Backing up mining deals
A list of seven key areas of sensitivity which could wreck or salvage future mining deals, has been identified.
Speaking in Perth on the first day of the 3-day 2013 Paydirt Africa Down Under conference, Michael Blakiston, a lawyer, said it is increasingly essential to have all agreements between stakeholders, documented.
This applies to relatively uncomplicated issues like the application for prospecting or mining licences, and also to more complex matters where a deal is of such maturity that it requires protection under legislative action by the host country.
“Given the nature of many African economies and the outcomes they need to achieve from foreign investment in developing their mineral resources, there have emerged in recent years some very specific areas of real sensitivity which can compromise agreements,” Blakiston said.
“These are how the interests of each agreement signatory is protected under an aggressive tax planning regime, particularly one which is treaty based; the status and use of offshore bank accounts and booking foreign currencies, and external securities such as OH&S issues applying to an agreement. Blakiston also singled out Transfer Pricing as a major concern for host countries.