By Business Insider Reporter
Tanzania is proposing changes to its natural resources legislation that could give mining investors greater flexibility in negotiating dispute-resolution arrangements, potentially strengthening the country’s investment framework for large-scale mining projects.
The proposed changes are contained in the Written Laws (Miscellaneous Amendments) (No. 2) Bill, 2026, which seeks to amend several laws, including the Natural Wealth and Resources (Permanent Sovereignty) Act.
The most significant proposed change for the mining industry concerns Section 11 of the Act, which governs dispute-resolution arrangements for natural wealth and resource projects.
Under the proposed amendment, agreements covering the extraction, exploitation, acquisition and use of natural wealth and resources could provide for special arrangements on proceedings, jurisdiction and the seat of arbitration, provided that the agreement has received Cabinet approval.
The proposal could be particularly significant for holders of Special Mining Licences (SMLs), Framework Agreements, Development Agreements and other major mining investment arrangements.
Angela Caramaschi, Managing Partner at international law firm Clyde & Co, said the amendment could have important implications for Tanzania’s mining investment environment.
“The proposed amendment may provide greater flexibility regarding arbitration, jurisdiction and dispute resolution mechanisms in Cabinet-approved mining agreements,” Ms Caramaschi said in an analysis published on September 21.
According to her, the Government’s explanatory memorandum indicates that the proposed reform is intended to improve Tanzania’s investment environment by expanding the dispute-resolution options available to investors in natural-resource projects.
The memorandum also acknowledges that the existing requirement for disputes to be resolved within Tanzania has not provided a sufficiently conducive environment for investment.
If enacted in its current form, the amendment could strengthen the legal basis for arbitration provisions contained in Cabinet-approved mining agreements and provide investors and lenders with greater certainty when negotiating large-scale projects.
It could also facilitate negotiations over future Framework Agreements and amendments to existing arrangements, while potentially supporting the use of internationally recognised arbitration mechanisms.
For mining companies already operating under Framework Agreements, the proposed changes could provide additional legal support for agreed dispute-resolution mechanisms where those arrangements form part of a Cabinet-approved agreement.
However, the precise implications for existing investors will depend on the final wording of the legislation and the terms of individual agreements. Ms Caramaschi cautioned that the proposed changes should not yet be treated as settled law.
“The document currently available appears to be a Bill Supplement rather than the final assented legislation,” she said, noting that the final gazetted Act should be reviewed before investors rely on the proposed amendments.
The Bill also proposes amendments to the Land Use Planning Act and the Valuation and Valuers Registration Act. These could affect planning approvals, land-use procedures, valuation exercises and compensation matters associated with mining projects.
However, the proposed changes to those laws appear largely administrative and are not expected to materially alter mining economics or mineral rights.
For Tanzania’s mining sector, the proposed amendment to the Permanent Sovereignty Act is therefore likely to attract particular attention from existing investors and companies considering new large-scale projects. Analysts say that if approved in its current form, the reform would mark a significant shift in the flexibility available to parties negotiating Cabinet-approved natural-resource agreements, while potentially addressing one of the concerns investors have raised around dispute resolution in Tanzania.
