Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) Sustainable Management of Mineral Resources (P096302) AFRICA | Tanzania | Energy & Extractives Global Practice | IBRD/IDA | Technical Assistance Loan | FY 2009 | Seq No: 14 | ARCHIVED on 06-Jun-2017 | ISR28275 | Implementing Agencies: Ministry of Energy and Minerals, Tanzania Extractive Industries Transparency Initiave Key Dates Key Project Dates Bank Approval Date:09-Jun-2009 Effectiveness Date:22-Sep-2009 Planned Mid Term Review Date:15-Oct-2012 Actual Mid-Term Review Date:12-Nov-2012 Original Closing Date:30-Jun-2014 Revised Closing Date:31-Dec-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen the Governments capacity to manage the mineral sector to improve the socioeconomic impacts of large and small-scale mining for Tanzania and Tanzanians and enhance private local and foreign investment. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name A. Improving the Benefits of the Mineral Sector for Tanzania: Artisanal and Small-Scale Mining, Local Economic Development and Skills Development:(Cost $53.40 M) B. Strengthening Governance and Transparency in Mining:(Cost $14.60 M) C. Stimulating Mineral Sector Investment:(Cost $25.00 M) D. Project Coordination and Management:(Cost $6.90 M) Physical and price contingencies:(Cost $2.30 M) PPF refinancing Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory 6/6/2017 Page 1 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions Multi-Stakeholder Partnership (MSP) Pilot: After almost two years of delay, the multi-stakeholder initiative on cohabitation between large-scale mining and small-scale mining is finally off the ground. The contract for the provision of consultancy services for undertaking geological mining work and establishing a processing facility to small-scale miners at Rwamgasa Village in collaboration with AngolGold Ashanti has already been signed. The environmental and social safeguard clearance of this activity is underway. Also, an awareness visit ahead of the ground breaking ceremony has been conducted by the Zonal Mines Office. The MSP initiative with Acacia (formerly African Barrick) has already been advertised, but the process has not moved since December 2016. This project will be implemented subsequent to Rwamgasa project to allow learning process. However, the scoping study done by Acacia consultant has proposed Mseghe village as the suitable area for establishing a processing facility. Also the Environmental and social safeguard clearance for this project will be conducted by the consultant who will perform this assignment. Demonstration centers: GST and STAMICO are in final stage for conducting geoscientific work for two areas (Katente & Itumbi) proposed for establishment of Demonstration centers. The team is preparing a draft scoping report covering geology, mining methods, metallurgy and economic geology for the areas of Katente and Itumbi. The report will be used by MEM to finalize the TOR for establishment of the Demonstration Centres. At end of December, GST had completed 1800 meters of diamond drills and 1430 meters of RC drills in Chunya and 1810 drilled meters of RC drilling and 2320 meters of diamond drills in the Katente site. Sample analysis was undertaken and metallurgical testing has been completed. The samples show at a depth of about 50 meters about 1 meter interval quartz or sulfide zones grading from 4g/t Au to as high as 140g/t Au. This is positive indication for extensive mineralization at depths over 50 meters, and a good case for possible feasibility of a demonstration center around a partnership between small-scale miners and STAMICO to take advantage of underground mineral resources. Safeguard management: The environmental audit of the original project has already been accomplished by the consultant after the final report being reviewed by MEM and the World Bank Safeguard Team. The report has been submitted for formal clearance in fulfillment of one of the covenants of the project. MEM is discussing with the National Environmental Management Council (NEMC) to come up with standard environmental and social guidelines for small-scale mining projects which would be included in the ASM Environment Protection Plan currently under preparation. MEM has also reviewed the report of the World Bank safeguard team following a visit to some of the sites for Centers of Excellence. MEM has accepted the recommendations of the team and clarified specific issues in the report. Tanzania EITI Implementation status Beneficial Ownership: On December 15, 2016, the Consultant conducted training for extractive companies on disclosure of beneficial ownership information. The training is meant to contribute to the publication of a final report on the disclosure of beneficial ownership, which will be published in April 2017. The report aims to feature the beneficial ownership of 68 extractive companies in Tanzania. The Tanzania EITI Committee selected these companies because of their participation in the 2013/14 EITI reports. Contract transparency: Tanzania is pursuing contract transparency as part of its EITI Implementation. Section 16 of the TEITI Act (Tanzania Extractive Industries (Transparency and Accountability) of 2015 requires the " the Minister to publish- (a) in the website or through a media which is widely accessible all concessions, contracts and licenses relating to extractive industry companies.” To this end, the Ministry of Energy and Minerals wrote to 26 extractive companies with Minerals Development and Production Sharing Agreements that it plans to publish oil, gas and mining contracts with the government. The Ministry requested the companies to communicate any comments on the contract disclosure, as stipulated in Section 27 (2). The Ministry received comments on the protection of proprietary information from two companies, namely BG International and Statoil. These companies will be meeting with TEITI Committee to share their comments and to discuss the way forward for the disclosure. By June 2017, the Ministry will recruit a Consultant who will introduce an EITI portal that will be integrated into the mining cadaster. The contracts will be disclosed on this EITI portal. Establishment of the TEITI Committee: The TEITI Act establishes a Committee that is responsible for all matters pertaining to the implementation of the EITI in Tanzania. Appointed by each of the three Tanzania EITI constituencies, the Committee consists of fifteen members: (a) five persons representing government, one of whom shall be the Attorney General or his representative; (b) five from extractive industry companies; and (c) five from civil society organizations. The mandate of the previous Tanzania EITI Committee (Multi-stakeholder Group) expired in May 2016. A new Tanzania EITI Committee was constituted November 2016. However, CSOs is now represented by four members because of disagreement among this constituency on the nomination of the fifth member. The TEITA Act also establishes the appointment of a Chairperson who leads the Tanzania EITI Committee. The mandate of the previous Chairperson also expired in May 2016. An advertisement for the position in July 2016 attracted only two candidates. As the TEITA Act requires the appointment to be made from a list of three shortlisted candidates, the position was re-advertised in December 2016. However, it could not attract candidates with the requisite qualifications, as provided in the 2016 EITI Standard. The ideal candidate is a senior citizen who is well- respected by the public. The individuals with this profile do not normally submit applications for positions, but they are generally requested to serve by the President. Given the circumstance, the Minister appointed interim Chair in January 23, 2017 to keep the process moving, while the TEITI Committee 6/6/2017 Page 2 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) was considering options for helping fill the position. In its March meeting, the Committee decided the re-advertisement of the position. However, this time, members agreed to reach out potential candidates and request them to apply. Progress toward validation: Tanzania began to undergo validation by the EITI International Secretariat in January 2017– an independent verification process ascertaining whether Tanzania meets the transparency requirements of the 2016 EITI Standard. The International Secretariat (IS) Team visited Tanzania in March 2017. The IS team, which consisted of Mr. Jurgen Reitmaier and Ms. Emine Isciel, had the first meeting with the members of the Tanzania EITI Committee on 6th March 2017. Members were informed the validation process, the work that has to be done and the findings of the desk review exercise, which started in December 2016. Public Engagement: TEITI has been public engagement activities from February 2017. The activities are aimed at building capacity of citizens to demand accountability from officials on expenditures of receipts collected from extractive companies. The priority areas of the program are communities in the districts that host large scale mining operations and oil and gas operations, namely Geita Disctrict (home of Geita Gold Mining); Kahama,Disctrict (home of Buzwagi Gold Mining); Msalala,District (home of of Bulyanhulu Gold Mining). Mtwara Disctrict (home of M &P); and Kilwa District (home of Pan African). However, it was decided to pilot outreach in four districts, Geita, Kahama, Mtwara and Lindi to start with, and rolled out the activity to the rest of the districts. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Percentage increase of household income levels in selected ASM communities (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 200.00 200.00 100.00 Date 31-Dec-2010 16-Jun-2016 24-May-2017 30-Jun-2015 6/6/2017 Page 3 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDPDOTBL  Percent of citizens in participating communities who consider that their views have been taken into account in the local economic development strategic planning process (perception survey) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 60.00 42.00 60.00 Date 31-Dec-2010 16-Jun-2016 24-May-2017 30-Jun-2015 PHINDPDOTBL  Time to process mineral rights (exploration licenses). (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 18.00 2.00 1.00 2.00 Date 09-Jun-2009 16-Jun-2016 24-May-2017 30-Jun-2015 Comments End target fully met and exceeded. Time to process has dropped from 15 months to 1 month. PHINDPDOTBL  Time taken to transform identified ASM areas into established PML mines. (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 6.00 12.00 3.00 Date 20-Feb-2015 16-Jun-2016 24-May-2017 31-Dec-2018 PHINDPDOTBL  Annual publication of mining sector revenue (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/6/2017 Page 4 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) Value N Y Y Y Date 30-Jun-2009 16-Jun-2016 24-May-2017 30-Jun-2015 Comments End target fully achieved. PHINDPDOTBL  Improvement in Tanzania's ranking as a mining investment destination as evidenced by independent investor survey (Fraser Institute). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Increase of 2-3 points/palces or 48/71 for policy ranking 59/104 for policy 48/71 for policy ranking & more over Value & 22/71 for mineral perception & 71/104 for 22/71 for mineral potential baseline in one potential mineral potential or both indicators. Date 30-Jun-2009 16-Jun-2016 24-May-2017 30-Jun-2015 PHINDPDOTBL  Percentage increase in mining revenue (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 35.00 52.00 5.00 Date 30-Jun-2009 16-Jun-2016 24-May-2017 30-Jun-2015 Comments End target fully achieved. End of project target was 5% increase on US$400 million. Revenue in 2013 was reported at US$1.15 billion. (Source: Tanzania EITI) PHINDPDOTBL  Percentage increase in share of royalty from PML holders. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 7.00 7.00 7.50 Date 20-Nov-2014 20-Nov-2014 24-May-2017 31-Dec-2018 6/6/2017 Page 5 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDPDOTBL  Annual publication of mining sector revenue with an ASM annex. (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.00 0.00 4.00 Date 20-Nov-2014 16-Jun-2016 24-May-2017 31-Dec-2018 Overall Comments Intermediate Results Indicators PHINDIRITBL  Regulatory gaps addressed (Value Addition Regulations, Explosives Regulations, EITI Bill) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 20-Feb-2015 12-Feb-2015 24-May-2017 31-Dec-2018 Comments EITI bill was passed. Tanzania Extractive Industry Transparency and Accountability Act (TEITA) 2015 was prepared. 6/6/2017 Page 6 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDIRITBL  Number of ASM operators benefiting from technical capacity building services provided by the project. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 160.00 170.00 100,000.00 Date 12-Feb-2015 16-Jun-2016 24-May-2017 31-Dec-2018 PHINDIRITBL  Increase in total aggregate production value from ASM beneficiary areas. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value $4/day $20/day $23/day $50/day Date 09-Jun-2009 16-Jun-2016 24-May-2017 31-Dec-2018 PHINDIRITBL  Reduction in child labor participation in PML areas benefiting from the project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.8% of miners -- 10% 75% reduction Date 12-Feb-2015 12-Feb-2015 24-May-2017 31-Dec-2018 PHINDIRITBL  Number of new incorporations of ASM cooperatives, SMEs or associations as a result of new initiatives. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 250.00 250.00 260.00 400.00 Date 07-Oct-2014 20-Nov-2014 24-May-2017 31-Dec-2018 6/6/2017 Page 7 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDIRITBL  Number of PMLs registered (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14,880.00 14,880.00 34,567.00 45,000.00 Date 07-Oct-2014 20-Nov-2014 24-May-2017 31-Dec-2018 PHINDIRITBL  Number of districts with strategic development plans that integrate mining communities. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 8.00 3.00 6.00 Date 07-Oct-2014 16-Jun-2016 24-May-2017 31-Dec-2018 PHINDIRITBL  Revised mineral law and regulations disseminated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target End Target fully End Target fully achieved. Revised achieved. Revised Revisions and Value Revisions ongoing Mineral Law and Mineral Law and dissemination Regulations completed Regulations completed completed. and disseminated. and disseminated. Date 09-Jun-2009 16-Jun-2016 24-May-2017 30-Jun-2015 PHINDIRITBL  Number of graduates in value addition from the Tanzania Gemological Centre (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 47.00 200.00 Date 07-Oct-2014 12-Feb-2015 24-May-2016 31-Dec-2018 6/6/2017 Page 8 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDIRITBL  Number of inspections completed according to the new mines inspection checklist and new environmental protection plan (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,000.00 1,300.00 2,759.00 2,500.00 Date 09-Jun-2009 16-Jun-2016 24-May-2017 31-Dec-2018 Comments End Target fully achieved. PHINDIRITBL  Percentage of country covered by geophysical airborne surveys at 1:100,000 scale. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 15.70 15.70 14.00 Date 09-Jun-2009 16-Jun-2016 24-May-2017 30-Jun-2015 Comments End target fully achieved. PHINDIRITBL  Number of areas suitable for ASM identified and set aside for permitting. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 4.00 104.00 12.00 Date 07-Oct-2014 20-Nov-2014 24-May-2017 31-Dec-2018 Comments End target fully achieved. 6/6/2017 Page 9 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDIRITBL  Project monitoring and evaluation. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Successful Value Project start In progress In progress M&E Date 09-Jun-2009 16-Jun-2016 24-May-2017 30-Jun-2015 Comments ASM Baseline to be incorporated into M&E. PHINDIRITBL  ASM database established and updated quarterly (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 20-Nov-2014 16-Jun-2016 24-May-2017 31-Dec-2018 PHINDIRITBL  Compliance with Minamata Convention on Mercury Reduction Target (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 12-Feb-2015 16-Jun-2016 24-May-2017 31-Dec-2018 Comments The Government has formed the Task Team that is now preparing the National Action Plan (NAP). Overall Comments Data on Financial Performance 6/6/2017 Page 10 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P096302 IDA-45840 Closed XDR 33.50 32.88 0.62 32.88 0.00 100% P096302 IDA-56330 Effective XDR 32.70 32.70 0.00 9.01 23.69 28% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P096302 IDA-45840 Closed 09-Jun-2009 22-Jul-2009 22-Sep-2009 30-Jun-2014 30-Jun-2015 P096302 IDA-56330 Effective 07-May-2015 03-Jun-2015 28-Aug-2015 31-Dec-2018 31-Dec-2018 Cumulative Disbursements Restructuring History Level Approved on 25-Jun-2014 Related Project(s) 6/6/2017 Page 11 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) P151124-TZ Sustainable Management of Mineral Resources ,P152916-Additional Financing for P096302 6/6/2017 Page 12 of 12 Public Disclosure Copy