1. WIZARA YA NISHATI NA MADINI
OVERVIEW OF MINING ACTIVITIES IN LAKE VICTORIA ZONE AND THEIR IMPACT TO THE ECONOMY
WIZARA YA NISHATI NA MADINI
Prepared by:
Salim S. Salim
Zonal Mines Officer -Lake Victoria Zone
Mwanza, April 22nd , 2013

2. PRESENTATION OUTLINE ROLE OF THE ZONAL MINES OFFICE
MINING ACTIVITIES OVERVIEW
PRODUCTION STATISTICS
IMPACT OF MINING TO THE ECONOMY
MINING BENEFITS TO COMMUNITY
CHALLENGES
RECOMMENDATIONS
CONCLUDING REMARKS

3. WIZARA YA NISHATI NA MADINI
INTRODUCTION
The Lake Victoria Zonal Mines Office is based in Mwanza.
This office oversee mining activities in Mwanza, Geita, Kagera and Mara Regions.
There are three Resident Mines Offices under it in:
Bukoba; Geita; and Musoma.
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4. ROLE AND RESPONSIBILITIES
Oversee mineral sector activities in the Zone;
Administration of Mining Act, Explosive Act and Regulations:
Issuance of Primary Mining Licences and Mineral Trading Licences.
Issuance of Mineral Export Permits;
Inspection of mines, mineral trading and explosives;
Collection of mineral data and maintaining database;
Extension Services to Small Scale Miners;
Collection of mineral revenue; and etc.
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5. DISTRIBUTION OF GOLD DEPOSITS

6. MINERAL ENDOWMENT Gold: all the 4 Regions of the Zone
Diamonds: Mabuki area (Misungwi);
Tin, tungsten and wolframite (Karagwe and Kyerwa Districts);
Kaolin (Biharamulo);
Nickel, cobalt and copper (Ngara and Magu);
Building Minerals (sand and stones) all Regions;
Amethyst (Rorya);
Slates and soapstone (Serengeti);
Ochre (Serengeti na Musoma);
Limestone (Misungwi and Bunda).
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7. WIZARA YA NISHATI NA MADINI
LARGE SCALE MINING
Three large scale mines producing gold include:
Geita Gold Mine (Geita) owned byAnglo Gold Ashanti;
Tulawaka Gold Mine (Biharamulo) and
North Mara Gold Mine (Tarime) both owned by African Barrick Gold
Three other large scale mines are expected in the near future in the following districts of Sengerema (gold); Ngara (nickel) by Barrick & Extrata; and Busega/Bariadi (nickel) by Red Hill Nickel.
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8. WIZARA YA NISHATI NA MADINI
LARGE SCALE MINING
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9. GOLD PRODUCTION BY MAJOR MINES (2012)
Gold Mine
Production
(Kg)
Export
Value
(US$ Mil.)
Royalty (US$ Mil.)
GGM
(Geita)
16,623
16,820
899.02
31.21
NMGM
(Tarime)
5,688
5,680
305.45
10.69
TGM
(Tulawaka)
1,345
1,427
76.33
2.58
TOTAL
23,656
23,927
1,280.8
44.48
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10. GOLD PRODUCTION % BY MAJOR MINES (2012)
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11. GOLD EXPORTS % BY MAJOR MINES (2012)
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12. WIZARA YA NISHATI NA MADINI
SMALL SCALE MINING
There are a total of 2,203 PMLs which include 694 in Geita, 459 in Kagera, 561 in Mara and 489 in Mwanza Regions.
Production from Small Scale Mining for 2011/2012 was as follows:
REGION
MINERAL
WEIGHT
(Kg)
VALUE
(TZS)
ROYALTY
Geita
Gold
56.19
2,907,041,020
116,281,641
Kagera
Tin
51,371
569,223,000
19,124,920
Mara
8.35
546,880,000
21,875200
Mwanza
11.66
503,938,090
20,157,523
TOTAL
4,527,082,110
177,439,284
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13. SSM PRODUCTION 2012/2013 (MARCH)
MINERAL
WEIGHT
(Kg)
VALUE
(TZS)
ROYALTY
Gold
64.66
4,150,551,486
166,170,036
Tin
83,300
663,233,205
23,498,000
TOTAL
4,813,784,691
189,668,036
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14. WIZARA YA NISHATI NA MADINI
SMALL SCALE MINING
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15. GOLD TAILINGS PROCESSING
Gold tailings processing activities using cyanide chemical has also employed about 850 Tanzanians and recorded high production of gold in Geita, Mara and Mwanza.
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16. GOLD PRODUCTION FROM TAILINGS PROCESSING
JULY 2012 – MARCH 2013
WEIGHT KG
VALUE
TZS
ROYALTY TZS
TOTAL
101.13
6,574,077,171
261,005,209
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17. IMPACT OF MINING TO THE ECONOMY
Big impact Contribution of Revenue and Foreign earnings to the Government.
Royalty payment by 3 large scale mines of TGM, NMGM and GGM in 2012 amounted to US$44.48 Mill to the Government.
Taxes paid to the Government in 2012 amounted to TZS Bill. (TZS Bill. GGM, TZS Bill. TGM and TZS Bill. NMGM)
Procurement of services and goods locally amounting US$ Mill. (US$ Mill. GGM, US$16.55 Mill. TGM and US$80.45 Mill. NMGM)
Unevaluated contribution of SSM to the economy
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18. MINING BENEFITSTO THE COMMUNITY
Growth of towns like Geita due to mining activities.
Direct Employment of 3,067 Tanzanians by Large Scale Mines (1,610 GGM, 971 NMGM 486 TGM) in 2012;
Indirect employment due to presence of large scale as well as small scale mining;
Growth of business/ trade and income due to mining (spill-over effect);
Employment of about ??? Tanzanians by SSM and 850 in Tailings Processing; and
Service levy US$200,000 to each District Council where mines are located.
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19. MINING BENEFITSTO THE COMMUNITY CONT…
Benefits to community through Corporate Social Responsibility (CSR):
Improvement of infrastructure such as roads, water and electricity;
Schools and hospitals/dispensaries
Tulawaka has financed various projects include:
Education – US$ 731, 917 (schools, hostels, staff houses and desks)
Supply of clean water – US$ 120,847
Health Services – US$ 225,021
In kind support – US$ 67,916
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20. MINING BENEFITSTO THE COMMUNITY CONT…
North Mara Gold Mine Financed projects:
Nyangoto P/School; Matare P/School; & Nyamwaga S/School construction;
Ingwe Sec. School – Construction and Rehabilitation;
Village Roads Maintenance & Remedial works completed;
Sungu sungu Hospital renovated and upgraded;
Genkuru Medical Clinic; and
Several water boreholes.
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21. MINING BENEFITSTO THE COMMUNITY CONT…
NMGM Agreements signed with 7villages surrounding the NMGM mine for the investment in community infrastructure of USD$13.5m (TZS 22bn) over 3 years:
development of school infrastructure
provision of clean water
upgrading of a local health centre to a hospital level
rehabilitation of village offices
improvements to the road infrastructure
extension of electricity overhead lines
Significant progress made in the provision of alternative livelihoods programs.
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23. MINING BENEFITSTO THE COMMUNITY CONT…
Geita Gold Mine community projects:
Nyankumbu Girls High School –US$5.6M
Nyakabale village dispensary and 2 staff houses.
Geita town bulk water project - US$5M.
Community malaria project committed.
Kilimanjaro Challenge (for HIV/AIDs)
Rafiki project – cleft palate
Basic dental training to local health officers
18 houses to resettle squatting families - USS700,000
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24. EMPLOYMENT BY LARGE SCALE MINES
Status of Employment in the Major Gold Mines – Number of Locals versus Expatriates
Year
Type of Employee
GGM
NMGM
TGM
Grand Total
2010
Expatriates 86
138 65
289
Local
1,792
703
356
2,851
Total
1,878
841
421
3,140
2011 82
157 75
314
1,601
876
473
2,950
1,683
1,033
548
3,264
2012 77
148 70
295
1,610
971
486
3,067
1,687
1,119
556
3,362
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25. CHALLENGES IN MINING SECTOR
Challenges in the mining sector include:
Lack of equipment, capital, technical and technological capacity for SSM;
Availability of areas demarcated for SSM as most areas have valid PLs;
Compliance to Mining Act, 2010 and Regulations by SSM;
Illegal trespassing and invasion of valid Prospecting and Mining licences.
Gold rushes associated with uncontrolled mining, mine accidents, degradation of environment and loss of revenue to the Government.
Disputes between LSM and SSM.
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26. ILLEGAL MINING AND DEGRADATION OF ENVIRONMENT
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27. WIZARA YA NISHATI NA MADINI
INTRUDERS IN MINE PITS
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28. WIZARA YA NISHATI NA MADINI
DANGEROUS MINE PITS
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29. WIZARA YA NISHATI NA MADINI
RECOMMENDATIONS
We recommend the following:
Education to the SSM, community and their leaders regarding the Mining Act, 2010 and Regulations.
Demarcation and geological survey of areas suitable for SSM.
Training of SSM on safe mining methods, appropriate technology and environmental protection.
Government and donor countries to assist on capacity building, appropriate mining technology and capital to SSM.
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30. WIZARA YA NISHATI NA MADINI
CONCLUDING REMARKS
The mineral sector stands to be the engine of growth of the economy of Tanzania, there is a need for the Government and Development Partners to make big commitment to build capacity in the mineral sector in terms of expertise, equipment, technology and capital to ensure that this sector make appropriate and sufficient contribution to the National GDP.
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31. WIZARA YA NISHATI NA MADINI
The Mining sector has great impact to the economy of our Region and the Nation at large it needs support from our leaders, community and Donor Countries!
ASANTENI!
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