THE INTERNATIONAL BAR ASSOCIATION'S MODEL MINING DEVELOPMENT AGREEMENT PROJECT

• Jurisdiction: Derecho Internacional

International Mining and Oil & Gas Law, Development, and Investment
(Apr 2011)
CHAPTER 9B
THE INTERNATIONAL BAR ASSOCIATION'S MODEL MINING DEVELOPMENT AGREEMENT PROJECT
Peter S. G. Leon
Webber Wentzel, South Africa

PETER LEON is a partner with Webber Wentzel, where he co-chairs the firm's mining, energy and natural resources practice group. His principal areas of practice are public law, particularly natural resources law, black economic empowerment law ("BEE"), regulatory aspects of financial services law and international investment law. Appointments include: chairman of the mining law committee of the International Bar Association (2009 - 2011) and co-chair 2011-2012; independent regulatory expert appointed by the by the director-general of the South African Department of Mineral Resources to the mining, industry growth, development and employment task team ("MIGDETT") (2011-2012); chair of the ministerial advisory committee on local government transformation in South Africa (2000 - 2002). Peter Leon was also named, for the last four years as one of the world's leading mining lawyers in three international publications, as well as one of the hundred most influential people in the South African mining industry. He holds a BA LLB (cum laude) (Cape Town), LLM (Hons) (Cambridge), where he was elected Senior Scholar of Christ's College for academic merit. During South Africa's democratic transition, Peter Leon was chairman of Lawyers for Human Rights in Johannesburg, provincial leader of the Democratic Party as well as caucus leader in the Gauteng legislature (1995 - 2000) and, subsequently, minority leader in the Gauteng legislature (1999 - 2000).

The International Bar Association's Model Mining Development Agreement

The RMMLF International Institute / International Bar Association conference 2011

Peter Leon

Partner and Co-Head of Mining, Energy and Natural Resources, Webber Wentzel, Johannesburg Co-Chair, IBA Mining Law Committee

Rio de Janeiro 5 April 2011

Overview of Presentation

• The need for a Model Mine Development Agreement ("MMDA")

• Comments on the MMDA and our response

• The aims of the MMDA

• Content

• Format

• Process

• Conclusion

The need for the MMDA

• Mining companies are increasingly concerned about the need to obtain a "social licence to operate", which includes obtaining the support of the local community, when commencing and continuing mining operations

• At the same time, mining companies require certainty In terms of the legal regime governing their mining operations and stable investment conditions under which to operate in order to ensure the long term security of their investments

• It has also become imperative that foreign investment in the mining sector foster sustainable development, while protecting the interests of the host governments, mine communities and investors in an equitable way

• Many developing countries, however, do not have...