SMALL SCALE MINING TECHNIQUES

MN 377

Class Hours:
Tuesday 1200-1400hrs ; PB08
Wednesday 1400-1500hrs ; A206

Course Assessment:
Mining part… 60% (1 Test 40%, 1 Assignment 10% AND
Random Quizzes 10% )

Mineral Processing part..40%

No UE

Units
3 units
SMALL SCALE MINING TECHNIQUES
MN 377
Map showing location of major deposits in Tanzania
SMALL SCALE MINING TECHNIQUES
MN 377
Map showing location of major mines and projects in Tanzania
Artisanal and small scale mining
definition

There is a lack of internationally agreed

definition of artisanal and small-scale mining:
However country-specific explanations do exist,
reflecting locally relevant situations and
development processes.
 Artisanal and small scale mining
definition
Small-scale mining in developing countries is defined by subjective criteria, some of which
characterize this sector as a craft-activity:
 the absence or low degree of mechanization due to a high proportion of heavy manual labor,
 low safety standards,
 poorly-trained personnel,
 lack of technical personnel in the plant, resulting in deficient planning in both mining and
processing activities,
 comparatively poor utilization of resources due to nonselective mining of high-grade ores and
poor recovery,
 low pay scale,
 low work productivity,
 periods of non-continuous mining, as a result of mining only seasonally or when world market
prices reach a certain minimum level,
 insufficient consideration of environmental impact
 chronic lack of capital,
 some illegal operations due to mining without concession rights.
Cont.

 A commonly made distinction is that:

 Artisanal miners are often defined as those
who employ manual, low technology mining
conducted on a small scale (World Bank, 1995).
They are often considered illegal.

 Small scale miners on the other hand can

have some degree of mechanisation, have a
legal licence and/or are organised in some
form of mining association (D’Souza, 2002;
Quiroga, 2002).
 Cont

Priesta et al,1993
 The criteria used here are cost of investment (less
than 1,000,000USD)
 Number of employees (up to 100 employees)
 Crude ore production rate (less than 100,000t/a)
 Annual sales
 Size of the mining concession
 Amount of reserves
 Or a combination of these individual criteria.
Cont.

At the national level in different countries, criteria

for identifying artisanal and/or small-scale mining
are usually tied to the legislative system
 Cont.

 Having a definition of AS Mining at country level is

important to focus on the specific needs of artisanal
and small-scale miners as compared to large scale
miners
 At present, Tanzania does not have an official
definition of artisanal or small-scale mining, despite
extensive coverage of the sector in both the Mining
Policy and Mining Act. In accordance with the Mining
Act, 1998,(now replaced by Mining Act 2010 and
2017 ammendments) a small-scale miner is the holder
of a mineral right through a Primary Mining Licence
issued by the Commissioner for Minerals with an
investment capital less or equal to $100,000.
 Contribution to the National income and
poverty alleviation in Tanzamia

 Provides direct employment to over 600,000 people

 Contributes up to the national GDP
 Provides indirect employment to many others eg
Local ball mill fabricators, mama lishe etc
THE MINERAL POLICY 1997
A policy is a basic principle by which a government is guided, or
declared objectives that a government or party seeks to achieve.
Introduction
1. Since 1980s, Tanzania undertook structural economic reforms
aimed at promoting socio-economic development.
Following these reforms the Mineral policy 1997 was formulated

2. In the MP1997 the role of the Government had shifted from sole
owner and operator of mines to remain the
a) regulator,
b) formulator of policy, guidelines and regulations;
c) promoter and facilitator of private investments in the mineral sector.
 MINERAL SECTOR OVERVIEW (cont’d)

MINING PERFORMANCE (1997 Vs 2010) I,e before Mineral policy 1997 to end of life of
application of 1997)

1997 2010
Mineral exports (USD million) 26.66 1,508.71
Sector growth (at 2001 prices) 7.7% 10.7%
Employment in Large SM - Direct 1,700 13,000
- Indirect 35,000 260,000
Government revenue from LSM (USD million) 2 78
Contribution to the GDP (at 2001 prices) 1.4% 2.7%
Foreign Direct Investment (USD billion) 1.3 > 2.5
Small Scale Miners < 20,000 > 600,000
 THE MINERAL POLICY OF TANZANIA 2009

 The Mineral Policy of 2009 was formulated as a result

of an evaluation conducted during the ten years of
implementation of the Mineral Policy of 1997. The
Mineral Policy of 2009 aims at strengthening integration
of the mineral sector with other sectors of the economy;
improving economic environment for investment;
maximizing benefits from mining; improving the legal
environment; strengthening capacity for administration
of the mineral sector; developing small scale miners;
promoting and facilitating value addition to minerals;
and strengthening environmental management.
 THE MINERAL POLICY OF TANZANIA 2009

5.6 Development of Small Scale Mining

Issue: Effective Development of Small Scale Mining.
Since 1997, the Government has taken efforts to formalize artisanal
miners into small-scale miners and provide extension services. Despite
these efforts, the contribution of small-scale mining to the economy is
insignificant. This is due to the use of inappropriate technology and lack
of capital. The Government is still committed to support small scale
mining through provision of supportive extension services and
establishment of mechanisms for accessing capital.
Objective: To support and promote development of small scale
mining so as to increase its contribution to the economy.
THE MINERAL POLICY OF TANZANIA 2009

Policy Statement
 THE MINERAL POLICY OF TANZANIA 2009

5.7 Development of Gemstone Mining Industry

Issue: Contribution of gemstone mining industry in socio-
economic development.
Tanzania is endowed with varieties of gemstones, which can
make significant contribution to socio-economic development of
the country. To fully exploit the gemstone resources and
maximize their contribution to socio-economic development,
increased involvement of Tanzanians in gemstone mining is
vital and will be supported. Tanzanian investors will however
need access to adequate capital and modern technology to
invest in gemstone mining.
Objective: To facilitate, support and promote increased
participation of Tanzanians in gemstone mining.
 THE MINERAL POLICY OF TANZANIA 2009

Policy Statement
 Specific strategies put in place by the
Government
 7.1 Government as Regulator
(i) Strengthening economic and financial policies to
encourage private sector participation and sustain
investments in the mineral sector;

(ii) Administering the Mining Act and Regulations, including

occupational health and safety; environmental
protection and management; collection of revenue;
monitoring of the sector; and issuing of mineral rights
and mineral trading licenses; and

(iii) Building institutional capacity to effectively administer

the mineral sector.
 Specific strategies put in place by the
Government
 7.2 Government as Promoter and Facilitator
(i) Creating conducive environment for investment in the mineral sector;

(ii) Initiating and coordinating consultative mechanism amongst

Government, private sector and other institutions for development of
the mineral sector;

(iii) Carrying out basic geological mapping and maintaining updated

information of the mineral resources potential for promotion and
development of the mineral sector;

(iv) Providing guidance to investors and facilitating communication with

other relevant institutions; and

(v) Strengthening co-operation amongst higher learning and research

institutions and investors to foster development of the mineral sector.
 Specific strategies put in place by the
Government
 7.3 Government as a Service Provider
(i) Strengthening and coordinating technical service
programmes for small scale miners;

(ii) Strengthening Government institutions responsible for

providing technical and geological services;

(iii) Strengthening capacity of Government institutions

responsible for administration of the mineral sector to
offer extension services to small scale miners; and

(iv) Providing education and information of the mineral

sector to the stakeholders and the general public
 MINING ACT 2010

LEGAL FRAMEWORK AND REGULATORY

MECHANISM TO SUPPORT AND
FACILITATE SUSTAINABILITY OF ASM
 PART IV
MINERAL RIGHTS

The maximum area for which a mineral right may be

granted shall be prescribed and for that purpose the
Regulations may prescribe different maximum areas for
different minerals and in respect of different mineral
rights
 Licences and Licensing
Authority

• Special Mining Licence

• Mining Licence
• Retention Licence
• Smelting and Refining Licence
• Prospecting Licence
• Processing Licence
• Primary Mining Licence
• Dealer Licence
• Broker Licence
All licences will be issued by the Mining
Commission
 DIVISION A

Prospecting Licence and Retention Licence:

 i) PROSPECTING LICENCE
A prospecting licence is a permit issued to allow for
mineral exploration.
1. An application may be made for minerals falling
under any of the following groups:
(a) metallic minerals;
(b) energy minerals;
(c) gemstone excluding kimberlitic diamond;
(d) kimberlitic diamond;
(e) industrial minerals; or
(f) building materials.
 Cont.
(2) An application for a prospecting licence
including an application in respect of land in an
area reserved for applications by tender for
prospecting licenses shall be made in the
prescribed form and accompanied by the
prescribed fee.
NB (All requirements are prescribed in part IV
Division A of the Mining Act 2010)
 ii) RETENTION LICENCE
The holder of a prospecting licence other than a prospecting
licence for building materials or gemstones may apply for the
grant of a retention licence on the grounds
that –
(a)he has identified a mineral deposit within the
prospecting area which is potentially of commercial
significance; and

(b)the mineral deposit cannot be developed immediately

by reason of technical constraints, adverse market
conditions or other economic factors which are, or
may be, of a temporary character
 Cont.
(2) An application for a retention licence
shall be accompanied by studies and
assessments by appropriate independent
experts or consultants acceptable to the
Mining commission on-

(a) the extent, prospects for recovery, and

the commercial significance of the mineral
deposit, and the relevant market conditions,
trends, technical and economic factors;
 cont

(b) the impact of mining operations for the recovery

of the mineral deposit on the environment and the
manner of eliminating or minimizing any adverse
effects; (EIA) and

(c) such other information as the commissioner

may
reasonably require as to the proposals of the
applicant for the retention and development of the
deposit.
 cont
(3) A retention licence may be granted for a
period not exceeding five years and on such
conditions for the preservation of the mineral
deposit and the protection of the
environment
(4) Where the commercial development is not
presently possible, a retention licence may, on
the application of the holder, be renewed for a
single period of five years
 DIVISION B

Special Mining Licence and Mining Licence :

 (i) Applications for Special Mining
Licence and Mining Licence
(1) An application for a special mining licence shall be in the
prescribed form and shall be accompanied by the prescribed
fee.

(2) In addition to all other requirements prescribed in the

mining act 2010 an application by an entitled applicant shall
identify the relevant prospecting licence or, as the case may
be, retention licence and provide a full description of the land
within the prospecting area or retention area for which the
special mining licence is sought and a plan of the proposed
mining area drawn in the manner and showing particulars as
the Commissioner may reasonably require.
 cont

A special mining licence granted to an entitled

applicant shall be for the estimated life of the
ore body indicated in the feasibility study report,
or such period as the applicant may request
whichever period is shorter.

Max sixe is 70 KM2

 (ii) Mining Licence
(1) An application for a mining licence for minerals
shall be made to the Mining Commission in the
prescribed form and shall be accompanied by the
prescribed fee.
(2) Every application under this section shall-
(a) identify the relevant prospecting licence;
(b) describe the area, not exceeding the maximum
area prescribed over which a mining licence is
sought, and shall be accompanied by a sketch plan
in sufficient detail to enable the Commissioner to
identify the area;
(c) describe the mineral deposits in the proposed
area
 cont.
• The maximum initial period for which a mining
licence may be granted is ten years but the
licence may be renewed .Application for
renewal should be directed to the
Commissioner not later than six months prior
to expiry date of the licence.
Maximum size is 10 KM2
 DIVISION C:
PRIMARY MINING LICENCE
 Application for Primary Mining
Licences
(1) Any person not disqualified ., may
apply to the Commissioner for the grant of a
primary mining licence.
(2) Every such application shall-
(a) Fill in the prescribed form and accompanied
by the prescribed fee; and
(b) describe the area not exceeding the
maximum area prescribed over which the
licence is sought
 FORM NO. MRF 5
THE MINING ACT, 2010
THE MINING (MINERAL RIGHTS) REGULATIONS, 2010
APPLICATION FOR PRIMARY MINING LICENCE
The Applicant(s) hereby apply (applies)1 to the Commissioner for a primary mining
licence in accordance with Section 54 of the Mining Act 20102
1. Name, Nationality 3 and address of the applicant(s)
2. (a) Corporate Applicant: Name and Address
(b) Names and Nationality 3 of Share Holders
(c) Names and Nationality 3 of Directors
3. Type of Mineral(s)
4. Zone/District and locality of the Primary mining licence
I hereby declare the above to be true to the best of my knowledge this ………. day of
…..am/pm

Dated the……….. Signature of applicant…….

Received the above application this ……. day of ……….. at

………… am/pm.
Signature of the Authorised Officer
 FORM NO. MRF 5 (notes)
NOTES
1 The Notes and Section References in this Form are provided for guidance
only. They do not form part of the Application.

2 Under Section 55 (2) a primary mining licence is granted for a period of

seven years, subject to renewal under Section 56.

3 Under Section 8(2) a primary mining licence cannot be granted to an

individual who is not a citizen of Tanzania or to a company unless
it is incorporated under the Companies Act, Cap. 212 and
(a) its members are all citizens of Tanzania
(b) its directors are all citizens of Tanzania
(c) control over the company, both direct and indirect, is exercised from
within Tanzania by persons all of whom are all citizens of Tanzania
 cont
(3) A primary mining licence shall confer on the
holder the right to prospect for and mine
minerals as provided for in this Division of this
Part.
Size of PML
Maximum size for Building materials is 5 Ha and
Maximum size for minerals other than building
materials is 10 Ha
Who deserves to get a primary mining
licence and a gemstone mining licence
1. A primary mining licence for any minerals shall not be
granted to an individual, partnership or body corporate
unless-
(a) in the case of an individual, the individual is a citizen
of Tanzania;

(b) in the case of a partnership, it is composed

exclusively of citizens of Tanzania;

(c) in the case of a body corporate, it is a company and-

(i) its membership is composed exclusively of citizens of
Tanzania;
 Cont.

(ii) its directors are all citizens of Tanzania;

(iii) control over the company, both direct and

indirect, is exercised, from within Tanzania by
persons all of whom are citizens of Tanzania.

NB. note also that

A mining licence for mining gemstones shall only
be granted
i) to applicants who are Tanzanians.
 Cont.
(ii) To a body corporate or partnership with non-
citizens as partners :where the Commissioner after
consultation with the Mining commission
determines that the development of gemstone
resources in an area of land subject to a mineral
right, is most likely to require specialised skills,
technology or high level of investment, the licence
will be held by that person together with a non-
citizen whose undivided participating shares
amount to not more than fifty percent either alone,
in the case of one person or in the aggregate in the
case of more than one person
 Grant and validity of primary Mining
licence
The Commissioner shall grant an application for
a primary mining licence which has been
properly made . A primary mining licence
granted under this section shall be valid for a
period of seven years and may be renewed if a
renewal application is directed to commissioner
Not later than three months before the expiry
date of primary mining licence.
 Cont

(2) A primary mining licence to mine minerals

granted under this section shall confer on the
holder the exclusive right, subject to this Act
and the Regulations including the Regulations
applicable to safety and the protection of the
environment, to carry on PROSPECTING AND
MINING operations in the mining area.
 Cont.
FOR that purpose the holder, his servants and
agents (being persons not disqualified under
subsection (2) of section 8 of the Mining act
2010 from holding a primary mining licence)
may, in particular-
(a) enter on the mining area and take all
reasonable measures on or under the surface
for the purpose of mining operations;
 cont
(b) erect the necessary equipment, plant and buildings
for the purpose of mining, transporting, dressing or
treating the minerals recovered by him in the course
of mining operations;

(c) subject to payment of royalties in accordance with

this Act and the regulations dispose off (sale) any mineral
recovered;

(d) stack or dump any mineral or waste product in

compliance with the applicable regulations;

(e) carry on prospecting operations in the mining area.

 Renewal of primary mining
licence
Not later than three months before the expiry
date of primary mining licence, the holder may
apply to the Commissioner for renewal of the
licence

The Commissioner shall renew the licence on an

application made and accompanied by the
prescribed fee
 Cont.

An application for renewal of the licence may be

refused if-
(a) the applicant is in default;

(b) the development of the mining area has not

proceeded with due diligence;
 Cont.
(c) minerals in workable quantities do not
remain to be produced;

(d) the applicant has failed to conduct mining

operations in the mining area in strict
compliance with the applicable Regulations
relating to safety and environmental
management;
 Cont.
NB the licensing authority shall not reject an
application to renew a primary mining licence
on the grounds that the holder is in default,
without first serving on the holder a notice
specifying particulars of the default and
requiring the holder to remedy the default time
specified in the notice.
 Amalgamation
(1) Where any person holds in respect of
contiguous/adjoining areas two or more primary mining
licences and wishes in respect of each of those licences to
apply to convert the licences to a single mining licence the
holder may, before making application for conversion, apply to
the Commissioner to amalgamate the primary mining licences
into a single mining area.

(2) Application to amalgamate primary mining licences shall

be to the Commissioner in the Form No. MRF.10

(3) A certificate of amalgamation will be given by the

Commissioner
Conversion of primary mining licenses
to mining licenses
An application pursuant to section 58 of the Act
for conversion of a primary mining licence to a
mining licence shall be in duplicate to the
Commissioner.

An applicant for conversion, whose application is

granted, shall surrender to the Commissioner his
primary mining licence.
 cont
The Mining licence shall be issued by the
Commissioner within the period of thirty days
from the date of receipt of the application.

When granting the licence under this section the

remaining period of the former licenses shall not
be taken into account.
 Surrender of primary mining licence
• The holder of a primary mining licence who wishes to
surrender his primary mining licence shall apply to the
Commissioner responsible for the mining area giving a
three months notice.

• An applicant shall fill in Form No. MRF.12 in duplicate

and shall pay all arrears in respect of annual rents and
royalty and surrender his primary mining licence.

• The Commissioner shall, if satisfied that the conditions

of this regulation have been complied with, give
consent to the applied surrender.
 DIVISION D
Mineral Processing, Smelting and Refining
 Application and grant of licence for
processing Minerals, Smelting and
Refining
• The mineral right holder shall be required to set aside
certain amount of minerals at such percentage as the
Commissioner may after consultation with the mineral right
holder and the Board determine for processing, smelting or
refining within the United Republic.
• A person who wishes to smelt or refine minerals shall
submit an application to that effect to the Commissioner
for a smelting licence or as the case may be, a refining
licence.
• The Processing Licence issued under this section shall be
valid for a period not exceeding ten years and shall be
subjects to renewal.
• The smelting licence or a refining licence issued shall be
valid for a period not exceeding twenty five years and shall
be subject for renewal.
 Licence for processing minerals

An application shall be made in the prescribed

form and accompanied by-
(a) prescribed fee;
(b) environment management plan as described
in relevant regulations;
(c) process plant layout;
 Licence for processing minerals

(d) procurement, haulage and processing inputs

plan;
(e) compensation, relocation and resettlement
plan, if required; and
(f) such other documents and information as
may be required by the licensing authority
Application for licence for smelting or
refining minerals
A person who wishes to smelt or refine minerals
shall submit an application to that effect to the
Commissioner for a smelting licence or as the case
may be, a refining licence.

The application shall be made in the prescribed

form and shall be accompanied by-
(a) prescribed fee;
(b) environment management plan as prescribed in
relevant regulations;
 licence for smelting or refining
minerals - contd
(c) smelter or refinery plant layout;
(d) waste disposal management plan;
(e) compensation relocation and resettlement
plan;
(f) such other documents or information as may
be required by the licensing authority;
 READ FROM MINING ACT 2010 and
2017 AMMENDMENTS
• PART V
LICENCES FOR DEALING IN MINERAL OR
MINERALS

• PART VI
ROYALTIES, FEES AND OTHER CHARGES
TYPES OF MINERAL RIGHTS, SIZE and
DURATION
TYPES OF MINERAL RIGHTS, SIZE and
DURATION
Mineral Royalty Rates and Fees