The World Bank Group's Board of Executive Directors has approved a new US$45 million credit for Tanzania to improve the socioeconomic impact of large and small-scale mining.
A WB statement availed to the Guardian yesterday said the project will also help to increase private, local and foreign investment, explaining:
"This project shows the WB's commitment to support Tanzania's efforts to allocate mining resources equitably, especially to the poorest through a focus on artisanal and small-scale mining,"
The statement from Philippe Dongier, the World Country Director for Tanzania, said the additional financing will build on the success of the ongoing Sustainable Management of Mineral Resources Project (SMMRP).
This has strengthened the government capacity to manage the sector, improved the regulatory framework, expanded the country coverage by geological surveys and enhanced the social and environmental management framework for mining, the statement said.
The new financing will support the goal of poverty-reduction in Tanzania through the development of a viable domestic mining industry.
It will also spread benefits to poor areas where artisanal and small-scale mining (ASM) takes place, the statement said.
Tanzania's rich mineral endowment has long been considered a potential source of growth and poverty reduction. Encouraging the formalisation and sustainable development of ASM will help boost local entrepreneurship and employment in mining, the statement said.
In his comments Mamadou Barry, the World Bank Task Team Leader for the Project said: "Today's additional financing builds on these achievements and supports government efforts to transform mining activities into economic growth with benefits that can be shared by all Tanzanians, particularly in rural areas."
Scaling up the original project would help identify suitable geological areas for artisanal miners, train and establish demonstration centres for ASM to improve knowledge in faceting, carving, jewelry, and finally boost marketing as well as financial access.
The statement said the project will focus on technical, financial, organisational and environmental constraints of ASM. This will be through a partnership arrangement for enhancing co-operation between artisanal and industrial miners as well as the effective integration of corporate social responsibility functions of industrial mining companies into the budget planning processes of local government authorities.
BY THE GUARDIAN REPORTER
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