Difficulties of mining in Africa
September 14, 2011
Mining companies looking to do business in an African country need to be aware of the complexities they will likely face, reports the Northern Miner (subscription required).
Mining companies looking to do business in an African country need to be aware of the complexities they will likely face, from securing debt financing to political risks to complying with local anti-bribery laws.
“What are the mandates that I’m seeing in Africa?” says Martin McCann, Norton Rose’s head of infrastructure, mining and commodities, in a recent seminar titled “Mining in Difficult Jurisdictions” at the international law firm’s Toronto office.
A Canadian company may find itself in a sticky situation when they’re in a country where “grease payments” or bribes are expected to do business, but could result in criminal penalties and heavy fines.
What to do? Some exceptions to the law exist, says Norton Rose’s Dawn Whittaker, a securities and mergers and acquisition lawyer, adding “there’s no magic answer.”