Tanzania: Baseline study on business & human rights claims Shanta Gold failed to consult & compensate communities impacted by its operations; company responds

A National Baseline Assessment on Business and Human Rights in Tanzania alleges that Shanta Gold failed to consult and compensate communities impacted by its operations. It further alleges that Kapunga Rice engaged child labour in its operations. The Business & Human Rights Resource Centre invited Shanta Gold to respond to the allegations. The full response is provided. Kapunga Rice could not be reached.

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23 January 2018

Report alleges Shanta Gold failed to consult & compensate communities impacted by its operations

Author: The Commission for Human Rights & Good Governance(Tanzania), SOMO & DIHR

"National Baseline Assessment of the Current Implementation of Business and Human Rights Frameworks in the United Republic of Tanzania"

...The Baseline was developed by CHRAGG, with technical support from the Danish Institute for Human Rights (DIHR). Both organisations are A-status National Human Rights Institutions (NHRIs) with the mandate to protect and promote human rights...The Baseline includes...field mission case studies [on the operations of Shanta Gold and Kapunga Rice].

[In relation to Shanta Gold], the team observed that human rights impacts caused by Shanta Mining activities gave rise to causes of action in the communities of the three villages, yet their claims often failed to proceed and where remedies were obtained these did not meet community expectations compared to the harm suffered. Besides judicial mechanisms being in place as a means of achieving accountability and access to remedy in cases of business-related human rights abuses, communities lack knowledge and information about non-judicial mechanisms and non-State grievance mechanisms at the operational and community level...[In relation to Kapunga Rice] a number of concerns were noted including: hiring children, some of whom were reported to be seen working during school hours; lack of workers’ representation; and lack of a common formula for determining employees’ salaries/wages, contrary to the labour standards.

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Company response
23 January 2018

Shanta Gold's response

Author: Shanta Gold

"Response to Baseline report dated November 2017"

...Shanta is responding to the points that have been raised in the report:The first Environmental Certificate covering the three mining licenses was granted in 2012 after a very rigorous ESIA process was concluded. The Government oversees the process and the Community was consulted as was indicated by the Local Government representatives. The proof of consultations in form of photographs and signatures of who attended is part of the addendum to the ESIA write up. Currently, Shanta is in the process of updating its ESIA to align with prospective mining operations. Consultation with the stakeholders including the Community will be part of the approval process as required by law. After the approval of ESIA then, the Environmental and Social Impacts Management Plan will be prepared...

Health and safety of all employees and contractors is Shanta’s highest priority. Shanta’s safety record in Tanzania in 2017 (inclusive of employees and contractors) outperformed the industry benchmark according to ICMM (International Council on Mining & metals).Casuals are compensated for injuries suffered while performing Shanta duties. In Singida’s case, Shanta has gone to the extent of assisting in emergency medical cases in the villages through first aid and by transporting the sick to Puma and Singida hospitals 45 and 60 km away. The call comes from the Village Executive Officer.

Shanta engaged the Community thoroughly prior to the resettlement process. With that process, a Resettlement Working Group (RWG) was formed with 55 members including Government officials as well as Community Reps. Meetings were held and study tours to area covered by the mining licences were arranged and taken. An Independent Valuer was chosen by the RWG and a written consent was obtained from all beneficiaries before accessing their properties for valuation.Valuation was done for everyone pointing out their properties and witnessed by Local Government Officials. The valuation report was held by the Member of Parliament (by people request) for nine months before it was submitted to the Government Chief Valuer for approval.

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