11

THE TANZANIA MINING SECTOR – A REVIEWTHE TANZANIA MINING SECTOR – A REVIEW

• Geological environment

• Economic reforms

• New Mineral Policy, 1997

• New Mining Act, 1998

• New Land Act, 1999

• Need to establish a modern Cadastre System

22

33

List of mining laws List of mining laws

Country Mining Act Country Mining Act

Argentina 1997 Ghana 1986Bolivia 1997 Guinea 1995 Botswana 1999 Indonesia 1967Brazil 1996 Madagascar 1999Burkina Faso 1997 Mozambique 1986Chile 1983 Namibia 1992China 1986 Peru 1992 Columbia 1987 Philippines 1995Algerie 2001 Mauritania 1999Cameroon 2001 Congo Kinshasa en prep.

Tanzania 1998

44

Key principles of mining law reformsKey principles of mining law reforms

• A modern, open mining cadastre and title registry

• ‘First come, first served’

• Grants on objective criteria

• Exclusive rights

• Security of the tenure

• Free transferability of mining titles

• Environmental protections

• Simple financial requirements

55

A New Mining Act, 1998A New Mining Act, 1998

• Security of tenure whereby, the progression from one licence to another is almost automatic

• Streamlining of licensing procedures by introducing a mineral titles registry.

• Stability of the fiscal package by including the basic rates, like royalty, in the main act.

• Standardised environmental guidelines.

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Status as propertyStatus as property

• Exclusivity of the mineral rights

• Secured right to progress from exploration to mining

• Requirements and obligations to both the holder and the government

• Compensation

• The right is transferable

• The right is mortgageable

77

Land PolicyLand Policy

• All land is public land• Existing rights and recognized long-standing

occupation is secured• Equitable access to land by all citizen• Regulate amount of land occupied by

person/corporate body• Ensure that land is used productively• Interest in land has a value• Full, fair and prompt compensation

88

Lands Act, 1999Lands Act, 1999

• General Land subject to individual rights of occupancy or leases, managed by a Land Commissioner

• Reserve Land, demarcated, reserves, public land, hazardous land

• Village land, demarcated and managed by Village Councils (Village Land Act, 1999).

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Common issuesCommon issues

• Environmental issues

• “Surface” overlapping

• Right of Construction

• Compensations

• Fees and taxes

1010

EnvironmentEnvironment

• Mining is environmental destructive

• Environment Regulation for Mining

• Environmental Impact Reports

• Inter-Ministerial Committees

1111

Overlap - Mining and Land rightsOverlap - Mining and Land rights

• Different objectives, different boundaries

• No common map, no unique coordinate system

• General Land: no complete and up-to-date information, private negotiations

• Reserve: reclassification or illegal mining

• Village: compensation issues

• MCIMS under preparation

1212

Reserves, General LandReserves, General Land

1313

Plants and Building ConstructionPlants and Building Construction

• Lawful occupier erect buildings in non-used area (prospecting)

• Miner erect buildings, plants, pipes, drains above and below the ground

• Mining companies close the area for security reasons.

• Authorization of other holder required not “unreasonably delayed”

• lawful occupier

•Mineral rights holder

• no right in public land, with security perimeter

1414

CompensationCompensation• Land Act: to any person

with right of occupancy, long-standing occupation, customary use of land. Unlawful if occupying, building without any right.

• Mining Act: to lawful occupier, actual occupant, or responsible if the land is rent, or occupied with possible damages

• Land Act: based on market value of real property, disturbance allowance, loss of profits or accommodation, cost of acquiring

• Mining Act: evaluate damage according to the interest of the Lawful occupier, not exceeding amount payable if value not enhanced by mining.

1515

DisputesDisputes

• Artisanal miners with villagers

• Mining companies and artisanal miners

• Mining companies with villagers

• Mining companies with local authorities

• Between Artisanal miners

• Miners and administration

1616

Administration and minersAdministration and miners

• Illegal mining, rush area (National Parks)

• Not clearly located rights (rivers)

• Security or legality?

•Working with Miners Associations

1717

Artisanal miners and mining Artisanal miners and mining companiescompanies

• Large scale mines surrounded by artisanal miners (Mererani)

• No communication between Companies and Miners Associations

• Balance support to artisanal miners and attracting foreign investors

1818

Mining Companies and Local Mining Companies and Local AuthoritiesAuthorities

• Issues: Fees for Mining and Prospecting Licenses to Ministry of Energy and Minerals, no return to Local Governments.

• Companies pay taxes, develop road access, supply water, provide long-.term employment, develop railways and shipping business

• Local authorities: planning objectives, health and educational projects

1919

And the surveyor?And the surveyor?

• Major issue: location at the surface and definition of the rights.

• Preparing applications, solving disputes• Underground measurements difficult,

unsafe.• Mineral rights, villages, reserves to

demarcate with a unique coordinate system.

• Mapping activity to develop.

2020

Thank you.Thank you.