The Mwakitolyo Number 5 mine, home to over 10,000 miners, stands in turmoil. Its main office remains closed after being destroyed during escalating tensions between small-scale miners, their leaders, and Chinese investors. The conflict highlights growing unease over Chinese miners’ takeover of small scale mining operations,  particularly in Mwakitolyo, a town of 38,000 in the gold-rich Shinyanga region.  

“Tension over the sale of mining operations to Chinese investors is high here, and this mainly affects small-scale miners who have no other alternatives,” said Leonard Waziri, a small-scale miner and manager of the Mwakitolyo 5 mine.  

Waziri recounted how local miners were forced into smaller operations after nearby mines were sold to Chinese investors. 

“Since most of the mines in this area were taken over by Chinese miners, small miners from those areas migrated to this mine. So, when we had a meeting with Chinese investors, they thought we were entering an agreement, but it was not true, they just panicked and decided to beat the investors, and also destroyed this office,” Waziri explained.

Revenue and employment losses

Although Tanzanian law prohibits transferring small-scale mining licenses to foreigners, many Chinese investors acquire them under the guise of providing technical support. Article 3 of the Mining Act (2019) permits license holders to contract foreign entities for technical assistance, a provision frequently exploited.  

“They enter under the pretense of technical support,” Waziri elaborated. “Locals often end up in unfavorable agreements because they lack understanding of contractual terms.”  

Once these investors take over, they typically fence off the areas and conduct large-scale exploration, creating further tension as small-scale miners are left with diminishing resources.  

“The situation here is dire,” said Adamu Kuzenza, another small-scale miner. “With more investors taking over, mining areas are shrinking, and we have nowhere to work. The population keeps growing, but the land available for mining is decreasing.”  

Foreign companies operating under small-scale licenses avoid key taxes and compliance requirements needed for large or medium-scale operators. Some Lawmakers have pointed out that this trend will result in significant revenue losses and jeopardize the economic viability of mining-dependent towns.  

“Chinese [investors] continue to buy small mines from citizens,” said Jumanne Kishimba, Member of Parliament for Kahama Mjini, during a parliamentary debate on February 14, 2024. “A mine that used to employ 10,000 or 20,000 people and produce around 20 kilograms of minerals monthly—contributing to government and local council revenues — is now in the hand of one Chinese miner.”

Kishimba warned: “When they purchase these mines, there’s no contractual requirement for specific production levels. What happens to towns like Geita, Kahama, and Singida if they don’t produce?”  

Our water is poisoned

The environmental toll of these takeovers has also raised alarm. Unlike other large or medium-scale investors who must comply with strict environmental standards, many of these operations lack proper safeguards, leading to significant ecological damage.  

Residents of Nyamahuna in Geita, where Chinese investors have taken over mining, are among those most affected.  

“Our well is poisoned by the Chinese miners,” lamented Ndiyabi Kazigile, a Nyamahuna resident. “When it rains, chemicals from their operations flow into our water. We’ve tried appealing to our leaders, but nothing has changed. How are we supposed to survive?”  

Another resident, Kabalo Malimi, described the situation: “The water comes poisoned as chemical streams pass through our wells. They say the Chinese have paid for the water, but our water remains poisoned. As a former Hamlet Chairperson, I tried to fight for this issue, but nothing happened.”  

During a visit to Nyamahuna, The Chanzo observed green-tinged water and visible chemical streams flowing into the water source. Explosions from mining operations have also caused structural damage to houses.  

“There are huge explosions, and our houses are cracking. Yet, when we complain, no one listens,” said James Karidushi, the village chairperson.  

Regulation 

The Chanzo reached out to Eng. Ramadhani Lwamo, Acting Director, Mineral Licensing and Information at the Tanzania  Mining Commission to understand how these license acquisitions occur, given that Tanzania mining law prohibits foreigners from holding a small-scale mining license and how ownership is transferred to another party.

“A small-scale mining license cannot be sold to a foreigner until it has been upgraded. [To date], there has been no transfer of a Primary Mining License from a local to a foreigner. The Commission scrutinizes all transfer applications to ensure they meet the criteria,” explained Eng. Lwamo.

“The Mining Act allows foreigners to partner with locals (holders of small-scale mining licenses) through Technical Support Agreements registered with the Mining Commission. Therefore, [what you see] is an agreement between the license holder and the foreign provider of technical support, and all agreements we have issued are known [since there are] signed TSA certificates,” he said.

Lucy Shao is the Director of Advocacy and Communication of a local think tank on the extractive sector, Hakirasilimali she believes there is more than meets the eye with this initiative.

“We know that China is one of the countries with a high demand for copper, so they use these [gold] mines to extract other minerals like graphite and copper. ,” explains Shao.

Matonyinga Makaro is The Chanzo correspondent based in Mwanza he is available through matonyingamakaro@gmail.com. This story was developed following a journalistic training program in which Makaro participated. The project received support from the Thomson Reuters Foundation as part of its global work aiming to strengthen free, fair and informed societies. Any financial assistance or support provided to the journalist has no editorial influence.  The content of this article belongs solely to the author and is not endorsed by or associated with the Thomson Reuters Foundation, Thomson Reuters, Reuters, nor any other affiliates