Another "Good" bit of news. Teck (the operator of the new JV) is responisble for cost overruns over 15%.
Pg 15 of the JV agreement:
9.4 Overruns. The Operator shall endeavour to complete each Program within
budget but will be entitled to a Cost overrun of 15%. Any Cost overruns in
excess of the aforesaid 15%, save and except for those in connection with Costs
required to preserve the environment or save life, limb and property, shall be for
the sole account of the Operator. If the Operator anticipates that Costs to
complete any approved Work will exceed those budgeted, including any
contingency amounts, it will give Notice to the Management Committee and if the
Management Committee (with any Party who does not contribute to any part of
the applicable Program not being entitled to vote) does not approve an increase
in the Costs budgeted for that Work, the Operator may terminate any approved
Work upon the funds budgeted therefor having been exhausted. Notwithstanding
the foregoing, if the Operator is Teck and Teck is solely responsible for, or is
required to contribute Copper Fox’s portion of, the Costs associated with a
Program, whether pursuant to §4.2(a)(i), §10.4 or §14.3, the Operator shall not
be required to seek Management Committee approval.
