TIMOR-LESTE Trends and Developments Contributed by: João Afonso Fialho, Tomás Cabral Anunciação and Teófilo de Jesus, VdA
Also noteworthy was the approval of Decree- Law 62/2023, of 6 September 2023, which cre - ated the National Authority of Petroleum, and Decree-Law 63/2023, of 6 September 2023, which created the National Authority of Mineral Resources. According to the latter, this change was aimed at improving the quality and efficien - cy of sectoral regulation and the achievement of socio-economic development in the country in a sustainable way, while also benefiting current and future generations. More recently, the government approved Decree- Law 19/2024, of 25 March 2024, which estab - lishes the rules for the classification and market - ing of strategic minerals and for the Timorese state’s participation in mining activities related to these minerals. International commitments In 2008, Timor-Leste joined the international Extractive Industries Transparency Initiative (EITI), a voluntary initiative that works to enhance revenue transparency by verifying and publicis - ing the revenues paid to member governments by extractive companies. Timor-Leste has been using EITI reporting to shed light on transfers from the Petroleum Fund to the national budg - et, but is expected to starting using the EITI to report data from the country’s mining industry.
It is also worth mentioning that, on 17 March 2021, Timor-Leste approved the accession of the country to the New York Arbitration Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, having deposited the ratification instrument with the secretary-general of the United Nations on 17 January 2023. The convention came into effect in Timor-Leste on 17 April 2023. Future Prospects Timor-Leste’s economic growth is forecast to accelerate to an average of 4.1% in 2024 and 2025 as easing inflation pressures and a stable fiscal outlook contribute to growth, according to the World Bank’s semi-annual Timor-Leste Eco - nomic Report. In particular, after the creation of a solid legal framework through the Mining Code and other relevant regulation, the development of the min - ing industry is expected to take off in the coun - try, with the continuing mapping of mining areas, the publicising of the country’s mining potential to attract the numerous mining companies oper - ating in the region, and the effective award of mineral rights by the government to the mining companies through public tenders such as the one in 2023. Timor-Leste’s robust and investor-friendly legal framework, the success of the first public tender and the global demand for minerals will certainly attract investors in the future.
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