Amendment of mining laws improves local content

The Tanzania Mining Commission (TMC) Executive Secretary, Engineer Yahya Samamba said over the weekend in Dodoma Capital City that the improvements have increased the sector contribution to the Gross Domestic Product (GDP) to 7.3 percent.

Eng. Samamba unveiled the achievements in the country's extraction sector when giving a special interview to the Tanzania Information Services Department (Habari Maelezo), being part of the preparation of a special session aimed at looking at the contribution of the mining sector in empowering Tanzanians economically.

In 2017, the National Parliament, through impetus from the former president, the late John Magufuli enacted amendments for certain written laws in the extractive industry and financial laws with a view to enhancing control and compliance, ensuring maximum collection of revenues and securing national interest.

"‘Before the amendments, many mining companies were employing a number of foreign nationals even in jobs that could easily be manned by Tanzanians," he briefed.

According to him, the amendment has provided opportunities to many Tanzanians to participate in the mining economy through employment, provision of services such as food, distributing mining equipment and screening of minerals in the mining sites.

It has also triggered an impressive increase in domestic purchases, up to 92 percent, unlike before whereby domestic purchases were less than 50 percent while most of the products were being imported from abroad regardless they were available in the country.

"Currently, many of the mining companies are buying products and services from within the country and for products that are not available in the country, the companies often request permission from the Mining Commission before importing the relevant products," informed Eng. Samamba.

He further revealed that, ever before, currently many Tanzanians were holding high positions in the management of different mining companies, the vital stage that has been attained through the commission's effective management and monitoring of implementation of the set principles to ensure many indigenous are taking part in the mining sector.

Dwelling on further achievements, Eng. Samamba said that the great works being accomplished by the TMC in creating awareness towards mining stakeholders in the country have ultimately fetched useful end-results as until now approximately six million people have been employed in mining activities.

"We have also witnessed a lot of success in the improvement of community services through mineral mines, and this is due to careful attention by TMC over management of the improvement of community services carried out by mining companies, for example, significant changes have been achieved in many regions including infrastructure improvements of roads, water, construction of schools and health centers," he expounded.

Previously, he said the mining companies were designing projects without involving the citizens, but after the change in the relevant laws, the mining companies are now involving the government through councils and the citizens in the classification of projects.

He also tasked the mining companies to continue strengthening mutual relations with the community surrounding and the citizens to cooperate with the company so that their investment would be of great benefit to both sides.

"I would like to invite investors from inside and outside the country to extend their investment footholds in the country's mining industry because the government has created a good environment to ensure all investors are benefiting accordingly while the government also benefits through various taxes.