Mineral resources and petroleum are generally vested in the state, regardless of who owns the surface land. Private parties obtain rights to explore or extract them through licences, leases or contracts granted under the relevant law, such as the Mines and Minerals Act 1992 for minerals other than petroleum, or production sharing contracts for oil and gas. Sand and soil extraction is regulated separately, largely through district administrations. Surface landowners may be entitled to compensation, but they do not usually own the minerals. We confirm the legal basis of any natural resources right before an investor relies on it.

Foreign participation in natural resources is possible, but the route depends on the resource, the licensing authority and current policy. Some opportunities arise through tenders or joint arrangements with state companies, while others are offered to local entities, in which a foreign investor may participate through a Bangladesh company. Investors also need investment registration with Invest Bangladesh, foreign exchange compliance, environmental approvals and land access. Policy on particular minerals, especially coal, can be politically sensitive and may change. We assess the available route for the specific project and identify approvals and restrictions before significant money is spent.

Most extraction and processing projects need environmental clearance from the Department of Environment, and larger or more sensitive projects usually require an initial environmental examination, a full environmental impact assessment and an environmental management plan. Approvals carry conditions that must be monitored and reported, and they are renewed periodically. Projects near forests, rivers, wetlands, protected areas or ecologically critical areas face extra restrictions and may be prohibited outright. Lenders and development finance institutions often require compliance with international standards as well. We help plan the approval route for natural resources projects, prepare the legal submissions and keep compliance properly documented.

Unregulated sand and stone extraction has caused serious riverbank erosion, damage to infrastructure and environmental harm, and the High Court Division has responded to public interest litigation by issuing directions, restricting extraction in particular areas and requiring authorities to enforce the law. As a result, even a valid allocation can be affected by later court orders or administrative action. Investors, lenders and operators should check for pending cases, court directions and local enforcement history before committing. We review these risks, advise on practical compliance steps, and represent clients in proceedings that affect their natural resources operations.

Royalties, lease rents and other charges are set by the applicable law, rules, government orders and the terms of the specific lease or contract, and they vary between minerals, sand, quarry products and petroleum. They may be based on volume, value or fixed amounts, and are collected by the licensing authority or state company concerned. Disputes often arise over measurement, valuation, arrears and penalties for late payment. Tax and VAT apply in addition. We review the basis of any royalty demand, help clients keep records that support their calculations, and challenge demands that lack a proper legal or factual basis.

A buyer should confirm that the company holds valid resource rights, that they are transferable or survive a change of control, and that renewal conditions have been met. Diligence should cover royalty and tax compliance, environmental approvals and any enforcement history, land title and access, community grievances, labour and safety records, contracts with state entities and offtakers, and pending litigation or public interest cases. Rehabilitation and closure obligations can create significant hidden liabilities for a new owner. We prepare focused diligence reports and translate findings into warranties, indemnities, conditions precedent and price adjustments in the sale agreement.

Leases and licences typically contain conditions, and the authority may cancel or suspend them for serious breaches such as non-payment, failure to carry out work programmes, unauthorised extraction, transfer without consent or environmental violations. Cancellation must follow the law and principles of natural justice, which usually means notice and an opportunity to respond. Where an authority acts unlawfully, judicial review in the High Court Division may be available, and investment treaty protection may be relevant for foreign investors. We help clients respond to notices promptly with evidence of compliance and, where necessary, challenge unlawful cancellations in court.

After the 2012 and 2014 maritime boundary decisions, Bangladesh has clearly defined territorial waters, an exclusive economic zone and continental shelf in the Bay of Bengal. Rights to explore and exploit resources there are controlled by the state through licensing and contracts, with Petrobangla responsible for petroleum production sharing contracts and exploration rounds and other bodies handling fisheries and marine activities. Offshore projects also raise vessel registration, port, customs, immigration, environmental and safety issues. We advise on the legal framework for offshore natural resources activity and coordinate with maritime and energy specialists where projects require it.