In our last
blog post, we discussed the typical clauses found in contracts
with Chilean mining companies. This week we are discussing two
other areas that are important when contracting with Chilean mining
companies which are bank guarantees and being part of a Chilean
mining suppliers association.
Bank Guarantees
In Chile, it is very rare to come across a mining contract that
does not have a bank guarantee that either guarantees the quality
and operation of the goods and/or services provided, guarantees the
faithful compliance of the contract, or guarantees the performance
of the goods or services provided. Some contracts will even impose
all three guarantees.
This type of bank guarantee in Spanish is known as a boleta de
garantia. It is a bond issued by a Bank at the request of its
client (called the "Taker") in favor of someone else
(called the "Beneficiary").
