The Corporate Social Responsibility Regulations, GN No. 409 of 2023.

In June this year, the Corporate Social Responsibility Regulations were published through GN No. 409 of 2023, in accordance with S.129 (1) of the Mining Act, R.E: 2019 (the Act). These new Regulations exhaust and expound the provision of S. 105 of the Act which requires Mining Rights Holders to prepare a Corporate Social Responsibility Plan (CSR Plan) for the benefit of host communities where Mining activities are carried out. This write-up highlights the key issues that are setting the tone for the Mining Rights Holders’ compliance purposes in terms of; –

  • Preparation and approval of the CSR Plan,
  • Execution of CSR Plan,
  • Timeframe for the Execution,
  • Dispute Resolution, &
  • Effect of Non-compliance with the Regulations.

1. Who prepares the CSR Plan?

  • The Regulations require the Mining Rights Holders in consultation with the village council or the local government authority where Mining activities are conducted to prepare and submit a CSR Plan to the district and city or municipal council for analysis and approval. Without prejudice to that, village councils and local government authorities are also allowed to identify and come up with projects to be included in the CSR Plan. The plans identified by the village and local government authorities are also submitted to the district and city or municipal council for approval in October of every year, after consultation with the Mining Rights Holders of the respective area.

2. Who approves the CSR Plan?

  • The CSR Plan has to pass through the following bodies for analysis and approval.
  • The Expert Committee formed at every district, city, and or municipal council level where Mining activities are carried out.
  •  The City, District, or Municipal Council
  • The Minister for the Regional Administration and Local Government, and the Minister of Finance.

3. How is the CSR Plan executed?

  • The Mining Rights Holders are obliged to follow procurement procedures including but limited to engaging a separate contractor to execute the CSR Plan.  They also must issue a CSR Plan Report to the Mining Commission and respective council on a quarterly basis until the completion of the plan| project.

4. Execution Timeframe.

  • The Regulations mandate the CSR Plan to be completed within the “Agreed time”. If the agreed time frame expires before the completion, the Mineral Right Holder or the respective council can apply for an extension of time, which if granted shall not exceed thirty (30) days for the Plan to be completed.

5. Dispute Resolution.

  • Disputes between a Mining Right Holder and the respective council as far as the CSR Plan is concerned, shall first be solved amicably among them. If the parties fail to resolve the dispute amicably, the aggrieved party should submit the dispute to the Mining Commission within seven (7) days. The Commission shall give its decision within fourteen (14) days after submission of such dispute. The Appellate powers lie to the Minister for Minerals who shall give his or her decision within thirty (30) days.

6. Failure to prepare a CSR Plan.

  • Non-adherence to these Regulations by the Mining Right Holders amounts to an offense that may lead to suspension or cancellation of the Mining license in accordance with the procedures as provided for in the Mining Act.

Conclusion.

Although the Regulations, among other things, require the CSR Plan to be implemented within the agreed time, they do not specify the maximum time frame within which a Mining Rights Holder must complete the execution of the Plan, or the remedy when the extended thirty (30) days expires as well. These uncertainties may cause not only delays in the execution of the CSR Plan but also delays in the planned and expected benefits to the host communities, which might have been easily avoided if a fixed time frame had been followed.

The information provided in this write-up is for general information purposes only. It does not and is not intended to constitute legal advice or substitute seeking of professional guidance.

For more information about the issued Regulations, please visit www.africorp.co.tz

By Advocate Coletha Mwambola

AfriCorp Attorneys