'New Terms' Mystery Solved - Statement From The EMRA19 Aug 2021 00:16
In order to “bridge the gap” between the Exploration and Exploitation phases, EMRA has agreed to the following for the benefit of the successful bidders in this International Bid Round (1):
Within 12 (twelve) months of the date of issue of this Announcement (“Negotiation Period”)EMRA shall undertake to do it best efforts to negotiate in good faith and agree – in a single collaborative negotiation process - the final terms of the Model Exploitation License that will govern the legal, tax and investment framework in respect of any commercial discovery and the mining project(s) resulting from the exploration phase.
The terms of the finally agreed Model Exploitation Licence shall:
- be in a form which provides for economic and regulatory terms and stability which are
fair and necessary;
- incorporate, where appropriate, industry standard terms from internationally accepted model mining agreements and precedents; and
- address such key matters as may be reasonably required to meet the above requirements.
Timetable & Structure of the Negotiations
In order to avoid costly and time-consuming negotiations with numerous counter-parties and, after singing and issuing of the Exploration Licence Agreement, EMRA envisages that the negotiations be streamlined into a single collaborative structure and process with industry representatives. Prior to commencement of the negotiations EMRA and Bid Round Participants shall nominate their respective authorised representatives for the purposes of the negotiations who shall, within 10 (ten) days of their appointment, agree on an indicative timetable and working structure for the Negotiation Period.
To this end, respective parties will make available during the Negotiation Period, their relevant commercial, tax, environmental & social, finance and legal team members and advisers who will represent and assist them on the respective working committees and negotiations to reach agreement on the terms of the Final Model Exploitation License, in line with the requirements set out above.
Obligations following agreement of the Model Exploitation Licence:
Following agreement on the Model Exploitation Licence and within the Negotiation Period:
- EMRA and authorised representatives of successful Bid Round Participants shall initial the document and each retain a copy as final and definitive agreed form thereof; and
- EMRA shall publish the final Model Exploitation Licence on its website as the standard form of Exploitation Licences applicable to mining projects resulting from this Bid Round; and
- EMRA shall provide a further agreed bridge undertaking to successful Bid Round Participants and published on its website to submit the Final Model Exploitation License for ratification by Parliament as soon as permissible and possible under the applicable laws and come into force following commercial discovery
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