Encouraging local participation: GGML’s commitment to sustainable mining

GEITA: The Tanzanian government’s push for greater local participation in the mining sector has yielded remarkable results, thanks to the Mining Act of 2017/ 2018 and its subsequent amendments in 2019.

This landmark legislation prioritises the involvement of Tanzanian companies and individuals, paving the way for a more inclusive and sustainable mining industry.

Geita Gold Mining Limited (GGML), a subsidiary of AngloGold Ashanti, has emerged as a shining example of responsible mining by wholeheartedly embracing these regulations. The company’s commitment to local content goes beyond mere compliance, as evidenced by its active pursuit of opportunities to work with local suppliers, contractors, and service providers.

While the implementation of the Mining Code on Local Content has presented its fair share of challenges, GGML’s continued commitment to sustainability and community development has been instrumental in overcoming these hurdles.

The company has facilitated increased local content through a number of initiatives, including hosting community forums, workshops and capacity building programmes.

These efforts have enabled local businesses, including youth, women, and people with disabilities, to improve their business acumen and effectively compete for opportunities within GGML’s supply chain.

As a result, the number of active Geita-based businesses contracting with GGML has increased from 73 in January 2020 to 96 in December 2023, and the value of business awarded to Geita suppliers has increased from 7% of local spending in Q1 2020 to 9.4% in Q4 2023.

Also read: https://dailynews.co.tz/ggmls-commitment-to-nurturing-talent-and-addressing-skills-shortages-in-tanzanias-mining-sector/

GGML’s commitment to local content has had a profound impact on the lives of individuals and communities in the Geita region and beyond. In the first quarter of 2024 alone, a remarkable 95% of the company’s budget was allocated to the procurement of goods and services from Tanzanian companies. This surge in local procurement has led to the establishment of a thriving domestic mining supply chain making a significant contribution to the local economy.

For instance, GGML has entered into a partnership with local businesses to provide oil transport services valued at over TZS 25 billion. One of the recipients is Blue Coast Investment Limited (transport and haulage), which operates out of both Geita and Dar es Salaam.

Another local company that has benefited from GGML’s commitment to local content is AKO Group, a Tanzanian facilities management company that has been providing catering and hotel management services to GGML since 2010.

This goes beyond procurement to include the transfer of technology and skills to Tanzanian nationals. The company’s workforce is a measure of this commitment, with 97% of the total workforce being Tanzanian and 80% of the senior management team being Tanzanian.

As David Nzaligo, Senior Legal Counsel at GGML, aptly stated during the 3rd Local Content Compliance Forum in Arusha, “Another area is the transfer of technology and skills. For Tanzanians to take up positions that were held by non-Tanzanians. “This emphasis on empowering local talent and promoting sustainability is at the heart of GGML’s approach to responsible mining.

Through its relentless commitment to local content compliance and sustainable practices, Geita Gold Mining Limited has set a shining example for the mining industry in Tanzania and beyond.

By fostering local participation, driving economic growth, and transforming lives, the company has demonstrated that responsible mining can be a catalyst for positive change and a more inclusive future.

That’s why the Minerals minister, Anthony Mavunde declared that a total of 3.1 trillion will be retained locally in annual mining sector procurement by more explicit requirements relating to local content.

Addressing delegates at the third local content forum which focused on the participation of Tanzanians in the mining sector, he said that these requirements will be part of the country’s efforts in attracting industrial investments.

“I know levies exist and have their own procedures, but our priority is more focused on this area: he said, underlining that as purchases in the minerals sector reached more than 3.1trillion – last year, if this money remains in Tanzania, it will have a sharp impact on the country’s economy.

He expressed the view that Tanzanians need to take advantage of opportunities in the mining sector, as the 3.1trillion – needs to be retained locally.

He further added that interpreting Vision 2030 includes the need for 30 percent of the surface area in Tanzania being put to in-depth surveys, as currently there is expertise to identify areas with minerals “but we are yet to know the quantity. When you know the quantity, it becomes easier to plan,” he elaborated.

“So far only 16 percent of the total area has been researched, while local content in the mining sector created a total of 18,853 jobs in 2023, an increase of 2,391 jobs over the previous survey, a 14.5 percent increase, he said.

Meanwhile, Deputy Minister of Minerals, Dr. Steven Kiruswa highlighted Tanzania’s open-door policy for investment in mining, stressing the importance of collaboration with stakeholders to realise Vision 2030’s strategies of “Madini ni Maisha na Utajiri.”

“The construction of industries in mines requires more than just starting up. It necessitates equipping Tanzanians with the necessary skills,” Dr. Kiruswa asserted. “I call for the establishment of industries to go hand in hand with building capacity for Tanzanians.”

The Deputy Minister assured that the government would continue to improve the investment climate to attract more investments, particularly in the industrial sector of mining products.

He underscored the importance of the Third Local Content Compliance Forum’s theme, ‘Investment in the Manufacturing Industries of Mining Products for Sustainable Development,’ as a platform for stakeholders to address challenges and stimulate investment.

“I hope there will be significant changes in the participation of Tanzanians as licence holders and service providers in the Mining Sector,” Dr. Kiruswa remarked.

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