State issues guidelines to monitor, evaluate extractive sector.

Vice President Dr Mohammed Gharib Bilal.

The government has come up with guidelines to monitor and evaluate the implementation of extractive sector’s corporate social responsibility.

 

Launching the guidelines at an awarding ceremony of this year’s Corporate Social Responsibility and Empowerment (CSRE) held on Tuesday in Dar es Salaam, Vice President Dr Mohammed Gharib Bilal said the guidelines will help to monitor and evaluate the implementation of CSRs in the country.

 

“Overall spending on CSRE programmes has risen from 25.7bn/- in 2013 to 42.8bn/- in 2014,” the VP said.

 

He noted that: “The extractive sector is critically important to the prosperity of Tanzanians and the country’s economy … it’s important therefore to continue monitoring the resources properly and carefully to ensure win-win situation in sharing their benefits with stakeholders, and especially the community.”

 

According to Bilal, it means companies in extractive industry will have to adopt good policies that aim at contributing significantly to the local communities towards achievement and delivery of social services and economic empowerment.

 

He retaliated the government commitment towards supporting the development of the extractive industry.

 

On ground, he said plans are underway to update the geological data base through (Geological Survey of Tanzania-GST) in order to stimulate investment in the sector.

 

He said the government will continue developing supportive infrastructure and transparent licensing procedures as a priority to upgrade mineral licensing procedures and services.

 

Energy and Minerals Minister George Simbachawene told delegates that the total procurement in local content among mining, oil and gas companies was 56 per cent far-below South Africa (96 per cent) Mali (95 per cent) and Ghana (91 per cent).

 

“If the area is strengthened it can make major contribution to individuals, society and the national economy,” he said.

 

Tanzania having made major discoveries of natural gas, standing at 55.08 trillion cubic feet eyes potential transformation of the locals by improving power supply reliability.

 

The minister explained that already a local content committee has been set-up to ensure realisation of the initiative.

 

Speaking of the award, the minister said would help promote economic integration between the extractive sector and other sectors of the economy; creates community participation; emphasis capacity building of local production establish and maintain social economic relationships.

 

Acting Permanent Secretary in the Ministry Eng Ngosi Mwihava named the overall winner of 2014 Presidential Award on CSRE as the North Mara Gold Mine which also scooped the large scale mining company.

 

Other awards; Small Scale Mining firm (Busorwa Mining Ltd), Oil and Gas Production (Songas Ltd), Oil and Gas Exploration (), Mineral Exploration (Mantra Tz) and Medium Scale Mining Award presented to Shanta Mining (T) Ltd.

 

Eng Mwihava also named winners in special areas as; Buzwagi Gold Mine which took home infrastructure award, Statoil Tanzania on tertiary education development and Geita Gold Mine (GGM) that scooped presidential award on secondary education development.

 

GGM Vice President Simon Shayo responsible for sustainability said his firm had invested over 10.02bn/- in the construction of a modern Girl’s Secondary School in Geita- Nyankumbu Secondary. “We also support health, water communication and electricity areas across the region.”

 

Deo Mwanyika, Acacia Tanzania Vice President said his firm spent over $10million annually to implement various social and economic schemes falling on CSRs.

 

Launching the Presidential Award on the Extractive Industry Corporate Social Responsibility and Empowerment in 2012 President Jakaya Kikwete warned investors who do not pay rightful taxes to the government or fulfill their social responsibility commitments were to blame for the conflicts that ensued in their operations.

 

According to the President, investors’ failure to pay taxes to the government, support small-scale operators, and surrounding communities create hostile environment in the mining operations.

 

“This triggers endless conflicts and tug of war between the investors and residents living around the mining areas,” said the President, in the wake of increasing public concerns over mining investors’ benefiting from the sector at the expense of millions of poor Tanzanians.

 

He described the CSRE Presidential Award as an important milestone in the development of the country’s mining industry, but noted that investors must act responsibly and observe the underlying principles.

 

“If investors observe these principles, he said, they will enjoy good relations with the government, small mining operators, and local communities noting that all sides (the government, investors, and surrounding communities) must benefit from the country’s mining operations,” he said.