Form Over Substance: Structuring A Mining Joint Venture

2018 has seen a marked uptick in the use of the mining joint venture (JV) in the industry as mining companies spend more on exploration and look for strategic partners to invest in expanding projects.  While the jurisdiction in which the JV will be based is the main driver for determining what kind of JV structure is available to the potential JV partners, some jurisdictions, like Canada, provide several attractive choices.

Mining JVs in Canada tend to take one of the following forms:

• an unincorporated joint venture;
• an incorporated joint venture; or
• a limited partnership.

Choosing an available form of JV is often a function of several factors, including:

• ease and cost of initial setup;