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SADC Lawyers’ Association Warns of Legal Challenges Arising from New Regional Mining Policies

SADC Lawyers’ Association Warns of Legal Challenges Arising from New Regional Mining Policies

The President of the SADC Lawyers’ Association (SADC-LA) on Thursday (2) called for greater regional harmonisation of policies and legal frameworks governing mineral resource extraction, arguing that recent measures adopted by several Southern African countries to restrict exports of unprocessed mineral raw materials present legal challenges that require a coordinated response from governments and the legal community.

The remarks were made during the opening of the 25th Annual Conference of the SADC Lawyers’ Association, taking place in Maputo from 2 to 3 July under the theme “Strengthening the Resilience of the SADC Region in the Agriculture, Energy and Industrial Sectors.”

During his address, the SADC-LA President referred to Mozambique’s recently adopted policy of gradually banning exports of unprocessed mineral raw materials, noting that the measure reflects a broader trend already emerging across the region.

“In this regard, I cannot fail to refer to a measure of particular significance for the industrial and extractive sectors in our region: the gradual prohibition on the export of unprocessed mineral raw materials recently adopted by Mozambique, following a trend already underway in several neighbouring countries,” he said.

According to the association’s president, the policy is intended to encourage local mineral beneficiation, create greater value within national borders, generate skilled employment and reduce the region’s longstanding dependence on the export of raw commodities.

However, he warned that the policy raises significant legal issues that cannot be overlooked by the legal profession.

“This measure is not without legal implications, and our profession cannot afford to ignore them,” he said.

He argued that the new policy requires a careful review of existing mining concession agreements, including an assessment of whether the new export restrictions are compatible with the fiscal and regulatory stability clauses commonly included in such contracts, as well as an evaluation of potential risks of disputes under international investment arbitration.

The SADC-LA President also stressed the need for greater regional coordination, warning that inconsistent national policies could ultimately undermine the industrialisation objectives they are intended to achieve.

“We must pursue regional harmonisation. Otherwise, the lack of coordination among member states may simply encourage investors to relocate to jurisdictions with less demanding regulatory frameworks instead of promoting the shared industrial development that SADC seeks to achieve,” he said.

He added that lawyers advising governments, investors and local communities have a critical role to play in balancing states’ sovereign economic interests with the legal certainty required to attract productive investment.

“Lawyers advising governments, investors and local communities therefore have an essential technical mediation role, capable of reconciling our countries’ legitimate economic sovereignty with the legal certainty that productive investment requires,” he said.

Among the recommendations presented to the conference, the SADC-LA President proposed establishing a regional working group dedicated to assessing the legal implications of policies restricting exports of unprocessed mineral resources. The group would be tasked with developing common guidelines for legislative reform, concession agreement negotiations and revisions, as well as supporting member states in potential international investment disputes.

The 25th Annual SADC Conference, organised by the Mozambique Bar Association, brings together judges, lawyers, academics and regional experts to discuss the legal, economic and social challenges facing Southern Africa, with particular emphasis on strengthening the rule of law and advancing regional integration.

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Text: Felisberto Ruco

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