Partnering in Joint Ventures - Major vs Minor

A mining joint venture presents a real management challenge to achieve harmony with the other participants in the successful development and operation of a mine. This can best be facilitated by a detailed agreement and guided by a set of joint venture principles which recognise the differences of the interests of the parties and seek to establish sound business and personal principles by which differences not anticipated in the agreement might be resolved. The major and minor co-venturers can and do present potential difficulties to one another. This paper, one of the pair in the joint venture panel discussion session, predominately presents the minor's viewpoint. Usually commercial matters such as project finance, areas of interest, divestment, pre-emptive rights and decision-making can be adequately covered in the agreement. However, when the parties disagree and have difficulty in resolving their differences, the joint venture principles should be used to advantage to resolve relationship difficulties.