Tanzania recently issued new Mining (Disputes Resolution) Rules, directly impacting companies and individuals operating in the mining sector and revoking the previous rules in effect. In this article, we provide an overview of the new rules and the key implications to consider.
Background
The Mining (Disputes Resolution) Rules (the Rules) which are made under section 122 of the Mining Act Cap 123 Revised Edition 2019 (the Mining Act), were published in the Government Gazette dated 16 April 2021 and repeal the Mining (Disputes Resolution) Rules Government Notice No. 224 of 1999.
Application of the Rules
The Rules will directly affect persons engaged in prospecting or mining operations and any third parties but not the Government. This means that the Executive Secretary of the Mining Commission (the Commission) will have power to inquire into and decide disputes between the abovementioned persons. The law permits this power to be delegated to any officer of the Commission who holds - at a minimum - the rank of a director.
Section 119(1)(a)-(d) of the Mining Act provides that the Commission will decide disputes in connection with:
The Rules will directly affect persons engaged in prospecting or mining operations and any third parties but not the Government. This means that the Executive Secretary of the Mining Commission (the Commission) will have power to inquire into and decide disputes between the abovementioned persons. The law permits this power to be delegated to any officer of the Commission who holds - at a minimum - the rank of a director.
Section 119(1)(a)-(d) of the Mining Act provides that the Commission will decide disputes in connection with:
- boundaries of areas subject to mineral rights;
- claims by any persons entitled to erect, cut, construct or use any pump, line of pipes, flume, race, drain, dam or reservoir for mining purposes, or to have priority of water taken, diverted, used or delivered, as against any other person claiming the same;
- assessment and payment of compensation in line with the Mining Act; and
- any other matter which may be prescribed by law.
The Commission
The Commission is managed by the Executive Secretary who is the Chief Executive Officer. The Executive Secretary is appointed, for a term of five years, by the President of the United Republic of Tanzania to oversee the management of the Commission. After the five year tenure, the Executive Secretary will be eligible for re-appointment.
The Commission is managed by the Executive Secretary who is the Chief Executive Officer. The Executive Secretary is appointed, for a term of five years, by the President of the United Republic of Tanzania to oversee the management of the Commission. After the five year tenure, the Executive Secretary will be eligible for re-appointment.
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