Tanzanian small-scale miners protest extreme low compensation from Chinese investor

Mwanza. Tension is building up at the Shilalo gold mining site in Misungwi District, Mwanza, where 32 small-scale miners are protesting a Sh2 million compensation offer from a Chinese investor.

The miners, who have been working at the site since its discovery in 2017, argue that the compensation is inadequate.

They now want the government to intervene to ensure fair treatment.

The Shilalo mine, located in Shilalo Village, was initially operated by the small-scale miners and was formally legalised in December 2022 in a formalisation process that also included securing an investor to provide technical support and equipment to boost production.

The miners’ spokesperson, Ms Janeth Bwire, said the miners discovered and developed the site before being instructed in June to allow the investor 30 days to collect samples and assess the gold content.

They were then expected to negotiate with the license holders regarding the mine’s operations.

However, Bwire said that while they awaited the results, they were offered Sh2 million per mining claim.

The miners are demanding clarity on the investment contract and their share of the profits.

“The Chinese investors promised to negotiate with us after their analysis, but they have already started work with new equipment and excluded us from the discussions,” Bwire said.

Antony Madono, another miner, detailed the substantial investments made by the miners, including over Sh800 million spent on site development, equipment rental, and road construction.

The conflict arose when the miners sought transparency in the contract and clarity on their financial stake.

“We are not against compensation, but we want the contract to be transparent. We are ready to leave if necessary, but we expect our fair share,” Madono stated.

Fatma Ahmada voiced frustration over the situation, saying, “We demand justice. Investors come and benefit, but we see no advantages. We are being threatened with violence. This is not fair to Tanzanians.”

Haji Seif expressed concern over the ongoing work by the Chinese investors, which began on August 8 despite the miners’ objections.

“We have asked that the investor halt operations until this issue is resolved. We fear it could lead to unrest,” Seif warned.

The Chairman of the Shilalo Mining Group, Mr Peter Charles, defended the group’s management, saying so far at least 104 out of a total of 114 miners have received their compensations.

He encouraged those still dissatisfied to collect their remaining money, which, he said, totals Sh8 million.

“We formed a valuation committee that determined the value of the claims, and all agreed amounts have been paid,” Charles explained.

The Resident Mining Officer in Mwanza Region, Nyaisara Mgaya, acknowledged the dispute and has directed both parties to meet and resolve the issue.

She assured that a solution would be sought within the week. Mgaya emphasised the importance of a systematic approach to compensating miners and integrating them into the investment process.

“The area has been underutilised for nearly three years. Once the investor is fully operational, it will benefit the government, create jobs, and stimulate the local economy,” Mgaya concluded.