Thursday, June 4, 2015

Dar gets $45m mining boost


A section of the Dar es Salaam port. PHOTO | FILE 
By KENNEDY SENELWA, TEA Special Correspondent
In Summary
  • The loan will support poverty-reduction through the development of a viable domestic mining industry that will spread its benefits to poor areas where artisanal and small-scale mining takes place.
  • Country director for Tanzania Philippe Dongier said the project will focus on technical, financial, organisational and environmental constraints of artisanal and small-scale mining (ASM) through a partnership arrangement for enhancing co-operation between artisanal and industrial miners.
The World Bank has approved a $45 million loan for Tanzania’s mineral sector.
The loan will support poverty-reduction through the development of a viable domestic mining industry that will spread its benefits to poor areas where artisanal and small-scale mining takes place.
Country director for Tanzania Philippe Dongier said the project will focus on technical, financial, organisational and environmental constraints of artisanal and small-scale mining (ASM) through a partnership arrangement for enhancing co-operation between artisanal and industrial miners.
The project covers effective integration of corporate social responsibility functions of industrial mining companies into the budget planning processes of local government. 
“Additional financing will build on success of the ongoing Sustainable Management of Mineral Resources Project, which has strengthened government capacity to manage the sector,” said Mr Dongier.
According to the World Bank, Tanzanians have increasingly turned to artisanal mining of small and medium-sized gold, copper, silver and other mineral deposits as a source of income.
People were first driven to ASM as an alternative livelihood during the economic decline, following the demise of state control and ownership of productive sectors in the 1980s.
From 1987 to 1997, ASM accounted for almost the entire output of gold, copper and silver. The trend reversed in late 1990s with massive inflows of foreign direct investment in large-scale mining.

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