Tanzania - Mineral Sector Development Technical Assistance Project

Report No. PIC1019 Project Name Tanzania-Mineral Sector Dev. Technical Assistance Project Region Africa Sector Industry, Mining and Minerals Project ID TZPA2812 Full Project Name Tanzania-Mineral Sector Development Technical Assistance Project Implementing Agency United Republic of Tanzania Ministry of Water, Energy and Minerals Mineral Resource Department P.O. Box 2000 Dar es Salaam, Tanzania Contact: Commissioner, Mineral Resource Tel: 255-51-31433 Fax: 255-51-37139 Date Prepared June 1993 Projected Board Date June 1994 Project Objectives 1. The principal objective of the project is to encourage and expand private investment in mining and other mineral based industries of Tanzania through sector policy and institutional reforms. The project would introduce a legal, regulatory and fiscal framework, which would provide a uniform, competitive and stable environment conducive to private investment in mining. The environmental management, mine safety and the mine workers' health would be improved through institutional strengthening and capacity building measures supported under the project. In addition, the project would help improve the productivity, income and social conditions of small-scale subsistence miners mostly operating in Tanzania's poverty-stricken rural areas. Description 2. The project would have three main components. (i) Legal and Regulatory Framework: The project would provide consultancies to review existing laws and regulations affecting mineral prospecting, mining rights, and fiscal, environmental and safety aspects of mining activities and to help introduce necessary amendments and changes to them. In addition, a mineral titles registration and information system would be established. (ii) Institutional Strengthening: The project would improve the organizational, manpower and logistical capacity of the Mineral Resource Department to efficiently implement the legal and regulatory framework. In addition, the project would finance the publication of about 40 geological mapsheets and improvements of MRD's mineral laboratory. A mineral investment information unit would also be established to provide both foreign and domestic investors with information on minerals, investment regimes, and sources of technology, management and investment financing. (iii) Small-scale Mining: The project  would finance collection and analysis of baseline data, demonstration of simple and environmentally-sensitive technologies and training and other capacity building support to encourage the development of small-scale miners through self-help and participatory approaches. Environmental Aspects 3. Environmental assessment Category B. The project would address the environmental problems associated with current small-scale mining activities through effective regulatory, monitoring and training measures as well as through introduction of simple technology to minimize negative environmental effects of artisanal mining. In addition measures would be introduced to improve mine safety and general social conditions in a number of artisanal mining villages. As regards medium and large-scale mining operations and future private investments, the project would strengthen the government's capacity to set appropriate industry-wide legislation and regulatory standards and effectively monitor and enforce them through improved mine inspection work. An environmental analysis of the mineral sector is attached. Implementation 4. The Ministry of Water, Energy and Minerals (MWEM) would be responsible for project implementation through its Mineral Resource Department (MRD). The Office of the Commissioner, MRD would be strengthened under the project to ensure that project activities are well coordinated both within the Ministry and with other concerned Ministries and Government Agencies. The proposed project would be executed in five years. Costs and Financing 5. Project costs are tentatively estimated at US$14.5 million with a foreign exchange component of about US$11.6 million. The IDA would provide a credit of about US$13.1 million to finance mainly the foreign costs of the project. The remainder would be financed by the Government of Tanzania. Contact Point - Public Information Centre The World Bank 1818 H Street N.W. Washington D.C. 20433 Telephone No.: (202) 458-5454 Fax No.: (202) 522-1500 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. - 2 -