Socio-Economic Impact of Mining Transnational Corporations

The mineral subsector has traditionally offered informal and formal employment to local communities. Discovery of mines is accompanied with realignment of socio-economic and cultural context of an area. New Mineral Policy and Mineral Act were developed in 1990s that allowed foreign investors in the mining industry. The influx of foreign investment companies was received with mixed feel by the government, local communities and artisanal and small-scale miners. However there is little evidence of minerals' significant contribution in curbing poverty. This book examines a particular case in Tanzania, where artisanal and small-scale miners, local companies and communities are engaged in mining activities. Limited consultation culminates into misgiving and brews conflicts between the investors and artisanal and small-scale miners. Conflicts chock the chances for collaboration. Being at receiving end, mining communities are mostly affected whenever there are conflicts that cause the mines to close thereby affecting the livelihood communities. Relevant authorities have to strategize how stakeholders can complement each other and effectively contribute to poverty reduction.