Miners urged to work with local firms

COMPANIES in the extractive industry should put in place transparent policies to enable local firms to supply goods and services to the lucrative sector.

“Local sourcing of goods and services will link the (extractive) industry with other sectors in the economy and eventually boost economic spill-over and multiplier effects.

“Corporate social responsibility and empowerment can play a significant role in ensuring our people benefit through procurement of local goods and services,” said Vice-President, Dr Mohamed Gharib Billal.

The VP was speaking during the Presidential Awards giving ceremony for Corporate Social Responsibility and Empowerment (CSRE) in the extractive industry, in which North Mara Gold Mine was announced the overall winner.

He pushed for players in the industry to collaborate with the government and communities to create win-win situation, lest they fuel discontent and resentment.

“Extractive resources are non-renewable and it is therefore important to properly manage them to ensure a winwin situation in sharing their benefits with communities,” Dr Billal said in Dar es Salaam on Tuesday night.

During the ceremony, Dr Billal launched the Corporate Social Responsibility and Empowerment Guidelines for companies engaged in the extraction of minerals, natural gas and oil.

“If communities do not notice tangible benefits from operations conducted by companies in the industry, then it could become a source of discontent and resentment,” he said.

Dr Billal said experience shows that CSRE has been associated with the promotion of development networks for clusters and buyers and suppliers between large mining companies and small and medium enterprises.

“There is a compelling economic sense for all stakeholders to support local procurement; through strengthened local content, extractive companies stand to minimise logistics and costs of doing business, while local players will have increased access to business growth opportunities.

“The government envisages a wide range of benefits including more jobs for the local people, increased domestic and foreign investments, as well as increased government revenues and export earnings,” he observed.

Earlier, the Minister for Energy and Minerals, Mr George Simbachawene, said that Tanzania was faring poorly in local content at only 56 per cent compared to other countries in Africa namely South Africa, Ghana and Mali.

“In South Africa companies in the extractive industry procure 91 per cent of goods and services locally, while in Ghana and Mali it stand at 86 and 82 per cent, respectively,” the minister said.

A total of 59 projects were lined up for assessment of the CSRE awards during the year 2014, compared to 38 projects in the previous year. Funds dished out for the projects were estimated at 42.8bn/- during 2014 compared to 25.7bn/- in 2013.

Buswola Mining Limited scooped an award in the small-scale mining category while Songas Tanzania and Mantra Tanzania were announced winners in natural gas and oil production and mineral exploration, respectively.

Shanta Mining Tanzania scooped the medium-scale mining award while North Mara Gold Mine won the largescale category and overall winner for the awards, which were launched in 2012 and had its debut in 2013.

The overall winner was obtained after a panel of judges made an evaluation of projects undertaken by extractive companies in areas they operate.

-Daily News