Dar Es Salaam — The World Bank last week approved $50 million to assist Tanzania manage her mineral sector.
The money falls under the International Development Association (IDA) line of credit and is intended to support implementation of the Sustainable Management of Mineral Resources Project (SMMRP) in Tanzania.
Specifically, the project will support transparency of the mining legal and regulatory framework, support the government's objective of ensuring that mining sector development and investment conforms to international good practices, adjusted to the particular conditions of Tanzania. The project will also support Tanzania's efforts to implement the Extractive Industries Transparency Initiative (EITI). Tanzania became an EITI candidate country in February.
Over the past 10 years, Tanzania's mining industry has experienced a boom in mineral exploration and mining activities. Notable developments include the commissioning of six large-scale gold mines at Nzega, Geita, Bulyanhulu, North Mara, Buhemba, and Tulawaka.
This has resulted in an increase in the country's annual gold production from less than one tonne per annum in 1998 to about 50 tonnes in 2008, making Tanzania the third largest gold producer in Africa.
Despite the success in attracting mineral sector investment, the growth has generated concerns over the level of revenue generated and captured by the government, and the broader benefits of the sector for Tanzania.
Criticisms include inadequate institutional capacity to oversee the sector, particularly in auditing investment costs, environmental and management
