THE TANZANIA MINING SECTOR

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THE 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

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List of mining laws

• Country Mining Act Country Mining Act
• Argentina 1997 Ghana 1986
• Bolivia 1997 Guinea 1995
• Botswana 1999 Indonesia 1967
• Brazil 1996 Madagascar 1999
• Burkina Faso 1997 Mozambique 1986
• Chile 1983 Namibia 1992
• China 1986 Peru 1992
• Columbia 1987 Philippines 1995
• Algerie 2001 Mauritania 1999
• Cameroon 2001 Congo Kinshasa en prep.
• Tanzania 1998

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Key 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

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A 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 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

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Land 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

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Lands 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 issues

• Environmental issues
• Surface overlapping
• Right of Construction
• Compensations
• Fees and taxes

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Environment

• Mining is environmental destructive
• Environment Regulation for Mining
• Environmental Impact Reports
• Inter-Ministerial Committees

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Overlap - 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

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Reserves, General Land
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Plants 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

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Compensation

• 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.

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Disputes

• Artisanal miners with villagers
• Mining companies and artisanal miners
• Mining companies with villagers
• Mining companies with local authorities
• Between Artisanal miners
• Miners and administration

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Administration and miners

• Illegal mining, rush area (National Parks)
• Not clearly located rights (rivers)
• Security or legality?
• Working with Miners Associations

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Artisanal miners and mining companies

• Large scale mines surrounded by artisanal miners
  (Mererani)
• No communication between Companies and Miners
  Associations
• Balance support to artisanal miners and
  attracting foreign investors

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Mining Companies and Local Authorities

• 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

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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.

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Thank you.