Environmental Impacts of Small Scale Mining (CEEST, 1996, 62 p.) 2. Artisanal Mining Activities 2.1. Characteristics 2.2. Artisanal Operations 2.3. Small Scale Mines 2.4. Contribution of Small Scale Miners

Environmental Impacts of Small Scale Mining (CEEST, 1996, 62 p.)

2. Artisanal Mining Activities

2.1. Characteristics

The definition of small scale mining indeed differs from that of United States, Canada, Australia or even India and South America. Whereas small scale mining activities are linked with the level of investment as well as annual revenues from individual mines in most of these countries, in Tanzania, the case is slightly different. The characteristics of small scale mining can best be elucidated once a definition befitting small scale mining is established.

Williamson Diamonds Limited and Kiwira Coal Mines Limited are considered large scale mines involving large investment outlays and so are limestone quarries for cement manufacture in Dar es Salaam, Mbeya and Tanga. All other mines and quarries can be classified as small scale mines.

In accordance with the Mining Act of 1979, most of the small scale mining in the country is regulated under Part IV of the Act which categorizes them as prospecting and mining operations by methods involving very low capital investment and mining technologies which are not so specialized. In practice, small scale mining in the country spans from informal subsistence mining or artisanal mining to formally organized small mines which are privately or publicly owned.

As there are no formal mines categorized as small scale mines involved in gemstone and gold mining at the moment, the present adverse environmental effects are attributed to "artisanal" or informal mining activities. However, for the purpose of this report the words small scale and artisanal mining (or miners) are used interchangeably.

2.2. Artisanal Operations

Artisanal mining activities in Tanzania are characterized by the following factors:-

(i) Many artisanal miners are individuals or families who typically have no mining rights, no mining plans and invariably prefer to sell their products in the parallel market.

(ii) Some mine operators are in possession of legal rights entitling them to carry out mining operations. These are mainly claim holders who normally engage subcontractors to dig pits for winning ore.

(iii) Most mining is done near surface but there are many pits whose depth is in excess of 100-150 metres.

(iv) Activities are predominantly associated with high value, low volume products (i.e high grade low tonnage deposits with no proven reserves).

(v) A large cross-section of the miners are unskilled and possess no formal education, and have limited technical and financial capabilities.

(vi) Mining is undertaken haphazardly and mines abandoned in favour of areas with more potential. The risk element is extremely high.

(vii) Mining and ore beneficiation is done using the most rudimentary and backward of technologies (involving the use of picks, shovels, motor axles, wooden mortar, grinding rocks and sluice boxes). When more advanced technologies are used, which occurs to a lesser extent, one is likely to find compressors, jackhammers and the use of explosives. Pumps are a scarce commodity despite the presence of large amounts of water in the pits. This kind of technology results in inefficient mining practices and low recoveries as well as the loss of foreign exchange.

(viii) Mining communities in these areas have little or no regard for sanitation, health, or safety and have no knowledge whatsoever of the environmental hazards caused by their activities.

(ix) The positive aspects of artisanal mining include increases in rural employment and incomes, and until recently, artisanal mining was the source of major fiscal benefits to the Government - all of which stimulate the local economy. It is estimated that more than 300, 000 Tanzanian miners and their families depend on artisanal mining for part of their livelihood.

(x) Artisanal mining is a precursor to formal mining (be it medium or large scale), as it forms the first step in mineral exploration and frequently provides basic geological information to industrial mining concerns.

2.3. Small Scale Mines

This group includes small mining operations which abide to all the legal provisions and employ mechanised to semi-mechanised production with definite management and marketing arrangements. Essential features characterizing small mining operations in Tanzania are:-

(i) Basic equipment such as blast hole drilling equipment, compressors, explosives and accessories, and earthmoving equipment is used. Beneficiation machinery includes crushers, ball mills, stamp mills, jigs, and shaking tables.

(ii) Financing of such projects follows the normal pre-investment cycle preceded by proper feasibility studies.

(iii) In most cases, the hierarchy includes a Board of Directors, a General Manager and the normal line of staff.

Generally, many small mines are operated by the State Mining Corporation (STAMICO) which is a parastatal body. These include Pugu Kaolin, Minjingu Phosphate, Coastal Saltworks, Nyanza Salt Mines; and Tanzania Gemstone Industries.

Tanzania Gemstone Industries-operates on joint venture two other gemstone companies namely Longido Gemstone Mining Company and Graphtan Limited.

2.4. Contribution of Small Scale Miners

The contribution of small scale mining to the Tanzanian economy has been in the form of:-

(i) direct mineral exports;
(ii) payment Government royalty, taxes, duties and license fees; and
(iii) provision of informal employment and income to several miners and their dependants.

Table I shows the value of different minerals exported. Apart from diamonds and salt, the remaining of minerals whose worth is about US $44.0 million in exports can largely be attributed to small scale gold and gemstone miners. In the case of gold and gemstones, it is estimated that due to the existence of a parallel market, the revenues officially recorded are only 40%-50% of the actual production value.

Table 1 shows the income generated from the sale of gemstones and other minerals. Table 2 shows the gold purchases for the Lake Region alone (Geita, Musoma, Nzega and Kahama).

Table 1: Minerals Exports (Values in Million US $)

	1967	1970	1980	1985	1986	1987	1988	1989	1990	1991	1993
Diamonds	32.4	13.9	35.7	15.2	19.5	10.1	9.2	14.4	10.1	11.9	8.3
Gemstones	0.4	0.4	0.2	0.1	0.0	0.4	0.3	0.8	1.6	1.8	3.2
Gold	0.7	0.7	0.0	0.3	0.4	0.0	0.0	1.2	13.6	29.1	40.3
Tin	0.9	1.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Salt	0.4	0.4	3.0	3.6	1.4	1.6	1.8	0.5	0.9	1.5	1.0
Other	0.4	0.3	0.0	0.4	0.2	1.3	1.5	0.1	0.1	0.0	0.2
Total Mineral Exports	35.2	16.7	38.9	19.6	21.5	13.4	12.8	16.9	26.3	44.3	53.0
Total Exports	244.0	246.0	508.0	324.7	346.4	346.8	372.0	411.0	407.0	325.6	N/A
(Share of Minerals in Total Exports)	14.4%	6.8%	7.7%	6.0%	6.2%	3.9%	3.4%	4.1%	6.5%	12.6%	-

Sources: Ministry of Water, Energy and Minerals & Planning Commission.

Table 2: Raw Gold Purchased in the Lake Zone between 1990-1993 (Value in Kilogrammes)

CENTRE	1990	1991	1992	19931	TOTAL
BOT - Mwanza	562.5	979.9	451.3	89.3	2,083.0
NBC-Geita	27.7	495.8	698.5	279.5	1,501.5
NBC - Kenyatta	40.9	114.9	68.5	-	224.3
NBC - Manonga	26.0	41.5	136.7	119.1	323.3
NBC-Nzega	7.8	133.3	162.9	175.6	479.6
NBC - Tarime	73.8	512.8	655.4	151.8	1,393.8
NBC - Mukendo	122.7	156.9	72.6	32.0	384.2
NBC-Kahama	0.3	29.1	40.7	19.1	89.2
NBC-Kigoma	4.0	437.8	688.9	203.3	1, 334.0
CRDB - Shinyanga	-	47.7	286.7	161.5	495.9
TOTAL	865.7	2,949.7	3,262.2	1,231.2	8,308.8

Sources: Mwanza Zonal Mines Office & Bank of Tanzania, Mwanza.

¹Period covered: January to June 1993.