OUR MINING AND METALS PRACTICE - Clifford Chance
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OUR MINING AND METALS PRACTICE 2021
OUR MINING AND METALS PRACTICE
29 13 26 79 22
Cu
Copper
Al
Aluminium
FeIron
Au
Gold
Ti
Titanium
63.546 26.982 55.845 196.97 47.867
Projects M&A and Joint Mining Commodity Restructuring
Ventures Infrastructure Financing and Insolvency
92 27 6 3
U
Uranium
Co
Cobalt
C
Carbon
Li
Lithium
238.03 58.933 12.011 6.94
Disputes and Compliance ESG Renewable
Arbitration Energy
Africa Asia Europe / Latin Russia /
Pacific Middle East America CIS
A FULL SPECTRUM MINING PRACTICE
We have a truly global, The quality of our team is recognised through our award-winning
mandates and our long-standing client relationships. We have
cross-discipline team which a global view and a detailed understanding of the sector, its drivers
and competitive landscapes which makes us extremely well-placed
to assist our mining and metals clients across the globe.
advises on the full range of
In addition to the core mining disciplines of project development,
mining and metals‑related construction, financing, commodity trading, M&A and dispute
resolution, Clifford Chance’s mining team also includes market-
transactions and issues leading sanctions, regulatory, ESG and compliance teams. In a
world where cost-efficiency is key, our experience of advising on
(including disputes and joint ventures, outsourcing and “big data” projects is also an
important part of our offering.
regulatory investigations).
DAVID LEWIS JAMES PAY SIMON GREENBERG
Global Co-Head of Mining Global Co-Head of Mining Global Co-Head of Mining
& Metals, London & Metals, London & Metals, Paris
T +44 20 7006 1903 T +44 20 7006 2625 T +33 1 4405 5114
M +44 77 7058 6023 M +44 79 0480 3419 M +33 6147 68395
E david.lewis@ E james.pay@ E simon.greenberg@
cliffordchance.com cliffordchance.com cliffordchance.com
David is a highly-regarded corporate James is a project finance partner who Simon is an international arbitration partner
partner with a special focus on matters focuses on mining project development with a focus on energy, mining and metals
involving the mining sector and has and financing, joint ventures and metals disputes. His recent matters include disputes
co-led the global Mining & Metals group offtake and logistics contracts. He works concerning pricing review and volume
for more than 10 years. He has a great for a range of private equity companies, commitments under very long-term offtake
depth of experience in mergers & mining companies and their lenders. He agreements, mining rights revoked or revised
acquisitions, joint ventures and equity has been involved in high-profile mining by local authorities (particularly in Africa),
investments and the corporate aspects transactions in Africa, the Middle East legal stabilisation regulations, and mining
of financial restructurings. and Europe and has significant investments, concerning high grade iron ores
experience of negotiating concessions and pellet feeds, coal, lithium, copper and
and mining infrastructure agreements cobalt. Simon has published two books and
with host governments in West Africa. more than 30 articles relating to international
James is interested in developing flexible arbitration, was Deputy Secretary General of
energy solutions for the mining sector. the ICC International Court of Arbitration
2008-2012 and an ICC Court Member
2012-2018. He is fluent and works in both
English and French.
29
Cu
MINING AND METALS PROJECT DEVELOPMENT AND FINANCING
We have a global projects practice that specialises in • PT Weda Bay Nickel: advising the project company on the
greenfield project development and asset and offtake development and US$3 billion financing of this world class
financings. We have a strong track record of advising on the nickel-cobalt mine and processing plant in Indonesia.
procurement and financing of complicated, integrated projects
• Antofagasta: advising the copper producer on the financing
and related infrastructure development in the natural
and development of the Los Pelambres copper mine in Chile.
resources sector. Our recent experience of mining and metals
project development and financing includes:
• Guinea Alumina: advising the lenders in relation to the
US$3.5 billion project financing of the Guinea Alumina project,
copper mine in Chile. COPPER
• Escondida: advising JBIC on the financing of the Escondida
63.546
• Aluminium Project: advising lenders to the world’s largest integrated
including integrated mine, refinery and port infrastructure.
aluminium complex (smelter, cast-house and rolling mill) in Saudi Arabia.
• Katanga Mining: advising this DRC miner on the development
• Ma’aden Phosphate Company: advising lenders in relation to the
and financing of the latest phase of this copper‑cobalt project.
development of an integrated phosphate project including related
• Vale: advising in relation to all aspects of the development of the processing plant and infrastructure.
infrastructure solution to export iron ore from Simandou in Guinea
• Ukraine Steel: advising EBRD on the financing of the modernisation
via Liberia.
and environmental upgrade project for Ukraine’s largest steel mill.
• BHP: advising in relation to the development of the Australian
• Udokan: advising Baikal Mining Company on the equipment supply,
polymetallic copper-uranium Olympic Dam Project in South Australia.
technology and construction contracts relating to the development of
the world’s third largest copper deposit in the Russian Federation.
JAMES PAY NIKOLAÏ EATWELL FABRICIO LONGHIN
Global Co-Head of Mining Partner, Paris Partner, Washington DC
& Metals, London
T +33 1 4405 5339 T +1 202 912 5015
T +44 20 7006 1903 E nikolai.eatwell@ E fabricio.longhin@
E james.pay@ cliffordchance.com cliffordchance.com
cliffordchance.com
13
Al
M&A AND JOINT VENTURES
Our experience of M&A and joint ventures includes: • Antofagasta: advising the Chile-based mining group on its
• British Steel: advising the Official Receiver and Special US$1 billion acquisition of 50% of the Zaldivar copper mine from
Managers on the sale of British Steel to Jingye Iron & Steel. Barrick Gold.
• Eramet: advising the French multinational mining and metallurgy • Aluminum Corporation of China (Chinalco): advising the
company on the sale of an interest in Weda Bay Nickel to state-owned enterprise on the proposed acquisition of the
Tsingshan Steel. US$5.85 billion Las Bambas copper mine project in Peru.
• Eramet: advising the French multinational mining and
metallurgical group on the sale of TiZir Titanium & Iron AS.
ALUMINIUM
• Pala Investment: advising the investment company on its
proposed acquisition of a 50% interest (vía equity and debt) in
• Nova Resources B.V: advising the company owned and
controlled by a consortium of investors on its £3bn take private
offer for KAZ Minerals PLC.
two Spanish tungsten mines.
26.982
• IFM: advising the global fund manager on its acquisition of a 50%
interest in Impala together with Trafigura.
• Cristal: advising the titanium dioxide producer on the completion • Lundin Mining: advising the base metals mining company on
of its cross-border sale to Tronox. the acquisition of the Chapada mine from Yamana Gold.
• Russian Platinum: advising one of the leading Platinum • Kingspan: advising Kingspan on signing an agreement to
Group Metal producers in the world on its joint venture with acquire the Steel division of TeraPlast Group.
Norilsk Nickel.
• Goldman Sachs Asset Management: advising on its
• Mitsubishi: advising Japan’s largest trading company on its acquisition of the sponsorship of Perth Mint Physical Gold ETF
US$5.4 billion acquisition from Anglo American of a 24.5% stake (AAAU), which will expand its US$19 billion Exchange-Traded
in Anglo American Sur, and its subsequent disposal of 4.06% of Fund (ETF) platform.
this stake to Codelco and Mitsui.
DAVID LEWIS THAIS GARCIA MELISSA NG
Global Co-Head of Mining Partner, New York Partner, Singapore
& Metals, London
T +1 212 878 8497 T +65 6410 2254
T +44 20 7006 1903 E thais.garcia@ E melissa.ng@
E david.lewis@ cliffordchance.com cliffordchance.com
cliffordchance.com
26
Fe
MINING AND METALS INFRASTRUCTURE
Our experience of advising clients in relation to mining and • Colombian Nickel: advising the lenders to the financing of an
metals infrastructure includes: infrastructure and smelter upgrade project for Cerro Matoso S.A.
• North West Infrastructure: advising NWI in relation to the
• Vessel Financing: advising the lenders on a wide range of
development of a new 50 million tonne per annum iron ore export
vessel financings including K-Sure backed financing of multiple
port in Western Australia.
Capesize and Valemax (VLOC) vessels for Vale.
• Impala Terminals: advising a private equity group in relation to
IRON
• Uralkali: advising on the acquisition of a stake in a port terminal in
the purchase of a major interest in the global Impala Terminals
Antonina, Brazil to be used for bulk potash exports.
business including related polymetallic throughput contracts.
55.845
• Port modernisation: advising the Far East Development Fund
• Simandou: advising Vale in relation to the development of the rail
on the financing of a coal conveyer and export port
and deep water port infrastructure solution for iron ore exports
modernisation project.
from Guinea via Liberia, including the negotiation of associated
concession agreements with host governments. • Eramet: advising the developers in relation to the Weda Bay
Nickel project, including in relation to the related processing plant
• PT Kereta Api Borneo: advising the project company on the
road, airport and export port infrastructure.
development of a 190km railway and associated coal export
terminal in Indonesia. • AI Taweelah Alumina Refinery: advising Emirates Global
Aluminium on the process technology and construction contracts
relating to the development of the 2 million tpa refinery in the UAE.
ANTHONY GIUSTINI ALHASSANE BARRY JEREMY CONNICK
Partner, Paris Counsel, Dubai Partner, London
T +33 1 4405 5926 T +971 4503 2743 T +44 20 7006 4237
E anthony.giustini@ E alhassane.barry@ E jeremy.connick@
cliffordchance.com cliffordchance.com cliffordchance.com
79
Au
COMMODITY FINANCING AND OFFTAKE
We have a global commodity financing practice that advises • Fortescue Metals Group: advising a syndicate of banks led by
producers, trading companies and lenders across a full Deutsche Banks and ING in relation to a US$890 million iron ore
spectrum of resources. Our recent experience includes: prepaid offtake agreement by Glencore.
• Bahrain Steel: advising the direct reduction grade iron ore pellet
• Polyus Gold: advising the arrangers on a US$3.6 billion margin
producer on its 20 year, US$15 billion purchase of pellet feed
loan acquisition facility in connection with the sale by Onexim
supply from Anglo American’s Minas-Rio mine in Brazil.
Group of its stake in Polyus Gold International, Russia’s leading
• Glencore: advising a syndicate led by National Australia Bank on
a US$560 million syndicated cross-border base metal borrowing
gold producer.
GOLD
• Volcan Peru: advising the arrangers on a US$90 million secured
196.97
for Glencore.
cross-border aluminium and zinc financing for Volcan Peru SA
• Nyrstar: advising a coordinating committee led by Deutsche (winner of Trade Finance magazine’s trade deal of the year).
Bank in relation to the restructure of the Nyrstar Group, including
• Tenaga: advising the arrangers on US$120 million Islamic murabaha
new international cross border multi-commodity backed facilities.
PXF facility for Tenaga (for the import purchase of copper).
• Gold Corporation: advising Gold Corporation of Western
• Metal Portfolio Financing: advising a leading trading house on
Australia in relation to precious metal leasing facilities and storage
a US$500 million medium term funding of its metals portfolio by
arrangements for various central banks.
way of a securitised note issuance secured on metal(s) inventory
• Trafigura: advising a syndicate led by ING Bank in relation to a subject to repurchase agreements.
US$1.8 billion uncommitted cross-border secured metal
• Metal Streaming and Royalty Facilities: advising a number of
concentrates borrowing base facility for Trafigura.
lenders and corporates in relation to the structuring and commercial
terms of streaming and royalty agreements in the mining sector.
LEONARD CLELAND PAUL LANDLESS MARK GILLGREN
Partner, London Partner, Singapore Counsel, Perth
T +44 20 7006 2070 T +65 6410 2235 T +61 8 9262 5543
E leonard.cleland@ E paul.landless@ E mark.gillgren@
cliffordchance.com cliffordchance.com cliffordchance.com
22
Ti
RESTRUCTURING AND INSOLVENCY
Our leading international restructuring and insolvency • Bumi Resources: advising two lender syndicates on exposure to
team supports clients in relation to financially stressed PT Bumi Resources Tbk, the Indonesian coal mining company,
situations across the entire credit spectrum, ranging from and on the proposed (ongoing) restructuring of Bumi’s
indebtedness of US$4 billion. This is one of the largest and most
challenging refinancings to non‑consensual enforcement.
high-profile Asian restructurings of recent years.
Our recent experience includes advising:
• Nyrstar: advising the coordinating committee of lenders in • Donetsksteel: advising the syndicate of lenders with respect to
relation to the restructuring of Nyrstar.
• RUSAL Group: advising the coordinating committee of lenders in TITANIUM
the circa US$1 billion debt restructuring of Donetsksteel – Iron
and Steel Works, Ukraine’s largest producer of hard coking coal.
• Noble: advising a financial institution in connection with its role as
47.867
relation to the amendment and restructuring of facilities made available
to the RUSAL Group, a Russian metals and minerals producer, which a senior creditor and new trade finance provider to Noble Group
has total indebtedness of approximately US$15 billion. in relation to a complex, cross-border restructuring.
• British Steel: advising the Official Receiver and Special Managers of • Celsa UK: advising the lenders to Celsa UK on its restructuring/
British Steel on all aspects of British Steel’s liquidation, including the refinancing.
proposed sale of the business and assets to Jingye Iron & Steel. • MetInvest: advising the coordinating committee representing 26
• Mongolian Mining: advising BNPP, Industrial and Commercial banks in connection with the circa US$3 billion debt restructuring
Bank of China Limited and ICBC (London) plc in relation to their for MetInvest.
exposure to Mongolian Mining Corporation (a Cayman Islands • Samarco Mineração: advising Samarco Mineração S.A. (one of
company listed in Hong Kong) in Mongolia. the largest producers of iron pellets in the world) in connection with
the potential restructuring of approximately US$4 billion of debt.
PHILIP HERTZ SCOTT BACHE IAIN WHITE
Global Head of Partner, Hong Kong Partner, London
Restructuring, London
T +852 2826 3493 T +44 20 7006 2825
T +44 20 7006 1666 E scott.bache@ E iain.white@
E philip.hertz@ cliffordchance.com cliffordchance.com
cliffordchance.com
92
U
GLOBAL DISPUTE MANAGEMENT AND INTERNATIONAL ARBITRATION
Our global mining arbitration practice supports mining firms • Middle Eastern steel company: representing a Middle Eastern
and other stakeholders with expert dispute avoidance and steel company in a major LCIA arbitration concerning price review
dispute resolution advice wherever in the world they operate. and disputes over volume commitments in a 20-year offtake
The team represents parties in investment treaty and contract for high grade iron ores. The total claim value is
contractual arbitrations before all of the major international estimated at over US$ 6 billion.
arbitral institutions. The world renowned arbitration team
• Cortec Mining v Kenya (ICSID Case No. ARB/15/29):
URANIUM
capitalises on the strength of our firm’s broader mining
representing the investor in a major pending bilateral investment
practice. Our recent experience includes advising:
treaty dispute concerning the revocation of a mining licence for
• Mining investment company: advising a mining investment
238.03
Mrima Hill, near Mombasa. Mrima Hill is home to the third largest
company in a pending ICC arbitration and potential parallel treaty
undeveloped rare earth deposit in the world and is an asset of
claim against an African state authority arising from the latter’s
strategic significance to Kenya.
breach of a resource exploitation joint venture agreement and the
African State’s purported revocation of an exploitation permit. • Tantalum International v Egypt (ICSID Case No. ARB/18/22):
representing a mining company in ICSID arbitration concerning
• Major global mining company: advising a major global mining
measures taken by Egypt against Tantalum’s investments in a
company concerning a potential ICSID arbitration arising from the
tantalum, niobium, feldspar, quartz and alluvial tin mining project.
breach by an African state of stabilisation provisions in a mining
ICSID claim under a bilateral investment treaty.
code. Claims are at least several billion dollars.
SIMON GREENBERG JOSÉ GARCÍA CUETO SAM LUTTRELL
Global Co-Head of Mining Counsel Partner, Perth
& Metals, Paris
T +1 202 912 5123 T +61 8 9262 5564
T +33 1 4405 5114 E jose.garciacueto@ E sam.luttrell@
E simon.greenberg@ cliffordchance.com cliffordchance.com
cliffordchance.com
27
Co
RISK, COMPLIANCE AND INVESTIGATIONS
Our recent compliance experience includes: • International producer and marketer of commodities:
• Large mining company: representing on a range of advisory conducting an independent investigation in relation to an incident
work, including preparation of a global anti-bribery programme that occurred at a Latin American operation, involving conflict
and advice relating to a joint venture and retention of business between local community members and personnel working at
consultants in Asia Pacific. the operation.
• International commodities trading: assisting in conducting an • International commodities trading company: conducting an
COBALT
internal investigation into a possible breach of compliance in investigation in respect of potential breaches of company policies
security matters surrounding the death of an intruder on their site. and procedures regarding third party payments, petty cash and
expenses for the Colombian trading office.
• International producer and marketer of commodities:
conducting an investigation into a whistleblowing report alleging
potential price collusion between competitors during a tender. 58.933
• International commodities trading company: advising on an
investigation into whistleblowing reports relating to the arrest and
detention of an expat employee by the authorities, and allegations
• International commodities trading company: conducting a
of bribery and anti-competitive behavior.
review of Australian whistleblowing legislation, and assisting with
drafting a new global whistleblowing policy. • International producer and marketer of commodities:
advising in a high-profile criminal investigation commenced by a
• International commodities trading company: conducting an
Chinese local Customs official for alleged smuggling of solid waste.
investigation into a series of whistleblowing reports relating to the
arrest and detention of an expat employee by the African authorities.
LUKE TOLAINI SHARIS POZEN GEORGE KLEINFELD
Partner, London Partner, Washington D.C. Partner, Washington D.C.
T +44 20 7006 4666 T +1 202 912 5226 T +1 202 912 5126
E luke.tolaini@ E sharis.pozen@ E george.kleinfeld@
cliffordchance.com cliffordchance.com cliffordchance.com6
C
ESG – SUSTAINABILTY IN THE MINING & METALS SECTOR
Our relevant experience includes advisory, transactional, risk • CDX Gas: advising on the regulatory framework and the
management and dispute resolution mandates across the full environmental consents required for a coal bed methane project
range of Environmental, Social and Governance issues and in the UK.
all stages of a business’ lifecycle. • Financial institution: advising on the application of EU REACH
• Extractives sector company: advising on multiple issues chemicals legislation to trading in certain metals.
concerning implementation of its sustainable business policies, • Multinational extractive and manufacturing company:
including with respect to operations in challenging jurisdictions advising on the design and implementation of a human rights
CARBON
with weak governance, conflict or community unrest, and security impact assessment aimed at assessing the conformity with the
and human rights issues. UN Guiding Principles on Business and Human Rights and other
• Major energy supply company: advising on questions of relevant international standards.
human rights and climate change.
• Multiple extractive sector clients: advising on M&A, project
and investment due diligence assessing human rights risks
12.011
• Mining company: advising on the design and implementation of
supply chain diligence processes taking account of OECD
guidance and other international standards; developing
contractual frameworks for modern slavery, labour and other
including Indigenous Peoples’ rights, land acquisition and use,
human rights risks; advising on artisanal mining and child labour
access to and exploitation of natural resources. Advising on
issues and on conflict minerals.
transparency and reporting/disclosure and on responsible
divestment strategy. • Brazilian Green Bond: advising on green bonds where the
proceeds of the bonds will be used for eligible projects that
• The Government of the Republic of Zambia: advising on the drive sustainable forest management, clean transportation and
drafting of provisions of the Government and Privatisation energy efficiency.
(Amendment) Bill allocating environmental responsibility and risk in
• Royal Dutch Shell: advising on US $10 billion sustainable facility,
relation to Zambian Copper Mines.
with interest and fees on the facility linked to Shell’s progress
towards reaching its Net Carbon Footprint intensity target.
CLARE BURGESS RAE LINDSAY JESSICA GLADSTONE
Partner, London Partner, London Partner, London
T +44 20 7006 1727 T +44 20 7006 8622 T +44 20 7006 5953
E clare.burgess@ E rae.lindsay@ E jessica.gladstone@
cliffordchance.com cliffordchance.com cliffordchance.com3
Li
MINING, METALS AND RENEWABLE ENERGY
We have a market-leading global renewable power practice • Vale: advising the iron ore major in relation to the redevelopment
and increasingly are advising power suppliers and mining and expansion of a hydro-electric power project in Liberia in
clients in relation to the development of renewable energy connection with iron ore exports through that country.
solutions for the mining and metals sectors, including:
• Australian off-grid solutions: advising Western Power on
• Chichester Power Project: advising the power company on
off‑grid integrated solar, battery and diesel stand-alone
this landmark energy project which will integrate an existing dual-
LITHIUM
power systems.
fuel power station, a 30MW battery and a new 60MW PV plant –
a world first solar-battery-gas hybrid – with Fortescue Metals • Alinta Energy: advising the renewable generator in relation to
Group as the power offtaker. power offtake disputes with the Roy Hill iron ore mine.
• Sierra Leone: advising the developer of a major hydro‑electric
power project in relation to power supply to iron ore projects.
6.94
• Sovereign Wealth Fund: advising the fund on fundraising
for investment in clean energy projects and sustainable resource
production.
• Corporate PPAs: advising a major green power generator in
relation to corporate PPA structures and standard contract terms • Norsk Hydro: advising the lenders to a 650MW Swedish wind
for both synthetic and physical renewable power purchase farm with a Norsk Hydro aluminium smelter corporate PPA.
agreements.
• Battery Metals: advising a major metals producer on a
joint venture to develop a large scale battery metals refinery
in Indonesia
PHILIP SEALEY DELPHINE SIINO RICHARD PARRIS
Director, Head of COURTIN Partner, Abu Dhabi
Renewables, Perth Partner, Paris
T +971 2613 2374
T +61 8 9262 5542 T +33 1 4405 5236 E richard.parris@
E philip.sealey@ E delphine.siinocourtin@ cliffordchance.com
cliffordchance.com
cliffordchance.comOTHER MINING AND METALS KEY CONTACTS
Africa Practice Americas
Casablanca London Dubai Dubai North America/ Latin America
Mustapha Mourahib Olamide Oladosu Edmund Boyo Adesegun Olugbade Latin America Chris Willott
Managing Partner Director (Dual Partner Counsel David Brinton Partner
Finance Qualified: Nigeria Banking & Finance Banking & Finance Partner Projects
T: +212 52264 4310 and England) T: +971 4503 2614 T: +971 4503 2732 Corporate/M&A T: +1 212 878 8072
E: mustapha.mourahib@ T: +44 20 7006 2016 E: edmund.boyo@ E: adesegun. T: +1 212 878 8276 E: chris.willott@
cliffordchance.com E: olamide.oladosu@ cliffordchance.com akin-olugbade@ E: david.brinton@ cliffordchance.com
cliffordchance.com cliffordchance.com cliffordchance.com
Europe Russia/CIS Middle East Asia Pacific
Istanbul London Moscow (CIS) Dubai Abu Dhabi Perth
Jared Grubb Sandy Hall Victoria Bortkevicha Mo Al-Shukairy Jason Mendens Ben Luscombe
Partner Partner Office Managing Regional Managing Partner Partner
Banking & Finance Construction Partner Partner, Middle East Corporate/M&A International Disputes
T: +90 212339 0 007 T: +44 20 7006 6806 Projects Corporate/M&A T: +971 2613 2467 T: +61 8 9262 5511
E: jared.grubb@ E: sandy.hall@ T: +7 495 725 6406 T: +971 4503 2707 E: jason.mendens@ E: ben.luscombe@
cliffordchance.com cliffordchance.com E: victoria.bortkevicha@ E: mo.al-shukairy@ cliffordchance.com cliffordchance.com
cliffordchance.com cliffordchance.com
Sydney Singapore Singapore Beijing Beijing Tokyo
Dave Poddar Ross Howard Nicholas Wong Maggie Lo Terence Foo Hans Menski
Partner Partner Partner Partner Co-Managing Partner Partner
Competition/Antitrust Projects Co-head Worldwide Finance Corporate/M&A Banking & Finance
T: +61 2 8922 8033 T: +65 6410 1312 Projects Group T: +86 10 6535 2212 T: +86 10 6535 2299 T: +81 3 6632 6669
E: dave.poddar@ E: ross.howard@ T: +65 6410 2218 E: maggie.lo@ E: terence.foo@ E: hans.menski@
cliffordchance.com cliffordchance.com E: nicholas.wong@ cliffordchance.com cliffordchance.com cliffordchance.com
cliffordchance.comRECENT PUBLICATIONS
We produce a wide range of
publications and client briefings MINING AND RENEWABLES –
OPPORTUNITIES IN COLLABORATION
in relation to the mining and
It is easy to see why interaction between the renewables and
Key issues
mining sectors is steadily increasing. At a time when mine • Install renewable energy at
operating costs are a key focus, renewable power can offer active mines to drive energy
mining companies lower energy costs, protection against fuel costs down
Generate a new source of
CLIMATE CHANGE price volatility and, alongside new battery storage solutions, •
demand for commodities used
mitigation of the risk of power interruptions from unreliable
AND THE PRESSURE in energy storage technology
metals sectors. These are
grid supplies. • Execute corporate PPAs for
ON COAL- LATEST renewables projects, mining
companies are ideal offtakers
The growth of the renewables sector more generally is also
DEVELOPMENT driving increased demand for relevant commodities: • Transform disused mines into
pumped hydro electricity
particularly in recent times the metals used in batteries and storage facilities
electric vehicles such as copper, nickel, manganese, cobalt • Address "double project risk"
and lithium. For renewables developers, mining companies by asset financing portable
available via our intranet page
renewable energy assets
can be the reliable long-term power offtakers under power
• Reallocate renewable project
purchase agreements (PPAs) that they need to underpin risk at mine sites in return for
project economics and raise financing. Miners too can often better power deals
provide renewable developers with ideal sites for new • Electrify Africa with micro-grids
and off-grid renewables
projects. In this article we discuss some of the opportunities
for the mining and renewables industries to work together.
www.cliffordchance.com/
AN OPPORTUNITY FOR MINING COMPANIES
Renewable power for mines
Renewable energy can facilitate the development of new mining opportunities
as many mines are isolated from the central power grid. As a result, obtaining
reliable power supplies can be a major expense. Typically this involves
investment in on-site generators fuelled by diesel or heavy fuel oil, which in
briefings.html or contact us
turn requires substantial road infrastructure, fuel storage facilities and a
regular fuel transportation operation. The alternative of investing in extending
existing power transmission lines can be equally or more expensive and does
not necessarily guarantee reliable power supply. Outside of hydro and
geothermal power projects which can provide firm baseload power, the big
drawback of renewable power projects has always been their characteristic
intermittent generation – the sun shines only during the day for solar projects
and the wind blows even less predictably for wind turbine projects. However,
where in the past this meant that renewable power projects had only been
if you wish to receive a 214105-4-51-v0.3
January 2018
UK-0020-BD-MM
Clifford Chance | 1
hard copy. Climate Change and the Pressure Mining and Renewables –
on Coal – Latest developments Opportunities in Collaboration
Client Briefing Note
To keep up with the
latest developments
follow Clifford Chance
LLP on LinkedIn.
The Guide to Mining Mining Arbitrations in Africa
Arbitrations (Global Arbitration (The Middle Eastern and African
Review, 2019). Edited by Arbitration Review, 2019)
Clifford ChanceNOTES
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