Govt halts operations of mining firm over unfulfilled CSR pledge

By Elizabeth John , The Guardian
Published at 12:09 PM Sep 18 2025
Govt halts operations of mining  firm over unfulfilled CSR pledge
Photo: File
Govt halts operations of mining firm over unfulfilled CSR pledge

AUTHORITIES in Ludewa District, Njombe Region, have taken action to regulate gold mining operations in the district, temporarily halting activities of WANHUA Mining Company Ltd until it fulfills a promise to provide 300 roofing sheets to local residents. Meanwhile, KOM Mining Company Ltd has been cleared to resume operations after compliance checks.

The announcement was made on Monday by Ludewa District Commissioner Olivanus Thomas during a public meeting held at Ilininda Village, a key gold mining area. Thomas explained that WANHUA Mining Company Ltd must suspend all mining activities until it completes its pledge to deliver 300 roofing sheets, which are intended to support the construction of community service buildings in Ilininda.

“The commitments made by these companies to the community must be honoured. We cannot allow large-scale operations to continue without considering the welfare of residents surrounding the project,” he stated.

He further clarified that the decision regarding KOM Mining Company Ltd was due to previous non-compliance with mining regulations and failure to adhere to government directives. “KOM Mining Company Ltd had previously ignored established procedures, which contravenes national laws and regulations governing mineral resource management. After thorough inspection and compliance measures, the company is now permitted to continue operations,” he added.

Prior to the meeting, Thomas personally visited all mining sites in Ilininda, emphasizing that Ludewa District government will closely monitor investment projects to ensure they benefit local communities and contribute to national development.

The move comes amid growing concerns from villagers regarding mining encroachment into areas not agreed upon in community-investor arrangements. James Anatory, a local resident, said some investors had expanded their operations into lands previously excluded from mining activities, causing tension and disputes.

“Our main grievance is that some investors started mining in areas that were supposed to remain untouched according to agreements with the community. They went beyond the agreed boundaries, entering lands that had not been approved for extraction. This has caused conflicts and dissatisfaction among residents,” he said.

The district government’s intervention highlights the importance of balancing investment in mineral resources with corporate social responsibility and community engagement. By enforcing compliance and ensuring that companies meet their pledges, the authorities aim to protect the interests of local residents while allowing sustainable development of natural resources.

Thomas stressed that the government will continue regular inspections and hold investors accountable, warning that any violation of regulations or neglect of community agreements would result in further sanctions. 

“We are committed to safeguarding both the environment and the rights of our citizens. Mining companies must operate responsibly and contribute positively to the communities in which they work,” he said.

The temporary halt of WANHUA Mining Company Ltd serves as a reminder that corporate social responsibility and adherence to national mining laws are not optional but essential for harmonious and sustainable development in Ludewa District.

Local residents welcomed the government’s action, expressing hope that it would ensure fair treatment, prevent encroachment, and guarantee that promised community benefits such as roofing sheets and social infrastructure, are delivered as agreed.

As gold mining continues to expand at Ilininda and other areas of Ludewa, government oversight and community engagement will remain critical to ensuring that economic growth goes hand-in-hand with social equity and sustainable resource management.