Problems with Reporting and Evaluating Mining Industry Community Development Projects: A Case Study from Tanzania

Abstract

Reporting on contributions to community development is one way gold mining companies communicate the expanse and depth of their commitment to social responsibility. These projects are intended to provide the mine-proximate communities with some of the wealth and other benefits generated by mine development in their locales. We raise questions about reporting and evaluation of community development projects undertaken by AngloGold Ashanti in the two communities of Nyakabale and Nyamalembo, near its Geita mining projects in the Lake Victoria goldfields of Tanzania. We use archival data and data obtained from field research conducted during different periods throughout 2005, 2007 and 2010 to compare what the company reports to have done with what is found on the ground. Our findings revealed that the corporate reporting is misleading, ambiguous, and omissive. Much of the effort labeled “community development” benefited the companies directly via infrastructure development, food supplies to the mine cafeteria, and worker health. We argue that, if Corporate Social Responsibility (CSR) projects are to be the primary way local people directly benefit from mine development, the relationship between the value of those projects and the wealth taken from the location should be considered, community projects should be well defined and differentiated from company-oriented projects, and community representatives should participate in monitoring the success and impact of community development projects

Effective integrated frameworks for assessing mining sustainability

“…Defined as those that are designed and permitted under contemporary environmental legislation (KGHM International, 2013), “modern” mines provide the opportunity to identify and study mining impacts in the wake of the transition towards sustainable materials development. However, questions remain as to the extent to which these approaches are being implemented, and it has been noted that in some cases CSR disclosures have not been representative of actual CSR performance (Emel et al, 2012). Significant progress towards sustainability can only be attained when such efforts are implemented with transparency and veracity.…”

“…Issues with extent of disclosure are highlighted by Emel et al (2012), who evaluated some of the challenges associated with sustainability reporting in the mining sector using a case study from Tanzania, where there is a new focus on CSR projects. Through interviews with members of the public and focus groups, and photography and video recording during site visits, Emel et al (2012) investigated four main themes-water supply, education, health, and agroforestry.…”

Contemporary concerns in development studies: Perspectives from Tanzania and Zambia

“…Therefore, when we look at the future of Tanzania beyond the Millennium Goals, we can project CSR in the scenario as one of the possible ways to finance development in the country. However, there is evidence that CSR in Tanzania is doing poorly with some activities failing, others rejected by local communities and some showing disappointing results (Egels 2005;Emel et al 2012;UK Essays 2014). One of the reasons that have been extensively argued as contributing to the failure of CSR (possibly rejection) is the non-involvement of the stakeholders in decision making processes (Diallo and Ewusie 2011;Freeman 1984).…”

“…While corporations had good literature on their CSR programmes, there was little to show in terms of what had been done and how it benefited the communities. The deprivation done by mining companies in terms of land, pollution of water sources and other resources shows that the whole question of livelihood of the natives was unspeakable (Emel 2012). Number of companies in Tanzania do CSR by giving a few scholarships, classrooms, helping NGOs sporadically and white elephant projects of water and electricity such as those done by Geita Gold mine and African Barrick Gold.…”

“…Gold Mine took part of Nyamalembo village primary school, later it built a hostel for a girls' secondary school as part of its CSR programme (Emel et al 2012). It also released poisonous water into villages' water sources underground, and then provided seasonal tap water as its CSR project.…”