Part II Key Risks and Disputes Associated with International Mining Projects, 9 Mining Development, Operating, and Commercial Disputes
Henry G. Burnett, Louis-Alexis Bret
- Arbitral rules — Arbitral agreements — Contract claims — Claims
This chapter examines the most common types of disputes arising in connection with the development and operations of mining projects. These can be classified into two main categories: development and operating disputes, and offtake and sales disputes. Development and operating disputes include: disputes that may arise when the project owner and external mining contractor fail to agree on rates; hardrock drilling disputes arising from various geographic, geologic, and practical factors; and construction contract disputes. Offtake agreements or offtake contracts refer to all types of agreements for the sale and purchase of metals/minerals, including spot sales, metal streaming agreements, and in-kind mineral royalties. The most common types of disputes involve four essential aspects of the sale of metals and minerals: the quantity to be delivered; the quality of the metals/minerals delivered; the conditions of the delivery; and the payment of a price by the buyer.