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MINISTRY OF ENERGY AND MINERALS WIZARA YA NISHATI NA MADINI 1 OVERVIEW OF MINING ACTIVITIES IN LAKE VICTORIA ZONE AND THEIR IMPACT TO THE ECONOMY Prepared.

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Presentation on theme: "MINISTRY OF ENERGY AND MINERALS WIZARA YA NISHATI NA MADINI 1 OVERVIEW OF MINING ACTIVITIES IN LAKE VICTORIA ZONE AND THEIR IMPACT TO THE ECONOMY Prepared."— Presentation transcript:

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

2 MINISTRY OF ENERGY AND MINERALS PRESENTATION OUTLINE 1. ROLE OF THE ZONAL MINES OFFICE 2. MINING ACTIVITIES OVERVIEW 3. PRODUCTION STATISTICS 4. IMPACT OF MINING TO THE ECONOMY 5. MINING BENEFITS TO COMMUNITY 6. CHALLENGES 7. RECOMMENDATIONS 8. CONCLUDING REMARKS

3 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. WIZARA YA NISHATI NA MADINI 3

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. WIZARA YA NISHATI NA MADINI 4

5 MINISTRY OF ENERGY AND MINERALS 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). WIZARA YA andA MADINI 6

7 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. WIZARA YA NISHATI NA MADINI 7

8 LARGE SCALE MINING WIZARA YA NISHATI NA MADINI 8

9 GOLD PRODUCTION BY MAJOR MINES (2012) WIZARA YA NISHATI NA MADINI 9 Gold Mine Production (Kg) Export (Kg) Value (US$ Mil.) Royalty (US$ Mil.) GGM (Geita) 16,62316, NMGM (Tarime) 5,6885, TGM (Tulawaka) 1,3451, TOTAL 23,65623,9271,

10 GOLD PRODUCTION % BY MAJOR MINES (2012) WIZARA YA NISHATI NA MADINI 10

11 GOLD EXPORTS % BY MAJOR MINES (2012) WIZARA YA NISHATI NA MADINI 11

12 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: WIZARA YA NISHATI NA MADINI 12 REGIONMINERALWEIGHT (Kg) VALUE (TZS) ROYALTY (TZS) Geita Gold ,907,041,020116,281,641 Kagera Tin 51,371569,223,00019,124,920 Mara Gold ,880,00021, Mwanza Gold ,938,09020,157,523 TOTAL 4,527,082,110177,439,284

13 SSM PRODUCTION 2012/2013 (MARCH) MINERALWEIGHT (Kg) VALUE (TZS) ROYALTY (TZS) Gold64.664,150,551,486166,170,036 Tin83,300663,233,20523,498,000 TOTAL 4,813,784,691189,668,036 WIZARA YA NISHATI NA MADINI 13

14 SMALL SCALE MINING WIZARA YA NISHATI NA MADINI 14

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. WIZARA YA NISHATI NA MADINI 15

16 GOLD PRODUCTION FROM TAILINGS PROCESSING JULY 2012 – MARCH 2013 WEIGHT KG VALUE TZS ROYALTY TZS TOTAL ,574,077,171261,005,209 WIZARA YA NISHATI NA MADINI 16

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 WIZARA YA NISHATI NA MADINI 17

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. WIZARA YA NISHATI NA MADINI 18

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: o Education – US$ 731, 917 (schools, hostels, staff houses and desks) o Supply of clean water – US$ 120,847 o Health Services – US$ 225,021 o In kind support – US$ 67,916 WIZARA YA NISHATI NA MADINI 19

20 MINING BENEFITSTO THE COMMUNITY CONT… North Mara Gold Mine Financed projects: o Nyangoto P/School; Matare P/School; & Nyamwaga S/School construction; o Ingwe Sec. School – Construction and Rehabilitation; o Village Roads Maintenance & Remedial works completed; o Sungu sungu Hospital renovated and upgraded; o Genkuru Medical Clinic; and o Several water boreholes. WIZARA YA NISHATI NA MADINI 20

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. WIZARA YA NISHATI NA MADINI 21

22 MINISTRY OF ENERGY AND MINERALS

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 WIZARA YA NISHATI NA MADINI 23

24 EMPLOYMENT BY LARGE SCALE MINES WIZARA YA NISHATI NA MADINI 24 Status of Employment in the Major Gold Mines – Number of Locals versus Expatriates Year Type of Employee GGMNMGMTGM Grand Total 2010 Expatriates Local 1, ,851 Total 1, , Expatriates Local 1, ,950 Total 1,6831, , Expatriates Local 1, ,067 Total 1,6871, ,362

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. WIZARA YA NISHATI NA MADINI 25

26 ILLEGAL MINING AND DEGRADATION OF ENVIRONMENT WIZARA YA NISHATI NA MADINI 26

27 INTRUDERS IN MINE PITS WIZARA YA NISHATI NA MADINI 27

28 DANGEROUS MINE PITS WIZARA YA NISHATI NA MADINI 28

29 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. WIZARA YA NISHATI NA MADINI 29

30 CONCLUDING REMARKS WIZARA YA NISHATI NA MADINI 30 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.

31 WIZARA YA NISHATI NA MADINI 31 ASANTENI! 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!


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