Securing a Social Licence to Operate: From Stone Age to New Age Mining in Tanzania

This report examines the mining sector in Tanzania, focusing on the economic contributions of the industry, the challenges of securing a 'social licence to operate' from local communities, and a case study of the Barrick Gold Corporation's operations within the country.

• Mining in Tanzania contributes 2.3% to the gross domestic product (GDP) but accounts for approximately 45% of the country's foreign earnings. The government aims to increase the sector's GDP contribution to 10% by 2025. Tanzania is the third-largest gold producer in Africa, following South Africa and Ghana, and possesses deposits of nickel, gemstones, and diamonds.
• The Tanzanian government established the Bomani Commission to investigate the mining sector and the existing Mining Act following criticisms that the country was not receiving a fair share of its mineral wealth. Potential government responses include increasing the gold producer royalty from 3% to 5%, taking a 10% stake in specific mining operations, and removing various tax incentives and breaks.
• Commercial mining operations face significant challenges including poor infrastructure (water, electricity, and roads) and scrutiny from shareholder activists and NGOs. A critical requirement for sustainable operations is the 'social licence to operate,' which is a conditional grant of support from local communities based on a company's ethical, collaborative, and legitimate behavior, rather than a government permit.
• Barrick Gold Corporation, a Toronto-based company and the largest mine operator in Tanzania, has mixed results in securing a social licence; it is operational at three of its mines but absent at a fourth. While the company is recognized for sustainability by the Dow Jones Sustainability Index, it faced a 2008 disinvestment recommendation from the Norwegian Government Pension Fund — Global due to environmental damage at its Porgera mine in Papua New Guinea. In Tanzania, its operations range from the 'exemplary' Tulawaka mine to the North Mara mine, which faces criminal, operational, and environmental challenges.

APA

South African Institute of International Affairs (2010). Securing a Social Licence to Operate: From Stone Age to New Age Mining in Tanzania. https://saiia.org.za/research/securing-a-social-licence-to-operate-from-stone-age-to-new-age-mining-in-tanzania/

Chicago

South African Institute of International Affairs. Securing a Social Licence to Operate: From Stone Age to New Age Mining in Tanzania. 2010. https://saiia.org.za/research/securing-a-social-licence-to-operate-from-stone-age-to-new-age-mining-in-tanzania/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Securing a Social Licence to Operate: From Stone Age to New Age Mining in Tanzania |date=25 February 2010 |url=https://saiia.org.za/research/securing-a-social-licence-to-operate-from-stone-age-to-new-age-mining-in-tanzania/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2010securing, author = {{South African Institute of International Affairs}}, title = {{Securing a Social Licence to Operate: From Stone Age to New Age Mining in Tanzania}}, institution = {South African Institute of International Affairs}, year = {2010}, month = feb, url = {https://saiia.org.za/research/securing-a-social-licence-to-operate-from-stone-age-to-new-age-mining-in-tanzania/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }