As mining companies face digital disruptions, economic sanctions and capital constraints, better decisions are crucial to moving business forward. Our mining leaders show what the new frontier of change looks like for the mining sector and how your company can cope with these changes. A joint venture based on limited partnerships is a hybrid approach that is exclusively a creature of a statute, which depends on the jurisdictional partnership provisions in which the partnership is established. While it is probably the most complex and expensive entity (which requires a single limited partnership agreement in its own right and often a separate shareholder pact for the cooperation partner), it may, if properly structured, offer similar flexibility and tax benefits to a joint venture without its own legal personality, while alleviating some of the disadvantages contained in the form taken. , while providing limited liability protection. In 2018, the mining joint venture (JV) in the sector has been clearly demonstrated, as mining companies spend more on exploration and seek strategic partners to invest in expanding projects. While the jurisdiction in which the joint venture will be headquartered is the main driver of determining the type of business structure available to potential partners in the joint venture, some legal systems, such as Canada, offer several attractive opportunities. Another area in which partners may encounter difficulties is the management of the joint venture. Negotiations can quickly move to important legal clauses, without the partners taking the time to withdraw and reconsider the broad principles of joint enterprise. Once the joint venture is on the move, the interaction between the partner and the board of directors with the company can lead to inefficiencies – for example. B, flooding employees with urgent requests for personalized reports or the requirement that a partner`s work take precedence over venture projects.

In other cases, roles and responsibilities may be poorly defined, resulting in duplication and duplication, conflicting decisions and inconsistent workflows. Inadequate composition and accountability can also lead to poor performance, high exodus and roles that are made up of quotas rather than skills and adjustment. To address these problems, partners should: an unincorporated joint venture is the simplest, fastest and generally cheapest form of the joint venture structure; it is a creation of a contract in which the joint enterprise agreement regulates all aspects of the project and the relations between the partners of the joint venture. The ownership structure is based on the common economic interests of each partner of the joint venture in the assets of the joint venture (with a legal title, either by a partner of the joint venture or by a legal company owned between them). This means in practice that where one aspect of the business relationship is not set out in the joint enterprise agreement, the parties cannot rely on corporate or common law to fill a gap and a dispute is more likely. On the other hand, the free nature of the unincorporated joint venture may also be an advantage, since the parties have the greatest contractual freedom to define their relationship and the operation of the joint venture.