Given that, under a joint venture agreement or an option agreement, the ad hoc vehicle is likely to be local and the mining land will also be in the host country, it is very likely that the enforcement of rights and obligations will take place in the host country. The interpretation and application of concepts of foreign law in the host country can be a challenge and, in some cases, even invalidated, especially where legal systems are different. Option agreements are typically used by junior companies that have access to markets and capital when dealing with local property owners who lack the means and expertise to explore and develop the concession area. Such agreements are also used by small and medium-sized enterprises, even by majors, but not so often at very early stages of exploration. Mining agreements, which are framework agreements, often provide for the existence of other agreements and contracts concluded between the parties to the mining contract, but also between the operator, the party to the mining contract and third parties. The mining agreement can therefore provide for the existence of the statutes of the Mine Operating Company (MOC), in which the government holds a free participation 14 (and often an additional participation against payment), a shareholders` agreement between the government and the operator that defines the provisions of these statutes and organizes the relations between the shareholders. as well as financing agreements explicitly designated as agreements concluded with third parties for the purpose of financing the project or the OMC. The articles of association and the agreement of the shareholders of MOC often contain more detailed provisions concerning the financing of the OMC by the operator, third parties and sometimes by the government that are of interest to the financiers, as well as provisions relating to the transfer of securities and securities in these securities, in particular in the event of a possible step. The mining agreement can also anticipate the rights of financiers by providing for the existence of financing agreements and certain provisions of these agreements may prevail over the provisions of the shareholders` agreement, the articles of association or even the agreement, which are subject to mandatory provisions of the law of the host country. This chapter presents a number of mining agreements widely used in this sector, focusing on the specific characteristics of any agreement inherent in mining activity. The element of risk and long-term financing needs, which encompass exploration, operation and construction up to the start of production, require unique structures for mining and must have a holistic approach to mining lawyers.
The main issues related to joint venture agreements in the mining sector, option agreements as well as licensing and streaming agreements were discussed here. In the oil industry, some codes provide that financial modelling will be annexed to the production sharing contract. Although the key to the success of many mining projects is often infrastructure, mining laws and agreements often remain silent about financing infrastructure to be built.15 The construction of infrastructure at a competitive cost 16 (compared to other similar projects in other countries) is therefore particularly important, especially in the context of the international volatility of ore prices. . . .