Natural Resources
Increasing demand for natural resources is being fuelled by developing markets and the growth in numbers of consumers across the globe. Exploration and project development have come sharply into focus to ensure market opportunities are maximised. Some commentators have questioned whether the industry will be able to meet a booming demand as it faces the challenges of raising finance, skills shortages, project delays, rising project costs, infrastructure deficit, regulatory hurdles and an ever challenging operational environment – all of which is having its own impact on supply.
Pinsent Masons has broad experience advising clients around the world, from investors to operators to contractors. We have market-leading corporate, projects and construction practices supporting our clients across the globe. These are some of the issues we help our clients with today:
- Forming robust relationships with joint venture and alliance partners
- Terms of appointment for consultants advising on the concept and feasibility stages
- Capital raising via initial public offerings (IPOs) and secondary fund raisings, mining and resources being aprevalent sector for fundraising in London
- Advising on investment structures and raising money privately, as well as strategic and operational joint ventures (JVs)
- Terms of appointment for EPCM and construction contractors including under framework arrangements to maximise relationship building and the securing of skilled resources
- Advising on equipment supply contracts (including framework arrangements) to procure critical plant and equipment on time to meet ramp up requirements, with appropriate output guarantees
- Helping to ensure integration of design, project management, equipment supply and civils and erection contracts
- Implementing efficient client management of projects and providing ongoing support for the whole life cycle of a project
- Advising on provisions aimed at retaining the key people with the skills to do the job
- Compliance issues including provisions addressing increasing safety, environmental and anti-corruption regulations as well as stakeholder concerns and community involvement
- Promoting contractual certainty through English law agreements and internationally recognised dispute resolution procedures, adapting internationally recognised standard forms (such as FIDIC and NEC) to the size, scale and complexity of mining projects and advice on a full range of payment models from fixed price to target cost to cost reimbursable schemes, including with KPI incentivisation mechanisms
Our experience includes advising:
- Baiyin Non-Ferrous Group Co Ltd, CITC Construction Co Ltd, and Chang Xin Yuan Su (Tianjin) Equity Investment Fund Management LP in relation to their USD185 million investment in Oxus Gold plc (a gold mining company with operations in the Amantaytau goldfields of the Republic of Uzbekistan)
- International Steel Group Inc. (ISG) in its USD2.5 billion bankruptcy buyout of iron ore and coal operations in Indiana, Maryland, and Pennsylvania together with Bethlehem Steel Corp.'s interests in a Minnesota mining company, steel finishing plants in Ohio, New York and Indiana, and joint venture in Illinois, Indianan, Mississippi and Florida
- Cathay Nichrom Mining and Development Corp on proposed arrangements with Crystal Mining & Development Corp to develop a project to exploit Crystal's mining claims in the Province of Dingagat Island, Philippines
- on the reverse takeover of Teck Cominco Brasil S.A., placing and re-admission to AIM by Horizonte Minerals plc (an exploration and development company with gold and nickel projects in Brazil and Peru)
- Hanson, part of the Heidelberg Cement Group, in relation to its portfolio of sites including stone and aggregates quarries in the UK
- in relation to disputes with estate owners over ownership of mining and mineral rights
- Anglo American on a package of framework and precedent (FIDIC based) EPCM and construction contracts for their international mining operations and projects worldwide (including in Southern Africa, South America and Australia) for the construction and development of mineral ore and mine processing facilities
- on a construction management services agreement for an ore processing plant at a copper mine in Zambia
- on claims arising from the EPC Contract on the Barapukuria Coal Mine Project in Bangladesh
- China National Machinery Imp. & Exp. Corporation in relation to coal mine / power station projects in Pakistan and Bangladesh
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