Responsible Business Conduct in Tanzania’s Transition Minerals: An Analysis of Policy and Legal Gaps

Authors: Moses Kulaba, Steven Alloys & Don Malish, Governance and Economic Policy Centre

Photo Credit: Jumbo Graphite in Tanzania

1. Global Context: Transition Minerals

The global demand for critical minerals essential for the production of batteries, electric vehicles, and renewable energy technologies currently projected to grow dramatically as the world pursues net-zero ambitions. The International Energy Agency (IEA) estimates that demand for critical minerals could increase sixfold by 2050, with their market value set to reach approximately USD 400 billion. An estimated 3 billion tons of critical minerals will be required by 2050 to drive the green transition.

The International Energy Agency (IEA) indicates the demand for critical minerals to achieve the net-zero goals of the Paris Agreement could increase sixfold by 2050, with their value reaching about USD400 billion[1].  To drive the transition to renewable energies, it is estimated that about 3 billion tons of critical minerals will be needed by 2050[2] and this will require an increase in mining activity to supply these quantities. The IEA Sustainable Development Scenarios [SDS], show the share of total demand for transition minerals will rise significantly over the next two decades to over 40% for copper and rare earth elements, nickel and cobalt (60-70%), and almost 90% for lithium.[3] Further estimates indicate that production of minerals such as graphite, lithium, and cobalt will increase by nearly 500% by 2050, and demand for copper will surge and remain high for a long time.

 The global energy transition and the corresponding surging demand for transition minerals offer opportunities for host nations through increased investment and mineral export revenue. However, the United Nations (UN), the Organization for Economic Cooperation and Development (OECD), and the African Union (AU) have all noted with concern that the increase in demand and mining of transition minerals has the potential to exacerbate economic injustice and human rights risks in mineral-rich countries and mining communities

2. Tanzanian Context

Tanzania hosts globally significant reserves of transition minerals, including graphite, nickel, cobalt, and lithium, positioning it as a potential key global supplier. The mineral resource ranges from precious metals (gold, silver, PGE), critical minerals (graphite, nickel, cobalt, lithium, niobium, neodymium, praseodymium, vanadium, titanium, tin), and energy minerals (uranium, coal, and helium gas). Tanzania is among the top five largest graphite reserves in the world. (Ministry of Minerals, 2024).

The government is developing a Critical Mineral Strategy to regulate and guide investment, aiming to accelerate exploration to 50% national coverage by 2030. These minerals are essential for the production of batteries, electric vehicles, and renewable energy technologies. Tanzania continues to attract interest from key global mining players.

On the other hand, the government is seeking efficient ways to unlock and maximize the benefits of critical mineral resources, mindful that, in the past, the sector was marred by economic, tax, and human rights injustices.

3. Why This Matters

 Over the last decade, the government has undertaken several policy and legal reforms to improve the sector with the aim of addressing the above concerns. There are still significant governance gaps, particularly in relation to business conduct and human rights. Tanzania’s drive for a sustainable mining future is a unique opportunity to embed Responsible Business Conduct and Human Rights Due Diligence into mineral policies, as the global demand for transition minerals increases.

4. Study Objectives

The main goal of this study is to encourage policy dialogue and involvement from civil society in promoting Responsible Business Conduct (RBC) and protecting human rights within Tanzania’s transition minerals sub-sector. The analysis reviews key policy frameworks, including the Mineral Policy of 2009, the Mining Act of 2010 (revised in 2022), the EITI Act of 2015, and the draft Critical Minerals Strategy (CMS). It evaluates their relevance to the sector’s transition, identifies gaps in RBC, and highlights opportunities for policy improvement.

 The specific objectives are to:

1. Contextualize Tanzania’s development of critical mineral resources from an RBC and energy transition perspective.
2. Conduct an RBC gap analysis of the four selected policies and legal frameworks, aiming to identify gaps and opportunities to strengthen HRDD and RBC.
3. Key Findings:

The study identifies significant governance gaps in the analyzed frameworks, particularly in relation to Responsible Business Conduct (RBC) and Human Rights Due Diligence (HRDD).

1. Draft Critical and Strategic Minerals Strategy 2025

The Strategy forms an economic governance road-map to position Tanzania as a global critical mineral supplier.

• While it makes broad references to ESG (Environmental, Social, and Governance) principles, it fails to integrate internationally recognized frameworks like the UNGPs or OECD Due Diligence Guidance, and does not mandate companies to implement or report on HRDD practices.
• The policy recognizes the importance of engagement but overlooks the key principles of consultation and engagement, such as Free, Prior, and Informed Consent (FPIC), creating concerns about alignment with international human rights standards.

The draft strategy does not establish remedy mechanisms for communities adversely affected by critical mineral operations, offering insufficient clarity on how human rights or environmental harms will be addressed.

1. Tanzania’s Mineral Policy 2009

The policy is the overarching framework for the mining sector, currently set for review.

• It acknowledges socioeconomic, environmental, and community participation rights but does not explicitly require companies to operationalize RBC or HRDD.
• It fails to address the rights of Indigenous communities, despite Tanzania’s endorsement of international instruments.
• It is vague on addressing HRDD, focusing mainly on government monitoring of safety and environmental protection, but stops short of legally demanding that companies conduct or report on comprehensive HRDD processes.
• The policy includes specific provisions for compensation, relocation, and environmental rehabilitation. However, lacks specific provisions for non-judicial grievance handling, falling short of Pillar III of the UNGPs on effective remedy.

1. c) Tanzania’s Mining Act 2010 (CAP 123 RE 2019)

This is the overarching law governing the mining sector and matters relating to prospecting for minerals, mining, processing and dealing in minerals, granting, renewal and termination of mineral rights, payment of royalties, fees and other charges, and any other relevant matters. Over the past 10 years, the mining law has undergone significant reviews and amendments, particularly to strengthen government participation in the mining sector. The government plans to review the existing law(s) to ensure alignment with emerging geo-economic developments and the newly formed Tanzania Development Vision 2050.

The Mining Act acknowledge human rights by addressing land rights, relocation, resettlement, and fair compensation, and by requiring community participation and consent before mining companies can access land. It grants various mineral rights, such as prospecting, retention, primary, and special mining licenses under Section 7, and safeguards community land rights through provisions like Section 95, which mandates village council approval and lawful occupier consent.

However, there is no explicit requirement that all mining sector decisions and operations comply with international human rights standards would ensure that the revised law balances economic interests with the protection of communities and their rights.

6. Conclusion and Recommendations

The study concludes that Tanzania needs to move beyond procedural safeguards and embed Responsible Business Conduct and Human Rights Due Diligence at the core of its policy and legal frameworks to ensure a just and sustainable future. Key recommendations include:

1. Ministry of Minerals:

• Integrate Responsible Business Conduct (RBC) and Human Rights in Strategy & Policy: Ensure that the finalization of the Critical Minerals Strategy incorporates RBC and human rights considerations, and that insights from this analytical review informs the development of the upcoming Mining Policy.
• Strengthen Licensing Conditions: Integrate environmental, social, and governance (ESG) benchmarks into mineral licensing, making compliance a prerequisite for exploration and production rights.
• Develop Transparency Portal: Build centralized digital platform for public access to contracts, production data, revenue flows, and disclosure reports, ensuring accountability across the sector.
• Integrate Gender Equity in Mining: Compel mining companies to adopt gender‑responsive policies and mandatory reporting on gender inclusion.
• Monitoring & Enforcement Capacity: Develop and equip specialized compliance unit within the Ministry to audit disclosures, monitor ESG performance, and sanction non‑compliance.

1. Parliament of Tanzania

• Legislate Mandatory ESG Reporting: Pass amendments to the mining law that enforces disclosure of human rights, gender equity, and environmental impacts, harmonized with existing global standards (e.g., OECD, EU).
• Strengthen Oversight Roles: Empower parliamentary committees to audit mineral revenues, monitor state‑owned enterprises, and further review compliance with established disclosure standards.
• Improve Community Participation: put in place mandatory provisions requiring free, prior, and informed consent (FPIC) for affected communities in critical minerals projects, embedding social license into law.
• Amend and strengthen the Extractive Industries Transparency and Accountability (TEITA) Act to mandate full contract disclosure and human rights disclosures.

iii. Tanzania Extractive Industries Transparency Initiative (TEITI) Committee

• The TEITA Committee should apply its powers under Section 10(2)(a) and (k) to push for human rights disclosures across the mining sector, including within state-owned enterprises and joint ventures in critical minerals.
• Establish community-level multi-stakeholder structures that replicate TEITI’s national committee model. This would expand transparency and accountability by involving host communities, civil society, and local governments directly in monitoring extractive operations and revenue flows.

1. Mining Companies (Private and State-Owned Enterprises, including STAMICO)

• Mining companies should adopt comprehensive human rights due diligence (HRDD) frameworks to align with established global standards.
• Companies should regularly publish non‑financial reports that disclose their performance on human rights, gender inclusion, and environmental sustainability, which would be subject to independent verification to enhance credibility.
• Companies should operationalize community grievance mechanisms at the project level operational level.

1. Local Government Authorities

• Institutionalize effective stakeholders’ engagement including FPIC processes in land acquisition, resettlement, and compensation.
• Local authorities should be trained and resourced to oversee negotiations, safeguard the rights of vulnerable groups (indigenous peoples, women, youth, persons with disabilities), and ensure equitable benefit-sharing agreements.

1. Commission for Human Rights and Good Governance (CHRAGG)

• Strengthen its role in monitoring mining-related human rights violations and handling community grievances. CHRAGG should be empowered with resources and legal authority to ensure timely remedies, independent investigations, and enforcement of sanctions for corporate or state non-compliance.
• CHRAGG should further strengthen its legislative review mandate by actively recommending reforms to ensure that legal and regulatory frameworks governing the extractive sector are fully aligned with human rights principles and Responsible Business Conduct (RBC) standards.

1. Civil Society and Media

• Scale up capacity-building on Responsible Business Conduct (RBC) and HRDD frameworks (UNGPs, OECD, AMV, AU Green Minerals Strategy) for communities in critical minerals zones.
• Civil society and media should work to document, monitor, and report abuses, while supporting communities in accessing legal aid, remedies, and negotiation processes.
• Civil society organizations (CSOs) should provide technical support, knowledge, and practical tools to enable businesses and government institutions to effectively implement Responsible Business Conduct (RBC).

7. Conclusion

Tanzania’s mineral wealth is a once-in-a-generation opportunity. However, without strong communication and enforcement of RBC safeguards, the country risks repeating past mistakes of human, ecological and tax injustices.

If managed responsibly, it can:

1. Drive industrial transformation.
2. Attract responsible investment.
3. Empower communities and protect rights.
4. Position Tanzania as a global leader in sustainable mining.

[1] https://www.iea.org/news/clean-energy-demand-for-critical-minerals-set-to-soar-as-the-world-pursues-net-zero-goals

[2] https://www.unep.org/topics/energy/renewable-energy/critical-energy-transition-minerals

[3] https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions/executive-summary