Mining investors told to pay owner’s rights


Mineral prospectors and investors were on Thursday directed to respect surface rights holders and compensate them even after acquiring mining rights from the ministry.

Deputy Minister for Minerals and Energy, Mr George Simbachawene

Deputy Energy and Minerals Minister, Mr George Simbachawene, told the National Assembly here that investors must respect surface rights and adequately compensate owners.

He said surface rights holders have legitimate claim on their respective piece of land, cautioning that there was no place in the country that was open with no one owning it.

He was responding to Kilolo Member of Parliament (CCM), Prof Peter Msolla, who claimed that Kastan Mining Limited, a mining company with a 36-month prospecting limestone mining licence no 6528/2010 of 2010 for 36 months in Vitono village in Kilolo District, has been carting high quantities of mineral and taking it to unknown destinations.

The MP wanted to know how far the exploration had gone and how the local people in the village and Kilolo District as a whole would generally benefit.

Mr Simbachawene said in response that the company’s licence, which encompasses a size of 198.8km, had its life span ending in August, this year.

He added that the exploration took place – only that it did not go to the extent of embarking on actual mining.

The deputy minister told the House that since the investor’s licence elapsed after which he did not return to the ministry to extend it; the area is currently under the licensing authority for four months after which it would be open for other prospective investors to apply.


He also said the ministry has offered four mining licences in Vitono village to Mr Salim Abdallah Zagar. Through the mining, he said the government has been able to get 977.63 US dollars as royalty, which includes 25 per cent as fine for delay in payments when they sold 896 tons of limestone.

Mr Simbachawene explained that the direct benefits to the village included jobs for the youths. He asked the companies to get involved in social causes of the areas they operate, including paying service charges of 0.3 per cent of their turn over to Kilolo District Council.

He said Licences for mining are issued in accordance with Mining Act of 2010 which also takes into consideration other legislations like the Land Act Number 2 of 2004, Environmental Conservation Act, Water Resources Act which should provide the guideline when applying for mining licences.

He said the Ministry of Energy and Minerals has opened offices in different districts, with the aim to improve communication and cooperation between the government and local government authorities.

“More offices will be opened in places lacking the facilities. The Mining Act of 2010 requires all applicants, both small and large scale to present to the minister the entire compensation and resettlement plan of the displaced residents to pave way for mining activities,” he said.

He said effective communication between the central government and local authorities would enhance authorisation of mining activities after compensation is accomplished.

By ORTON KIISHWEKO, Tanzania Daily News

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