“While state law and standard practice require administrators to share royalties and rents with other members of their landowner groups, they have not done so in practice.” (2012: 308) There are a number of reasons why mining companies may enter into joint venture agreements that may be based on a circumstance in which the original owner does not wish to fully renounce his “property rights” and remain involved in the property, until it is desirable to have a local partner or partner who has exclusivity or familiarization with certain technologies that will be useful in the mining project. However, overall, the main reason for joint ventures in the mining sector is the need to share the risk of the project with someone else, in addition to the distribution of costs, which are generally very large and can reach 10 digits by the start of production. 4In this research, the main focus is on the experience of landowner groups and the Solomon Islands government. Official company documents and agreements are also consulted to indicate the company`s position. As with licensing agreements, streaming agreements involve certain risks that need to be assessed. One of them is the possibility that production is insufficient or insufficient, which prevents the seller from delivering the volume of products as planned. Another risk is market volatility, as vibrations can affect the margins initially expected by the buyer and ultimately make production and thus streaming itself unenforceable. After the end of mining, the streaming agreement should not include too much of the mine production, or risk severely affecting the total turnover of the mine, since the sale price of electricity is by definition below the market price. However, it is clear that the definition of eligible expenses in the option agreement is a key aspect for the parties to consider. Some agreements seek to limit eligible expenditures to those that correspond to actual field work, such as drilling and sampling costs.B. Other agreements are more flexible and may include administrative costs associated with verifying data from exploration work. In any event, it is important that the option agreement clearly and in detail defines eligible expenses and that control mechanisms and dispute resolution rules are provided.
“grlm may, at its sole discretion, allow, in certain circumstances and subject to legal requirements, in terms of safety, environment and the environment, the continuation of the traditional agitation of gold outside the mining lease and support the sale of traditionally agitated gold with the unison of gold and the sale of stir-in gold.