GERMANY Law and Practice Contributed by: Stefan Altenschmidt, Pauline Müller and Ina Schwanke, Luther Rechtsanwaltsgesellschaft mbH
investment protection agreements since 1959, some of which also protect investments in the mining sector. Following the Treaty of Lisbon in 2009, responsibil - ity for foreign direct investment was transferred to the EU, though existing bilateral agreements remain in force. Since then, the EU has concluded several investment protection agreements, one of the most significant of which is the Comprehensive Economic and Trade Agreement (CETA) with Canada. The EU has also signed agreements with Vietnam, Singapore, Mexico and Chile. However, restrictions due to the jurisdiction of the European Court of Justice weaken international invest - ment protection treaties within member states and in Germany. According to this jurisdiction, arbitration tri - bunals are not permitted in internal EU proceedings. Additionally, the majority of member states, including Germany, have signed an agreement that terminates all investment protection agreements between signa - tory member states. Like other EU member states, Germany has also terminated its membership of the Energy Charter Treaty. As a consequence, decisions over disputes – eg, with an authority over investments – are reserved for (administrative or constitutional) state courts, which typically attach less importance to economic considerations than arbitration tribunals. 5.4 Sources of Finance for Exploration, Development and Mining Numerous financing options are available for mining projects, and can be selected according to the indi - vidual project’s requirements. The typical financing options available in Germany and internationally can be used for this purpose. These include equity financ - ing via securities markets or private investors, as well as bank financing (including leasing and equipment financing). Mining companies can also take advantage of public aid programmes. Mining projects can receive fund - ing from the European Bank for Reconstruction and Development, or through various EU support and financing programmes. At the national level, mining projects can receive funding from various support programmes, such as the German government’s Raw Materials Fund. For instance, in 2025, EUR103.6 mil -
lion in public funds were contributed to two lithium extraction projects in Hesse and Rhineland-Palatinate. The German government established the Raw Materi - als Fund to promote projects for the extraction, pro - cessing and recycling of critical raw materials. Financ - ing for a project ranges from EUR50 million to EUR150 million and can be provided through various means, particularly equity instruments. However, exploration risks are not covered. Funding decisions are made by the German government, supported by the public bank Kreditanstalt für Wiederaufbau (KfW). 5.5 Role of Domestic and International Securities Markets in the Financing of Exploration, Development and Mining In terms of exploration, the role of domestic securities markets in Germany is minor, as there are not many junior miners and exploration is financed through larger companies. These include companies listed on national and international stock exchanges, as well as unlisted family-owned companies and companies with national and international investors. Mining companies operating in Germany are listed on the Frankfurt Stock Exchange and other major inter - national stock exchanges. Many of these companies are wholly owned subsidiaries of international corpo - rations, which are primarily listed on stock exchanges in New York, London, Sydney or Toronto. By contrast, only a few companies are listed on the Frankfurt Stock Exchange. Foreign investors and international stock exchanges play a significant role in financing mining projects in Germany. 5.6 Security Over Mining Tenements and Related Assets Exploration permits or extraction approvals cannot be granted as security. No mortgages or third-party rights can be granted for these licences. However, land and mining equipment can be mortgaged or subject to retention of title as security. Real estate security in the form of land, debts or mortgages can be entered in the land register. Furthermore, licences are generally held by a limited liability company, and its shares can be pledged as security for the lender.
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