Lake
Natron
is the most important breeding site for Lesser Flamingos in the world.
Mining of soda
ash at Lake Natron
in Northern Tanzania is not economically
viable, experts have warned. A new Cost Benefit Analysis report shows that
projected return on investment over the next 50 years would be a loss of
between $44,354,728 and $492,142,797, even if exempted from paying tax by the
Government.
The report shows
that the Tanzanian public and local communities stood to gain between $1.28 and
1.57 billion in 50 years, if the Government of Tanzania invests in tourism,
protection of the environment and promotion of local livelihood alternatives.
Compared to soda ash mining, the people and environment would still tap greater
benefits even if the Government continued managing and investing in the
environment at current levels (business as usual).
“At the present
levels of soda ash prices and investment costs the benefits of ecosystem
conservation outweigh the benefits of soda ash mining”, said Dr Reuben Kadigi,
the economist who lead the Cost Benefit Analysis team. “The soda ash plant
would deliver far worse returns for local people. There will be losses of
benefits from different uses”, he added. The economic case for soda ash mining
is complicated by the fact that the quality of the mineral at Lake Natron
is low.
The report
further shows that support for the soda ash mining proposal at Lake Natron
is insignificant. Eighty four per cent of 175 local community respondents
consulted during the study were strongly opposed to the soda ash plans while 10
per cent were in support. The rest were neutral.
Mrs Sophia
Ndakarr, the Chair of the Ngare Sero cultural boma said ecotourism gives the
local communities better opportunities. “Tourists come to see our beautiful
culture and enjoy nature. In the process our lives are better. We cannot say
the same of a soda ash plant.”
The study, which
was undertaken between September 2011 and May 2012 looked at three possible
options for Lake Natron: soda ash mining,
business-as-usual and ecotourism and livelihood promotion. Estimates of
benefits and costs from the soda ash business were based on eight production
options. The eight options were a combination of the amount of soda ash to be
produced (that is either 500,000 or 1 million tonnes per year); annual increase
in soda ash production (2% or 5%) and length of the project (17,38 or 50
years). Four of the options assumed that the investor would bear the costs of
construction/rehabilitation of the Tanga-Lake Natron railway and the road from
Arusha.
Lake Natron is the most important breeding site for
Lesser Flamingos in the world. East Africa has between 1.5-2.5 million
(three-quarters of global population) pink flamingos and most them are hatched
at Lake Natron. Tata Chemicals Industries put
forward the initial proposal to construct a soda ash plant at the Lake in 2006,
but withdrew in May 2008 following concerns over negative impacts on flamingo
breeding, local livelihoods and the environment. However, the Government of
Tanzania through the National Development Corporation maintains a keen
interest.
From the Cost
Benefit Analysis study, only three out of eight soda ash scenarios seem to
suggest some positive benefit to the investor but even these would require soda
ash to be produced at 1 million tonnes throughout the project period. “This
level of soda ash production is not tenable for an ecologically sensitive
environment like Lake
Natron. It would also be
technologically unrealistic” said Dr Fred Kilima who co-authored the report.
“These scenarios require that the construction of basic infrastructure like
roads and rail link be borne by externally and not by the investor.”
The report
further points to another challenge to future natural soda ash production – the
stiff competition it faces from the synthetic variety. China is a
leading producer of synthetic soda ash. Tata Chemicals Magadi factory in Kenya has been
feeling this competition and has at times operated at very low production
levels.
“The Government
of Tanzania should use the report to re-assess its long-standing desire to
build a soda ash factory at Lake Natron”, said Mr Deo Gamassa, the CEO of Wildlife
Conservation Society of Tanzania (BirdLife in Tanzania). He added, “The Lake
Natron communities are better off without the soda ash plant. Investment should
now focus on promoting ecotourism which is now proved to be the economically
better option.”