SoC04 Beyond Extraction: A Vision for Community-Owned Mining in Tanzania

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Beyond Extraction: A Vision for Community-Owned Mining in Tanzania​

Introduction

Tanzania's rich soil harbors vast mineral wealth, yet this has often led to exacerbated inequality and persistent poverty, particularly in mining communities. This "resource curse" has plagued many resource-rich nations, including Tanzania. This input argues that community-owned mining offers a transformative opportunity to break this curse, empowering local communities and fostering a more equitable and sustainable mining sector. It outlines a comprehensive 15-year vision for achieving this goal, analyzing current challenges, detailing a phased implementation strategy, and considering both the potential benefits and risks.

The Current Landscape: Challenges and Opportunities (2024)

Tanzania's mining sector features a dichotomy between large-scale operations controlled by multinational corporations and a vast network of small-scale miners, who constitute over 90% of the mining workforce. While small-scale mining contributes 40% of total mining revenue, it faces systemic challenges, including limited access to modern technology, with only 1% of miners using improved mineral processing techniques. This technological deficit contributes to inefficiency, environmental degradation, and diminished profits. Furthermore, less than half of targeted small-scale miners received formal training between 2018/19 and 2022/23.

To understand the human cost, consider Amina, a small-scale miner. She works long hours under harsh conditions with rudimentary tools, earning barely enough to sustain her family. Her story mirrors that of many Tanzanians trapped in poverty despite the mineral wealth beneath their feet.

Community Ownership: A Paradigm Shift

Community-owned mining offers a transformative alternative to the conventional extractive model by vesting ownership, management, and control of mining operations in local communities. This model aligns mining activities with community needs and aspirations, addressing many systemic challenges.

Key Pillars of Community Ownership

1. Legal and Policy Framework: Establish a robust framework prioritizing community rights, equitable benefit-sharing, and environmental protection. This entails reforming existing mining laws to ensure transparent licensing processes and fair taxation schemes.
2. Capacity Building: Invest in comprehensive training programs to equip community members with necessary skills for mining operations, including financial literacy, business management, sustainable mining techniques, and conflict resolution.
3. Access to Finance: Bridge the financing gap for community-owned ventures through innovative mechanisms such as microloans, crowdfunding platforms, and impact investments.
4. Technology Integration: Promote the adoption of sustainable and efficient mining technologies by facilitating access to modern equipment and training on its use and maintenance.

Implementation Strategy: A Phased Approach

Transitioning to community-owned mining requires a strategic phased approach over 15 years.

Phase I: Laying the Groundwork (Years 1-5)

Focus on establishing necessary foundations:

• Policy and Legal Reform: Advocate for comprehensive reforms, such as amending the Mining Act of 2010 to include provisions for community ownership rights.
• Capacity Building: Implement targeted training programs in collaboration with educational institutions and NGOs.
• Secure Land Rights: Address land tenure issues to ensure communities have legal ownership or secure customary rights to mining land.
• Innovative Financing: Establish a dedicated community mining fund supported by government grants, impact investors, and philanthropic organizations.

Phase II: Empowering Communities (Years 6-10)

Emphasize practical implementation and development of local value chains:

• Ownership Models: Pilot and implement various community ownership models such as cooperatives and community trusts.
• Value Chain Development: Support local value chains, encouraging small-scale processing and manufacturing to maximize local benefits.
• Gender Equity and Inclusion: Promote gender equality and ensure participation of women and marginalized groups in all aspects of mining operations.
• Conflict Resolution: Establish community-based mechanisms to address disputes over resource allocation and environmental impacts.

Phase III: Scaling and Innovating (Years 11-15)

Focus on scaling successful models, fostering innovation, and solidifying Tanzania’s position in ethical mining:

• Geographic Expansion: Extend community ownership to new regions and mineral types.
• Technological Integration: Promote widespread adoption of sustainable mining technologies.
• Research and Development: Invest in research to identify and implement innovative solutions for improving mining efficiency and adding local value.

Potential Impacts and Considerations

Economic Impacts
Community ownership can drive local economic development by redirecting a larger share of mining revenues to communities, leading to investments in infrastructure, education, healthcare, and local businesses.

Social Impacts
Community control over mining activities can foster greater social cohesion, reduce conflicts, and empower marginalized groups, resulting in improved living standards and reduced poverty rates.

Environmental Impacts
Community ownership incentivizes sustainable practices, as communities vested in their environment are more likely to adopt responsible methods and invest in land reclamation.

Challenges and Risks

• Equitable Participation: Ensure benefits are equitably distributed, preventing elite capture or exclusion of marginalized groups.
• Managing Expectations: Clear communication and realistic expectations are needed to avoid disappointment if immediate financial gains are not realized.
• Balancing Interests: Balance community interests with national economic goals and government revenue requirements.
• Attracting Investment: Attract responsible investors willing to work under community-led models to scale community-owned mining.

As Dr. Jane Munga, a development economist, cautions, "Community-owned mining has tremendous potential, but it requires careful implementation. We must ensure that benefits are truly shared and that we don't simply replace one form of exploitation with another." (J. Munga, personal communication, May 15, 2024).

Conclusion

Community-owned mining represents a paradigm shift in Tanzania's mining sector. By empowering local communities, prioritizing sustainable practices, and aligning mining with broader development goals, this model offers a path toward unlocking Tanzania's mineral wealth. While challenges exist, the potential benefits for economic justice, social development, and environmental sustainability make this vision worthy of concerted action. Tanzania has the opportunity to become a beacon of ethical resource extraction, demonstrating that mining can enrich communities and secure a prosperous future for generations to come.