Tanzania: Dar Keen on Transparency in Mining, Gas Deals

Posted on : Wednesday , 9th December 2015

According to reports published by the Tanzania Extractive Industries Transparency Initiative (TEITI) revenues earned included tax, levies, royalties and other charges. TEITI is a multi-stakeholder initiative that aims to increase transparency and accountability in the extractive industries in Tanzania.

The government is committed to the principles and criteria of the Extractive Industries Transparency Initiative (EITI), a global standard for revenue transparency and a global coalition of governments, companies and civil society organisations.

Thirty-five resource rich countries are implementing the EITI globally and have committed to disclose company payments and government receipts of taxes and revenues from the extractive sector.

Tanzania was accepted as an EITI implementing country by the EITI International Board on 16 February 2009. The TEITI-Multi Stakeholder Group (MSG) – comprised of 16 representatives from the government, companies and civil society – oversees implementation of EITI in Tanzania.

The TEITI-MSG is supported by the TEITI Secretariat which is responsible for the daily coordination and implementation of activities under the guidance of the TEITI-MSG.

TEITI reports show although Tanzania is a resource-rich country with plenty of minerals and gas deposits it was still among the world’s poorest. Tanzania posseses 12.6 tonnes of tanzanite, gold (2,222 tonnes), diamond (50.9 million carats), copper (13.65 million tonnes), nickel (40 million tonnes), uranium (35.9 million pounds), coal (1.5 billion tonnes) and over 55 trillion cubic feet (tcf) of natural gas.

TEITI which is under the ministry of energy and minerals, says 8.0 tcf of natural gas was available in onshore fields of Songosongo, Mnazi Bay, Mkuranga. Others are in Kiliwani North and Ntorya, while the remaining 47 tcf are offshore, mostly off the country’s south-eastern Indian Ocean coast.

Despite the resources there has been widespread concern over the benefits which Tanzanians get from the country’s natural resources and in response the government had from time to time set up different commissions and committees to study the situation and recommend accordingly.

The committees included the Masha Committee (2006) that was mandated to examine existing mining contracts and corresponding fiscal regime. The Bukuku Committee (2007) charged with advising on the implementation of the Masha Committee’s recommendations, which led the government to review corporate tax and large scale mines started payment of US$200,000 to local government authorities (LGAs).

The Bomani Committee (2007) collected views locally and abroad and recommended Tanzania to improve mining sector governance. Repealing the Mining Policy and Act (New Policy 2009 and Mining Act (2010) as well as legislating TEITI Act 2015.