Lessons From Tanzania’s Mining Sector For Ghana

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.

Frank Charles Limo

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

Illegal Mining is a major challenge in Ghana’s mining industry

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.

Nestor Selestine Sillayo (middle) busy sorting gems at the gemological Tranining Center  caption

one of the mining sites of the large scale miners

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

Are Environmental Agencies Weak?

What would be your answer if I asked for your thoughts on the Ghana Environmental Protection Agency? Is it strong and independent enough to enforce the laws it is mandated to?

Well your answer could be a yes or no.

Maybe the views of a well-known environmental and a natural resources lawyer in Tanzania would help you make a better decision.

According to Dr Rugemeleza Nshala who was speaking to Journalists from Ghana, Tanzania and Uganda during an oil and gas training programme in Dar Es Salaam, Tanzania “most of environmental agencies are very weak”

He observed that the environmental agencies, lack the required independence and staff as well as resources to enforce laws.

“They are easy to manipulate and see themselves as governmental bodies required to give effect to government wishes, “ said the man who has written numerous articles on various environmental and natural resources and land issues in Tanzania and beyond. 

“They have country’s mandate yet they are based in capital cities and are unable to reach and monitor petroleum activities in the entire country.”

I guess you are wondering if he made any suggestion on how this could be change. Yes, he sure did.

To change the statue, Dr Nshala urged civil society to get involved  in the enforcement of environmental laws. 

“CSOs must step in to demand accountability and monitor environmental agencies and oil companies activities,” he said and called on Civil society to bring lawsuits against environmental agencies and oil companies for environmental pollution or against any exploitation.

To the man who has immense knowledge on international investment law with expertise in extractive industry in Sub-Saharan Africa, it is time to demand institutional strengthening and independence of environmental agencies to ensure that they assume and perform their tasks as per the laws.

 By Emelia Ennin Abbey 

Journalists Attend Water Financing Workshop In Abidjan

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A FIVE-DAY workshop on water financing for thirty journalists from 11 West African Countries has opened in Abidjan, Cote d’Ivoire.

The workshop organised by the Global Water Partnership for West Africa in collaboration with the Central and West Africa Programme of the International Union for Conservation of Nature is expected to build the capacity of the journalists and help them understand the financial needs of different activities in water sector.

The workshop themed “ Financing and protection of the resource in West Africa”, would help the participants learn about the conditions of application of economic tools for natural resource management  and also sensitise the media on the economic tools for sustainable management of natural resources, such as payment for environmental services.

Participants would also consider the need to create a multi-stakeholder response to the financial needs of different activities in the water sector, with a view that water resources are used and managed in a fair and sustainable way to reduce poverty, ensure socio-economic development and regional integration and environmental projection.

Speaking at the opening of the workshop, Ndri Koffi, representative of the Global Water Partnership West Africa noted that fact that water was life and that “protecting it is an individual and collective obligation”.

Maxime Somda, Regional Coordinator of Poverty Reduction and Environment Management at the International Union for Conservation of Nature (IUCN) stated that there was growing demand on the limited water resources.

He said some of the risk related to water in the West African region include too much rain fall which resulted in floods, frequent droughts, conflicts over water, water borne diseases, exploitation of water for hydropower, irrigation or ecotourism, among others.

Citing the activities of mining companies and industries, he said

“people who pollute water must pay a fine. There are companies who dump waste in water bodies or chemicals they use in their production activities end up in water resources and that deteriorates the quality of water and we sometimes see dead fishes”.

He also pointed out that the challenge of climate change was also threatening water resources quality and quantity in recent times.

Tozan Micheal, Director of the Cote D’Ivoire Ministry of Water Resources and Forestry said his country was developing a national policy to ensure sustainable water management and protection of water resources.

 From Emelia Ennin Abbey, Cote d’Ivoire

 

$300,000 For Novel Water Projects

The African Water Association says it has received a $300,000 from the USAID to fund innovative water projects on the continent.

Young professionals, who will promote ground-breaking projects, intend to reduce water-related problems and address water loses experienced by water companies on the continent.

Sylvian Usher, General Secretary of the African Water Association, made this known in Abidjan at an on-going five-day workshop on Water Financing and Protection of Water Resources in West Africa.

Approved projects will each receive between $2000 and $10,000 and the money would go to the national water company in that country for disbursement to any young person who comes up with such a project.

“The programme is for youth between 18 and 35 years. They must be professionals in the water sector either working with a ministry or water agency in their respective countries. Youth studying in the water sector can also come forward.  Because we do not want the money to go to some individuals, we want them to belong to a national committee that would coordinate the projects, We see a lot of enthusiasm from the youth.”

So far, countries such as Senegal, Mali, Togo among others have established national committees.
He therefore invited countries, which have not set up the national committees to do so, as the programme is aimed at addressing water problems.

“Ghana is yet to submit its youth constitution on the project. And we know that there are a number of promising youth who will come up with very good projects.”

He noted that there are about 900 million people on the African continent, who do not have access to water while 600 million people have potable water.

He said Uganda, Kenya, South Africa and Kenya were the first three countries to set up national committees.

“But we have about eight national committees now, most of them from West Africa and we hope that we will kick off when we have about 10 countries.”

It is hoped that in February 2014 during the African Water Forum slated for Abidjan, the proposals would be approved.

He said out of 55 countries on the continent only 35 are members of the association.
“We want to cover the whole continent and I urge countries which are not members to come on board.”

 

 By Emelia Ennin Abbey

Paying Water Bills Without Recieving Service

Cisse Hamma, is a 60-year-old man who lives at Houphouet Boigny, a community in the Koumassi Municipality of Abidjan, Cote D’Ivoire, the third largest settlement of the country who has been trying for months to get the local water company to stop sending him bills.

The old man who is a member of the Koumassi Municipal Council, located about five minutes’ drive from the airport and the business centre of Cote D’Ivoire popularly referred to as Plateau, does not understand why he receives monthly bills from SODECI, the company with monopoly over supply of water in the urban parts of the country “even though my tape is always dry.”

Like most residents in the Houphouet Boigny community which was named after the first president of Cote D’Ivoire, who have subscribed to water supply at a fee, Mr Hamma’s tap has been dry over the past six months.

Stand pipes with no water flowing through them is a common site in the densely populated Houphouet Boigny community where residents have to depend on neighbouring communities for water.

“I paid money to SODECI, the water company to be connected to potable water supply system and to help me get easy access to water in my home,” said the unhappy man, “but now I can see that the money was a waste.”

Because water has not been flowing through the tap of the 60-year –old man for the past months he is compelled to give his wife and children money which they intend use to buy water from a distant community.

“I have to buy water,” he said “and yet at the end of the month a receive water bills and then I have to go to the office and pay.”

Depending on the reading of the water meter which has been fixed in front of the house of Mr Hamma by SODECI, he pays a monthly tariff of 2000 CFA and 3000 CFA an equivalent of about $3 and $4.

“The SODECI officers come and read the meter all the time and they bring me a bill which they expect me to pay even though they know they have not provided me with water for some time now,” said the angry man who further states that “when you complain their only excuse is that they have a maintenance problem”.

Mr Hamma explains that the Houphouet Boigny community has not experienced regular water supply since it was connected to the main water system.

Before the taps became dry “the water was only flowing at mid night sometimes and it only flows for a few hours.”

As a result of this, Mr Hamman said residents had no option than to keep watch because there is no schedule or information from SODECI on when water should be expected.

“So we leave our taps on and also keep wake to get a few buckets of water.”

Teilo Serablun, a retiree living in quartier zero cinq another community in the Kuomassi Municipality complained about the high water bills even though there is no regular supply of water.

The man who is also the leader of quartier zero cinq said the residents have no option than pay the high tariffs because “if you do not pay the company will disconnect you from the system and take away the meter.”

He explains that residents want to avoid the instance of being disconnected because of the consequences of paying another huge amount to be reconnected when your meter is taken away.

Kouadio Aboa, first Deputy Mayor of the Kuomassi Municipality confirms that access to potable water is one of the biggest challenges of the over 500,000 residents.

He said most of the communities are not connected to the water system and they have to depend on the other communities which have water even though there is always water shortage.

He explained that the provision of water is in the hands of the government which had entered an agreement with a private water company SODECI to supply the water on its behalf. “The annual 250 million CFA budget support from government is meant for investment project and not for water,” he said.

“It’s a worry to see women getting up early in the morning and walking long hours to get water for the home while children have to miss school hours because of lack of water but we do not have the means,” the man who is only a few months old in office stated.

“We hope more financing would be committed to the provision of water facilities and the supply of water to domestic homes.”   

Gosso Francios Olivier, Director of Production at SODECI, the water company responsible for the supply of water in urban settlements like Kuomassi, said the demand of water is soaring while the facilities which were installed since 1980 but has seen little upgrading does not have the capacity to meet the growing demand.

He said his company has the capacity to produce water for 65 per cent of the entire Abidjan population but it currently able to serve 52 per cent of its subscribers representing about 380,000 households.

Last year, he said the company produces a total of 140 cubic meters of water from its underground water sources.

The water is sourced from 80 meter deep from underground and with the help of pumps and pipes of about 140 millilitres diameter water is propelled into four large opened treatment tanks where chemicals are added as part of the purification process.

After this the water is then filtered and then pumped into similar large tanks which are covered.

Finally, the water goes through testing in a laboratory to ensure it is safe to drink and when the scientist gives it a nod 200 cubic meters of water is pumped every hour though electricity powered structure through a transmission system to the final consumers.

Currently the company produces 19,000 cubic meters of water daily from 90 drilling wells spread across urban centre.

Mr Gosso said an analysis carried out has indicated that there is between four and five billion cubic meters of water underground yet to be taped.

“We have no water resource problem. As a country we have the water bodies and underground water the problems lies with how to mobilise enough funds to put in place the facilities and processes to ensure the people get drinkable water,” said Mr Gosso when he toured journalists around a water treatment plant in Djibi, Abidjan which he said cost 20 billion CFA to put up.

Kantamanto Traders Scramble For Stalls

There was confusion at the Odawna Pedestrian Shopping Mall near the Kwame Nkrumah Circle as hundreds of traders affected by the recent fire at the Kantamanto Market invaded the previously deserted market.

The scramble for space was characterized by verbal exchanges and sporadic exchange of blows by men and women.

According to reports, the affected traders, who were armed with hammers, shovels, cement blocks, ply woods, tables, chairs, cloths and other materials, the affected traders, moved to the Odawna Market to secure sheds.

The traders, who mostly sell second-hand clothing, foot wear, belts, ear rings, accessories, cosmetics dealers, clashed with each other in their bid to secure wooden stalls constructed by the Accra Metropolitan Assembly (AMA) at a cost of over GH¢2 million at the Kwame Nkrumah Circle.

In 2007, when the project, which was jointly sponsored by the central government and the Assembly, was completed, it had space to accommodate over 4000 traders but a portion was occupied while a large area, popularly called ‘Tuobodom by the traders, was deserted.

When CITY & BUSINESS GUIDE visited the Odawna Market yesterday, it was revealed that some traders at Kantamanto Market, who previously purchased some stalls, had abandoned them.

After several announcements, a source close to the AMA, who spoke to the paper on condition of anonymity, noted that “the stalls were reallocated, but the stalls at the Tuobodom areas have still not been occupied by their owners who either had shops in the Central Business District or were traders at Kantamanto and other places.”

As a result of this development, there was disorder at the Odwana Market as some owners struggled for stores.

Elizabeth Owusu, a second-hand underwear and cloths dealer, who claimed to have document covering one of the shops, told the paper that she lost her wares in the inferno at Kantamanto.

“I was informed that government intends to rebuild the place but I know that would take a very long time to complete so I came here only to find out that another person is claiming ownership of my stall.”

Though she claimed she had documents, another young man, Prince Dompreh alleged that he was the rightful owner and that he could prove it.

While the fight over ownership ensured in many of the shops, other people, who had two or more shops, were busily renting out their property.

In line with this, a stall, which went for GH¢8 a month, is now being hired between GH¢15 and GH¢20 a month.

Some owners demanded GH¢300 in some cases depending on the location of the stall.

Personnel of the AMA taskforce were seen clearing the debris at the market while business was rife for carpenters, masons and electricians who were preparing the place.

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By Emelia Ennin Abbey

CSOs Debriefed On Climate Change Talks

KASA Ghana, a lead advocate in natural resources and environmental governance has organised a debriefing meeting for Civil Society Organisation on the eighteenth conference on Climate Change held in Doha, Qatar.

The conference which was held from November 26 to December 7, 2012 was attended by government officials, experts, civil society players from across the globe with a hope of reaching the climate deal the world desperately needed.

Among others, governments were to deliver a second commitment period under the Kyoto Protocol starting January 1, 2013, increase mitigation commitments, adopt a roadmap that leads to a legally binding global climate deal no later than 2015, commit financially to the Green Climate Fund and set up a framework to protect the world’s forests

Yet at the end of the talks many participants were disappointed as concrete agreements were not reached on the need to increase the speed and scale of international efforts to cut carbon pollution.

During the debriefing in Accra, the representatives of civil society organizations in natural resources and environment discussed issues brought up at the conference, evaluated the international negotiations and looked at how Ghana’s role could be increased in future.

Kyekyeku Yaw Oppong-Boadi, UN Climate Change Focal Point for Ghana and Deputy Director of the Environmental Protection Agency in a brief overview of the outcomes of the COP18 from the perspectives of the government delegation which was led by the Minster of Environment Science and technology noted that Ghana lent its support to the African ministerial team.

He explained that the support was to ensure that the interest of Ghana was reflected in the negotiations.

Mr Oppong-Boadi noted that Ghana expected balance of resources to address Climate Change to feature prominently in order to get adequate funding for projects and mitigation initiatives.

“Climate change is imparting some essential sectors such as Agriculture and we were expecting the advanced countries who are described as the Annex 1 countries to make a commitment on reducing emission of green house gases. Yet, at the end even when we asked for the commitment period to start from five years the developed countries agreed on 8 years,” Mr Oppong-Boadi said.

The Executive Director of Environmental Protection Agency (EPA), Daniel Amlalo in a speech read on his behalf urged the Civil Society Organizations to identify areas of follow up for actions to be taken for the good of humanity.

“Lots of developing countries think the negotiation did not go as expected,” he said but added that the EPA was ready to collaborate with other institutions to champion the environmental agenda.

He noted that civil society organizations played a critical role in safeguarding and protecting the environment.

The CEO of Friends of the Earth Ghana, George Awudi, who attended the conference, stated that the number of participants over the years has been reducing “and it is perceived that the importance attached to the conference is weaning.”

He attributed it to the domineering perspective of the developed countries: “At the end of the day the decisions taken and the developed countries dominate.”

Mr Duka observed that there was a lack of political will to address climate change especially on matters of green gas emissions, global warming “and we forget that African is most vulnerable.”

“Any impact of Climate Change globally affects Africans, as we are the ones who feel it most and its subsequent implications.”

Programmes Coordinator of KASA-Ghana, Zakaria Yakubu mentioned that there was the need to establish a national level partnership forum on Climate Change.

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“We need to have a Ghana position ahead of preparations to the Conference of Parties,” he said.
He also urged the CSO to come up with a programme of action on Climate Change and also track the allocation and flow of resources from both the international and national levels.
 By Emelia Ennin Abbey