Tanzania orders a steel plant to halt operations over environmental violations

A steel manufacturing plant in Tanzania, Hangjin Steel Tanzania Limited, has been ordered to immediately suspend operations due to severe environmental violations. The directive, issued by the Deputy Minister in the Vice-President’s Office (Union and Environment), Reuben Kwagilwa, followed a surprise inspection that revealed the factory was operating without a mandatory Environmental Impact Assessment (EIA) certificate. Inspectors also found the company discharging untreated waste, including waste oil and hazardous materials, and discovered unused bullets on the premises, raising significant security concerns. This enforcement action underscores Tanzania's commitment to upholding environmental laws and holding industrial players accountable for non-compliance, with potential legal ramifications extending beyond environmental breaches.

In a decisive move signaling heightened environmental enforcement, the Tanzanian government has ordered the indefinite suspension of operations at Hangjin Steel Tanzania Limited, a steel manufacturing factory located in Mkuranga District, Coast Region. This significant action follows a surprise inspection by government officials, led by the Deputy Minister in the Vice-President’s Office (Union and Environment), Reuben Kwagilwa, which uncovered a litany of serious environmental violations.

The immediate closure of the plant highlights the government's resolve to ensure compliance with national environmental laws and regulations, particularly the critical requirement for an Environmental Impact Assessment (EIA) certificate. Beyond the environmental breaches, the discovery of unused bullets on the factory premises introduced a grave security dimension, prompting a police investigation. This article will delve into the legal framework underpinning such enforcement actions in Tanzania, analyze the implications for industrial operators, and discuss the broader context of environmental governance in the country.

Tanzania's environmental governance framework is primarily anchored in the Environmental Management Act, Chapter 191 of the Laws of Tanzania (R.E. 2023) (the "EMA"). Enacted in 2004, the EMA provides a comprehensive legal and institutional structure for the sustainable management of the environment, outlining principles for impact and risk assessments, pollution prevention and control, waste management, and environmental quality standards. The Act also establishes the National Environment Management Council (NEMC) as the principal body responsible for monitoring compliance and enforcing environmental regulations.

A cornerstone of environmental protection under the EMA is the mandatory Environmental Impact Assessment (EIA) process. Sections 81 to 98 of the EMA, complemented by the Environmental Management (Environmental Impact Assessment and Audit) Regulations, 2005 (as amended in 2018), stipulate that projects likely to have significant environmental impacts must undergo an EIA and obtain a certificate before commencing operations. The Vice-President's Office (Union and Environment) plays a crucial role in formulating and implementing environmental policies, coordinating national efforts, and overseeing environmental management, including the activities of NEMC. The National Environmental Policy (NEP) of 2021 further reinforces these commitments, aiming to address prevailing and emerging environmental challenges through a coordinated, holistic, and adaptive approach.

The closure of Hangjin Steel Tanzania Limited exemplifies the robust enforcement powers vested in the Tanzanian environmental authorities, particularly the Deputy Minister in the Vice-President’s Office (Union and Environment) and NEMC. The primary violation cited – operating without an Environmental Impact Assessment (EIA) certificate – is a fundamental breach of the EMA. The EMA mandates EIAs for significant projects to predict and mitigate environmental and social consequences, ensuring sustainable development. Failure to obtain such a certificate not only contravenes the law but also indicates a disregard for the potential environmental harm a project may cause.

Further aggravating the situation were the findings of direct pollution, including the discharge of waste oil, untreated wastewater, and hazardous waste outside the production area. The Environmental Quality Standards Regulations, 2007, set permissible pollution levels for air, water, and noise, making such discharges clear violations. The EMA, under Part VIII, specifically addresses pollution prevention and control, including prohibitions on water pollution and the discharge of hazardous substances. Non-compliance with these standards can lead to significant financial penalties, litigation, and operational shutdowns, as demonstrated in this case.

The discovery of unused bullets on the factory premises adds a serious security and potentially criminal dimension to the case, transcending typical environmental enforcement. While the EMA primarily focuses on environmental matters, such findings during an environmental inspection can trigger investigations by other law enforcement agencies, as directed by the Deputy Minister. This highlights the multi-faceted risks associated with operating outside regulatory compliance in Tanzania, where a single inspection can uncover a range of legal infractions.

This incident also sheds light on persistent challenges in environmental compliance and enforcement in Tanzania. Reports indicate that despite a comprehensive legal framework, enforcement of industrial wastewater regulations, for instance, has been a challenge, with some industries discharging effluents above permissible limits. Issues such as unclear procedures, high compliance costs, and a lack of proportionate sanctions have been identified as factors discouraging compliance. The repeated denial of entry to NEMC officials by Hangjin Steel's management, as reported, further underscores a broader issue of corporate accountability and cooperation with regulatory bodies. The recent Environmental Management (Environmental Performance Bond) Regulations of 2024, which require developers to deposit a financial guarantee for responsible project closure and site rehabilitation, aim to strengthen accountability and incentivize compliance.

The indefinite suspension of Hangjin Steel Tanzania Limited serves as a stark reminder to all industrial operators in Tanzania of the government's increasing vigilance and commitment to environmental protection. Practitioners advising businesses must emphasize the critical importance of proactive environmental compliance, starting with obtaining and maintaining all necessary permits, particularly the EIA certificate. Failure to do so carries not only the risk of operational shutdowns and significant financial penalties but also potential criminal investigations, especially when other illicit activities are uncovered during inspections.

Businesses should conduct thorough internal environmental audits to identify and rectify any non-compliance issues before regulatory inspections occur. Furthermore, fostering a cooperative relationship with regulatory bodies like NEMC and the Vice-President's Office is paramount. The government's stance, as articulated by Deputy Minister Kwagilwa, is clear: environmental protection is a national priority, and investors who violate these laws will not be tolerated. This incident signals a potential era of more stringent enforcement, urging all entities to review their environmental management systems and ensure full adherence to the EMA and its subsidiary regulations to avoid similar severe consequences.