TABLE OF CONTENTS LIST OF TABLES .............................................................................................................................................. IV LIST OF FIGURES ............................................................................................................................................ VI LIST OF ABBREVIATIONS AND ACRONYMS ........................................................................................ VII ACKNOWLEDGEMENT .................................................................................................................................. IX EXECUTIVE SUMMARY .................................................................................................................................. X (ii) Export of Minerals 1 INTRODUCTION ................................ ..................................................................................................................................................................................................................................... xi1 1.1 BACKGROUND ......................................................................................................................................................... 1 1.2 OBJECTIVE ............................................................................................................................................................... 1 2 1.3APPROACH NATURE AND AND EXTENT METHODO OF OUR WLOGYORK ................................ .................................................................................................................................................................................... 31 2.1 SCOPING STUDY ..................................................................................................................................................... 3 2.2 DATA COLLECTION ................................................................................................................................................ 4 2.3 RECONCILIATION AND INVESTIGATION OF DISCREPANCIES........................................................................... 5 2.4 RELIABILITY AND CREDIBILITY OF DATA REPORTED ..................................................................................... 5 2.4.1 Data submission ...................................................................................................................................... 6 2.4.2 Data Certification ................................................................................................................................... 6 2.5 ACCOUNTING RECORDS ........................................................................................................................................ 8 2.5.1 Extractive Companies ........................................................................................................................... 8 3 2.5.2CONTEXTUAL Government INFORMATI AgenciesON ................................ ON THE EXTR................................ACTIVE INDUSTRY................................ ..................................................................... 98 3.1 KEY FEATURES OF THE EXTRACTIVE INDUSTRY .............................................................................................. 9 3.1.1 Mining Sector ........................................................................................................................................... 9 3.1.2 The Oil and Gas Sector....................................................................................................................... 11 3.2 LEGAL AND REGULATORY FRAMEWORK ........................................................................................................ 11 3.2.1 Mining Sector ........................................................................................................................................ 11 3.2.2 Oil and Gas Sector ............................................................................................................................... 16 3.3 FISCAL REGIME ................................................................................................................................................... 20 3.3.1 Mining Sector ........................................................................................................................................ 20 3.4 CONTRIBUTION OF THE EXTRACTIVE INDUSTRY TO THE ECONOMY ......................................................... 23 3.4.1 Contribution to Gross Domestic Product ............................................................................. 23 3.5 PRODUCTION AND EXPORTS ............................................................................................................................. 24 3.5.1 Production and Export of Minerals ........................................................................................ 24 (i) Production of Minerals ............................................................................................................................... 24 (ii) Export of Minerals ....................................................................................................................................... 25 3.5.2 Production and Export of Oil and Gas ................................................................................... 26 3.6 STATE-OWNED ENTERPRISES .......................................................................................................................... 26 3.6.1 State Mining Corporation ................................................................................................................. 26 3.6.2 National Development Corporation ............................................................................................ 31 i 3.6.3 Tanzania Petroleum Development Corporation .................................................................... 32 3.7 COLLECTION AND DISTRIBUTION OF THE EXTRACTIVE REVENUES ........................................................... 37 3.7.1 Budget Process ..................................................................................................................................... 37 3.7.2 Revenue Collection ............................................................................................................................. 38 3.7.3 Revenue Distribution ......................................................................................................................... 40 3.8 LICENCES .............................................................................................................................................................. 40 3.8.1 Allocation of Mining Licences ........................................................................................................ 40 3.8.2 Allocation of Petroleum Licences ............................................................................................ 45 3.9 CONTRACT DISCLOSURE ............................................................................................................................... 49 3.10 AUDIT AND ASSURANCE PRACTICES .......................................................................................................... 49 3.10.1 Extractive Companies................................................................................................................... 49 4 DETERMINATION3.10.2 Government OF THEAgencies RECONCILIATION ................................ SCOPE................................ ................................................................................................................. 5149 4.1 REVENUE STREAMS ............................................................................................................................................ 51 4.1.1 Ministry of Minerals ...................................................................................................................... 51 4.1.2 Tanzania Revenue Authority ..................................................................................................... 51 4.1.3 Tanzania Petroleum Development Corporation ............................................................... 52 4.1.4 Local Government Authorities ................................................................................................. 52 4.1.5 Ministry of Finance and Planning ............................................................................................ 52 4.1.6 MinistryState’s Share of Natural of Production Resources and and Other Tourism In ....................................................................... 52 4.1.7 Social and Other Payments ........................................................................................................ 52 4.1.8 -kind Revenues ............................................. 53 4.1.9 Infrastructure Provisions and Barter Arrangements...................................................... 53 4.1.10 Other Significant Payments ....................................................................................................... 54 4.1.11 Selected Revenue Stream for Reconciliation Exercise ................................................... 54 4.2 EXTRACTIVE COMPANIES .................................................................................................................................. 54 4.3 RECONCILIATION SCOPE ...................................................................................................................................