stabilization clauses in mining

stabilization clauses in mining

Stabilisation clauses and state aid - Lexology

May 30, 2017 · As a result of this stabilization clause, NIS has continued to pay a mining fee equal to 3% of its oil extraction revenues even after 2011, when this fee was increased to 7% by virtue of a new ...

Stabilization Clause | Negotiations Portal

A clause in a contract between an investor and a host state that addresses changes in law in the host state during the life of the project. There are three broad categories of stabilization clauses: Freezing clauses ― that specify that the law that is in effect on the day that a contract is signed will apply to the project for the life of the project notwithstanding any subsequent changes in ...

Other Topics - IGF Mining

Fiscal stabilization clauses may be found in mining contracts, investment laws, and mining-related tax laws. They may, therefore, be project/sector specific or apply to all foreign investments. Clauses can vary significantly in form and scope. The scope, duration, and application, of stabilization clauses are implicated in a growing number of ...

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by investors to include stabilization clauses in their petroleum agreements. These clauses provide, at least in apprearance, a bulwark against unilateral host review of the initial contract terms through legislative or administrative action. This paper discusses the value of stabilisation clauses to the foreign investors, the host

"Stabilisation Clauses and the Zambian Windfall Tax" by ...

Aug 08, 2011 · The concession agreements between the Government of Zambia and the mining companies contained Stabilisation clauses which constitute a promise on the part of the host government not to amend its laws in a way that adversely affects the economic rights contained within that particular concession agreement. The article examines Stabilisation ...

Stabilization Clauses in International Petroleum Transactions

241, 243-44 (1990). Stabilization clauses are only one type of provision used by foreign companies in an attempt to protect their investment. Arbitration and choice of law. VOL. 30:2 . 2002 ... and mining have a serious need for stability that goes beyond short-term projects. 5 .

Stabilisation Clauses in International Petroleum Contracts ...

by investors to include stabilization clauses in their petroleum agreements. These clauses provide, at least in apprearance, a bulwark against unilateral host review of the initial contract terms through legislative or administrative action. This paper discusses the value of stabilisation clauses to the foreign investors, the host

Other Topics - IGF Mining

Fiscal stabilization clauses may be found in mining contracts, investment laws, and mining-related tax laws. They may, therefore, be project/sector specific or apply to all foreign investments. Clauses can vary significantly in form and scope. The scope, duration, and application, of stabilization clauses are implicated in a growing number of ...

Riding with stabilisers: using stabilisation clauses to ...

Apr 30, 2020 · The mining venture was governed by an establishment agreement entered into in 1993 between Société des Mines de Loulo S.A. (Somilo), which operated the mine, and the Republic of Mali. The establishment agreement provided for a special fiscal regime and contained a stabilisation clause under which Mali undertook not to alter the fiscal regime.

(PDF) Ownership of Large Scale Mining in Zambia and ...

OWNERSHIP OF LARGE SCALE MINING IN ZAMBIA AND STABILISATION CLAUSES By Sangwani Patrick Ng’ambi* and Prince Mwiinga** I INTRODUCTION Foreign direct investment involves ‘an investment involving a long-term relationship and reflecting a lasting interest and control by a resident entity in one economy in an enterprise resident in an economy other than that of the foreign

Stabilization in investment contracts: Rethinking the ...

Oct 07, 2011 · The rationale for stabilization clauses unraveled. The original rationale for stabilization provisions, it seems, was to use legal mechanisms to address political instability in, primarily, developing countries. ... A 2009 report by the International Council on Mining and Metals and the Commonwealth Secretariat questions whether the very legal ...

Stabilization and adaptation in oil and gas investments ...

May 01, 2008 · Stabilization and adaptation clauses may coexist in the same agreement, their objectives being different. By a stabilization clause the State accepts that the exercise of its legislative and administrative powers will not have the effect of modifying the contractual conditions agreed with the investor to the latter’s detriment.

The Stabilization Clause versus National Sovereignty (a ...

Apr 10, 2012 · The Stabilization Clause versus National Sovereignty (a February 2012 article) It is a long acknowledged fact that in the developing world where most of the world’s natural resources are found, the governments of the day cannot afford the monetary and technical resources to develop the different extractive industries including that of oil.

United Kingdom Stabilization Sample Clauses | Law Insider

Sample Clauses. United Kingdom Stabilization. In connection with the issue of the Securities, Citigroup Global Markets Inc. or an affiliate thereof may over-allot Securities ( provided that the aggregate principal amount of the Securities allotted does not exceed 105% of the aggregate principal amount of Securities) or effect transactions with ...

Freezing Clause | Practical Law

A type of stabilization clause contained in a host government agreement (HGA) or other international investment agreement between a local or host government and a foreign investor concerning a project or other investment which fixes or freezes for the term of the project, domestic legislation or regulations affecting the foreign investor and the project or other investment to those in effect ...

Mining arbitration in Africa | Global law firm | Norton ...

International mining companies have 3 or may thus initiate arbitration proceedings for breach of the stabilization clause in the mining code or on the basis of bilateral investment treaties. Other bones of contention between state-owned entities and foreign investors relate to their respective rights under joint venture agreements.

Resource nationalism: The shock and the law - Canadian ...

Oct 01, 2013 · They are most effective in thwarting creeping expropriation. The bargaining power for mining companies and states can ebb and flow with the need for resources (by companies) and the need for investment (by states). Notable exceptions to stabilization clauses can include protection of the environment by the State or public welfare. Adaptation ...

A guide to mining taxation in Zambia - Africa Portal

Small-scale mining – this guide covers large-scale mining operations,1 not small-scale artisanal mines, which face quite different issues Most importantly, this guide does not consider the use of mining tax revenues once they have been collected. A more holistic (but not country specific) guide to the management and use of natural resource

Stabilization Clauses in International Petroleum Transactions

241, 243-44 (1990). Stabilization clauses are only one type of provision used by foreign companies in an attempt to protect their investment. Arbitration and choice of law. VOL. 30:2 . 2002 ... and mining have a serious need for stability that goes beyond short-term projects. 5 .

The resource nationalism cycle, stabilization clauses and ...

The resource nationalism cycle, stabilization clauses and the need for flexibility in concession agreements. Foreign direct investment in the mining and oil industries is invariably fostered through the signing of concession agreements between the host State and the investor. Such concessions may contain fiscal incentives, to encourage the flow ...

Miners to target stability clauses ahead of key DRC code ...

Mar 15, 2018 · MINING companies that arrived in the Democratic Republic of Congo (DRC) for month-long talks regarding implementation of newly promulgated mining code say they will target the recognition of 10-year stability clauses contained in the previous code.. Companies including Randgold Resources and Glencore said the stability clauses are contained in the old code of 2002.

Stabilization Clauses In Petroleum Agreements – TJ ILL

Stabilization Clauses In Petroleum Agreements Uncategorized / By TJILL Foreign investors are well aware that a significant change in the level of taxation poses a serious risk, especially when investing in a country at an early stage of economic and institutional development.

Stabilization Clause in Oil and Gas Contracts – My ...

Apr 12, 2017 · The stabilization clause under International Law has been recognized as the state’s right for binding itself to such clause’s enforcement. In the case of Texaco vs Libyan Arab Republic (Texaco Overseas Petroleum Company and Califonia Asia Oil Company vs. The Government of Libyan Arab Republic, 1977) the tribunal has stated that there is ...

Stabilization and the impact of changing patterns of ...

Oct 27, 2017 · The articles by Piero Bernardini, Stabilization and Adaptation in Oil and Gas Investments 1(1) JWELB (2008) 98 and Lorenzo Cotula, Reconciling Regulatory Stability and Evolution of Environmental Standards in Investment Contracts: Towards a Rethink of Stabilization Clauses 1(2) JWELB (2008), are examples of this.

Impact of Stabilization Clause on Petroluem Agreements

Stabilization clause as discussed in previous chapter literally freezes the rights of a sovereign state from changing its laws and legislation as it may affect the rights and obligation of an international oil company undergoing exploration or exploitation of an oil field of a host state. In other words by accepting to a stabilization clause ...

The Realities of Stabilization Clauses in Petroleum ...

Frequently, investors in the petroleum sector seek guarantees, contractual or otherwise to protect their investment – through stabilization clauses. Generally, a stabilization clause is a ...

Investments in the deep freeze? Stabilization clauses in ...

Nov 08, 2011 · A few years ago, stabilization clauses in investment contracts became the subject of increased attention by human rights and development groups. A report on Stabilization Clauses and Human Rights, issued by the UN Secretary-General’s Special Representative for Business and Human Rights, John Ruggie, was the first comprehensive study to draw on a range of heretofore... Continue

Emergency and Post-stabilization Care Coverage Sample Clauses

Emergency Care The Contractor shall cover emergency services without the need for prior authorization or the existence of a contract with the emergency care provider. Services for treatment of an emergency medical condition, as defined in 42 CFR 438.114, which relates to emergency and post-stabilization services, and IC 12-15-12 (i.e., subject to the “prudent layperson” standard), shall be ...

Tax Stabilization Clause in Oil and Gas Industry ...

The investigation reveals a shift in the tax stabilization clause's scope, and more importantly its objective, over the years. Drafters as well as legal opinion seems to be at odds with the restrictive nature of yesteryear clauses, which may unjustly tie the hands of a host state — and as such a more balanced approach is sought.

Stability Agreements Mining | Bokitiki Kft.

Apr 12, 2021 · Based on the experience of international oil companies in the 20th century, mining companies have been trying in recent years to address the risks of changes in the law by incorporating specific provisions – so-called stabilization clauses – into their long-term agreements with host governments. [2]

Category: Stabilization Clauses (Tax or Regulatory ...

Jun 23, 2021 · June 23, 2021 ICSID (World Bank), Mining Disputes, Stabilization Clauses (Tax or Regulatory) IAReporter You are not logged in. If you are a subscriber, please Login to access.

Reforming Mining Revenue Collection Will Help Fund ...

Jun 29, 2021 · The discussion focused on significant challenges to mining revenue collection related to tax incentives, abusive transfer pricing, building tax administration capacity, and fiscal stabilization clauses that could entrench poorly drafted mining contracts. It was promising to hear some countries are already on a path to reform, such as Zambia ...