Abstract

All mining activities in Tanzania are regulated according to the Mining Act, 1998, and associated regulations. The enactment of the 1998 mining legislation and thus the repeal of the 1979 Act was a result of the overall restructuring of the country's economy. In order to encourage the private sector to take a leading role in economic development, the Government identified priority segments of the economy, which included the mining sector. With the mining sector identified as one of the priority sectors, it was thought imperative to put in place a transparent and competitive legal and regulatory framework, an effective and conducive fiscal regime, and an environmental framework. A new Mining Act, which incorporated the mining legal and regulatory, fiscal and environmental frameworks, was enacted in August 1998. The Act was then equipped with the regulations which provide clear guidance for administration and enforcement. Since the enactment of Tanzania's new mining legislation, the mineral sector has been the fastest growing sector of the economy, which has posed numerous managerial challenges. This paper discusses the benefits of the current environmental legislation and the challenges facing the Government in meeting the demands of a rapidly expanding mining sector. The paper examines the institutional set-up, its capacity to execute tasks (financial, technical, working facilities, etc.), the roles played by related institutions in managing the mining sector, and the interaction between mining and other sectors of the economy.

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