Mining firms: Make communities the target for bulk of CSR funds

By Polycarp Machira , The Guardian
Published at 06:00 AM Aug 20 2024
Miners
Photo: File
Miners

MINING firms should be allowed to directly implement corporate social responsibility projects instead of merely giving money to district councils, their umbrella organisation has suggested.

John Bina, the president of the Federation of Miners’ Associations in Tanzania (FEMATA), issued this position at a meeting of mining sector stakeholders here at the weekend, convened by the government.

He said there are disagreements on the need to have local government authorities be handed 60 percent of the CSR funds and the community where mining takes place obtain 40 percent of the funds.

FEMATA wants the nearby community to be provided with 60 percent and the LGAs to obtain the 40 percent cut as district councils have other sources of income, the federation president noted.

Mining stakeholders appealed to the government to review the Mining (Corporate Social Responsibility) Regulation 2023, saying its application in some mining areas is inappropriate.

Dr Stephen Kiruswa, the Minerals deputy minister, said at a stakeholder meeting here at the weekend that operators holding mining licenses have appealed for a review of contentious clauses in the regulations. 

Some mine operators have made informal changes in the regulations that came to force mid last year, as on 23 June 2023, the minister) published the regulations via Government Notice No. 409 of 2023.

The regulations institute procedures for holders of mining licences, who can be individuals or entities holding rights to exploration or mining, thus encompassing prospectors, gemstone prospecting, mining, processing, smelting and refining.

The regulations affirm that those holding rights to minerals are required to set out an effective corporate social responsibility plan for improving the community environment in which they operate.

Any envisaged plan must be jointly agreed with the relevant local government authorities in the area, such that projects proposed in the plans be deliberated upon by ward development committees in a joint meeting with the mining sector entity.

The proposals are similarly required to be submitted to the relevant district, town, municipality, or city council for extensive review by October, three months into the start of a new financial year.

At the stakeholders meeting involving members of the relevant parliamentary committee, district council chairmen and district commissioners, the deputy minister said the meeting was intended to get views on how to improve the regulations.

He said that the government formulated the regulations to provide guidelines on the sums involved or feasible projects by mining companies to communities as social responsibility.

The intention is to facilitate cooperation between the communities and the companies in respective mining areas, but implementation has raised complaints and disagreements between mining firms and district councils.

Mining projects where the relevant company is not operating fail to carry out demands of the regulations, thus the plea for review, he said.

After receiving the call for review, the minister promised to convene a stakeholders meeting to get usable opinions on how to improve the regulatory setting, he added.