Question: Question 6 ( 1 5 marks ) Read the fictitious scenario below and answer the questions that follow: in the dynamic mining industry of South
Question marksRead the fictitious scenario below and answer the questions that follow: in the dynamic mining industry of South Africa, three leading mining companies OreXtract Ltd MineralF orge Consortium, and GeoDill Ventures are considering the formation of a trade association to collectively address challenges and advance mutual interests. The envisioned trade association aims to leverage the strengths of each company in areas such as research and development, resource optimization, and improving health and safety standards within the industry.Recognizing the high costs and risks associated with exploration and innovation in mining, the companies are eager to pool resources for joint research and development initiatives. The trade association would establish a shared fund to support groundbreaking projects, leading to advancements in extraction technologies, sustainability practices, and environmental impact mitigation.With South Africa's mining industry facing resource scarcity and increasing environmental scrutiny, the trade association seeks to pool equipment, expertise, and logistical capabilities. This collaborative effort is expected to enhance efficiency in mining operations, reduce environmental footprints, and provide costeffective solutions to shared challenges.Improving health and safety standards is a shared goal for the companies involved.Through the trade association, they plan to establish common protocols, share best practices, and invest collectively in training programs. The aim is to create a safer working environment and mitigate risks associated with mining activities.However, GeoDrill Ventures expresses scepticism about the proposed trade association. The company raises concerns about potential anticompetitive effects, fearing that collaboration might lead to the exchange of sensitive information, coordination on pricing strategies, or market allocation. GeoDrill Ventures is apprehensive that such actions could distort fair competition in the South African mining market. Imagine you are working as a legal intern at GeoDrill Ventures. The CEO of the company wants to know if his concerns are valid. He has asked the legal team to explain to him how the Competition Commission will evaluate the legality of this trade association and whether the trade association will be seen as legalRequired: As a legal intern, provide your own input by discussing how the CC would evaluate the legality of this trade. Conclude your answer by determining the legality of the proposed trade association.
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