1. Designing a Modern Mining Code: Middle Eastern Case Study Al Gourley Fasken Martineau LLP Chairman, WIOML

2. The Middle East – Several Models Kingdom Approach Modern ApproachOnly Oil Approach Iraq Oman Qatar Syria Iran / Jordan Turkey Saudi Arabia Yemen Kuwait UAE Bahrain

3. Examples from The Middle East Kingdom Approach o Mineral Specific o Duration Specific o Terms and Conditions Negotiated Bespoke Investment Agreement Will not support international exploration Will support the development of existing, known deposits -e.g., phosphates in Syria -e.g., copper in Saudi Arabia

4. Examples from The Middle East Modern Approach o Key Principles o Open and Equal Access o Security of Tenure o Unfettered Priority o Fiscal Freedom and Stability oWill support international exploration, bank lending and development

5. Examples from The Middle East Modern Approach o OPEN AND EQUAL ACCESS o GOOD EXAMPLE – YEMEN -First to apply for exploration licence by day and hour obtains prior right to an exploration licence -If you produce a feasibility study and an environmental study, you obtain a mining right. o PROBLEMATIC – JORDAN -Foreign investors must apply for a special licence - discretionary -Same with respect to mining rights – this must be specifically negotiated

6. Examples from The Middle East Modern Approach o SECURITY OF TENURE o GOOD EXAMPLE – TURKEY -Exploration Period – right to explore for 7 years -Mining Period – determined according to the right to mine o PROBLEMATIC – SAUDI ARABIA -Exploration Period – up to 5 years -Mining Period – up to 30 years

7. Examples from The Middle East Modern Approach o UNFETTERED PRIORITY o GOOD EXAMPLE – YEMEN – exclusive right to explore – all minerals available – exclusive right to apply for a mining licence o PROBLEMATIC – SAUDI ARABIA – multiple exploration licences can be granted over the same land – if multiple applications for a mining licence, then discretion to award to best project

8. Examples from The Middle East Modern Approach o FISCAL FREEDOM AND STABILITY o GOOD EXAMPLE – IRAQ -stabilisation for 10 to 15 years -HOWEVER, transfers require consent of gov’t – this is universal throughout the Middle East o PROBLEMATIC – SYRIA -no stabilisation protection -government can acquire mine at any time for nation interest

9. Examples from The Middle East Modern Approach TURKEY AS CASE STUDY o New Law in 1985 oseveral amendments to improve regime over the next three decades OPEN AND EQUAL ACCESS -First come / first served -Entitled to mine if reserves discovered SECURITY OF TENURE -7 years exploration -Life of Mine for mining right UNFETTERED PRIORITY -Exclusive right to obtain mining rights -Surface rights are granted to miner FISCAL -No protection GRADE – A+ AB C

10. Mining in Turkey Mining Sector GDP 2003: $2.6 billion 2012: $11.7 billion 2013: $12 billion

11. Contact Information Al Gourley Partner, Co-Head Mining Group T. +44 20 7917 8671 agourley@fasken.com

12. Al Gourley Partner, Co-Head Mining Group +44 20 7917 8671 agourley@fasken.com