Tanzania: Proposed Amendments to the Natural Wealth and Resources (Permanent Sovereignty) Act, May Affect Mining Investment Agreements

The Government of Tanzania has published the Written Laws (Miscellaneous Amendments) (No. 2) Bill, 2026, which proposes amendments to several statutes, including the Natural Wealth and Resources (Permanent Sovereignty) Act.

Why is this relevant to the mining sector?

The most significant proposed amendment concerns section 11 of the Natural Wealth and Resources (Permanent Sovereignty) Act, which currently regulates dispute resolution arrangements relating to natural wealth and resource projects.

The Bill proposes a new provision allowing agreements relating to the extraction, exploitation, acquisition and use of natural wealth and resources to contain special arrangements concerning:

• proceedings;
• jurisdiction; and
• the seat of arbitration,

provided that the relevant agreement has received Cabinet approval.

The Government's explanatory memorandum expressly states that the amendment is intended to improve Tanzania's investment environment by broadening the options available for dispute resolution in natural resource projects. It also notes that the existing requirement for disputes to be resolved within Tanzania has not provided a conducive environment for investment.

Potential implications for mining companies

The proposed amendment may be particularly relevant for holders of:

• Special Mining Licences (SMLs);
• Framework Agreements;
• Development Agreements; and
• other large-scale mining investment agreements.

If enacted in its current form, the amendment could:

• strengthen the legal basis for arbitration arrangements contained in Cabinet-approved mining agreements;
• provide greater flexibility in negotiating dispute resolution provisions;
• improve legal certainty for investors and lenders;
• facilitate future negotiations of Framework Agreements and amendments thereto; and
• support the use of internationally recognised arbitration mechanisms in large-scale mining projects.

Existing Framework Agreements

For mining companies that already operate under Framework Agreements, the amendment may provide additional support for agreed dispute resolution mechanisms where those arrangements form part of a Cabinet-approved agreement. However, the precise effect will depend on the final form of the legislation and the terms of the relevant agreement.

Other relevant amendments

The Bill also proposes amendments to the Land Use Planning Act and the Valuation and Valuers Registration Act, which may affect planning approvals, land-use processes, valuation exercises and compensation-related matters associated with mining projects. These amendments appear largely administrative and are unlikely to materially affect mining economics or mineral rights.

Key takeaway

The proposed amendment to the Natural Wealth and Resources (Permanent Sovereignty) Act is potentially one of the most significant investor-friendly developments in Tanzania's natural resources framework in recent years. Subject to enactment in its current form, it may provide greater flexibility regarding arbitration, jurisdiction and dispute resolution mechanisms in Cabinet-approved mining agreements and could have important implications for both existing and future SML holders and Framework Agreement investors.

Important: The document currently available appears to be a Bill Supplement rather than the final assented legislation. The final gazetted Act should therefore be reviewed before relying on the proposed amendments.