Two international mining companies operating in Tanzania have announced that they will challenge in court the decision by the government of President John Magufuli to amend mining laws in a manner that will breach earlier agreements signed between the two business entities.
Indian Resources Limited, a mining company that has links in the United Kingdom and Northern Ireland said this week that it is taking the Tanzanian president, the Attorney General and the Mining ministry to court in connection with its Ntaka Hill Nickel Retention licence.
The company, through its lawyers, said it would take measures to preserve its rights as a shareholder of Ntaka Hill Holdings Limited which owns a project located in theNachingwea District, Lindi region.
Earlier another international mining company, from Canada, Winshear Gold Corporation said it had also filed papers against the Tanzanian government over a dispute relating to the government’s decision on mining laws.
The laws are to be amended in line with new regulations to do with natural resources and wealth especially mining.
The two mining companies feel that the government has breached its obligations to foreign investors under earlier agreements.
There was no immediate response from the government concerning the two companies.