TRENDS IN MINING AND OIL & GAS DEVELOPMENTS AND INVESTMENTS IN NORTH AMERICA AND CHINA

• Jurisdiction: Derecho Internacional

International Mining and Oil & Gas Law, Development, and Investment
(Apr 2011)
CHAPTER 6A
TRENDS IN MINING AND OIL & GAS DEVELOPMENTS AND INVESTMENTS IN NORTH AMERICA AND CHINA
Greg McNab
Baker & Mekenzie LLP
Toronto

JAMES F. CRESS is a partner in the Denver office of Holme Roberts & Owen LLP practicing international mining and natural resources law. Jim is also a part time Director of Sustainable Development Strategies Group (SDSG), a non-profit research organization and a practical source of policy, institutional, and capacity building advice for sustainable development issues. He has negotiated and documented complex acquisitions, asset dispositions and financings for coal, uranium, molybdenum, gold, copper, oil and gas and other mineral-producing clients, including investments governed by the International Finance Corporation's Performance Standards and the European Bank of Reconstruction and Development's Performance Requirements. His international mining experience includes negotiation of substantial investments in developing and developed countries, including negotiations with host governments, and includes work in Argentina, Brazil, Burma, Chile, Columbia, Ethiopia, Georgia, Ghana, Haiti, Indonesia, Kazakhstan, Kyrgyzstan, Mexico, Peru, the Philippines, Sierra Leone, Suriname, Sweden and Tanzania. He has advised clients on the development, implementation and interpretation of mining law and regulation in a number of countries in North America, Asia, Africa, the former Soviet Union and Latin America. His mining practice also has experience in private and U.S. federal mineral royalty matters and has testified as a royalty expert before House and Senate committees considering mining royalty legislation. He has been an adjunct professor and lecturer at Western State University and in the University of Denver's Graduate Studies Program in Natural Resources and Environmental Law, teaching International Oil and Gas Law, Mining Law and SDSG's Sustainable Development of Natural Resources Series. He is listed as a mining law expert in "Who's Who of International Mining Lawyers" and in "Best Lawyers in America".

GREG MCNAB is a partner in the Securities & Resource Groups of the Toronto office of Baker & McKenzie LLP. Greg's practice focuses on financings of public and private securities issuers, investment management products, capital markets transactions, registration matters and mergers and acquisitions. Greg also advises on corporate governance, regulatory compliance, continuous disclosure and stock exchange matters for public issuers. Greg is a mechanical engineer by background with a focus on the steel industry. His practice includes the negotiation and drafting of prospectuses, circulars, shareholder agreements, opinion letters, applications for regulatory relief, share purchase agreements and related transaction documents. Greg works primarily in the mining, power and energy areas and has been involved in a range of energy and mining industry transactions and financings, as well as being a participant in Baker & McKenzie's Climate Change Group. Greg and other members of the Baker & McKenzie Global Mining Group routinely work on international transactions involving multiple jurisdictions.

Rocky Mountain Mineral Law Foundation & International Bar Association

Trends in Mining and Oil & Gas Developments and Investments in North America and China

International Mining and Oil & Gas Institute

Rio de Janeiro

April 4, 2011

Greg McNab

Baker & McKenzie LLP - Toronto, Ontario Canada

Agenda

• Introduction to Baker & McKenzie

• What is important for 2011?

• North America

Mining

Oil & Gas

• China

Mining

Oil & Gas

Introduction to Baker & McKenzie

— 67 offices in 38 countries around the world (6 here today)

— Our lawyers speak more than 60 languages, including all those used by the United Nations as well as the principal languages of the G7 economies.

— Located in developed and emerging mining jurisdictions industrial centres and mining financial centres

— Supported by specialists in public company securities/M&A, tax, property, competition, environment, etc.

Focus on 2011 - What will be different?

1. Innovations and new technologies (lines blurring - oil vs renewable vs CCS)

2. Demographic changes

3. Availability of resources

4. Project finance (new influences such as CDM)

5. Differentiating challenges and opportunities between regions

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Canada - Mining

— Canada remains the resource finance capital of the world:

— Resource rich

— Financially strong

— Balanced corporate governance

— Robust capital markets

— Strong trading liquidity

— Earlier access to capital and access to North American capital

— Political influences - Potash Corp., Baffinland

— Have to manage those risks, just as anywhere else

— Canadian regulatory guidance regarding resource disclosure

— NI 43-101 changes

Issues related to mining

• Environmental footprint:

• Land-use planning

• Waste management

• Ecosystem risk management

• Mine closure and rehabilitation

• Social licence to operate:

• Distribution of benefits/transparency

• Corporate Social Responsibility

• Challenge is to transform mineral resource potential while:

• Creating sustainable benefits;

• Addressing social needs; and

• Protecting the environment

Minerals and Metals in Canada

Canadian Mining and Mineral Processing Industries

• In 2009, mining and mineral-processing industries generated 2.7% of Canada's Gross Domestic Product (GDP).

• Canada produces some 60 minerals and metals. Canada is the world's largest producer of potash and is a major producer of uranium, copper. diamonds, gypsum, gold, nickel, salt and zinc.

• There are over 200 producing mining establishments (metal, non-metal and coat); 50 non-ferrous smelters, refineries and steel mills in Canada; and over 3000 stone quarries, sand and gravel pits.

• In 2009, approximately 307 000 were employed in mining and its downstream activities (extraction, smelting & refining, semi-fabrication and fabricated products)

• 2009 minerals and mineral products:

• Exports = $66.2 billion (18.4% of Canadian total)

• Imports = $55.2 billion (15.1% of Canadian total)

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TMX listed companies are exploring & producing around the world

Multilateral Forums & Mining

• United Nations Conference on Trade and Development (UNCTAD)

• United Nations Environment Programme (UNEP) - Mercury

• Extractive Industries Transparency Initiative (EITI)

• World Economic Forum (WEF)

• OECD/Great Lakes Region

• United Nations Commission on...