Ghana has been mining gold and other minerals for centuries.
With such history in mining, you might think Ghana has little to learn from Tanzania, a relative newcomer to mining operations.
However a visit by 15 journalists from Ghana, Uganda and Tanzania, highlighted some ideas that could be replicated in Ghana.
“Life here depends on tanzanite and other activities such as agriculture and commercial activities revolve around it,” said Albert Siloli, Chairman of Merirani Township Authority during an interaction with the journalists.
“The mining of tanzanite starts by first obtaining a permit from the government and it takes less than a year to get a prospecting permit,” he said.
The process, which is rigorously applied, seems less cumbersome than what pertains in Ghana.
Justin Mirushu Nnyari, Managing Director of J. N. Mining Company Limited, explained that there are two categories of mining activities in Merirani, namely large and small scale mining.
Currently, there are three big players in the industry – Tanzanite One, Tanzanite Africa and Kilimanjaro Mining, which operate from a demarcated concession while the small-scale miners have formed an association – Merirani Tanzanite Miners to operate from their allocated concession.
Mr Nnyari told the journalists, who attended Revenue Watch
Institute’s training on oil, gas and mining in Tanzania that he was
happy the government had introduced a minerals exhibition show in Arusha
to enable miners to interact with dealers from around the world.
“This is really promoting our business but it is only once a year.”
In Ghana conferences and exhibitions on mining have been talk shows or platforms where the large scale-mining companies display the corporate social responsibility programmes.
Mr Nyari mentioned that small-scale tanzanite miners have asked government to subsidise tools used for mining such as explosives and alternators.
“We want government to waive taxes on these tools so that it can be easy for us to buy them.”
The miners, he said, are also backing the establishment of an Export Promotion Zone (EPZ) in Merirani, which would add value to the gemstone, display the prices of the world market and create employment for the youth.
“The EPZ will change the tanzanite industry in Merirani. We will push for it until we get it,” he said with optimism.
REVENUE
Gold is the highest single foreign exchange earner for Ghana while
Tanzania relies on tanzanite for most revenue and foreign exchange
earnings.
In Tanzania, all mining lands are vested in the State just like in Ghana.
Government has the mandate to withdraw the licences of miners if they break the rules.
Miners in Tanzania, as part of the prospecting stages, are required to write daily reports on their mining activities, which are forwarded to the ministry of natural resources, which also uses them to determine taxes to be paid at the end of the month.
Mostly, miners pay five percent royalty and an income tax of three percent.
For instance, Richael Josephine Njau, a 41-year-old woman has invested over 500 million Tanzanian shillings, the equivalent of $312, 500 or GH¢625,000 in her mine on a 50 meter plot of land.
Since 2002, 20 workers have dug a 600 meter deep pit but they have not found any tanzanite.
“We will find tanzanite but it is not like some time ago when it was found on the surface.”
Another mine worker, Frank Charles Limo has been digging the pit with some friends for the past three days with their hands.
Since 2002, he has been working at the mine but because they are yet to hit the production area he has not received any form of wages from his employer.
“Sometime we find other minerals and we hid them from the owner of the mine which we sell later to make a living,” he said.
Care and Safety
Because miners use explosives to break the rocks, the Tanzania law requires that after the minerals have been mined, the pits must be covered.
However, in Tanzania, a miner who fails to follow the rules has no chance of getting their licence renewed.
Benedict Gabriel Mmasi, a miner, said regular safety sensitisation programmes are held to help reduce the number of accidents and deaths.
He said based on the advice of a government geologist, they have adopted the 45 degrees digging.
“We use to record 90 to 95 deaths a year but we have had only three deaths since the beginning of this year.”
Civil Society
Elliamani Rassia, a Programme Officer for the Gender and Mining Unit of HakiMadini, a civil society organisation, explained that there are 17 groups of Tanzanian women engaged in mining.
She said, “We have little chance of mobilising the huge capital required in the industry.”
“We have been organising training programmes in leadership for the women to empower them so they can stand up and speak for themselves,” Rassia said.
Mhinda Mustafa Amani, Founder and Executive director of HakiMadini, which means ‘Justice for Minerals,’ has been fighting for reforms in the mining sector.
Since 1999, the man, who is the son of a miner, has been doing just that.
He said an estimated 1.5 million Tanzanians are engaged in the small-scale mining industry.
“They start as scavengers and then when there is a find, more people rush to the area but the government immediately takes control.”
He said a new mining law enacted in 2010 with inputs from Civil Society organisations is expected to take care of all the loopholes in the mining industry.
To totally transform the tanzanite industry, a training school has been established at Arusha to offer education to young people in gem identification, cutting and polishing.
Peter R. Salla, Director of the Gemological and Jewellery Vocational Training Center at Arusha said since 2001 over 700 people have been trained.
“We offer a six-week course for gem identification at 350,000 T. shillings ($218 or GH¢436 for people who have completed form four education.”
1,600 Tanzanian shillings is equivalent to $1.
For the past four months, Nestor Selestine Sillayo, a 19-year-old
form four graduate, has been taking part in a six month course in gem
cutting and sorting.
He said his vision is to establish his gem cutting shop to add value to the stones.
Ghana’s Challenge
Despite a remarkable history of its mineral endowment that led to the country being known in colonial times as the Gold Coast, Ghana has not seen the net impact of the mining sector on development.
Though the mining industry in Ghana is not that bleak but the activities of illegal miners who are sometimes non Ghanaians is impacting negatively on the sector.
A special committee was recently established to find solution to the menace of illegal mining and some achievements have been chalked but perhaps the approach of Tanzania in formalising its small scale mining industry could be followed.
By Emelia Ennin Abbey
With such history in mining, you might think Ghana has little to learn from Tanzania, a relative newcomer to mining operations.
However a visit by 15 journalists from Ghana, Uganda and Tanzania, highlighted some ideas that could be replicated in Ghana.
“Life here depends on tanzanite and other activities such as agriculture and commercial activities revolve around it,” said Albert Siloli, Chairman of Merirani Township Authority during an interaction with the journalists.
“The mining of tanzanite starts by first obtaining a permit from the government and it takes less than a year to get a prospecting permit,” he said.
The process, which is rigorously applied, seems less cumbersome than what pertains in Ghana.
Justin Mirushu Nnyari, Managing Director of J. N. Mining Company Limited, explained that there are two categories of mining activities in Merirani, namely large and small scale mining.
Currently, there are three big players in the industry – Tanzanite One, Tanzanite Africa and Kilimanjaro Mining, which operate from a demarcated concession while the small-scale miners have formed an association – Merirani Tanzanite Miners to operate from their allocated concession.
Frank Charles Limo
“This is really promoting our business but it is only once a year.”
In Ghana conferences and exhibitions on mining have been talk shows or platforms where the large scale-mining companies display the corporate social responsibility programmes.
Mr Nyari mentioned that small-scale tanzanite miners have asked government to subsidise tools used for mining such as explosives and alternators.
“We want government to waive taxes on these tools so that it can be easy for us to buy them.”
The miners, he said, are also backing the establishment of an Export Promotion Zone (EPZ) in Merirani, which would add value to the gemstone, display the prices of the world market and create employment for the youth.
“The EPZ will change the tanzanite industry in Merirani. We will push for it until we get it,” he said with optimism.
REVENUE
Illegal Mining is a major challenge in Ghana’s mining industry
In Tanzania, all mining lands are vested in the State just like in Ghana.
Government has the mandate to withdraw the licences of miners if they break the rules.
Miners in Tanzania, as part of the prospecting stages, are required to write daily reports on their mining activities, which are forwarded to the ministry of natural resources, which also uses them to determine taxes to be paid at the end of the month.
Mostly, miners pay five percent royalty and an income tax of three percent.
For instance, Richael Josephine Njau, a 41-year-old woman has invested over 500 million Tanzanian shillings, the equivalent of $312, 500 or GH¢625,000 in her mine on a 50 meter plot of land.
Since 2002, 20 workers have dug a 600 meter deep pit but they have not found any tanzanite.
“We will find tanzanite but it is not like some time ago when it was found on the surface.”
Another mine worker, Frank Charles Limo has been digging the pit with some friends for the past three days with their hands.
Since 2002, he has been working at the mine but because they are yet to hit the production area he has not received any form of wages from his employer.
“Sometime we find other minerals and we hid them from the owner of the mine which we sell later to make a living,” he said.
Care and Safety
Because miners use explosives to break the rocks, the Tanzania law requires that after the minerals have been mined, the pits must be covered.
However, in Tanzania, a miner who fails to follow the rules has no chance of getting their licence renewed.
Benedict Gabriel Mmasi, a miner, said regular safety sensitisation programmes are held to help reduce the number of accidents and deaths.
He said based on the advice of a government geologist, they have adopted the 45 degrees digging.
“We use to record 90 to 95 deaths a year but we have had only three deaths since the beginning of this year.”
Civil Society
Elliamani Rassia, a Programme Officer for the Gender and Mining Unit of HakiMadini, a civil society organisation, explained that there are 17 groups of Tanzanian women engaged in mining.
She said, “We have little chance of mobilising the huge capital required in the industry.”
“We have been organising training programmes in leadership for the women to empower them so they can stand up and speak for themselves,” Rassia said.
Mhinda Mustafa Amani, Founder and Executive director of HakiMadini, which means ‘Justice for Minerals,’ has been fighting for reforms in the mining sector.
Since 1999, the man, who is the son of a miner, has been doing just that.
He said an estimated 1.5 million Tanzanians are engaged in the small-scale mining industry.
“They start as scavengers and then when there is a find, more people rush to the area but the government immediately takes control.”
He said a new mining law enacted in 2010 with inputs from Civil Society organisations is expected to take care of all the loopholes in the mining industry.
To totally transform the tanzanite industry, a training school has been established at Arusha to offer education to young people in gem identification, cutting and polishing.
Peter R. Salla, Director of the Gemological and Jewellery Vocational Training Center at Arusha said since 2001 over 700 people have been trained.
“We offer a six-week course for gem identification at 350,000 T. shillings ($218 or GH¢436 for people who have completed form four education.”
1,600 Tanzanian shillings is equivalent to $1.
 |
| Nestor Selestine Sillayo (middle) busy sorting gems at the gemological Tranining Center caption |
 |
| one of the mining sites of the large scale miners |
He said his vision is to establish his gem cutting shop to add value to the stones.Ghana’s Challenge
Despite a remarkable history of its mineral endowment that led to the country being known in colonial times as the Gold Coast, Ghana has not seen the net impact of the mining sector on development.
Though the mining industry in Ghana is not that bleak but the activities of illegal miners who are sometimes non Ghanaians is impacting negatively on the sector.
A special committee was recently established to find solution to the menace of illegal mining and some achievements have been chalked but perhaps the approach of Tanzania in formalising its small scale mining industry could be followed.
By Emelia Ennin Abbey
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