The Implications of The Tanzania New Mining Legislation in Enhancing Revenue: A Case of Geita Gold Mine.

Abstract

Purpose: The purpose of this study is to investigate the implications of these reforms from a revenue collection perspective in Geita District using Geita Gold Mine Limited (GGML) as a case study.
 Design/Methodology/Approach: This study utilizes a mixed-method approach, by using both qualitative and quantitative approaches. The study population consisted of individuals from sampled households in six wards around GGML with a sample size of 384 respondents. The study used both stratified and simple random sampling methods in selecting respondents. The qualitative data were collected through in-depth interviews, focus group discussion and documentary analysis while the quantitative data were collected through the survey method. Qualitative data were analysed using content analysis and quantitative data from households were analysed using descriptive statistics.
 Research Implications/Limitations: This study is limited to GGML and Geita District only, which may not fully capture the diverse range of other mining companies operating outside the district within Tanzania.
 Findings: Study findings indicated that the mining legislation helped to improve the quality of institutions as well as resource governance. For instance, due to improvements in resource governance such as the increase in royalty and mining supervision the revenue from mining activities almost tripled to a total of TZS 664 billion as compared to TZS 196 billion that was collected four years back from 2017.
 Practical Implications: The findings are expected to have a significant on improving the traceability of gold production and reporting their activities more transparently. Additionally, reforms can lead to more efficient and effective collection of royalties, taxes, and fees related to gold mining operations, resulting in increased government revenue
 Social Implications: The social implications of this research are essential, as the increase in mining revenue through taxes, royalties, service levies and other fees can help to improve social services such as education and health services. The mining sector can also contribute to the provision of employment to host communities which has a direct impact on improving social welfare.
 Originality/Value: The novelty of this research lies in its holistic and sector-specific examination of revenue collection reforms in the gold mining industry, considering economic, environmental, social, and governance dimensions. It offers a comprehensive understanding of how reforms in this critical sector can impact both individual nations and the global resource landscape.