Response Of Large-Scale Mining Companies To The System Of Governance For Improved Local Livelihoods In Tanzania: A Case Of Kahama District

ABSTRACT

This study assesses the response of large scale-mining companies to the system of

governance for improved local livelihoods in Tanzania. Specifically, the study analysed

the policy enabling environment of the mining sector in Tanzania, examined compliance

of large-scale mining companies with regulatory framework, explored community

perception on mining companies’ practices towards enhancing environmental

sustainability and assessed the contribution of mining companies to the local livelihoods

in Kahama District. The study employed both the cross-sectional and case study designs

in which three mining village communities namely Mwendakulima, Mwime and

Chapulwa were involved. The sample size for the study was 215 respondents, and

systematic review of literature was used to collect information related to policies and

legislation from Tanzania and best practices elsewhere. Additionally, household and key

informant interviews with technical personnel from government and mining company

officials were contacted to determine the extent to which communities’ understood issues

of regulatory framework in relation to sustainable mining practices for improved local

livelihoods. A five-point Likert scale with alternative answers from strongly disagree to

strongly agree attitudes with statements implying disliking and liking the system of

governance to the mode of mining operations was used as part from a questionnaire

which was used for the household survey in this study. Data on policy review were

analysed using content analysis from sources of information captured in various

documents to portray the policy enabling environment of the mining sector in Tanzania.

The whole mining operations in relation to attributes of compliance, sustainable

environmental practices and livelihoods from community perspectives were handled by

adopting exploratory factor analysis (EFA) using the Statistical Package for Social

Sciences (SPSS) software to explore inter-relationships with a reflection in the national

regulatory framework. The study findings show that Tanzania has taken serious measures

towards exploiting opportunities by creating a policy enabling environment. However, the

measures have not that much achieved the expected results to its desired level due to the

persistence of targeted challenges in the sector. The persisting challenges are reflected in

the form of lack of expected benefits and failure to develop policy options for making the

investment environment supportive for all actors in the sector, hence failure to use mineral

wealth sustainably for growth and poverty reduction for the benefit of all. In terms of

compliance for sustainable mining practices, results show that consultation for views on

issues, publication of anticipated effects and benefits in communities were positively

attained by the mining company. However, it was also evident that the mining companies’

operations largely affected the qualities of water, soil and air within operation areas. There

was also less compliance with better practice on issues of noise reduction and

employment of a work force from the local communities. While the community perceived

a positive response on social accountability measures, the community response showed

less compliance regarding the degree of achievement in practice. Additionally, the

practices towards the restoration of degraded land were also negatively explained.

Consequently, this created negative attitude in the community on informed ultimate goal

for enhanced sustainability. While in some instances these challenges were attributed to

the mining company’s less compliance practices to the system of governance, in some

cases they were associated with government’s inability to effectively implement, monitor

and enforce the existing regulatory framework. The study concludes that key aspects for

assured sustainability in areas with large mining operations should be determined in

legally responsible and socially equitable ways for secured community livelihoods

resources in areas affected by mining operations even after mine closure. Consequently,

the study calls for improvement of large-scale mining companies’ compliance with respect

to policy, legal and regulatory frameworks particularly where policy gaps have resulted

into poor practices in terms of accommodating not only the country’s interests but, also

communities’ in areas with large-scale mining operations. Therefore, the critical

contribution of this study is the ability to add on to the existing literature knowledge with

regard to the state of compliance of large-mining companies to the regulatory framework

for improved local livelihoods on the basis of local community perspectives in the

Tanzania’s mining sector using Buzwagi gold mine as a case study. This is especially

important towards realization of the efforts underway by the fifth phase government of

Tanzania (2015-2025) which are aimed at increasing the contribution of the sector to the

country.