Exploring in New Frontiers : Overview of Key Local Issues

1. Exploring in New Frontiers: Overview of Key Local Issues Yves Baratte, Partner Iain Duncan, Partner 31 October 2012

2. Disclaimer • This document is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.

3. Misconceptions about mining in developing countries / new frontiers • “The law does not matter there; the local governments do not apply their own laws” • “In these countries, natural resources are linked to national sovereignty and governmental relations are all that matters” • “In these countries, mining transactions are not as sophisticated as in developed countries”

4. Challenges in developing countries / new frontiers • Governmental authorities sometimes do not know / do not apply their own Codes • … subject to more scrutiny • NGOs and international institutions • lenders • anti-corruption laws (e.g. the UK Bribery Act 2010) • More unstable • political contexts • unreliability of local courts • Lack of infrastructure

6. Overview: mining codes in selected “frontier” countries • Key mining laws • Key regulatory bodies • Significant terms of exploration and mining licences • Mining conventions / investment agreements / stabilisation arrangements • Security over and transfer of licences • Land acquisition rights • Obligations to divest to the State and/or local investors • Domestic market obligations • Benchmark selling obligations • Import restrictions • Production royalties / taxes • Forum for settlement of disputes

7. Key mining laws: Africa

8. Key mining laws: Asia

9. Key regulatory bodies: Africa

10. Key regulatory bodies: Asia

11. Significant terms of exploration and mining licences: Africa

12. Significant terms of exploration and mining licences: Africa

13. Significant terms of exploration and mining licences: Africa

14. Significant terms of exploration and mining licences: Asia

15. Mining conventions/investment agreements/stabilisation arrangements: Africa

16. Mining conventions/investment agreements/stabilisation arrangements: Asia

17. Security over and transfer of licences: Africa

18. Security over and transfer of licences: Africa

19. Security over and transfer of licences: Africa

20. Security over and transfer of licences: Africa

21. Security over and transfer of licences: Asia

22. Land acquisition rights: Africa

23. Land acquisition rights: Africa

24. Land acquisition rights: Asia

25. Obligations to divest to the State and / or local investors: Africa

26. Obligations to divest to the State and / or local investors: Asia

27. Domestic market obligations: Africa

28. Domestic market obligations: Asia

29. Import restrictions

30. Production royalties / taxes: Africa

31. Production royalties / taxes: Africa

32. Production royalties / taxes: Asia

33. Forum for settlement of disputes: Africa

34. Forum for settlement of disputes: Asia

36. Yves Baratte T +33 1 53 29 16 14 Yves.Baratte@simmons-simmons.com Iain Duncan T +44 207 825 31 37 Iain.Duncan@simmons-simmons.com simmons-simmons.com elexica.com