{"id":284019,"date":"2024-12-06T10:50:00","date_gmt":"2024-12-06T09:50:00","guid":{"rendered":"https:\/\/dailyjus.com\/?p=284019"},"modified":"2024-12-03T14:42:54","modified_gmt":"2024-12-03T13:42:54","slug":"mining-arbitration-series-a-perspective-from-germany","status":"publish","type":"post","link":"https:\/\/dailyjus.com\/index.php\/2024\/12\/06\/mining-arbitration-series-a-perspective-from-germany\/","title":{"rendered":"Mining Arbitration Series &#8211; A Perspective from Germany"},"content":{"rendered":"\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>THE AUTHOR:<\/strong><br><strong>Dr. Katia Rener<\/strong>, Associate at <a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/firm\/clyde-co\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Clyde &amp; Co<\/strong><\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em><em><a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/firm\/clyde-co\" target=\"_blank\" rel=\"noreferrer noopener\">Clyde &amp; Co<\/a>\u2019s Young Arbitration Group provides a unique insight into\u00a0international arbitration\u00a0issues through the lens of young international arbitration practitioners working across different jurisdictions. In this series with\u00a0<a href=\"https:\/\/dailyjus.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Daily Jus<\/a>, Clyde &amp; Co explores the role of arbitration\u00a0in mining\u00a0disputes.<\/em><\/em><\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Germany\u2019s Role in Mining Arbitrations: A Legal and Industrial Perspective<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Mining is one of the world\u2019s most globalized industries, demanding significant upfront capital expenditure \u2013 often backed by foreign companies. It serves as the backbone for industries like automotive and technology, which rely on critical minerals such as lithium, cobalt, and nickel. However, its intrinsic connection to state-controlled resources makes the mining sector susceptible to regulatory changes and political interference. The concession agreements often include arbitration agreements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite its industrial legacy and robust arbitration framework, Germany is not known for its mining arbitrations. This article explores Germany&#8217;s historical and contemporary relationship with mining, its legal framework, and its potential as a venue for resolving mining disputes.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Germany\u2019s Mining Legacy and Current Industry Dynamics<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Germany\u2019s rise as an industrialized nation was fueled by its abundant coal resources. While hard coal mines have closed, lignite mining continues to play a controversial role in the nation\u2019s energy mix, facing significant public opposition due to environmental concerns. The German government aims to <a href=\"https:\/\/ec.europa.eu\/commission\/presscorner\/api\/files\/document\/print\/en\/ip_23_1266\/IP_23_1266_EN.pdf\" target=\"_blank\" rel=\"noopener\" title=\"\">phase out lignite mining by 2030<\/a> while striving to balance public acceptance of domestic mining projects.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Today, Germany\u2019s mineral economy primarily involves the <a href=\"https:\/\/oec.world\/en\/profile\/bilateral-product\/mineral-products\/reporter\/deu\" target=\"_blank\" rel=\"noopener\" title=\"\">processing of imported minerals<\/a>, with a strong emphasis on metals and refined mineral products essential for advanced manufacturing and digitalization.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">German companies, while not major players in domestic mining, may be significant investors, contractors and stakeholders in international mining projects, from financing and joint ventures to equipment supply and technical expertise. German companies (or their subsidiaries) active in the mining sector include <a href=\"https:\/\/rohstoff.de\/en\/our-business\/metals\" target=\"_blank\" rel=\"noopener\" title=\"\">Deutsche Rohstoff AG<\/a> (whose key focus is abroad), <a href=\"https:\/\/www.thyssenkrupp-brazil.com\/products-and-services\/mining-and-metals\" target=\"_blank\" rel=\"noopener\" title=\"\">thyssenkrupp<\/a>, or <a href=\"https:\/\/energy-resources.basf.com\/global\/en\/mining_solutions\" target=\"_blank\" rel=\"noopener\" title=\"\">BASF<\/a>.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Legal Framework for Mining in Germany<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Germany\u2019s mining activities are governed by the <a href=\"https:\/\/www.gesetze-im-internet.de\/englisch_bbergg\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Federal Mining Act<\/a> (BBergG), which extensively regulates exploration and extraction through a licensing system and contains regulations for different environmental and land management issues.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Internationally, Germany currently has <a href=\"https:\/\/investmentpolicy.unctad.org\/international-investment-agreements\/countries\/78\/germany\" target=\"_blank\" rel=\"noopener\" title=\"\">112 active bilateral investment treaties<\/a> (BITs) and has played a critical role in the <a href=\"https:\/\/jusmundi.com\/en\/document\/treaty\/en-the-energy-charter-treaty-the-energy-charter-treaty-1994-saturday-17th-december-1994?su=%2Fen%2Fsearch%3Fquery%3DEnergy%2520Charter%2520Treaty%2520%2528ECT%2529%26page%3D1%26lang%3Den&amp;contents%5b0%5d=en\" target=\"_blank\" rel=\"noopener\" title=\"\">Energy Charter Treaty (1994) (ECT)<\/a>, particularly as part of broader EU discussions about its relevance and modernization. The ECT, originally designed to protect energy investments, has faced increasing criticism for enabling investor-state disputes, particularly those involving fossil fuels, leading Germany and several other EU member states to reassess their participation. Germany announced its intent to <a href=\"https:\/\/www.dw.com\/en\/german-cabinet-approves-withdrawal-from-energy-charter-treaty\/a-63944414\" target=\"_blank\" rel=\"noopener\" title=\"\">withdraw from the ECT<\/a> in late 2022, aligning with the <a href=\"https:\/\/energy.ec.europa.eu\/publications\/coordinated-eu-withdrawal-energy-charter-treaty_en\" target=\"_blank\" rel=\"noopener\" title=\"\">EU&#8217;s climate goals and commitment to renewable energy<\/a>. The withdrawal stems from concerns that the ECT&#8217;s provisions will ultimately hinder the transition away from fossil fuels by allowing companies to sue governments over climate-related policy changes.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>Germany as a Venue for Mining Arbitrations<\/strong><\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><strong>Investor-State Arbitration<\/strong><\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Germany\u2019s extensive network of BITs frequently includes arbitration clauses under ICSID or UNCITRAL frameworks. German investors may leverage these treaties to protect mining investments abroad. While German investors have been active in mining operations, no arbitration involving a German party has been recorded to date.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Commercial Arbitration<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Although Germany\u2019s enforcement-friendly legal system make it a preferred seat for commercial arbitrations, there is no publicly available information of any commercial arbitration relating to the mining sector. Even though arbitral awards are in principle confidential, Germany may not be the first choice when it comes to mining arbitrations. While English is commonly used in the proceedings itself, German-language documentation may be necessary where court assistance is sought, especially in enforcement matters. In addition, Germany\u2019s strong regulatory approach may discourage mining companies seeking more lenient jurisdictions.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>Conclusion<\/strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While Germany\u2019s legacy as an industrial power is undeniable, its impact on mining arbitrations is minimal at best. This may be due to its focus on environmental sustainability, its phased withdrawal from fossil fuels, its focus on import and processing rather than actual mining, and the global orientation of its investors. This positioning underscores Germany\u2019s status as an important global partner but not as a leading forum for resolving mining-related disputes.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>ABOUT THE AUTHOR:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Katia Rener&nbsp;<\/strong>is an Associate at <a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/firm\/clyde-co\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Clyde &amp; Co<\/strong><\/a><strong>&nbsp;<\/strong>specializing in advising and representing clients in domestic and international arbitration proceedings and complex cross-border disputes. Her practice covers a wide range of sectors, including international trade (<a href=\"https:\/\/jusmundi.com\/en\/document\/treaty\/en-united-nations-convention-on-contracts-for-the-international-sale-of-goods-vienna-convention-on-the-international-sale-of-goods-1980-friday-11th-april-1980\" target=\"_blank\" rel=\"noreferrer noopener\">CISG<\/a>&nbsp;and non-CISG related matters), corporate (joint venture and post M&amp;A), energy (offshore wind, PV and CSP) as well as construction disputes under all major arbitration rules and a variety of substantive laws. Katia also sits as an arbitrator.&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"337\" src=\"https:\/\/dailyjus.com\/wp-content\/uploads\/2024\/09\/2024-09-Clyde-and-co-1024x337.png\" alt=\"\" class=\"wp-image-283052\" srcset=\"https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2024\/09\/2024-09-Clyde-and-co-1024x337.png 1024w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2024\/09\/2024-09-Clyde-and-co-300x99.png 300w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2024\/09\/2024-09-Clyde-and-co-768x252.png 768w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2024\/09\/2024-09-Clyde-and-co-750x247.png 750w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2024\/09\/2024-09-Clyde-and-co-1140x375.png 1140w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2024\/09\/2024-09-Clyde-and-co.png 1500w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">*<em><em>The&nbsp;views&nbsp;and opinions expressed by authors are theirs and do not necessarily reflect those of their organizations, employers, or Daily Jus, Jus Mundi, or Jus Connect.<\/em><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Germany&#8217;s mining arbitration landscape evolves with its focus on sustainability, investor protections, and its industrial legacy. Learn more.<\/p>\n","protected":false},"author":4,"featured_media":284023,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"custom","single_blog_custom":"274736","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"author","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"hide","share_float_style":"share-monocrhome","show_share_counter":"0","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"0","show_post_author_image":"0","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"0","show_post_reading_time":"0","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"0","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"180","hide":""},"jnews_social_meta":{"fb_title":"Mining Arbitration Series - A Perspective from Germany","fb_description":"Germany's mining arbitration landscape evolves with its focus on sustainability, investor protections, and its industrial legacy. 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