An Examination of Some Key Issues on Legal and Policy Environment in the Mining Sector After the Economic Reforms in Tanzania

Abstract

Due to the economic hardships Tanzania has been undergoing since the early 1980s, a wide-ranging reforms in numerous sectors of the economy have been instigated. These reforms aimed at overcoming such hardships in order to improve the prospects for development. This article examines some key issues on legal and policy environments in the mining sector after the economic reforms in Tanzania, it specifically:-(i) analyses the mining sector before the reforms, (ii) examines the legal and policy responses after the economic reforms; (iii) analyses how these policies and legislations have impacted the socio-economic and political aspects related to mining in Tanzania; and, (iv) identify the lessons learnt. A documentary review (documentary research method) was used in collecting relevant information. It was revealed that prior to the reforms the extent of minerals extraction in Tanzania was low, dominated by mineral sector development operations which were largely state owned and run by government enterprises. The legal and policy responses examined include the Mineral Policy of 1997, Mineral Act of 1998, Mining Act of 2010, New Investment Policy and the Tanzania Investment Act No. 26 of 1997, Mining (Environmental Management and Protection) Regulations of 1999, Natural Wealth and Resources (Permanent Sovereignty) Act, 2017; Natural Wealth and Resources Contracts (Review and Re-Negotiation of Unconscionable Terms) Act, 2017, the Written Laws (Miscellaneous Amendments) Act 2017; Extractive Industry Transparency and Accountability Act, 2015 and the Finance Act of 2017. These legal and policy responses in the mining sector were found to have both positive and negative impacts. It has been observed that reforms in the sector have not fully captured the expectations of Tanzanians. The role of mining sector in economic development and socio-economic wellbeing is very obvious; hence transforming this resource wealth into well-being remains essential matter for Tanzania’s economy. It is recommended that conducive legal and policy framework enhanced to transform mineral resources into wellbeing.