103
environmental pollution or other hazards as a result
of exploration, development and production is not
generally available to companies in the mining
industry on acceptable terms. Losses from these
events may cause us to incur significant costs that
could have a material adverse effect on our business,
results of operations and financial condition.
Endeavour is subject to a number of laws and
regulations and may not be able to enforce its
legal rights.
Our business activities are subject to extensive laws
and regulations governing various matters. These
include laws and regulations relating to
environmental protection, management and use of
hazardous substances and explosives, management
of natural resources, licences over resources owned
by various governments, exploration, development of
projects, production and post-closure reclamation,
labour and occupational health and safety standards,
and historical and cultural preservation, the
employment of expatriates, bribery and corruption,
economic sanctions, taxation, antitrust, and financial
markets regulation. Policies, laws and regulations in
the countries in which we operate may change in a
manner that adversely affects us. The terms attaching
to any permit or licence to operate may become more
onerous. Additionally, in many of the developing
countries where we operate, the legal systems may
not be mature, legislation may present conflicts,
ambiguities, be poorly drafted or lack associated
guidance, and legal practice may not be developed,
such that, in certain cases, there may be significant
uncertainty as to the correct legal position, as well as
the possibility of laws changing or new laws and
regulations being enacted, which has the potential to
render us unable to enforce our understanding of
title, permits or other rights, as well as to increase
compliance costs.
We may be subject to the exclusive jurisdiction of
foreign courts or may not be successful in subjecting
foreign persons to the jurisdiction of the courts in the
forum chosen in the relevant contract in the event of
a dispute arising at our operations. In addition, the
counterparties to several of our key contracts, as well
as our joint venture partners, are government
agencies or government owned entities. As such, we
may also be hindered or prevented from enforcing
our rights with respect to a government entity or
agency because of the doctrine of sovereign
immunity. It is also possible that our interests, on the
one hand, and those of our joint venture partners, on
the other, will not always be aligned, resulting in
possible project delays, additional costs or
disagreements. Any adverse or arbitrary decision of a
foreign court or our inability to bring a claim may have
a material and adverse impact on our business,
financial condition and results of operations.
Endeavour may face the risk of litigation in
connection with its business and other activities.
All industries, including the mining industry, are
subject to legal claims, with and without merit. We
may become party to new litigation or other
proceedings in a number of jurisdictions in respect of
any aspect of our business, whether under criminal
law, in tort, contract or otherwise. The cost of
defending such claims may take away from
management’s time and effort and, if adjudged
adversely to us, the associated liability may have a
material and adverse effect on our reputation,
business, results of operations and financial
condition.
Endeavour may become party to new litigation or
other proceedings in a number of jurisdictions in
respect of any aspect of its business, whether under
criminal law, in tort, contract or otherwise. The
causes of potential litigation cannot be known and
may arise from, among other things, business
activities, employment matters, including
compensation issues, environmental, health and
safety laws and regulations, tax matters, volatility in
our stock price, failure to comply with disclosure
obligations or the presence of illegal miners or labour
disruptions at its mine sites. Regulatory and
government agencies may initiate investigations
relating to the enforcement of applicable laws or
regulations and we may incur expenses in defending
them and be subject to fines or penalties in case of
any violation and could face damage to its reputation
in the case of recurring workplace incidents resulting
in an injury or fatality for which the Corporation is
found responsible. With regard to any mining assets
or mineral properties sold by the Corporation, the
Corporation may sometimes retain residual liability to
the buyer for certain risks and matters relating to the
assets sold under the terms of the relevant sale and
purchase agreement. We may attempt to resolve
disputes involving foreign contractors/suppliers
through arbitration in another county and such
arbitration proceedings may be costly and protracted,
which may have an adverse effect on our financial