Holding mining interests in Australia

In Australia, the federal and state governments and their agencies rarely participate directly in mining ventures. Private companies conduct exploration and production operations. Entities gain the right to undertake exploration and production activities through licences granted by the relevant authority under statutory licensing regimes.

Foreign entities most commonly hold interests in mining licences in Australia by way of a company structure or investment in a (JV).

Different arrangements may be required for ventures formed for various mining related activities (e.g. exploration, production and the operation of a facility). The form of arrangement selected will depend on the respective expertise of the parties, the parties’ appetite for risk and consideration of the matters discussed below.

Michael Sheng is a partner in the Shanghai office and Peter Hwang is a senior associate in the Brisbane office of Blake Dawson