2015 Volume 24 Issue 1 Pages 123-134
The purpose of this article is to examine a case of artisanal and small-scale gold mining (ASGM) in Tanzania and discuss structural factors that cause difficulty of shifting informal Artisanal and Smallscale Mining (ASM) into the formal sector.
ASGM activities are operating in the informal sector in many cases, causing environmental degradation, health and safety problems, and child labor issues as well as government's loss of incomes through royalties and taxes. The government therefore has recognized significance of supporting ASGM so as to control these problems. Support to ASGM is significant not only to control the problems but also for economic and social development since many Tanzanian people depend on ASGM activities. The government thus has integrated supporting measures for ASGM into its mining policies and poverty reduction strategies. However, there is no evidence so far that the implementation of the policies and strategies has had significant impacts on formalization of the ASGM.
It is in this context that the article discusses two factors behind the informal ASGM from legislative and administrative perspectives. From a legislative perspective, ASGM operators could be indecisive to abide by the Mining Act (2010) since legal requirements incurred in the process of and after acquiring Primary Mining License (PML) become hurdles. From an administrative perspective, the institutional arrangement of the government in the mining sector does not sufficiently function for identifying needs of ASM and delivering suitable services.
Meanwhile, the Mining Act (2010) and the Regulation are not a means to discourage informal ASGM operators unless they are capable of going through procedures of acquiring a PML and meeting the legal requirements in mining operations. However, the current situation is not in line with the legislative assumption. Therefore, the governmental support is essential.