This article considers the duties, both express and implied, which joint venture partners may be under when dealing with each other. Can a party simply look out for itself or must it consider its partners interests when conducting joint venture business? How do arbitrators approach these questions?
Joint ventures and mining
Joint ventures are a popular tool to share financial and development risk in the mining sector. Junior miners focused on exploration seek to access capital and expertise by teaming up with larger mining companies which need to replace reserves and diversify portfolios but do not want to take on exploration risk. States look to partner with international mining companies to have an operational stake in projects and develop their local workforce s skills. Private equity firms willing to bear short-term volatility for long-term returns inject cash into capital-constrained mining companies.