FIDIC’s Emerald Book – A powerful tool for managing unforeseen ground conditions in underground mining projects

In the high-stakes world of underground mining, where uncertainty beneath the surface can greatly affect project timelines, costs, and safety, a custom contractual framework is vital. The FIDIC Conditions of Contract for Underground Works (Emerald Book) provides a structured, internationally recognised solution specifically created for these complex projects.

At LnP Beyond Legal, we have actively promoted the use of the Emerald Book in several key underground mining transactions where we act as legal transaction advisors. Our role has involved guiding project sponsors and developers through the structuring, negotiation, and implementation of contract frameworks that are both commercially viable and practically operable.

The Emerald Book has proven to be an essential tool in this context, helping to ensure alignment among engineering teams, operational managers, and top-level decision-makers.

Unlike conventional construction contracts, the Emerald Book was developed jointly by FIDIC and the International Tunnelling and Underground Space Association (ITA-AITES) to address the specific risks associated with subsurface works, particularly the unforeseen ground conditions that are often unavoidable despite thorough site investigations.

The Emerald Book introduces a Geotechnical Baseline Report (GBR) as a contractual reference point, enabling both parties to identify and price foreseeable risks while providing a structured mechanism for claims relating to geotechnical uncertainty.

By defining what constitutes a “foreseeable” ground condition, the Emerald Book limits unnecessary disputes and provides greater predictability on time and cost implications when encountering adverse subsurface conditions.

The form promotes early and transparent dialogue between contractors, engineers, and project owners, enabling quicker response and resolution of emerging geotechnical issues during execution.

On the underground mining projects where LnP Beyond Legal are lead legal transaction advisors, we have facilitated the adoption of the Emerald Book framework as part of the project’s contracting strategy.

This decision has delivered tangible value:

• The project engineering teams have welcomed the clarity provided by the GBR and the structured process for ground condition claims, allowing them to focus on technical delivery without constant contractual disputes.
• Operations teams have appreciated the Emerald Book’s time and cost risk management tools, especially in scheduling logic and progress monitoring for sequential excavation activities.
• The C-suite leadership of our clients has endorsed the approach due to its ability to enhance investor and lender confidence, ensuring the project remains bankable and contractually resilient.

Our role has involved preparing customised amendments to the banked terms and schedules to align with the key terms and principles specified in the Emerald Book for unforeseen ground conditions. Working alongside a team of underground mining engineering experts and our in-house specialists in health, safety, and environmental law, we aligned the baseline GBR with contract documentation, ensuring consistency between procurement strategies and project financing instruments. This process also considers international best practices and the legal framework governing operations, health, safety, and environmental considerations for underground mining.

The Emerald Book has allowed our clients to move from reactive claims handling to proactive risk reduction, enhancing both commercial certainty and technical performance.

The FIDIC Emerald Book is more than just a contractual document. It serves as a strategic tool that helps underground mining projects handle complexity with foresight and fairness. At LnP Beyond Legal, we continue to advise our clients on its application as part of a broader risk-managed transaction framework. The outcome has been increased certainty, better alignment among stakeholders, and decreased legal and financial risks when conditions become unpredictable.

For more insight into the use of the Emerald Book for your mining and construction activities and tailoring these to comply with the legal framework on health, safety and environmental considerations, book a session with Ricardo Pillay and Robin van Wyk.