Tanzania is finalizing plans to establish an environmental rehabilitation
bonds system to cover the total restoration liabilities for abandoned and
depleted mines.
In the proposed rehabilitation bond system, all mining
firms are required to deposit cash depending on the size of the operations as a
bond to the would-be-established state-run-fund.
To start with the state anticipates hoarding nearly
$270 million from eight mining companies as a bond for rehabilitation of the
mining landscapes after their closures.
The system means that the bonds would be used to rehabilitate the area in case a
mining firm leaves without doing so.
For a responsible firm that rehabilitates its mining area,
could reclaim its bond once remedy of the site is completed.
Mineral and Energy Minister, Prof Sospeter Muhongo
says the new environmental rehabilitation bond system, takes-off in next fiscal
year.
According to
the state approved ‘mine closure plans’, the rehabilitation costs for Bulyanhulu
Gold mining site stands at $35.86
million, Buzwagi $46.92 million
and Golden Pride $9.56 million.
The blueprint shows that environmental remedies bond for North Mara and
Tulawaka Gold mining sites stand at $67.46
million and $19.98 million
respectively.
Initial rehabilitation costs for Geita Gold mine, Mwandui Diamonds and
TanzaniteOne mining sites, which their ‘mine closure plans’ await for the state
nod, stand at $63.36 million, $26.49 million, and $0.13 million respectively.
Prior to mine
closure bond system, mining companies used reckless extracting methods and in
the worst cases absconded their obligations by leaving their mine sites
un-rehabilitated.
Tanzania’s worst cases of abandoned mines included Buhemba
and Buckreef Gold Mines in Mara and Geita regions respectively.
Investors abandoned Buhemba mine un-rehabilitated in 2006
following unanticipated decline in grade of the orebody, while Buckreef mine
pits were left open in 1990.
As a result the government is now struggling to raise $
22.313 million to rehabilitate Buhemba mine alone through taxpayer’s money to
prevent environmental hazards.
It is understood also
that there are a number of small scale mines within the country, which have
been abandoned by their owners without being rehabilitated
Officials say
in order to minimize environmental impacts caused by mining operations, it was
deemed necessary for Tanzania to introduce environmental rehabilitation
financial assurance.
Tanzania Mineral Audit Agency (TMAA) Chief Executive Officer, Paul Masanja says the bond system provides guarantee in event where minerals varnish prematurely, and the company walks away from the site without rehabilitating.
Tanzania Mineral Audit Agency (TMAA) Chief Executive Officer, Paul Masanja says the bond system provides guarantee in event where minerals varnish prematurely, and the company walks away from the site without rehabilitating.
The official
document shows that Bulyanhulu, Buzwagi,
North Mara, Tulawaka and Golden Pride mining firms would sign an agreement with
the state in the coming months to commit themselves to issue the rehabilitation
bonds.
It is
understood, Golden Pride operating in Nzega and Tulawaka in Biharamulo would
formally closed down their operations by the end of 2013.
Feasibility
studies on mine closure plans for Geita Gold Mining, Mwadui Diamond Mining, and
TanzaniteOne extracting Tanzanite gemstone in northern Tanzania are underway
and the state hopes to complete the task next month, at earliest.
Mr Masanja
says that the overall objective of environmental
rehabilitation bond is to rehabilitate the land to an acceptable post mine
closure at no cost to the government.
A Tanzanian
renowned environmental and natural resources law lecturer at Tumaini
University, Elifuraha Laltaika says the country has borrowed a leaf from the
polluter pay principle, an international environmental law principle that
requires any one who causes pollution to make good the damage.
“The challenge is in the enforcement. For instance, environmental
impact assessment, a tool for determining the costs of environmental
rehabilitation is a practice that is prone to a lot of abuses including under
estimation of the real costs for reparation of the damage caused” Mr Laltaika
said.
0 comments:
Post a Comment