Mining arbitration in Africa
July 22, 2019
Disputes in the mining sector in Africa are increasing, as states seek to renegotiate long term agreements and influence the revenue balance set out in joint venture agreements. These disputes are increasingly leading to arbitration proceedings as investors seek to protect their significant capital expenditure in the mining sector.
Our guide to arbitration in the mining sector in Africa considers some of the major recent trends, including:
- Measures perceived by investors as an attempt to force them to renegotiate their long-term agreements.
- Changes to the national mining codes in a number of jurisdictions that significantly increase taxes and royalties on revenues derived from mining activities.
- Major changes to customs regimes.
- Increased reliance by states and state-owned entities on environmental issues as well as the treatment of such issues by arbitral tribunals.
- Mine shutdowns by investors in the presence of a slump in commodity prices.
