Tanzania Overhauls Legal and Regulatory Regime for the Extractive Industry
Tanzania has enacted three pieces of legislation that introduce sweeping changes to the legal and regulatory regime governing the natural resources extractive industry. The new laws are the Natural Wealth and Resources Contracts (Review and Re-Negotiation of Unconscionable Terms) Bill, 2017; the Natural Wealth and Resources (Permanent Sovereignty) Bill, 2017 (the “Permanent Sovereignty Bill”) (awaiting assent by the President); and the Written Laws (Miscellaneous Amendments) Act, 2017. The latter extensively amends the Mining Act, 2010 and, to a limited extent, the Petroleum Act, 2015. The Permanent Sovereignty Bill reasserts that control and ownership of natural wealth shall be exercised by the people of Tanzania through the government and held in trust by the President on behalf of the people. Unlike the old regime, the Bill extends state ownership to production arising from extraction of natural wealth resources. It further provides for:
· abolishing the retention of mineral earnings in banks outside the country;
· prohibiting proceedings in respect of national wealth and resources in foreign courts or tribunals; and
· the review of new and existing agreements by the National Assembly, subsequent to which the government may be ordered to renegotiate terms deemed unconscionable.
ENSafrica Tanzania advocate partner mmaajar@ENSafrica.com cell: +255 78 426 8888
ENSafrica Tanzania advocate partner tmaro@ENSafrica.com cell: +255 78 533 8443
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