An Assessment Of Pricing Of Minerals – The Case Of Artisanal And Small Scale Mines Of Sambaru And Winza

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ABSTRACT

Since, the implementation of the 1985 structural adjustment programs in Tanzania many sectors of the economy including mining were privatised. With time, peasants flocked the mines in numbers as artisanal and small scale miners (ASMs). As time passed, complaints emerged that, artisanal and small scale miners were selling their minerals through dealers, who were paying them low prices relatively to the market prices. This study was conducted to assess the pricing practices of ASMs. Three specific objectives were sought, and were to identify the pricing objectives for ASMs in Sambaru and Winza mines, to explore the pricing strategies employed by ASMs in Sambaru and Winza mines and to determine factors which influence the selling price of minerals for ASMs in Sambaru and Winza mines. By using a qualitative exploratory design, data were collected by using interviews from a sample of 34 respondents, who were sampled by using a purposive snowball sampling. The same approach was used in obtaining sixteen participants for two focus group discussions who were leaders of mining associations of SIREMA and DOREMA. Findings of the study have revealed that, ASMs did not have a command on the prices of their minerals, consequently, their pricing objective was survival (subsistence) and their pricing strategy was going rate pricing. The study recommends that, the government should assist ASMs to conduct formal mining activities as this will help them to curb information asymmetries and an access to the formal markets.

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