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`Big firms render 400,000 artisanal gold miners jobless`
2008-03-06 09:54:39
By Correspondent Felister Peter
A Total of 400,000 artisanal miners have been thrown out of work due to a multiplicity of multinational gold mining companies since the 1990s, a study has revealed.
The study, carried out by a non-governmental organisation, Reference Group, says this has been possible because the law and policies governing the mining sector allow mining companies to employ an unlimited number of foreigners compared to a minimum of five people in other sectors.
The newly-launched study report called `A Golden Opportunity - How Tanzania is Failing to Benefit from Gold Mining`, shows that at least each of the mining companies has between 6 and 9 per cent of its workers from abroad.
According to the study, Barrick`s Bulyanhulu gold mine has 1,971 employees, 9 per cent of whom are expatriates.
The Geita mine has employed 200 expatriates out of its 3,200 workforce.
It shows that the number of artisanal miners has greatly declined since the 1990s when large-scale mining firms were established.
``When the first two large-scale gold mines at Nzega and Geita were started, a total of 30,000 artisanal miners were removed,`` the report says in part.
The study claims that rather than creating employment, large-scale mining in Tanzania has been responsible for creating mass unemployment.
So far the mining sector has employed only 0.2 per cent of Tanzania`s workforce.
The average pay for a mineworker in Tanzania is between 160,000/- and 300,000/- per month while foreign workers earn between USD6,000 and USD20,000 a month, according to the study.
However, the study points out, the mining companies have contributed to a number of community development projects such as education, health and infrastructure.
South-African based Anglo Gold Ashanti spent USD2.8m on community development activities from 2003 to 2006, according to the study.
Barrick spent USD13.4m from 2003 to 2006 as donations to infrastructure development and community initiatives.
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