Research Report 17/2 The Social License to Operate in Tanzania: Case Studies of the Petroleum and Mining Sectors Prof. Flora Kessy Dr. Lemayon Melyoki Dr. Godfrey Nyamrunda Further information and further copies of this report can be obtained from: The Institute of African Leadership for Sustainable Development (UONGOZI Institute) No. 62, Msasani Rd. P.O. Box 105753, P.O. Box 33223, Dar es Salaam, Tanzania Tel: +255 (0)22 2602917 Email: [email protected] Website: www.uongozi.or.tz Published by: UONGOZI Intitute © UONGOZI Institute, 2017 All rights reserved. No part of this work may be reproduced in any form without written permission of the publisher and the copyright holder. UONGOZI Institute RESEARCH REPORT 17/2 The Social License to Operate in Tanzania: Case Studies of the Petroleum and Mining Sectors Prof. Flora Kessy Dr. Lemayon Melyoki Dr. Godfrey Nyamrunda iii THE SOCIAL LICENSE TO OPERATE IN TANZANIA: CASE STUDIES OF THE PETROLEUM AND MINING SECTORS Table of Contents List of tables ...................................................................................................................vi List of figures ..................................................................................................................vi List of boxes ...................................................................................................................vi List of abbreviations.......................................................................................................vii Acknowledgements ......................................................................................................viii Executive summary ........................................................................................................ix Chapter 1: Introduction ...........................................................................................1 1.1 Background to the Study ....................................................................................1 1.2 Rationale of the Study ........................................................................................3 1.3 Structure of the report .........................................................................................4 Chapter 2: The concept of social license to operate ................................................5 2.1 The Origin of the Concept of Social License to Operate ....................................5 2.2 Securing an SLO: Necessary Processes ...........................................................9 2.3 SLO Practices in Various Sectors .....................................................................13 2.3.1 Mining sector ......................................................................................13 2.3.2 Petroleum Sector ................................................................................15 2.4 The Role of Civil Society Organizations ..........................................................16 2.5 SLO in Tanzania: An Overview .........................................................................16 2.6 Conceptual Framework for the Study ...............................................................18 Chapter 3: Study methodology .................................................................................23 3.1 Type of Study .........................................................................................23 3.2 Study Areas and Sampling Design ...................................................................23 3.3 Data Collection Methods ..................................................................................25 3.4 Data Analysis .........................................................................................27 3.5 Ethical Considerations ......................................................................................27 Chapter 4: Research findings: petroleum sector ..................................................... 28 4.1 General Overview of the Sector ........................................................................ 28 4.2 Status of SLO in the Petroleum Sector .............................................................. 29 4.2.1 Community Engagement ..................................................................... 29 4.2.1.1 Mtwara District .................................................................. 29 4.2.1.2 Songo Songo in Kilwa District .......................................... 30 4.2.2 Local Impacts and Benefits .................................................................. 30 4.2.2.1 Madimba and Msimbati Villages in Mtwara District .......... 30 iv 4.2.2.2 Songo Songo Village in Kilwa District .............................. 33 UONGOZI Institute 4.2.3 Procedural Fairness ............................................................................. 34 4.2.3.1 Madimba and Msimbati Villages in Mtwara District .......... 34 4.2.3.2 Lindi Region...................................................................... 35 4.2.4 Actors’ Relationships ........................................................................... 35 4.2.4.1 Mtwara District .................................................................. 36 4.2.4.2 Songo Songo in Kilwa District .......................................... 27 4.3 Conclusions: Have Companies in the Petroleum Sector Obtained an SLO in Mtwara and Lindi Regions? 28 Chapter 5: Research findings—the mining sector ................................................... 39 5.1 General Overview of the Sector ........................................................................ 39 5.2 The Status of SLO in the Mining Sector in Tanzania ......................................... 39 5.2.1 Community Engagement ..................................................................... 39 5.2.1.1 Mwadui Diamond Mine ..................................................... 39 5.2.1.2 Buzwagi Gold Mine........................................................... 29 5.2.1.3 Bulyanhulu Gold Mine ...................................................... 41 5.2.1.4 Geita Gold Mine ................................................................ 42 5.2.1.5 North Mara Gold Mine ...................................................... 43 5.2.2 Local Impacts and Benefits .................................................................. 45 5.2.2.1 Mwadui Diamond Mine ..................................................... 45 5.2.2.2 Buzwagi Gold Mine........................................................... 45 5.2.2.3 Bulyanhulu Gold Mine ...................................................... 45 5.2.2.4 Geita Gold Mine ................................................................ 45 5.2.2.5 North Mara Gold Mine ...................................................... 45 5.2.3 Procedural Fairness ...........................................................................................49 5.2.3.1 Mwadui Diamond Mine ......................................................50 5.2.3.2 Buzwagi Gold Mine............................................................50 5.2.3.3 Bulyanhulu Gold Mine .......................................................50 5.2.3.4 Geita Gold Mine .................................................................51 5.2.3.5 North Mara Gold Mine .......................................................51 5.2.4 Actors’ Relationships ............................................................................52 5.2.4.1 Mwadui Diamond Mine ......................................................52 5.2.4.2 Buzwagi Gold Mine............................................................53 5.2.4.3 Bulyanhulu Gold Mine .......................................................53 5.2.4.4 Geita Gold Mine .................................................................54 5.2.4.5 North Mara Gold Mine .......................................................54 5.3 Conclusions on Existence of SLO in Various Mining Sites .................................54 5.3.1 Mwadui Diamond Mine .........................................................................40 5.3.2 Buzwagi Gold Mine ...............................................................................55 5.3.3 Bulyanhulu Gold Mine ...........................................................................55 5.3.4 Geita Gold Mine ....................................................................................55 v 5.3.5 North Mara Gold Mine ..........................................................................56 THE SOCIAL LICENSE TO OPERATE IN TANZANIA: CASE STUDIES OF THE PETROLEUM AND MINING SECTORS Chapter 6: Conclusions, recommendations and areas for further research ...................................................................................................57 6.1 Conclusions ........................................................................................................57 6.2 Recommendations ...........................................................................................58 6.3 Areas for Further Research ................................................................................61 References ................................................................................................................... 67 Annex 1: Examples of Community Engagement and Community ..............................67 Development Activities in the Extraction Chain ...........................................52 Annex 2: Summary of Study Participants per Site ......................................................72 Annex 3: Data Collection Tools ...................................................................................56