CASE STUDY OF A HYPOTHETICAL MINING PROJECT

• Jurisdiction: Derecho Internacional

International Mining Law and Investment in Latin America and the Caribbean
(Apr 2005)
CHAPTER 9A
CASE STUDY OF A HYPOTHETICAL MINING PROJECT
Reiner Lock, Moderator
International Bar Association - SEERIL Legal & Infrastructure Advisor
Washington, D.C.
Daniel A. Bianchi
Allende & Brea
Buenos Aires, Argentina
Xennia Forno
Estudio Rubio, Leguia, Normand & Asociados
Lima, Peru
Maria Ines Vergara
Law Office of Mark T. Nesbitt
Denver, Colorado, USA
Cristi§n Quinzio
Quinzio, Novoa & C´cmb;ia.
Santiago, Chile
Carlos Vilhena Filho
Pinheiro Neto Advogados
Brasilia, Brazil
Jorge A. Neher
Macleod Dixon, S.C.
Caracas, Venezuela

Reinier became Chair of the new Section on Energy, Environment Natural Resources and Infrastructure Law (SEERIL) of the International Bar Association (IBA) in Auckland in October 2004, a position he will hold for two years. The Section includes a strong and active Mining Committee. He has been active in the leadership of the IBA since the mid-1990s; and was active in the leadership of several Sections of the American Bar Association for a decade before that.

Reinier's main area of specialized practice is in energy and infrastructure development, project finance and infrastructure regulation - principally in the energy and water industries, but often with related mining and transportation features. He has written, spoken at and run numerous conferences in these areas, such as the IBA's now famous biennial Project Finance conference in Washington, which has a significant mining component. More recently, he has also spoken and written on areas such as economic human rights and corporate social responsibility.

Having practiced in the Washington DC area for over 25 years, and served extensively in all three branches of the US Government in the energy area, Reinier now works closely with the international and US-based financial institutions such as the World Bank, IFC, IDB, and USAID and DFID. This work is primarily directed at international projects in Africa, Asia and the Americas.

Letterhead of Foreign Mining Co.

February 3, 2005

Addressees

Dear Sirs

After weeks of hard negotiations, we have reached an understanding with Sociedad Minera Local, partner to our wholly owned local subsidiary Compania Minera Foreign S.A. in the Farm-In Agreement structured for the exploration, pre-feasibility and feasibility stages of the X Project. Sociedad Minera Local has agreed to see its interest in the X Property dilute...