCRIPTION OF SMMRP PROJECT AREA & ACTIVITIES

In the course of implementing activities of the SMMRP, the geographical areas of focus for Component A (Improving the Benefits of the Mineral Sector for Tanzania: Small-scale and Artisanal Mining, Local Economic and Skills Development), B (Strengthening Governance and Transparency in Mining) and C (–Stimulating Mineral Sector Investment, excluding GST activities) will include the following areas (as indicated in Figure 3.1);

• G B M K L S M

• A C C

• S S G G I C G MM M L M L G KB M S M M

• S K P M GM M I T S K P RD K R M B

• M G K T BS M K M U M R S L

C M

Activities under the Geological Survey of Tanzania will cover the Districts of Kiomboi, Mbulu, Hanang, Babati, Singida, Kondoa, Kiteto, Handeni, Kilindi, Manyoni, Dodoma, Kongwa, Mpwapwa, Bagamoyo, Mvomero, Kilosa, Mbarali, Ludewa, Kyela, Chunya, Songea and Namtumbo. Figure 3.2 shows locations of the areas to be mapped.

Description and scope of the project sub-components activities and issues that arise from those activities has been summarized in Table 3.2. This table also provides proposed approaches to mitigate potential environmental and social safeguard issues.

Figure 3.1: Areas for SMMRP Activities under extension services and Industrial miningprograms

Figure 3.2 Areas for SMMRP activities under Geological Survey

Table 3.2: Summary of SMMRP Activities and Proposed Approach to Mitigate Potential Environmental and Social Safeguard Issues

Sub-component Description and Scope of Sub-component Activities

Issues and Risks Proposed Mitigation

A1. BaselineBaseline Studies

The sub-component aims at a countrywideupdating of information on Artisanal andSmall-Scale Mining (ASM) activities,mining statistics and mining investmentbenefits.

• L MSSM

• MSESA

• The exercises should be participatorybottom up approach.

A2. Extension-Extension Services for Artisanaland Small-scale Mining

The sub-component aims at a countrywidestrengthening of provision of extensionservices to ASM by the Minerals Division,in collaboration with REMAS and LargeScale Mining Companies.

• Enhance the capacity of ASM.• Enhance the capacity of MEM staff to undertake the

extension work Technical skills enhancement• Poor selection criteria for location of SSM

demonstration centres and trainees may lead todisputes and wastage of SMMRP resources

• Poor management of proposed TDUs operations maylead to safety, health and environmental problems

• Poor matching of the TDU equipment with mineralcommodity may lead to ineffective operations;

• The Proposed screening criteriapresented in ANNEX 1.

• Proper training and supervision forTDU operations.

A4. Grants-Financial assistance for Small-scale mining and value additionactivities

The sub-component aims at supportingentrepreneurs in selected Small-ScaleMining centres, including training onentrepreneurship to enhance their access tofinancial services and provide them withfinancial assistance.

• Improved livelihood• Improved environmental conditions of the areas;• If selection criteria for granting of the assistance to

SSM is not properly done it may lead to disputes andwastage of SMMRP resources

• If training in entrepreneurship, Safety, Health andEnvironment (SHE) and social responsibility is notproperly undertaken, the grants may amplify existingASM problems, e.g., environmental degradation,HIV/AIDS.

• The Proposed screening criteriapresented in ANNEX 1.

•

A5. LGRA-Linkages between Mining andthe local Economy

The sub-component aims at supporting pilotmainstreaming of mining (LSM and ASM)into development strategic planning in 4districts and in selected miningcommunities.

• Increase benefits of mining to the communities• Creation of harmony between ASM, LSM and the

Local Governments• Potential for conflicts both social and economic if

stakeholders are not fully involved• If selection criteria for supporting pilot mainstreaming




of the districts may lead to wastage of SMMRPresources

A6. Accreditation-Human Resource Developmentfor the Mining Industry

The sub-component aims at supportingsupport establishment of legal andorganizational frameworks foradministering training programs andcertification in specific miningqualifications.

• Better local skill base for the mineral sector

B1. Legal-Legal and Fiscal Reform

The sub-component aims at supporting thereview and updating of the legal, fiscal andregulatory frameworks for the MineralSector in Tanzania and support the EITIprocess.

• Reduced potential for conflicts in both social,economic and environmental issues if not properlyundertaken

• Might lead to conflicts if stakeholders are not fullyinvolved

• If harmonization of laws and clear definitions of rolesand responsibilities are not achieved, effectiveness ofreforms will be reduced

• Ensure conditions of carrying out SESAare enforced;

• Involve all relevant stakeholders

B2. Capacity-Institutional Capacity Building

To support institutional capacity buildingfor the Ministry of Energy and Minerals

• Improved management of the mineral sector;• If needs assessment for capacity building is not done

in a holistic manner, some key areas of capacitybuilding may not be achieved leading to staffdissatisfaction.

• Carry out needs assessment for capacitybuilding prior to implementation

B3.Mining Cadastre-Improving and Upgrading theMining Cadastre InformationManagement System (MCIMS)

The sub-component aims at supporting theMinistry of Energy and Minerals tostrengthen and make sustainable theMCIMS, which manages processing andadministration of mineral rights. This willstrengthen good governance andtransparency in mineral rightsadministration.

• Improved capacity to manage the mineral sector• Improved transparency in the sector• If good governance is not adhered to, the

effectiveness of the reforms may be hampered. • Adhere to good governance whenimplementing the project




B4. Environment.-Environmental and SocialManagement

The sub-component aims at supportingEnvironment and Social Impact Assessmentof the Sector, and strengthening the capacityof MEM in environmental and socialcompliance monitoring

• Improved capacity to manage and monitorenvironmental and social issues in the mineral sector

• Potential for conflicts both environmental and socialif stakeholders are not fully involved

• Adhere to conditions of conductingSESA

C1. GST-Strengthening of the GeologicInfrastructure

The sub-component aims at supporting theGeological Survey of Tanzania (GST) toacquire and upgrade the geologicinformation for enhancement of investmentpromotion.

• Improved geologic infrastructure of the country,leading to increased investment in the medium tolonger term;

• Inadequate public consultation and awareness maylead to delays in project implementation.

• Carry out adequate public consultationsprior to project implementation

C2. STAMICO-Future role of State MiningCorporation

The sub-component aims at supporting thestrategic assessment of STAMICO

• Better roles of STAMICO may be well defined andrealized

C3. Promotion-Mineral Sector InvestmentInformation and Promotion

The sub-component aims at supportingcapacity building of MEM to manage fiscal,statistical, information, communication andpromotion of the mineral sector andstrengthen linkages with other stakeholders

• Better public image of the mineral industry• Potential for conflicts both social and economic if

stakeholders are not fully involved• Improved inter-agency coordination and collaboration

would enhance social accountability, good governance,transparency and client satisfaction.

• Adhere to conditions of SESA whileimproving inter-agency coordinationand collaboration

• Improve both human and equipmentsupport to MEM

D. Admin-Project Coordination andManagement

The sub-component aims at supportingMEM to manage and coordinate projectimplementation including procurement,financial management and disbursement,which will be managed by projectmanagement unit at MEM

• Inadequate capacity to manage procurement, financialmanagement and disbursement and conductingmonitoring and evaluation may hamper progress andpositive impacts of the project.

• Improve capacity of MEM to manageprocurement, financial management anddisbursement and conductingmonitoring and evaluation

CHAPTER 4

PROJECT IMPLEMENTATION

ROLES AND RESPONSIBILITIES WITH RESPECT TO SMMRP AND PLANNING AND IMPLEMENTATION OF THE ESMF

The principal SMMRP implementing agency in Tanzania is the Ministry of Energy and Minerals (MEM) through its Minerals Division, and Geological Survey of Tanzania. The project will also be implemented in close collaboration with Local Government Authorities (LGRAs) from targeted mining zones/areas where the project will be implemented.

MANAGEMENT AND IMPLEMENTATION STRUCTURE

A P M U PMU

DT R PMU T C

F D SMMRP

WORLD BANK

STEERING COMMITTEE • Permanent Secretary • Commissioner for Minerals • Director of Administration and Personnel• Chief Accountant • Director of Policy and Planning • Director of Policy and Planning • Director of Environment (VPO) • Director of Local Government (PMO)

PROJECT MANAGEMENT UNIT

• Project Manager • Project Technical Officer • Project Accountant

P S i list

TECHNICAL COMMITTEE • Commissioner for Minerals • Project Manager • Project Coordinator (GST) • Head-Environmental Management Unit • Head-Legal Services Unit • Head-Management Information Unit • Head-Procurement Management Unit • Head-Information, Education and Communication

unit • Head-Small-Scale Mining Development Section • Head-Mineral Economics and Trading Section

(Promotion and statistics) • Head-Licensing and Mineral Rights Section • Head-Mines Inspectorate Section

B MEM P SSMMRP P

I M

C SMMRP T CMEM GST

G U R T

The Tanzanian Ministry of Energy and Minerals, as representative of the Government of the United Republic of Tanzania will act as the primary ESMF review agent. In doing this, will work in close association with relevant district or local level – the Local Government and Regional Authorities (LGRAs). The Government will have the following further key responsibilities:

• T G

• T

• I L

• O M P

• ESMMRP

• E SMMRP

• M EIS EMP VPO DOE

• M M M LH S

• M

O S SMMRP

The roles and responsibilities of the various stakeholders at national, institutional, and local levels for SMMRP with regard to the Environmental and Social Management Framework is shown in Table 4.1

Table 4.1: Roles and Responsibilities with Regard to ESMF Implementation

Level Sector

Ministry/ Institution

Role and Responsibility Remarks

Ministry of Energy and Minerals

× Government representative for SMMRP implementation × Issuing Licenses (prospecting, mining, etc.); × Oversee implementation of the Mining Policy; × Enforcement of laws and regulations for mining and protection of

environment; × Environmental monitoring and auditing of the various SMMRP

project activities; × Mining projects EIS & EMP approvals (through a multi-sectoral

committee); × Mining conflict resolutions.

Vice President’s Office (Division of Environment)

× Overall responsible for planning and implementation on all environmental matters, including approvals of SESA and EIA certificates;

× Responsible for formulation and articulation of policy guidelines necessary for promotion & protection of the environment;

× Issues general guidelines to sector Ministries & coordinate all agencies public/private institutions related to environmental management;

Director of Environment× Facilitate civil society involvement; × Advices the Government on legislative measures related to

management of the environment and on international agreements in the field of environment;

× Monitors and assesses activities being carried out by relevant agencies in order to ensure that the environment is not degraded;

× Prepares and issues a report on the state of the environment; × Coordinate issues relating to articulation and implementation of

environmental management aspects of other sector policies;

EnvironmentalManagement Act, 2004

Ministry of Water

× Enforces laws and regulations for water quality and utilization; × Issues and regulates water rights; × Enforces water and effluent discharge laws (standards,

monitoring & regulation).

Water Utilization Act, 1997

Tanzania Bureau standards

× Preparation of environmental guidelines and standards;

TBS Act,

Ministry of Land, Housing and Human settlement Development

× Issuing of Right of Occupancy; × Land use planning; × Valuation and compensation

Land Act 1999 and Village land Act, 1999

National level

Ministry of Natural Resources and Tourism (Forestry Division)

× Implements the Forestry Policy; × Enforce laws and regulations for forestry resources

management; × Issues permits to conduct activities in the forest reserved areas; × Implements the Beekeeping Policy; × Enforces laws and regulations for beekeeping resources

management; × Issues permits to conduct activities for harvesting of bee

products in collaboration with Forest Division;

Forest Act, 2002

Level Sector



National Environment Management Council (NEMC)

× Performs environmental surveys and advises the government on all relevant matters;

× Enforces pollution control, ensures compliance of the national environmental quality standards and performs the technical arbitration role in the undertaking of EIAs;

× Identifies projects and programs or types of projects and programs for which environmental audit or environmental monitoring must be conducted under this Act;

× Initiates and evolves procedures and safeguards for the prevention of accidents which may cause environmental degradation and remedial measures where accidents occur;

× Publishes and disseminates manuals, codes or guidelines relating to environmental management and prevention or abatement of environmental degradation;

× Renders advice and technical support, where possible, to entities engaged in natural resources and environmental management so as to enable them to carry out their responsibilities.


SSM/LSM

× Conducting an Environmental and Social Assessment × Compensation of land & properties × Project implementation × Implementation of the Environmental and Social Management

Plan × Project Monitoring, internal and external environmental auditing

and reporting


NGOs/CBO’s × National Environmental watchdogs. × Initiating dialogue on national environmental concerns among

stakeholders

According to Civil Society rights and responsibilities

Regional Secretariat

× Responsible for coordination of all advises on environmental management in their respective regions;

× Responsible for advising the local authorities on matters relating to implementation and enforcement of the Act.

× Link between the Region and Director of Environment in the VPO as well as Director General for NEMC.

According to EnvironmentalManagement Act.2004

Regional Level

NGOs/CBOs × Regional environmental watchdog. × Education and awareness raising on environmental management × Stakeholders’ platform for voice.

According to Civil society rights and responsibilities

Land Allocation Committee

× Land allocation and approvals Land Act, 1999

District /local level

District/Ward Functional Departments – Planning, Water, Health, Community Development, Natural Resources, etc.

× Extension Services × Advice Committees, Departments on environmental matters × Promote environmental awareness × Gather and manage information on environment and utilization

of resources × Prepare periodic reports on the state of the environment × Monitor the preparation, review, and approval of Environmental

Impact Assessment of local investments × Review By-laws on environmental management and on sector

specific activities related to the environment.

According to EnvironmentalManagement Act, 2004

Level Sector



Environmental Committees (District, Ward & Village)

× Coordinating and advising on environmental policies and implementation obstacles.

× Promoting environmental awareness. × Information generation, assembly and dissemination from any

person. × Initiate inquiries and investigation on any environmental disputes

or violation of the Act × Resolve conflict among individual persons, companies, agencies,

NGOs, Government Departments. × Inspect any source of pollution in the area. × Initiate proceedings of civil nature against any person, company,

and agency for failing or refusing action under the Act.

According to EnvironmentalManagement Act. 2004

Local Stakeholders

× Local environmental watchdog.

Councils (District, Ward & Village)

× To oversee performance of the Environmental Committees (within their jurisdictions).

NGOs/CBOs × Local environmental watchdog. × Education and awareness raising on local environmental issues × Local Stakeholders’ platform for voice.

According to Civil society rights and responsibilities

SMMR P P I A

Agents/consultants will be appointed by MEM to implement the various components of the Project. Agents appointed will be suitably qualified, with credible record of experience to undertake the tasks for which they have been appointed. These agents will be provided with the necessary financial resources to implement the ESMF and will provide significant additional managerial and technical expertise. Budget for implementation of the SMMRP is presented under Annex 4 with guidelines of supervising the various project activities.

R M SMMRP ESMF I

E S A SMMRP SSM H

Table 4.2 lists minimum skills and experience required to implement the ESMF. As for the position of Project coordinator and Environmental Advisors, the training needs would need to be adjusted to the qualifications and experience of the incumbent(s). Training and other capacity building measures to develop these skills will be provided by the project.

Table 4.2: Minimum Skills Needed for Management of ESMF

Task Leader Needed Skills

Management and supervision of ESMF

MEM • Field-based knowledge of environmental sensitive areas and key species of conservation concern in the Project area

• Knowledge of available environmental planning information • Knowledge of environmental management monitoring and –

reporting • Reporting skills • Presentation skills

Environmental Impact Assessments of Project activities

Consultant(s) • Field-based knowledge of environmental sensitive areas and key species of conservation concern in the Project area

• Practical knowledge of environmental and biodiversity conservation legislation and its implementation

• Knowledge of Tanzanian environmental impact assessment process and practical implementation

• Environmental management monitoring and reporting • Reporting skills • Presentation skills • Time management skills

Implementation of guidelines

Implementer of activity (e.g., SSM, LSM, LGRAs, communities, CBOs, NGOs)

• Field-based knowledge of environmental sensitive habitats and key species of conservation concern in their specific Project area

• Environmental management monitoring and reporting • Environmental code of conduct in protected areas and

biodiversity priority areas (e.g. track and camp discipline, waste management)

PRINCIPLES AND CONSIDERATIONS

P I ESMF

The ESMF is prepared in consideration of the proposed planning, operation and monitoring of the proposed SMMRP. Key ESMF principles, in the context of responding to the mitigation requirements, have therefore considered:

• T ESMF

SMMRP • SMMRP

A P

MEM

G R

In the event that people are physically or economically affected by the Project activities, appropriate social studies, in accordance with WB safeguard policies will be prepared; and Consultation and disclosure requirements will be adapted to meet the special needs of the proposed project. Grievances will be addressed at different levels as outlined below; however, they will be centrally tracked in a complaint log located at MEM.

At the time an individual or cooperatives have been supported with a grant and aspects of dissatisfaction are expressed seeking redress then the grievance process will simply be administered as far as possible at the local level. This stage will facilitate quick access and flexible mechanism of solving the grievances raised.

All grievances concerning non-fulfilment of contract or seizure of assets will be addressed to the existing local courts system of administration of justice in the Districts. All attempts will be made to settle grievances. Those seeking redress and wishing to state grievances will do so by notifying their Village Council and the District Commissioner (DC)/District Executive Director (DED). The DC/DED will consult with the respective local governments, Ward/Village/Mtaa and other records to determine claims validity. If valid, the Village Council and Technical Planning Teams will notify the Complainant and the matter settled.

If the complainant’s claim is rejected, then the matter will be brought before the Land Tribunals and/or the local courts for settlement. If the matter cannot be settled by the local court and/or the District Land Tribunals, the matter will go the High Court for resolution. The High Court of Tanzania will be the highest appellate “judge” in this system. The decision of the High Court is final.

If a complaint pattern emerges, which relates to process or procedures, the DC, DED and MEM will discuss possible changes and/or remediation. The local leaders will be required to give advice concerning the need for revisions to procedures. Once the local governments, Ward and Village leaders agree on necessary and appropriate changes, then a written description of the changed process will be made. The District Commissioner, DED, Ward and Village/Mtaa leaders will be responsible for communicating any changes to the population.

ENVIRONMENTAL AND SOCIAL SCREENING OF SUB PROJECTS

I S P

The sections below illustrate the steps involved in the environmental and social screening process leading to the review and approval of projects under the SMMRP. The purpose of this screening process is to

•

•

•

•

•

The assignment of the appropriate environmental category will be based on the provisions of the World Bank Operational Policy (OP 4.01). The environmental and social screening of each proposed sub-project will be classified into categories A, B, and C, depending on the type, location, sensitivity and scale of the project and the nature and the magnitude of its potential environmental and social impact. The categories are:

A) any project which is likely to have significant adverse environmental and social impacts that are sensitive, diverse or unprecedented. The impacts under this category affect broader area than the sites or facilities subjected to physical works. The project will not finance such activities.

B) any project which is likely to have significant adverse on human populations or environmentally important areas including wetlands, forests , grasslands and any other natural habitat. Generally they are less adverse than those of category A projects, the impacts are sites specific and few or any of them are irreversible and most of them are mitigated rapidly than category A.

C) any project which is likely to have minimal or any adverse environmental and social impact. Beyond screening no further environmental assessment action is required.

The extent of the environmental work that might be required for projects prior to implementation will depend on the outcome of the screening process described below and shown on a flowchart presented as Figure 4.2.

S S P A S

The initial environmental and social screening will be carried out through the use of the Environmental and Social Screening Form Annex 1. This form will be completed by MEM assisted by the Local Government Officer responsible for environmental matters (LGO-EM) for the purposes of identifying the potential environmental and social impacts, determining their significance, assigning the appropriate environmental category, proposing appropriate environmental and social impact mitigation measures, and carrying out Environmental Impact Assessments (EIAs), if necessary. The environmental screening procedure will lead to identifying projects which will or will not require environmental assessment. The principal project activities requiring screening will include the mobile and stationary mining technology demonstration units; small grants program; and rehabilitation of the gemstone centre in Arusha;

S A A E S C

The assignment of the appropriate environmental category will be based on the provisions of the World Bank Operational Policy (OP 4.01), on Environmental Assessment. Tanzania’s EIA procedures are consistent with the environmental and social Impact screening categories contained in the safeguard policy WB OP 4.01 on Environmental Assessment mentioned above. With regard to the SMMRP, all projects are categorized as “B” and “C”

S C O E S W

A guideline for preparation of an Environmental and Social Management Plan (ESMP) is given in Annex 2. It is an example illustrating issues which should be covered and that would require mitigations measures, in this case against negative environmental and social impacts resulting from Implementation and operational activities. This Environmental and Social Management Plan would be completed by a qualified consultant assisted by the Environmental Management Officer as necessary. Should an ESIA be required, generic TOR applicable to any project within SMMRP is given in Annex 3.

The purpose of the ESMP is to ensure that the identified environmental and social impacts are mitigated, controlled or eliminated through planned activities to be implemented throughout the project life. It also provides opportunities for the enhancement of positive impacts, gives details of the mitigation measures to be undertaken for the impacts, and identifies the responsible institutions to implement the mitigation measures. Examples of mitigation measures that can be undertaken during implementation of the project are given in Part - II Section 1.12.

It is to be appreciated however, that the implementation of the management plan will normally be modified to suit changes or emergencies that may occur on site at the time of project implementation. The plan therefore should be considered as the main framework that must be followed to ensure that the key negative impacts are eliminated or adequately kept under control. In this regard, flexibility should be allowed to optimize the implementation of the plan for the best results in environmental and social management.

If there are already existing project/infrastructure designs, LGO-EM in coordination with the MEM [the Team] will assess them for impacts on the chosen land site and modify the design to include appropriate mitigation measures. For example, if the environmental and social screening process identifies potential contamination of groundwater due to waste spills during implementation as the main negative impact from the project activity, the mitigation measure would be for the Team to provide for measures to avoid waste spills during Implementation. Depending on the severity of potential impacts and complexity of the required mitigation measure, a separate EIA might be carried out. Throughout this process the MEM would be assisted by the LGO-EM.

For situations where the environmental and social screening process identifies acquisition needs that would trigger Involuntary Resettlement, then the provisions of the Resettlement Policy Framework (RPF) would apply. This would require that the project chooses an alternative site that does not trigger the policy framework or, maintains the site that triggers Involuntary Resettlement but prepares a Resettlement Action Plan (RAP) consistent with the RPF. The RAP would be a separate document and would separately be approved by NEMC and the World Bank and any interested Development Partner or Financing Agency.

S R A S A

Under the guidance of the Environmental Management Officers (EMO) of the LGRAs, the Environmental Management Committee (EMC) at the local government level will review the environmental and social screening results as well as the environmental checklists that were completed in the course of project preparation to ensure that all environmental and social impacts have been identified and successfully addressed. That is, if the screening form has

any “Yes” entries, or unjustified “No” entries, the application would need to adequately explain and demonstrate that the issues raised have been addressed appropriately. The Environmental Management Committee must also ensure that the project designs include adequate monitoring and institutional measures are to be taken during implementation and operation.

If the Environmental Management Committee/Environmental Management Officer finds that the submitted design is not consistent with the requirements of the environmental screening form and the environmental checklist, then the project implementer would be requested to re-design (e.g. make additional modifications and/or choose other sites). The project would then be and re-screened and re-submitted for review. The EMC/EMO would then review again the revised application. If acceptable, it would be recommended for consideration for approval. If it is not acceptable for the second time, it would be referred back to the implementer for more work or be denied clearance altogether. Any proposed projects that do not comply with the requirements of Tanzania and the Safeguards policies will not be cleared for implementation. A summary of the safeguard policies is contained in Table 2.1.

If the EMO, MEM and EMC are satisfied that the designs/project proposals are environmentally and socially compliant, they will be submitted to the LGRA at the Village/Sub-ward/street/hamlet levels for disclosure. The project documentation must be accompanied by the completed environmental and social screening forms, and where applicable, the RAP.

If the application is seen to satisfactorily address all environmental and social issues, the Environment Management Committee will then clear the project and recommend its approval while informing the MEM. Subsequently, the EMC/EMO will recommend the project to the MEM for approval.

ENVIRONMENTAL MONITORING

Environmental monitoring needs to be carried out during the Implementation as well as operation, maintenance and decommissioning phases of the projects in order to measure the success of the mitigation measures implemented earlier. This shall include annual reviews. Under SMMRP, the responsibilities for monitoring and evaluation of the mitigation measures adopted under the projects would be assigned at different institutional levels as follows:

T I A E M

The National Environment Policy 1997 recognizes the need for a multi-focus approach in the management of the environment. It therefore recognizes the existing institutional Mechanisms and seeks to enhance coordination and cooperation of the institutionally distinct bodies with overlapping mandates. In so doing, the policy recognizes the Ministry responsible for environment as “the authoritative voice and catalyst for action on behalf of the entire Government”. As the policy guidance institution, the Ministry responsible with Environment is expected to be an overseer for the implementation of the policies under the jurisdiction of the line ministries.

N

Under this set up, sector Ministries are expected to represent constituencies of the ministry responsible for environment with an informed voice and commitment to environmental outcomes. Therefore sector ministries are expected to be provided with proper legislative tools for handling their work and with well-delineated spheres of supervisory powers. The National Environment Management Council (NEMC), keeps an advisory role, enforces pollution control, and plays a technical arbitration role in the undertaking of EIA.

T N E M C NEMC

NEMC will perform an enforcement-monitoring role supported by the MEM, and the LGRAs based on submissions and recommendations from the Environmental Management Officers at the different LGRA levels. NEMC would primarily achieve this objective through periodic field visits, supporting the Training Program and through technical assistance and backup services to the Local Governments.

M E M MEM

MEM will perform a monitoring oversight function for the entire SMMRP. The monitoring guidelines developed by the Environment Management Coordinator of the Ministry to monitor performance and progress will include parameters for compliance to proposed measures safeguarding against environmental and social impacts. Monitoring activities by the implementers, Environmental Management Committees, NEMC and MEM will be carried out through regular programme audits. In addition, a general guideline for supervision of SMMRP activities and associated budget is presented as Annex 4 will be enforced to safeguard against environmental and social impacts.

R

At the Regional level including Municipalities have a Policy Committee on the Environment composed by District Commissioners and chaired by the Regional Commissioner. The Regional committee is responsible for matters affecting the environment in the region and provides guidance or proposes policy measures and actions.

D

Environmental Management Officers and their respective Environmental Management Committees at the District ,Ward and Village level, as appropriate will be responsible for the day to day monitoring and reporting of feedback throughout the life of the project, specifically the monitoring of (i) the environmental and social assessment work; (ii) the implementation of the Resettlement Action Plans; (iii) monitoring of environmental issues and the supervision of the civil works contractors with respect to environmental matters during the Implementation process (iv) monitoring of environmental issues during operations and during maintenance of the infrastructure and facilities; (iv) submission of monitoring reports to higher councils for eventual submission to central government — NEMC and MEM.

The District Environmental Management Committee (DEMC) and the District Environmental Management Officer (DEMO) will oversee compliance and effects monitoring to check whether prescribed actions and monitoring have been carried out. In close collaboration with

the project implementers they/he will ensure that the monitoring plan as contained in the individual project proposals is implemented. The DEMO in collaboration with the DEMC will consolidate the project specific monitoring reports into one common report and submit the report to NEMC and MEM.

C

The communities will use NGOs &CBOs in the monitoring activities and will be enabled to pass on their observations and concerns through acceptable mechanisms to the local government/council and higher authorities.

ANNUAL REVIEWS

The Objectives of annual reviews of ESMF implementation are two-fold:

• ESMF

• PP

T WB D P M MEM

A ESMF P T

D ESMF C MEM

ADD BUDGET FOR ANNUAL REVIEWS OF ESMF

Figure 4.2: Flowchart of the Screening and Review process for Environmental & Social Impact Assessments

CHAPTER 5

CONCLUSION

The technical assistance and strengthening of the sector through SMMRP will provide significant impetus towards harnessing and coordinating the various stakeholders of the project to maximize their roles in making the sector a priority sector for growth and poverty reduction as stated in the Tanzania’s national Strategy for Growth and reduction of Poverty (MKUKUTA)

The current status of the mining sector and its linkage with the central government and LGRAs calls for an immediate intervention to make the sector provide stronger contribution to the national economy.

Baseline studies conducted in the mining areas for gold, gemstones and industrial minerals, with the exception of fossil fuels, identified many significant impacts that are generated by mining activities, in particular the ASM. The impacts range from biophysical impacts to socio-economic impacts. The main issues were impact of the mining activities on humans (health and safety), natural habitat including vegetation, livestock, surface and underground water, soils and air. Other concerns included direct and indirect benefits of the mine to the local community with regards to health, employment and income, safety, location including direct and indirect effect on indigenous groups.

The project however, does not attempt to address all sector issues raised in the scoping study. These will be further considered in the Strategic Environmental and Social Assessment (SESA) to be conducted later as one of the SMMRP activity. The identified specific impacts of the SMMRP, which are distinct from the broader sector issues, include many positive impacts and limited negatives ones.

Some of the positive impacts of SMMRP include; improved livelihoods of the ASM; improved environmental and social conditions of the areas where ASM operates; increased benefits of mining to the communities; creation of harmony between ASM, LSM and local governments; provision of improved and better local skill base for the mineral sector; improved capacity to manage the mineral sector; improved transparency in the sector; improved geologic infrastructure of the country leading to increased investment in the medium to longer term; better public image of the mineral industry; improved inter-agency coordination and collaboration that would enhance social accountability, good governance, transparency and client satisfaction; improved capacity to manage and monitor environmental and social issues in the mineral sector; and an overall improved management of the mineral sector;

Some of the anticipated negative impacts of the SMMRP include: potential for disputes and wastage of SMMRP resources if (a) poor selection criteria for location of SSM demonstration centres and trainees is undertaken, (b) selection criteria for granting of the assistance to SSM is not properly done, and (c) selection criteria for supporting pilot mainstreaming of the districts is not properly done. Other negative impacts include; potential for conflicts both environmental and social if stakeholders are not fully involved during SESA, benefit studies and overall implementation of the SMMRP; potential for safety, health and environmental problems if there will be poor management of the proposed TDUs operations; ineffective operations if poor matching of the TDU equipment with mineral commodity is undertaken, and; potential for the grants to amplify existing ASM problems such as environmental degradation, HIV/AIDS if training in entrepreneurship, Safety, Health and Environment (SHE) and social responsibility is not properly

undertaken. Similarly, ineffectiveness of the reforms may occur if harmonization of laws and clear definitions of roles and responsibilities are not achieved.

Inadequate capacity to manage procurement, financial management and disbursement and conducting monitoring and evaluation may also hamper progress and positive impacts of the project. It is important that needs assessment for capacity building should be done in a holistic manner since this could lead to staff dissatisfaction if key areas of capacity building are not achieved. Good governance should be adhered to in order to avoid hampering the effectiveness of the reforms.

To mitigate the negative impacts of the SMMRP, the selection criteria for location of SSM demonstration centres and trainees , granting of the assistance to SSM, and supporting pilot mainstreaming of the districts should be participatory and where possible a bottom-up approach should be considered. The screening criteria presented in Annex 1 should be adhered to, in order to mitigate these impacts.

Full involvement of all stakeholders during SESA and benefit studies should be undertaken, which include ensuring all conditions of carrying out SESA are enforced. Similarly, proper training and supervision of TDU operations should be undertaken to avoid environmental and social impacts resulting from poor handling of the TDUs. Other mitigation measures include carrying out adequate public consultations prior to project implementation; carrying out needs assessment for capacity building prior to project implementation, and; adhering to good governance when implementing the project.

During the scoping study, grassroots, division and political leaders were excited about possible infrastructure development including, mining machinery, equipment and training facilities being provided through a technical assistance by the Government to their sites. For example in most sites, miners and leaders were demanding for improved technology and respective infusion of technical skills and knowledge let alone creation of awareness and improving of mining and land policies, the former of which they believed would curtail human and environment related conflicts. How artisanal and small scale mining activities and how communities themselves would be mobilized to address environmental and social issues were also among the main focus and concerns of the communities. Strategies and initiatives that would enhance government support of the mineral sector were greatly supported.

Regarding strengthening of good governance, transparency and operational capacity within the mineral sector, it was also observed that the Zonal and resident Mine offices lack capacity, both in terms of human resource and equipment and that they were overstretched to deal with all issues of permits and inspections of quarries and mines of all kinds of minerals. Minerals such as sand and gravel pits, gemstones, gold, base metals, industrial minerals, etc., all have different characteristics in terms of technological demands.

Other SMMRP support in respect of strengthening the MCIMS and the Geological infrastructure, will highly facilitate promotion of private investment in exploration and mining and also support adequate planning of mine development, being however, cautious of the adverse environmental impacts that could be generated during the project implementation phase. To mitigate these impacts, awareness and training of the various stakeholders prior and during implementation, will be crucial.

To maximize benefits of mining at local and regional levels, the DEDs consulted had different line of thoughts on managing the SSM in their Districts, some being in favour of managing the SSM anticipating a new source of revenues to their Local Governments. These were from non-traditional mining districts such as Singida Rural and Mbinga. However, there were those who felt it to be too much of a burden to their District Councils, such as Geita, which has a worth of experience with SSM particularly the mobile SSM, who proved to be difficult and slippery to manage. They all were positive with LSMs due to various levies accrued from mines and their contractors. They also concurred that there is need to reform management of these SSM to make them more responsive to the MKUKUTA and to also reduce the environmental and social impacts they create to the district lands.

On a positive note therefore, it has been determined that once SMMRP activities have been implemented subject to the various proposed mitigation measures, the Mineral sector will provide significant contribution to the national economy and improvements will be made on the mineral sector in terms of governance, transparency, institutional and technical capacity, , poverty reduction, improvement of small-scale and artisan mining and in environmental and social management.

REFERENCES

Amutabi, M., M. Lutta- Mukhebi (2001). Gender and mining in Kenya: The case of the

Mukibira mines in the Vihinga district. Jenda: a journal of Culture and African

women studies, vol.1 nos 2 23 p.

Dreschler, B. (2001), Small- Scale mining and sustainable development within SADC

region, country study. Commissioned by MMS 165p., http://www.iied.org/mmsd

Hinton et-al, (2003). Clean Artisanal Gold Mining. A Utopian approach. Journal of cleaner

Production, vol. 11, Issue 2 March 2003 pp.99-115.

ILO(1999). Socio and labour issues in small scale mines. Report for discussion at the

Tripartite meeting on social labour issues in small scale mines. ILO Geneva

Magayane, A. A. M. (1998), Controls on Lode-Gold Mineralisation at the Buhemba and

Kilamongo Deposits, Musoma Greenstone Belt, Tanzanian Craton (Unpub.): a

Thesis

for MSc Degree in Ore Deposit Geology and Evaluation, Department of Geology

and

Geophysics (Centre for Teaching and Research for Strategic Minerals) The

University

of Western Australia.

Onu, B. (2002). Salt women of Keana from Newswatch(Lagos) http://allafrica

.com/stories/200211190755html

Paulsam Geo-Engineering Co. Ltd. (2006), “Environmental Impact Assessment for a Tanzanite

Mine for Kilimanjaro Mines Ltd, Simanjiro District, Manyara Region

Paulsam Geo-Engineering Co. Ltd. (2007), “Environmental Impact Assessment for Masuguru

Sapphire Mine, Worldgem Supplies Ltd, Mbinga District, Ruvuma Region

Paulsam Geo-Engineering Co. Ltd. (2008), “Environmental Impact Assessment for Safritan

Goldfields Ltd, Geita District, Mwanza region.

Peter W. U. Appel, Niels Ford () Golden Livelihoods – New ways of introducing

Retorts among small scale Gold miners in Central and Southern –Western Tanzania

Ph.D study by Jesper Bosse Jonsson, Dept. of Geography University of Copenhagen

Goergen R, Mohamed, E.M.Hunger, A. Mlay (2001) Sexual Health Exch. (4):7-8.

UNIDO A M AURT (2005). Opportunities for Mineral Resource development Tanzania, Ministry of Energy and

Minerals. Fouth Edition 2005. Weber-Fahar, Monika, J.E. Strongman, R. Kunanayagam, G. Mac Mahon, C. Sheldon ()

Mining . Macroeconomic and Sectoral approaches Vol. 2 Chapter 25. Werema, I.J. (2006). Tanzanians to the promised Land. After forty years.

ANNEX 1

SCREENING CHECKLIST FOR

THE ENVIRONMENTAL ASSESSMENT OF A PROJECT

A E S I Y N L

A

D

I

W

M

P

W

M M W S

M S

A P

W

D L W M

A

I

C P A

A A N T

A F Y N I

A

A F Y

T

S A F Y

T

S

B R L A Y N W

W L

W W

H

C P B B A N T

B T Y C R P F R A P

C I P Y N M

A

C P C C A N T

C T Y I P D P C OP I P

TITLE OF SMMRP PROJECT LOCATION OF COMMUNITY SIGNATURE DATE

ANNEX 2

GUIDELINES FOR PREPARATION OF

AN ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN (ESMP)

Guidelines for the preparation of ESMP

The preparation of an ESMP should include the following key sections (see also world guidelines @ www.worldbank.org):

1. Summary of Impacts: Anticipated adverse environmental impacts should be identified and summarized as well as their relationship to social impacts and the appropriate mitigation measures.

2. Description of Mitigation measures: The mitigation measures proposed for the various impacts should be described in relation to the corresponding impacts while stating the conditions under which they are required. Adequate description of the consultations should be done and justified.

3. Description of monitoring program: A detailed monitoring program should be described in the EMP, listing environmental and social performance indicators and their link with impacts and mitigation measures. The EMP should also describe the parameters to be measured, methods to

be used, sampling location and frequency of measurements, detection limits and a clear definition of thresholds that indicate the need for corrective measures. Monitoring and supervision schedules should be clearly stated and agreed with the MEM and WB to ensure timely detection of needs for remedial action and also provide information on the level of compliance with EMP in accordance with Bank safeguards. These arrangements must be clearly stated in the project implementation/operations manual to reinforce project supervision.

4. Legal requirements and bidding/contract documents: The EMP should be incorporated in all legal documents to enforce compliance by all participants carrying out project activities. The EMP should be summarized and incorporated in the bidding and contract documents.

5. Institutional arrangements: The EMP should clearly state who is responsible for monitoring, execution of remedial action and the reporting order and format to allow for a defined channel of information flow. It should also recommend institutional strengthening for relevant agencies and the funding authorities for the various activities.

6. Capacity Development and Training: To support timely and effective implementation of Environmental and social project components and mitigation measures, the EMP draws on the EA’s Assessment of the existence, role, and capability of environmental and social units on site or at the agency and ministry level. If necessary, the EMP recommends the establishment or expansion of such units, and the training of staff, to allow implementation of EA recommendations. Specifically, the EMP provides a specific description of institutional arrangements i.e. who is responsible for carrying out the mitigation and monitoring measures (e.g., for operation, supervision, enforcement, monitoring of implementation, remedial action, financing, reporting, and staff training). To strengthen environmental and social management capability in the agencies responsible for implementation, most EMPs cover one or more of the following additional topics: (a) technical assistance programs, (b) procurement of equipment and supplies, and (c) organizational changes.

7. Implementation Schedule: The frequency, timing and duration of mitigation measures and monitoring should be stated in the implementation schedule. Links between mitigation measures and development of relevant institutions and legal requirements of the project should be stated.

8. Reporting: The order of information flow as it concerns monitoring reports should be clearly

defined. The relevant officers to receive these reports should be those who have authorities to facilitate implementation of the results of the monitoring. These reports should also be communicated to the Bank and NEMC via MEM to be agreed and specified in the EMP. Adequate arrangements should be made by the PMU to facilitate the circulation of the EMP through the selected means.

9. Cost estimate: The cost of carrying out monitoring and implementation of the mitigation

measures at the various stages of the project should be integrated into the total cost of the project and factored into financial negotiations. These costs should include administrative, design and consultancy, operational and maintenance costs – resulting with meeting required standards and project design.

ANNEX 3 TERMS OF REFERENCE

FOR THE ENVIRONMENTAL AND SOCIAL IMPACT

ASSESSMENT

1.0 INTRODUCTION

D

SI

EIA

T T R TOR C

WB O N E IA A R

T

I T RESMP

2.0 SCOPE OF WORK FOR A DETAILED ENVIRONMENTAL AND SOCIAL STUDY

Task 1: Description of the Proposed Project

P R

Task 2: Present baseline data relevant to environmental and Social characteristics of the area

W

E

Physical environment:

• Geology; • Topography; • Soils; • Climate and meteorology; • A• Surface water resources; • Groundwater resources;

• E• Existing pollution discharges and receiving water quality; • The borrow pits and waste rock disposal areas; • Location of roadways and other support infrastructure.

B

• PWB OP

OP G

• Nature of aquatic habitats; • Conduct specific studies on the ecological/vegetation characteristics of all areas earmarked

for project activities and facilities e.g., areas borrow pit sites for the raw materials and waste rock disposal, workshops and other infrastructure facilities.

S

� R

WB OPN

Task 3: Legislative and Regulatory Considerations

D

Task 4: Determination of Potential Impacts of the Proposed Project

IS

I

Biophysical issues:

� Provide baseline data on dust, quality of surface and groundwater; � E

� Identify current sources of pollution in main water sources such as rives and springs by taking into considerations the surrounding activities, e.g. animal grazing, charcoal burning, etc.;

� E

� Evaluate the loss and disturbance of biodiversity and threatened species resulting from the vegetation clearance during rehabilitation and operation and recommend mitigation measures;

� Examine evaluate the impacts that may result from generation of odours and noise from the equipment and machinery operating in the area and impounded waters;

� Evaluate health and nuisance problems resulting from dust, air and oil pollution from mobile equipment and machinery. Identify other existing pollutants in the project environment and recommend mitigation measures;

� Determine rehabilitation programs after project closure, with regard to land reclamation, re-vegetation, infrastructure, etc.;

� Guided by acceptable standards and regulations make recommendations on the design criteria to be used for the project quarry sites, borrow pit waste, rock dumps and support infrastructure.

Socio-economic issues:

� Conduct further consultations with those stakeholders who were not covered in the earlier study and incorporate their views accordingly;

� Examine possibilities and devise mechanisms for compensation of loss of income by people whose activities will be affected by the mining operations;

� Review Government procedures and compensation rates for people living in areas earmarked for quarrying, involuntary displacement;

� Review the current and planned project outreach programs in relation with addressing issues associated with the influx of job seekers in the area versus pressure on resources and social services in the District;

� Conduct further consultations to ascertain the extent of both negative and positive social and economic contributions of the project;

� Identify people and groups (with gender considerations) that are most likely to benefit/be affected;

� Identify and evaluate the impacts resulting from influx of new people to the area, who may influence and affect the attitudes and behaviour of people in the area;

Task 5: Analysis and assessment of impacts

TF

G

Task 6: Analysis of Alternatives

DA

T

Task 7: Develop an Environmental and Social Management Plan to Mitigate Negative Impacts

P P

ANNEX

Task 8: Develop the Monitoring Plan

P

T

Task 9: Public involvement

E

R ET

R

T EIS ESMP W BE S I A A

R TS E E M A

R

T T

ANNEX 4

General guidelines for

The Supervision of SMMRP projects2 and Associated ESMF Budget

Part I: Planning the Supervision Mission 1 Pre-mission work is absolutely essential for making the supervision of SMMRP projects

effective. Telephone/email discussions with the Client’s Environment team should be undertaken in planning the supervision mission.

2 Planning the site visits to subproject locations should be done as pre-mission work. It should be

noted that it will be impossible to cover each and every subproject in a SMMRP during

2These guidelines derive from a research study carried out in August 2003 by the Bank’s East Asia and Pacific (EAP) Region titled: “Rahill, B. and

Vaideeswaran, S. Environmental Management Mechanisms in CDD and Other Decentralized Implementation Frameworks: A Review of the India Portfolio. Volume 1. Final Report and Annexes 1 – 6.”

supervision missions. The MEM’s Environmental and/or Social Specialist should select project sites based on the following criteria:

TTTNR

T

T WB

3 In planning the supervision mission, the MEM’s Environmental and/or Social Specialist should make sure that the environmental/social supervision mission overlaps with the overall mission for a couple of days.

4 Site visit plans should not be too tight and packed with the motive to cover as many subprojects

as possible. It is generally preferable to study a subproject in greater depth when compared to studying several subprojects in a broader manner.

5 Site visits should not be seen as meant only for the MEM team. During the permission

discussions with the Client, the MEM should advise the Client’s Environment team to use the site visits to collect inputs for their ongoing work.

These site visits should not be done only for the sake of the supervision mission. These should be made part-and- parcel of the Client’s ongoing work. This way, the MEM’s Environmental and/or Social Specialist will also witness the nature of the work being done by the Client’s Environmental and Social Team with their District teams and field level officers.

Part II: Pre-Mission Documentation Review

A MEM E S

• P A D PAD• U P I P PIP• Q P R• P A M• O• A

Preparing Focused Statement of Objectives:

B MEME S

T S M OMEM E S

Preparatory Research:

T MEM E S SMMRP D R

I MEM E SB

R D T E SE

Undertaking Site Visits:

GD

V C MEME S T

D E

P C E

F MEM E S S

• O

• P• S

• A• V WB

F MEM E SC E D E

S

D MEM E S

T MEME S

U MEM E SC

Drafting and Discussing the Aide Memoire:

DI

C

I E S S

T• M WB

• O• T

• S C

• T MEM E S SE D

Part III: Budget for ESMF Implementation and Supervision S/N Description of the Activity Budget (USD) Source of

Funds1 Staff training on HSE, ESIA, ESMP Mine

Closure and Environmental Auditing (including LGRA officers)

260,000 WB

2 Conducting Strategic Environmental and Social Assessment (SESA)

300,000 WB

3 Poverty and Social Impact Assessment 150,000 WB4 Preparation of Environmental Guidelines 300,000 WB5 Specific training of ASM trainers on

health, safety, environment and 300,000 WB

entrepreneurship in Demonstration mines, and in value addition programs

6 Preparation of an Environmental and Social management Plan for 8 SSM Demonstration Centres

160,000 WB

7 ESMF Review and Update (including end of project evaluation)

300,000 WB

8 Monitoring implementation of ESMF in project areas.

40,000 URT

9 VPO and NEMC fees and processing of Environmental Studies & Permitting

60,000 URT

TOTAL 1,870,000

ANNEX 5

World Bank SAFEGUARD Policies

The Tables below provide guide to determining which World Bank safeguard policies are triggered.

Environmental Assessment (OP 4.01) Summary: The Bank requires environmental impact assessment (EIA) of sub-projects proposed for Bank financing to help ensure that they are environmentally sound and sustainable. The environmental assessment is a process that is conducted to identify the negative impacts that a project may have on aspects of the biophysical and social environment. It analyses the impacts of project alternatives, and provides mitigation measures to be undertaken to eliminate or minimize the impacts identified.

Objective: To identify potential impacts that a project may have on the environment and to provide mitigation to eliminate or minimize these impacts.

The subproject operator automatically complies with this policy by complying with the measures described in this ESMF. Preparation of EIAs including EMPs is required for Category A and B subprojects, and only an EMP is required for Category C subprojects.

Natural Habitat (OP 4.04) Summary: The conservation of natural habitats is essential for long-term sustainable development. The Bank supports, and expects subproject operators to apply, a precautionary approach to natural resource management to ensure opportunities for environmentally sustainable development. The Bank will not support subprojects that, in its opinion, involve the significant conversion or degradation of critical natural habitats.

Objective: To ensure the protection, maintenance and rehabilitation of natural habitats and their functions within the financed subproject.

Questions: Actions: i) Will the subproject be located on lands that were converted from natural habitat in anticipation of the subproject?

If ‘yes’, and in the Bank’s opinion that site had been a significant habitat, the Bank will not support the subproject.

ii) Will the project be located on lands that require conversion of natural habitat?

If ‘yes’ and in the Bank’s opinion the natural habitat is not significant, the project may proceed. If ‘yes’, and the natural habitat is significant, proceed to question iii). If ‘no’, proceed with the subproject.

iii) On a site with significant natural habitat, are there feasible alternatives for the subproject?

If, ‘yes’ go to the feasible alternative. If ‘no’, go to question iv)

iv) Do the overall benefits of the subproject substantially outweigh the environmental costs?

If ‘yes’, the Bank may support the subproject. If the environmental and social impact assessment indicates that a project would significantly convert or degrade natural habitats, the subproject will include mitigation measures acceptable to the Bank and these could include minimizing habitat loss, and/or establishing and maintaining an ecologically similar protected area. Other forms of mitigation will be approved if they are technically feasible. If ‘no’, the Bank will not support the subproject.

Other comments: In deciding whether to support a subproject with potential impacts on a natural habitat, the Bank takes into account the operator’s and the Government’s ability to implement the appropriate conservation and mitigation measures. If there are potential institutional capacity problems, the subproject and overall SMMRP includes activities that develop the capacity of national and local institutions for effective environmental and social planning and management. ii)The Bank expects the operator and the Government to take into account the views, roles and rights of interest groups including NGOs and local communities affected by the subproject. It expects that such interested parties be involved in the planning, design, implementing and evaluating of such subprojects.

Physical Cultural Resources (OP 4.11) Summary: Cultural property includes sites having archaeological (prehistoric), paleontological, historical, religious and unique natural values. The Bank will normally decline to finance a subproject that will significantly damage non-replicable cultural property, and will assist only those subprojects that are located or designed so as to prevent such damage. The policy pertains to any project/subproject in which the Bank is involved; irrespective of the whether the Bank is itself financing the part of the project that may affect cultural property.

Objective: To assist in the preservation, and to seek to avoid elimination of cultural property. Questions: Actions:

i) Will the subproject damage or remove physical cultural property?

If ‘yes’, the operator must take appropriate action to meet the Bank requirements of cultural property protection. If the project benefits are great and the loss or damage of the cultural property is judged by competent authorities to be unavoidable, minor, or otherwise acceptable, the Bank may waive the policy. If significant damage to non-replicable cultural property is likely, the Bank will normally decline its support for the subproject.

Other comments:

i) The Bank will assist in the protection and enhancement of cultural properties encountered in Bank-financed projects, rather than leaving their protection to chance. In some cases, the subproject is best relocated in order that sites and structures can be preserved, studied, and restored in situ. In other cases, structures can be relocated, preserved, studied, and restored on alternative sites. Often, scientific study, selective salvage, and museum preservation before destruction is all that is necessary. Such actions, including the necessary training and strengthening of the relevant institutions (e.g. local museum specialists) should be included in the scope of the subproject.

PART II

INITIAL SCOPING STUDY FOR STRATEGIC ENVIRONMENTAL AND SOCIAL ASSESSMENT

(SESA)

1.1 INTRODUCTION

This section of the document summarizes the initial scoping of broader environmental and social issues in the mining sector in the selected areas where SMMRP activities will be implemented. These will be examined in detail through a Strategic Environmental and Social Assessment, during SMMRP implementation following World Bank guidelines. It also outlines the preliminary approach to mitigation of mining sector’s environmental and social impacts of areas covered by the SMMRP. These broader environmental and social issues in the mining sector should not be confused with the project specific impacts managed through the ESMF (see Part I).

Consultations were held with relevant SSM, LSM, Regional Miners Associations, ZMO’s and RMO’s, District Executive Directors and village governments. These consultations were made through field visits conducted in selected sites of the country, where SMMRP covers. Review of existing information and data on SMMRP project components and other previous studies were also conducted. Additional information were gathered via consultations with appropriate stakeholders at the national and local levels including government ministries/agencies, mining companies, other private sector actors, artisanal miners, NGO’s, people and communities in mining areas. Table 1.1 below provides a list of stakeholders interviewed during the study period.

Table 1.1: Stakeholders interviewed for SMMRP Project GOVERNMENT LOCAL

GOVERNMENTS

INSTITUTIONS

LARGE SCALE MINES

VILLAGE COUNCILS SMALL SCALE MINES

RMO – Geita Geita DED STAMICO Geita Gold Mine (gold)

Lwamgasa – Geita District

Kadeo – Lwamgasa (gold)

ZMO – Singida Singida DED NEMC TanzaniteOne

Mine (gemstones) Nyarugusu – Geita

District MWAREMA – Nyarugusu

ZMO – Arusha Babati DED Sambaru – Singida Rural District

SIREMA – Sambaru

RMO – Songea Mbinga DED Amani Makoro – Mbinga District

RUVUREMA – Ruvuma

RMO – Chunya Chunya DED Matundasi – Chunya District

Itumbi mine - Chunya (gold)

VPO-DOE Kisarawe DED Rahim Massawe – Mirerani (gemstones)

Arusha Gemstone Centre

Pugu Kaolin Mines – Kisarawe (industrial mineral)

MEM- HQ (SMMRP Office)

Richard Mutatina – Kisarawe (industrial minerals)

The study applied different participatory methods including focus group discussions to involve all the selected stakeholders. Interviews were then held focusing on the ToR outlined, depending on how each of the interviewed stakeholder is impacted by the SMMRP project activities.

I C SMMRP O

SMMRP T

SMMRP

1.2 SMALL SCALE GOLD MINING

Small scale gold mining areas are located in many parts of Tanzania, some being in the well known greenstone belts of the Lake Victoria zone north of Tanzania, Singida – Sekenke in the central part and some in other parts of the country in Protorozoic system such as Mpanda goldfields in the western part ; Lupa goldfields in the South-western highlands. Some of the recent discoveries include Mbinga areas in the southern part bordering Mozambique; Sambaru and Londoni areas in the central-part, and Morogoro, Kilindi and Handeni in the eastern part of the Country.

Almost all of the newly discovered areas have been pioneered by small scale miners. With the favourable price of gold worldwide, SSM have continued to exploit gold from the traditionally gold mining areas of the Lake Victoria goldfields, Mpanda goldfields, Lupa goldfield, Sekenke goldfields, etc. Small Scale gold mining is undertaken using rudimentary methods due to lack of capital to acquire new and modern equipment to mine the minerals. Mining activities usually flourish in the initial periods as mining is undertaken to recover easily accessible sub-surface deposits; benefitting most of the miners. However, as gold reefs/veins get deeper, the water problem becomes serious requiring heavy pumps to drain mine workings to allow mining to continue. However, as gold reefs/veins get deeper, mining becomes difficult, expensive and slower, requiring significant capital which is beyond reach for the majority of SSM to purchase powerful generators and submersible water pumps.

I

1.2.1 Technical Assistance to SSM

A D M R PML

SSM are very much aware that before mining, one needs to explore the deposits. But this important stage of exploring for deposits is very much expensive and thus beyond their reach. Proposal for partially solving this problem, include:

G L

G GST

Other specific issues regarding assistance to explore minerals within PMLs are;

• L

• SSM D

• G

• T M SSM PML LSM

• L P L SSM

• L P PLPML PL

SSM T

• D PML LSM

• T PML SSM

Currently, methods of searching for mineralized areas is very much random causing many of them to leave behind uncovered holes when they fail to hit mineralized reefs, causing environmental impacts.

On the other hand, LSM rarely relinquishes areas in favour of SSM for fear of losing good grounds which may later turn into large deposits to their disappointment. This denies SSM with further areas to continue exploring.

A M M E

SSM expresses the need to have financial and technical assistance to mine and process the surface and deep-seated deposits in their PMLs, which is now becoming difficult with their existing rudimentary tools and methods.

• M SSM

• NF

• PF

T

T SSM W

G M SSM

I

• L SSM

• A

• AS A

L C A M

Any assistance in terms of financial or equipment supply to the SSM could be granted to either an individual miner from whom others could find access to learn new technology and ways of operating and managing equipment or to groups of miners who forms an association or cooperatives. Lack of cooperation among SSM is a hindrance for them to obtain financial assistance. They preferred to work as individuals rather than as an association or cooperative.

P S S

None of the important social services are available at most of the SSM mine workings, i.e. good toilets, schools especially kindergarten and primary levels, health services, safe living shelters, etc.;

T C

ASSISTANCE TO INDIVIDUAL MINER ASSISTANCE TO A GROUP SACCOSI I I I

• F

• M

• W

• S V

•E

• F

• C

S

• R

R

D PML

1.3 LSM EXTENSION SERVICES TO SSM

O LSM SSM A SSM N L G

LSMG G M GGM I M GGM

A NL M F

GGM UNIDO DFID C LSM SSM RMO G SSM LSMGGM SSM

An issue which the SSM had over LSM, which creates conflict between them, is the aspect of “mobile Artisanal miners” most of whom are employees of the SSM with licenses. These Mobile miners are hard to control and manage because they are not salaried employees by the SSM with licenses. They operate independently and often in groups causing the following negative impact to the environment:

• I LSM T LSM A

FSSM

• TLSM

M

T SSM

1.4 SMALL SCALE GEMSTONE MINING

Gemstone mining in Tanzania has traditionally been undertaken by small scale miners. Major regions for gemstones mining include Arusha, Tanga, Ruvuma, Dodoma, Morogoro, Shinyanga, and Rukwa regions. However, it appears that gemstones are abundant in the country since there have been several discoveries in areas some of which were formerly regarded to have no gemstones deposits.

Some of the famous gemstone mining areas include Mirerani (tanzanite) and Mayoka (emeralds) in Manyara Region; Longido (ruby) in Arusha Region; Mahenge and Matombo (ruby) in Mororgoro region; Mponda (emeralds) in Rukwa Region; Tunduru (alexandrite and its variants) and Mbinga (sapphire and its variants) in the Ruvuma Region. Others include Mpwapwa (sapphire and its varieties) in Dodoma region, and; alluvial diamonds in Shinyanga Region.

Mining of gemstones in some places such as Mirerani, Longido, and other places where rocks are hard, takes place by drilling and blasting the hard rock, trimming and hoisting the broken material to the surface and sorting for the precious gem. This is undertaken after some development has been completed of developing an access shaft and drifts within the host rock to access the mineralized rock. Often this is done after a careful study of the geology of the area to ensure the mine hits a mineralized rock with great certainty.

The bulk of the mining activities thereafter, are to break and handle waste material to the surface to pave way for mining the rock that hosts the required gemstone. Key equipment used includes drills, compressors, ventilation fans, monorail hoist, and hand held spades and picks. Figure 2.4(a) and (b) shows some infrastructure of SSM of tanzanite in Mirerani – Simanjiro District.

Many of other gemstone mining areas however, are located in riverine environments, where alluvial gemstones have been transported from their parent rocks by both geographical and geological events over millions of years and deposited in valleys or favourable places for their depositions. Mining in these places is simpler with hand tools than the hard rock types though potentially is unsafe. It is in these places where unlicensed mobile SSM operate since digging is simpler with hand tools.

1.4.1 Financial, Technical Assistance & Alternatives

Request for financial and technical assistance varies from one place to another with regard to gemstone mining. It is a fact that gemstones are very valuable and enticing to many and not bulk in nature; a fact that tends to make miners a bit sceptical about any assistance to be provided. In many cases, miners do not want their production to be known, as this will increase security risks of their mines leading to frequent attacks from robberies.

Another fact that leads to certain choices of the type of assistance needed by SSM in gemstone areas is that some SSM avoid letting other people know and understand their mine layout. A case example is SSM at Mirerani; where the miners would not wish anybody to know their mine orientations down dip since they cross borders randomly towards other SSM properties. They wouldn’t like their neighbours to know where their pits have reached. Also SSM of Mirerani do not wish to have any financial or technical assistance in terms of physical equipment for mining and processing of their ores as this will lead other SSM access their mines and learn from them and cause a breach of security of their undertakings.

Most of the consulted miners however, are happy to have mobile demonstration units from which all can be trained on better mining methods. Processing of the ores however, is a non-issue to most of the SSM, because gemstones are readily visible. Security however, is a major challenge to most SSM and even large scale miners.

1.4.2 LSM Extension Services to SSM

Large to medium scale mines located in areas where small scale mining is thriving have been assisting small-scale miners on various issues ranging from technical assistances to training of miners in different fields of knowledge.

Case example is at Mirerani where there are three LSM located in block A (Kilimanjaro Mines), Block C (TanzaniteOne Ltd) and Block D (Tanzanite Africa Ltd). The other blocks, block B and part of Block D are operated by several SSM with their blocks subdivided into smaller licensed plots. The three LSM on different occasions have, provided extension services to SSM within blocks B and D, though with different proportions. Notably of the three LSM is TanzaniteOne who have at different times provided technical services to many of the SSM in Mirerani. TanzaniteOne Ltd also has established a Small Miners Assistance Program (SMAP) to assist miners in Blocks A, B and D in areas such as designing a mine layout; conducting basic geological study especially the aspect of rock identification; equipping a mine and a shaft; and the whole essence of starting up mines. Some of the extension services provided to SSM by TanzaniteOne mine include: Training

SSM in mine construction, management, safety and mine rescue operations; mine geological works and underground mine surveying; mine rescue operations for several disasters which occurred at Mirerani in SSM pits; Technical services in sinking shafts and equipping several mines in the Mirerani area.

1.4.3 Environmental and Social Issues in Gemstones Mining Areas

M

• M

• S

• W

• I

• P MD F

SSM M M D

• IF A M M

1.5 SMALL SCALE INDUSTRIAL MINERALS MINING

M TM

BC

M

M

T FSSM

C SSM

C TM

Mining, quarrying and processing of industrial minerals varies depending on the commodity to be mined and processed. Equipment choice for mining, quarrying and processing of industrial minerals is dependent on the type of mineral. For instance, small scale miners of gypsum need only basic tools such as picks and shovels to recover the gypsum in its raw form; and sale the same without further processing. Those who are engaged in production of stone aggregates require sophisticated equipment such as drill rigs, crushers and screens, whilst needing the service of blasting expertise.

Production of kaolin by small scale miners, as observed during the study period at Pugu site in Kisarawe, have been developed following the failure of former operator, Pugu Kaolin Mines. The current operators, Mr. Richard Mutatina and Mr. Ramadhan Sengwila former employees of the defunct mine have utilized their experience of processing kaolin at Pugu Kaolin Mines, that has enabled them to imitate some of the operations of the Pugu plant and activities of the mine. Fifteen employees are engaged in the operation producing about 5 to 10 tons of kaolin over a fortnight. The operation is highly labour intensive.

Current demand for kaolin is high, given that the only locally operated and known resource is at Pugu. The small scale operators are unable to meet the demand from the local market which encompass various industries in the country such as Sapa Chemicals, Lake Trading for leather curing, Rubber/Plastic Industry, Sadolin Paints, Bora Plastics, Kibo Matches, SIDO industries, General Tyre, and Mufindi Paper Mill to mention a few.

1.5.1 Issues Facing SSM in Industrial Minerals

Mining, quarrying and processing of some industrial minerals requires the use of much sophisticated equipment. The bulk nature of the material requires the use of large transportation equipment. In terms of revenue, the industrial minerals are not as valuable as gold or gemstones, on the weight-to-weight or volume-to-volume basis, thus tending not to be very attractive to SSM. However, getting involved in industrial minerals production assures a long-term profitable and stable business venture.

Some of the major challenges facing the SSM engaged in industrial minerals production include:

• L

• U

1.5.2 Alternative Financial & Technical Assistance

The following assistance is being sought by the SSM to improve production operations and their livelihood:

E M P

• ET

• PT

B

T

• TT

• S SHESHE

• B

• Q

1.6 LSM BENEFIT STUDIES

B LSM

M LSM TLSM S LSM T

GDP D I

D C GK T N B B C G

HIV AIDS I

T SSM O SSM

T LSM SSM

S N NEGATIVE IMPACT SIGNIFICANCE POSITIVE IMPACT SIGNIFICANCE

L LSM I M C

H

T SSM

H

L LSM

L

S SSM

H

T

H

S G

M

C

M

I

H

C

H

C

H

1.7 MINING CADASTRAL INFORMATION MANAGEMENT SYSTEM [MCIMS]

Tanzania decided to follow the modern worldwide trends to reform the Mining Act and set up a Mining Cadastre. Experience showed that the coordination with the National Cadastre and the Registrar is necessary to solve conflicts with possessors or holders of other rights.

The FlexiCadastre system uses a rules and workflow-centric approach to facilitate the efficient administration of mineral title in multiple jurisdictions. Flexi Cadastre is a mining cadastre management system that uses a web portal for data management and reporting, advanced task management, configurable business logic, best of breed GIS technologies and innovative concepts.

There has been a significant challenge to provide the system to 21 Zonal and Regional Offices throughout Tanzania and in many of the offices visited during the study, the system was not working. According to Zonal & Resident mines officers, the longest time one could access the system was two hours and the best they could do in the two hour period is to enter and search for one or two licenses.

Currently the server is slow and based in Dar es Salaam; there is lack of information, poor networking, and collaboration, and limited information sharing. There is therefore, need for re-examining the strategy of the Cadastre, outsourcing of services which can be attained through engaging the services of UCC; and training of staff (field data) to make the system perform to the capacity of its intended level.

1.8 STATE MINING CORPORATION (STAMICO)

STAMICO was formed in 1972 by a Government Notice No. 163 under the Public Corporation Act of 1969 and came into operation on 1st January 1973. The main role of STAMICO is the provision of professional mineral services, which include drilling (for mineral and water), land and mine surveying, mineral exploration and investment promotion, promotion and modernization of the small-scale mining sub-sector, promotion of industrial minerals development and mineral consultancy.

The SMMRP will finance a strategic assessment of STAMICO, exploring existing institutional capacity and options for self-financing, as a pre-condition for its future role with the private sector for both, large-scale and small-scale mining opportunities.

According the Director General, STAMICO is looking into the possibility of expanding collaboration. That is, other than depending on support from International Organizations and support from western companies to also incorporate the Eastern bloc countries such as China, India, etc. He also recommended that there is need to add value to gemstones being mined in various parts of the country than selling them raw. Adding value skills could be imparted on local ASM through training.

STAMICO felt that it should not be involved in this project and instead, funds which will be allocated to STAMICO should be directed to SSM budget. STAMICO supports KIPOKOLA’s committee report which recommends that the Ministry of Energy and Minerals be split into two independent Ministries viz; Energy and Minerals. Alternatively the ministry could have two Permanent Secretaries to cater for Energy and Minerals, respectively.

1.9 ARUSHA GEMSTONE AND CARVING CENTRE

Arusha Carving & Gemstone Centre was established in Arusha in year 2001 with a purpose of training gemstone cutters and stone carving technicians, who will become trainers of other artisans in gem cutting and stone carving.

The centre which is not yet complete has some of the equipment procured by the Government in the period of 2002 – 2003, which also included rehabilitation of buildings and structures of what used to be the Tanganyika Meerschaums Industry, which stopped functioning due to liquidity problems. The rehabilitation included also the buildings for the Zonal Mines offices for the Northern Zone.

Consultant was contracted to purchase and commission the equipment and provide training to few trainers. The training was incomplete but equipment for stone cutting, stone carving, moulding, and fine polishing were fitted and were made operational. However, the lapidary and jewellery sections with its equipment were yet to be procured and at the time of our study, only the stone carving section was complete.

Major issues which were identified included:

• L G

• AZ MEM H P

• D

• L

• A

It is therefore, important that the centre receive financial assistance that will be used to purchase additional equipment and fund for the remaining part of the training program of the trainers, who had completed the first phase of training from the consultant. It is also important that a curriculum is built that will be in line with National Council for Technical Education (NACTE) requirements and that the centre be managed by a training institution that will incorporate the curriculum into its programs.

1.10 PARTICIPATION OF WOMEN AND CHILDREN IN THE MINING SECTOR

Mining is historically a male- dominated industry. The under representation of women reflects social and economic inequalities between men and women. Apart from these, cultural beliefs and traditions do not allow women in mining pits as they are considered by male miners to be unclean. However in Tanzania women seclusion was partly restricted to poor tools that require masculine power. Typically women were engaged as labourers carrying and crushing ore, using hand harmers or pestle and mortars and sieving as was observed at Sambaru gold mines and Chunya mines.

The process of mining underground produces fine dust that was reported to cause respiratory problems including diseases such as chronic bronchitis, asthma and tuberculosis.

WM W

W

T AA F SSM SA ILO A O DT G

A S S M K AA

P T T

T P W M M T

C D I T G D G S

A D T

S D

T N W M R M T

Source: Field data

RELATIONSHIP BETWEEN MINING LOCAL COMMUNITIES INDIGENOUS PEOPLE

Tanzanians are Africans with differing cultural and linguistic characteristics. Indigenous people, in Tanzanian context, range from nomads/pastoralist such as the Maasai of Arusha and Manyara regions; hunter/gatherers such as the Hadzabe of Manyara region and Tindiga of Singida; agriculturalists such as Sukumas of Mwanza, to fishers/ traders of coastal regions. Impact on indigenous people in most mining areas is insignificant due to cross-cultural interference, which has resulted in the indigenous people harmoniously assimilating into other people’s foreign cultures or the other way round. In limited areas however, and for a short-term, project’s impacts on indigenous people is anticipated on aeromagnetic mapping activities of the areas in Singida, Dodoma, Arusha and Manyara Regions, where Tindiga, Hadzabe and Mang’ati people inhabit the land. Past similar works on aerial mapping in the same areas indicated insignificant impacts when prior notices and awareness campaigns to the people were conducted.

Mining activities will attract people with more interest, abilities and skills in respective minerals than the residents. For example gold mining is believed to interest Sukumas more than the Arusha people who in turn are more conversant with Gemstones. Other than the experts, gold and other mineral rush includes job seeking youths. The length of stay of these newcomers will depend on the nature and existence of the mineral. However the new comers have no commitment to the environment or social life of the mine sites.

As has been observed elsewhere, local mining activities tend to create social deficits that usually begin with by displacement of local people from their traditional lands and activities. Also there tends to be an influx of men in the areas. This population explosion may not only create pressure on social and economic resources such as land, water, and food, but may also lead to moral erosion and introduction of new behaviours including alcoholism, drug abuse, prostitution, crimes, divorces, wife and children abandonment, and violence etc.

Change of behaviour due to intertribal and ethnic interference from miners was reported by the RUVUREMA leaders and Amani Makoro village leaders in Mbinga District, where sapphire is

N PML LSM A M M W

G C

G G G

S

B S S G

PML S

M N

G M W A M

GGM

being mined at Masuguru, Mkako and Kitai areas. Moral decay and introduction of bad habits such as smoking bhang, drunkenness, and commercial sex were among the new habits from among new comers in the community. Abhorred was also the watering down of marriage and family life. It was reported that marriage was shifting from an expected lifetime commitment to short term contracts lasting as longer as the woman or man was in the mining village. Temporary love relationships were reported to be responsible for abandoned spouses and children in most mining communities.

Improved mining could become environmentally friendly, especially if the mining groups are going to be confined by issuance of PMLs and provision of improved tools whereby random excavating for minerals and gemstones will be controlled.

Co-existence between miners and local ethnic groups was only observed at Mirerani where the Maasai could be seen with their livestock mingling with small and large scale miners. However, it seems that efforts through negotiation were made between the mines and the Maasai. In whichever way, mining activities can still have irreversible interference with natural environment for grazing, cultivation and other renewable and non-renewable resources such as unproductive deep soils that replace the top soils, vegetation change, and water and air pollution. Inclusion of indigenous tribes in upcoming plans and strategies for the mining sector improvement may lead to conflict free sustainable programs.

Effect of mining activities of Kaolin on the indigenous groups could be solely related to mining of kaolin and other industrial minerals such as construction materials of sand and gravel. Currently the most notable observation is that most mining areas for sand and gravel are in private land. Small scale miners in these areas indicated poor knowledge of laws governing surface rights in relation to mineral rights and related regulations and by-laws. Hence, the communities where minerals are mined do not usually have adequate negotiation skills for land and minerals.

Traditional beliefs and divination were identified to be a common phenomenon to the majority of SSM. Capacity to identify rich pockets of minerals is believed to provide them with fortunes once they fulfil certain conditions set by traditional healers. The belief has gone very deep in the mining society suspected to be the cause for certain groups of the society to suffer through human sacrifices, i.e., Albino killings. The lack of capacity to explore for rich mineralized areas might be among the causes for such beliefs, which may partly be mitigated through SMMRP support by geologically mapping large unknown areas providing these miners with alternative mining sites. This however, needs to be coordinated with an intensive awareness campaigns to the miners on the vice.

IDENTIFICATION ASSESSMENT OF IMPACTS AND PROPOSED MITIGATIONMEASURES

A summary of issues identified during the study, the description of impacts, classifications of impacts and proposed mitigations measures havebeen summarized in the following sections. Section 1.12.1 presents the Specific project Issues while Section 1.12.2 presents the general sectorissues.

1.12.1 SMMRP Specific Impacts and Mitigation Measures

N I D AC

IP M E

M

RSSM

LSM LG

• T A GSTLSM

SSM

• C S

LSM SSM SSM I

• C MEM SSSM

C LSM SSM SSM

H

L

I SSM • T T SSM

• T T

H

L

I TSSM

SHET SSM

H

L

N I D AC

IP M E

M

SHE

I L T GT

SSM E

High,favourable,Long –term

IS

T T SSM

S S

H

L

IGR

T SSM

GP G G

GT

I

G

P G IG R G

A MI

H

L

I LG

T H

N I D AC

IP M E

MR L

E

M A

T H

L

D • M A S

• A

• T

HS

A

• SA

• E WB• E M

R• C

• E

N I D AC

IP M E

M• •

P • MSSM

• T SSM

HL

• SA

• E WB• E M

R• F

• F

• D

• CSSM

•

1.12.2 Mining Sector Broad Sector Impacts and Mitigation Measures

N I D AC

IP M E M

C M

T

HAL

• C SESA

CL

MPC

ELGRA LGRA

T T DLGRA

P

HA

• C SESA

• TLGRA B

• C

• A

• T

T Increase in the supply/offer of efficient technologies formining and advancing from alluvial to hard rock mining,capacity to mine at deeper layers, etc., will increaseincome and expenditures and also increase of investmentswhich will widen the gap between the poor and the rich.

M • A

• ASME

• I

P P

T

H • D• P

• U

N I D AC

IP M E M

CS

D T TH S B

C

A

H

I

• T OP• T OP• T OP• T OPN C

U

I

Improvement of the technology will lead to requirementsfor adequate skills and technical competence, which willlay-off unskilled workers leading to unemployment.

H • B

• E

L T SSMT

A

HA

• S A• T OP• S SSM

• CD F O

D DEO

N I D AC

IP M E M

• C

DEO D W

• A

• E

L DB

E HALI

• S A• T WB OP

L P • A

• D

W

• I

M C

H • S A• T WB OP• C• R

• C

• E

• C

N I D AC

IP M E M

W

• P

D• P

S G

C

• U

SSM• I SSM

H • S A• T WB OP• C H

S• T

• C• C

TSF• C

• M

• ETSF

• D T M C P

N I D AC

IP M E M

• D

P

AMD

M H

I

• S A• E L PE

SMMRP• D

AMD• F

• F

G V D H • S A• I

E AR M S WO H RO S A

• C

• F

• I

I A LA

• S A• C

N I D AC

IP M E M

E

P TSSM

I SSM

SS

H • S A• E L PE

SMMRP

P I

I

H • S A• E L PE

SMMRP

U T

T

• B

• E

M T H I

N I D AC

IP M E M

I Technical support in mining equipment and machinerywill draw skilled manpower into the areas and people withhigh paying jobs, leading to broken marriages, schoolpregnancies, sex trade, school dropouts, etc., all of whichwill cause insecurity to the local households, socialhouseholds capital.

HA

S

C Improved mining technology will lead to improvedmineral extraction that will result to increased cash incomethat is a catalyst to population growth, urbanization and aninflux of non- indigenous groups.

H • R

• S

D Income disparities may lead to an increased brokenmarriages, abandoned spouses and children.

H • C

• S

H PSTD

Increased cash income may lead to a wide economic gapbetween the local communities and those involved in themining activities, hence attract prostitution, unsafe sex,abortion and other reproductive health related issues.

H • S

• DSME

T HIVAIDS

Most people who involve in mining are unmarried or theyleave behind their spouses. In cases of unsafe sexpractices, there is a high chance for transmission of HIVwhereby it (HIV) is carried in and out of the mine sites.

H • S TACAIDS WMACVMAC

• I MDG

P This is contributed by carrying heavy loads, working longhours, walking long distances and engaging in heavy dutyworks by men, women and children including youthsbefore the technical assistance. Once the assistance from

HFL

• I

• E

N I D AC

IP M E M

the government is extended to the SSM, these will behighly reduced providing them with better health and long-life

I Currently, in most of SSM areas, community socialservices are inadequate to support existing populations

HAM

P

DR

Expansion of mining activities may require bigger landsand encroach on community lands. Also destruction of theenvironment through mining may lend the land notsuitable for agriculture and livestock keeping and henceforce traditional communities to migrate in search formore fertile lands. This also will cause interference withthe livelihood activities of the local communities

HAL

I

• C

• I WBOP

C Mining activities, population influx can lead people toabandon their living styles and cultures and opt for thenew ones

MA

I

U EIA

D Resettlement may involve physical separation of families,kinships, relatives and friends hence interfering with socialnetworks and capital

H R

A • I

• M

M • S A• E WBE MR

N I D AC

IP M E M

Surface moving equipment will generate dust andnoxious gases from diesel equipment generatedthrough the technical assistance;

8 E213 Public Disclosure Authorized...legislations that will be considered include the Mining Act of...

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Transcript of 8 E213 Public Disclosure Authorized...legislations that will be considered include the Mining Act of...