[s. 3]
2010
THE STATE OF WESTERN AUSTRALIA
and
ROY HILL INFRASTRUCTURE PTY LTD
ACN 130 249 633
and
ROY HILL HOLDINGS PTY LTD
ACN 123 721 077
ROY HILL IRON ORE PTY LTD
ACN 123 722 038
RAILWAY (ROY HILL INFRASTRUCTURE PTY LTD)
AGREEMENT 2010
[Solicitor’s details]
THIS AGREEMENT is made this 22 day of June 2010
BETWEEN
THE HONOURABLE COLIN JAMES BARNETT , MEc., M.L.A., Premier of the State of
Western Australia, acting for and on behalf of the said State and its
instrumentalities from time to time (hereinafter called “the
State”) of the first part,
ROY HILL INFRASTRUCTURE PTY LTD ACN 130 249 633 of Level 3, Hppl House, 28 42
Ventnor Avenue, West Perth, Western Australia (hereinafter called “ the
Company ” in which term shall be included its successors and permitted
assigns) of the second part, and
ROY HILL HOLDINGS PTY LTD ACN 123 721 077 (hereinafter called “ RHH
”) and ROY HILL IRON ORE PTY LTD ACN 123 722 038 (hereinafter called
“ RHIO ”) both of Level 3, Hppl House, 28-42 Ventnor Avenue, West
Perth, Western Australia (hereinafter collectively called “ the
Guarantors ”) of the third part.
WHEREAS :
A. RHH is investigating the feasibility of RHIO, a
subsidiary of RHH, developing under the Mining Act a project for the mining
and sale, by export to overseas purchasers, of iron ore from the Roy Hill
mining area in the Pilbara region of Western Australia.
B. RHH is also investigating the feasibility of
the Company constructing and operating a railway from the Roy Hill mining area
to the Port of Port Hedland together with train unloading, stockpiles,
re-claimers, conveyors, ship loading and associated facilities within that
port primarily for the transport to, and shipment from that port, of such iron
ore.
C. The State for the purposes of promoting
development of the iron ore industry and employment opportunity generally in
Western Australia and for the purpose of promoting the development of multi
user infrastructure facilities in the Pilbara region of Western Australia has
agreed to assist the development of the abovementioned railway, port and
associated facilities upon and subject to the terms of this Agreement.
NOW THIS AGREEMENT WITNESSES :
Definitions
1. In this Agreement subject to the context:
“ Access Act ” means the
Railways (Access) Act 1998 (WA);
“ Access Code ” means the Railways
(Access) Code 2000 (WA);
“ advise ”, “ apply ”,
“ approve ”, “ approval ”, “ consent ”,
“ certify ”, “ direct ”, “ notice ”,
“ notify ”, “ request ”, or “ require ”,
means advise, apply, approve, approval, consent, certify, direct, notice,
notify, request or require in writing as the case may be and any inflexion or
derivation of any of those words has a corresponding meaning;
“ approved proposal ” means a proposal
approved or deemed to be approved under this Agreement;
“ Boodarie multi-user stockyard area ”
means that area adjacent to the boundary of the Port (as at the date of this
Agreement), which the State intends be vested in the Port Authority under the
Port Authorities Act, the approximate boundaries of which are outlined and
shaded red on the plan marked “A” initialled by or on behalf of
the parties for the purpose of identification only;
“ Commonwealth ” means the
Commonwealth of Australia and includes the Government for the time being
thereof;
“ EP Act ” means the
Environmental Protection Act 1986 (WA);
“ Government agreement ” has the
meaning given in the Government Agreements Act 1979 (WA);
“ iron ore products ” includes iron
ore of all grades and all products from the processing of iron ore;
“ LAA ” means the Land Administration
Act 1997 (WA);
“ Lateral Access Roads ” has the
meaning given in clause 7(1);
“ Lateral Access Road Licence ” means
a miscellaneous licence granted pursuant to clause 13(1)(b) or clause 13(2) as
the case may be and according to the requirements of the context describes the
area of land from time to time the subject of that licence;
“ laws relating to native title ”
means laws applicable from time to time in Western Australia in respect of
native title and includes the Native Title Act 1993 (Commonwealth);
“ local government ” means a local
government established under the Local Government Act 1995 (WA);
“ manganese ore products ” means
manganese ore of all grades from the Nicholas Downs mining area and all
products solely from the processing of such manganese ore;
“ Mining Act ” means the
Mining Act 1978 (WA);
“ Minister ” means the Minister in the
Government of the State for the time being responsible for the administration
of the Act to ratify this Agreement and pending the passing of that Act means
the Minister for the time being designated in a notice from the State to the
Company and includes the successors in office of the Minister;
“ Minister for Mines ” means the
Minister in the Government of the State for the time being responsible for the
administration of the Mining Act;
“ month ” means calendar month;
“ Nicholas Downs mining area ” means
the area the subject of mining leases 46/80, 46/81 and 46/121 held at the date
of this Agreement by Nicholas Downs Pty Ltd ACN 131 992 295, a company related
to RHH;
“ other products ” includes manganese
ore products and mineral ores other than iron ore products;
“ person ” or “ persons ”
includes bodies corporate;
“ Pilbara Iron Ore Railways ” means
each railway constructed under a Government agreement which is located wholly
or substantially in one or more of the local government districts of
Ashburton, East Pilbara, Port Hedland and Roebourne at the date of this
Agreement;
“ Port ” means the Port of Port
Hedland and pending the vesting of the land comprising the Boodarie multi-user
stockyard area in the Port Authority a reference to the “Port” in
this Agreement shall include the Boodarie multi-user stockyard area;
“ Port Authority ” means the Port
Hedland Port Authority, being the body corporate established for the Port
under the Port Authorities Act;
“ Port Authorities Act ” means the
Port Authorities Act 1999 (WA);
“ Port Authorities Minister ” means
the Minister in the Government of the State for the time being responsible for
the administration of the Port Authorities Act;
“ Port Facilities ” means facilities
(excluding the Port Railway and associated access roads within the Port
Railway Area) within the Port necessary for the construction, operation and
maintenance of train unloading, stockpiles, re-claimers, conveyors and other
facilities (including access roads) for the unloading of iron ore products
and, with the consent of the Port Authority, manganese ore products and other
products from the Port Railway and the transport of iron ore products and,
with the consent of the Port Authority, manganese ore products and other
products to ship loading facilities for shipment from the Port and of a ship
loading terminal, which may include conveyors, wharves and ship loading
facilities, maintenance and administration buildings and roads;
“ Port Facilities Area ” means before
the grant of the Port Facilities Lease and Licence that part or those parts
(as the case may be) of the Port the subject of a subsisting agreement
pursuant to clause 8(1)(a) and after the grant of the Port Facilities Lease
and Licence, the area or areas (as the case may be) from time to time leased
or licensed to the Company under the Port Facilities Lease and Licence;
“ Port Facilities Lease and Licence ”
means a lease and licence granted by the Port Authority to the Company (and
unless otherwise agreed with the State during the currency of this Agreement,
under the Port Authorities Act ) in relation to the construction, operation
and maintenance of the Port Facilities for a term which ends at the same time
as the Special Railway Licence (including as renewed), as varied in accordance
with its provisions, and according to the requirements of the context
describes the area or areas (as the case may be) from time to time the subject
of that lease and licence;
“ Port Railway ” means that part of
the Railway within the Port;
“ Port Railway Area ” means before the
grant of the Port Railway Lease and Licence that part or those parts (as the
case may be) of the Port the subject of a subsisting agreement pursuant to
clause 8(1)(c) and after the grant of the Port Lease and Licence, the area or
areas (as the case may be) from time to time the subject of that lease and
licence;
“ Port Railway Lease and Licence ”
means a lease and licence granted by the Port Authority to the Company (and
unless otherwise agreed with the State during the currency of this Agreement,
under the Port Authorities Act ) in relation to the construction, operation
and maintenance of the Port Railway for a term which ends at the same time as
the Special Railway Licence (including as renewed), and according to the
requirements of the context describes the area or areas (as the case may be)
from time to time the subject of that lease and licence;
“ Private Roads ” means Lateral Access
Roads and the Company’s access roads within the Railway Corridor;
“ Project ” means the construction and
operation under this Agreement of the SRL Railway and associated
infrastructure within the Railway Corridor including access roads and of the
Lateral Access Roads in accordance with approved proposals;
“ Rail Safety Act ” means the
Rail Safety Act 1998 ;
“ Railway ” means a standard gauge
heavy haul railway initially from the Roy Hill mining area to the Port
Facilities Area for the transport of iron ore products, freight goods and
other products to the Port together with all railway track, associated track
structures including sidings, turning loops, over or under track structures,
supports (including supports for equipment or items associated with the use of
a railway) tunnels, bridges, train control systems, signalling systems, switch
and other gear, communication systems, electric traction infrastructure,
buildings (excluding office buildings, housing and freight centres), workshops
and associated plant, machinery and equipment and including rolling stock
maintenance facilities, terminal yards, depots, culverts and weigh bridges
which railway is or is to be (as the case may be) the subject of approved
proposals under clauses 10 and 11 of this Agreement and includes any expansion
or extension thereof outside the Port which is the subject of additional
proposals approved in accordance with clause 12 and any expansion or extension
thereof within the Port which has been approved by the Port Authority under
the provisions of the Port Railway Lease and Licence;
“ Railway Corridor ” means, prior to
the grant of the Special Railway Licence, the land for the route of the SRL
Railway, access roads (other than Lateral Access Roads), areas from which
stone, sand, clay and gravel may be taken, temporary accommodation facilities
for the railway workforce and water bores which is the subject of a subsisting
agreement pursuant to clause 7(1) and after the grant of the Special Railway
Licence the land from time to time the subject of the Special Railway Licence;
“ Railway Operation Date ” means the
date of the first carriage of iron ore products, freight goods or other
products over the Railway (other than for construction or commissioning
purposes);
“ Roy Hill mining area ” means the
area outlined and shaded red on the plan marked “B” initialled by
or on behalf of the parties for the purpose of identification and being at the
date of this Agreement the subject of exploration licences 46/334, 46/335 and
46/592 held by RHIO;
“ said State ” means the State of
Western Australia;
“ Special Railway Licence ” means the
miscellaneous licence for railway and, if applicable, other purposes, granted
to the Company pursuant to clause 13(1)(a), as varied in accordance with
clause 13(8) and according to the requirements of the context describes the
area of land from time to time the subject of that licence;
“ SRL Railway ’” means that part
of the Railway which is or is to be (as the case may be) located outside the
Port;
“ SRL Railway spur line ” means a
standard gauge heavy haul railway spur line from a mine, or in the vicinity of
a mine, in the Pilbara region of the said State connecting to the SRL Railway
(and whether to the initial railway line the subject of approved proposals
under clauses 10 and 11 or to an expansion or extension thereof, including a
spur line, which is the subject of additional proposals approved in accordance
with clause 12) for the transport upon the SRL Railway to the Port of iron ore
products, freight goods and other products;
“ SRL Railway spur line Operation Date
” means in respect of a SRL Railway spur line, the date of the first
carriage of iron ore products, freight goods or other products over that spur
line (other than for construction or commissioning purposes);
“ this Agreement ”, “ hereo f
” and “ hereunder ” refer to this Agreement, whether in its
original form or as from time to time added to, varied or amended; and
“ Trade Practices Act ” means the
Trade Practices Act 1974 (Commonwealth).
Interpretation
2. (1) In this
Agreement:
(a)
monetary references are references to Australian
currency unless otherwise specifically expressed;
(b)
power given under any clause other than clause 27
to extend any period or date shall be without prejudice to the power of the
Minister under clause 27;
(c)
clause headings do not affect interpretation or
construction;
(d)
words in the singular shall include the plural and
words in the plural shall include the singular according to the requirements
of the context;
(e)
one gender includes the other genders;
(f)
a covenant or agreement by more than one person
binds, and is enforceable against, those persons jointly and each of them
severally;
(g)
reference to an Act includes the amendments to
that Act for the time being in force and also any Act passed in substitution
therefor or in lieu thereof and the regulations for the time being in force
thereunder;
(h)
reference to the Access Code includes the
amendments to that code for the time being in force and also any code
established or made in substitution therefor or in lieu thereof;
(i) reference in this Agreement to
any other document includes that document as from time to time added to,
varied or amended and notwithstanding any change in the identity of the
parties;
(j)
reference to a clause or schedule is a reference
to a clause or schedule to this Agreement, and a reference to a subclause or
paragraph is a reference to the subclause of the clause or paragraph of the
clause or subclause as the case may be in, or in relation to, which the
reference is made;
(k)
“including” means “including,
but not limited to”; and
(l)
reference to a “person” includes a
body corporate.
(2) Nothing in this
Agreement shall be construed to exempt the State or the Company from
compliance with or to require the State or the Company to do anything contrary
to any law relating to native title or any lawful obligation or requirement
imposed on the State or the Company as the case may be pursuant to any law
relating to native title.
(3) Nothing in this
Agreement shall be construed to exempt the Company from compliance with any
requirement in connection with the protection of the environment arising out
of or incidental to its activities under this Agreement that may be made by or
under the EP Act.
Ratification and operation
3. (1) The State shall
introduce and sponsor a Bill in the State Parliament of Western Australia
prior to 31 December 2010 or such later date as may be agreed between the
parties hereto to ratify this Agreement. The State shall endeavour to secure
the timely passage of such Bill as an Act.
(2) The provisions of
this Agreement other than this clause and clauses 1 and 2 will not come into
operation until the Bill referred to in subclause (1) has been passed by the
State Parliament of Western Australia and comes into operation as an Act.
(3) If by 30 June 2011
the said Bill has not commenced to operate as an Act then, unless the parties
hereto otherwise agree, this Agreement will then cease and determine and no
party hereto will have any claim against any other party hereto with respect
to any matter or thing arising out of, done, performed, or omitted to be done
or performed under this Agreement.
(4) On the date on
which the said Bill commences to operate as an Act all the provisions of this
Agreement will operate and take effect despite any enactment or other law.
Initial obligations of the State
4. The State shall subject to the adequate
protection of the environment (including flora and fauna) and the land
affected (including improvements thereon), and subject to the Company (unless
the Minister otherwise allows) furnishing to the Minister the written consents
referred to in clause 7(3)(a), arrange for the issue of requisite authority
under the LAA to allow the Company to enter upon Crown land as defined in the
LAA (including, if applicable, land the subject of a pastoral lease, but
excluding land within the Port other than the Boodarie multi-user stockyard
area before any vesting of the land comprising it in, or any placing of the
land comprising it under the care, control and management of, the Port
Authority) with plant and equipment to carry out all works to the extent
reasonably necessary for the purposes of undertaking its obligations under
clause 5(1).
Initial obligations of the Company
5. (1) The Company
shall continue field and office geological, geophysical, geotechnical,
engineering and environmental investigations and studies and marketing and
finance studies and other matters necessary for the purposes of clauses 7 and
8 and to enable it to finalise and to submit to the Minister the detailed
proposals referred to in clause 10.
(2) The Company shall
keep the State fully informed in writing at quarterly intervals from the date
specified in clause 3(4) as to the progress and results of its operations
under subclause (1) and supply to the Minister such information in relation
thereto as the Minister may request from time to time.
(3) The Company shall
co-operate with the State and consult with the representatives or officers of
the State regarding matters referred to in subclauses (1) and (2) and any
other relevant studies in relation to those subclauses that the Minister may
wish the Company to undertake.
6. For the purposes of this Agreement the
Aboriginal Heritage Act 1972 (WA) applies as if it were modified by:
(a) the
insertion before the full stop at the end of section 18(1) of the words:
“and the expression “ the Company ” means the persons
from time to time comprising “the Company” in their capacity as
such under the agreement made on 22 June 2010 between The Honourable Colin
James Barnett, Premier of the State of Western Australia acting for and on
behalf of the said State and its instrumentalities from time to time, Roy Hill
Infrastructure Pty Ltd ACN 130 249 633, Roy Hill Holdings Pty Ltd ACN 123 721
077 and Roy Hill Iron Ore Pty Ltd ACN 123 722 038, as varied from time to
time, in relation to the use or proposed use of land pursuant to that
agreement after and in accordance with approved proposals under that agreement
and in relation to the use of that land before any such approval of proposals
where the Company has the requisite authority to enter upon and so use the
land”;
(b) the
insertion in sections 18(2), 18(4), 18(5) and 18(7) of the words “or the
Company as the case may be” after the words “owner of any
land”;
(c) the
insertion in section 18(3) of the words “or the Company as the case may
be” after the words “the owner”;
(d) the
insertion of the following sentences at the end of section 18(3):
“In relation to a notice from the Company the conditions that the
Minister may specify can as appropriate include, among other conditions, a
condition restricting the Company’s use of the relevant land to after
the approval or deemed approval as the case may be under the abovementioned
agreement of all of the Company’s submitted initial proposals thereunder
for the Project (as defined in the abovementioned agreement), or in the case
of additional proposals submitted or to be submitted by the Company to after
the approval or deemed approval under that agreement of such additional
proposals, and to the extent so approved. ”; and
(e) the
insertion in sections 18(2) and 18(5) of the words “or it as the case
may be” after the word “he”.
The Company acknowledges that nothing in this
clause 6 nor the granting of any consents under section 18 of the
Aboriginal Heritage Act 1972 (WA) will constitute or is to be construed as
constituting the approval of any proposals submitted or to be submitted by the
Company under this Agreement or as the grant or promise of land tenure for the
purposes of this Agreement.
Railway Corridor
7. (1) As soon as
practicable during its studies under clause 5, and from time to time during
those studies as required by either the Company or the State, the Company
shall consult with the Minister to seek the agreement of the Minister as to:
(a)
where the SRL Railway will begin and end;
(b)
a route for the SRL Railway, access roads to be
within the Railway Corridor and the land required for that route as well as
associated infrastructure including areas from which stone, sand, clay and
gravel may be taken, temporary accommodation facilities for the railway
workforce and water bores; and
(c)
the routes of, and the land required for, roads
outside the Railway Corridor for access to it to construct the SRL Railway
(such roads as agreed being “ Lateral Access Roads ”).
In seeking such
agreement, regard shall be had to achieving a balance between engineering
matters including costs, the nature and use of any lands concerned and
interests therein and the costs of acquiring the land (all of which shall be
borne by the Company). The parties acknowledge the intention is for the
Company to construct the SRL Railway and the access roads for the construction
and maintenance of the SRL Railway which are to be within the Railway Corridor
along the centreline of the Railway Corridor subject to changes in that
alignment to the extent necessary to avoid heritage, environmental or poor
ground conditions that are not identified during preliminary investigation
work, and recognise the width of the Railway Corridor may need to vary along
its route to accommodate associated infrastructure including access roads,
areas from which stone, sand, clay and gravel may be taken, temporary
accommodation facilities for the railway workforce and water bores. The
provisions of clause 32 shall not apply to this subclause.
(2) If the date by
which the Company must submit detailed proposals under clause 10(1) is
extended or varied by the Minister pursuant to clause 27, any agreement made
pursuant to subclause (1) before such date is extended or varied shall unless
the Minister notifies the Company otherwise be deemed to be at an end and
neither party shall have any claim against the other in respect of it.
(3) The Company
acknowledges that it shall be responsible for liaising with every title holder
in respect of the land affected and for obtaining in a form and substance
acceptable to the Minister all unconditional and irrevocable consents of each
such title holder to, and all statutory consents required in respect of the
land affected for:
(a)
the issue of requisite authority under the LAA
pursuant to clause 4 and the undertaking of the matters referred to in clause
5(1) (including as applying pursuant to clause 12(2));
(b)
the grant of the Special Railway Licence for the
construction, operation and maintenance within the Railway Corridor of the SRL
Railway and access roads to be within the Railway Corridor;
(c)
the grant of Lateral Access Road Licences for the
construction, use and maintenance of Lateral Access Roads over the routes for
the Lateral Access Roads agreed pursuant to clause 7(1) (including as applying
pursuant to clause 12(2)); and
(d)
the inclusion of additional land in the Special
Railway Licence as referred to in clause 13(8),
in accordance with
this Agreement. For the purposes of this subclause (3), “title
holder” means a management body (as defined in the LAA) in respect of
any part of the affected land, a person who holds a mining, petroleum or
geothermal energy right (as defined in the LAA) in respect of any part of the
affected land, a person who holds a lease or licence under the LAA in respect
of any part of the affected land, a person who holds any other title granted
under or pursuant to a Government agreement in respect of any part of the
affected land, a person who holds a lease or licence in respect of any part of
the affected land under any other Act applying in the said State and a person
in whom any part of the affected land is vested, immediately before in respect
of paragraph (a) the grant of the authority referred to therein and in respect
of paragraphs (b), (c) and (d) the provision of such consents to the Minister
as referred to in clause 10(5)(b) (including as applying pursuant to clause
12(4)).
Port Facilities
8. (1) As soon as
practicable during its studies under clause 5, and from time to time during
those studies as required by either the Company or the State, the Company
shall consult with the Minister to seek the agreement of the Minister (acting
with the concurrence of the Port Authorities Minister) as to:
(a)
(i)
an area or areas (as the case may be) of the Port to be leased to the
Company; and
(ii) an
area or areas (as the case may be) of the Port to be licensed (on a
non-exclusive basis) to the Company,
under the Port Facilities Lease and Licence and in which Port
Facilities and access roads to be used by the Company in constructing,
operating and maintaining the Port Facilities are to be constructed;
(b)
the nature and characteristics of the Port
Facilities including, subject to subclause (2), the capacity of the Port
Facilities;
(c)
(i)
an area or areas (as the case may be) of the Port to be leased to the
Company; and
(ii) an
area or areas (as the case may be) of the Port to be licensed (on a
non-exclusive basis) to the Company,
under the Port Railway Lease and Licence and within which the Port
Railway and access roads to be used by the Company in constructing, operating
and maintaining the Port Railway are to be constructed;
(d)
where the Port Railway will end within the Port
Railway Area and a route within that area for the Port Railway and access
roads to be used by the Company in constructing, operating and maintaining the
Port Railway; and
(e)
the nature and characteristics of the Port Railway
including a design capacity which enables the transport of not less than 55
million tonnes of iron ore products per annum over the Port Railway.
(2) The Port
Facilities must include:
(a)
2 berths with a total handling capacity of up to
but not exceeding 55 million tonnes per annum; and
(b)
a train unloader with a design capacity which
enables the unloading within the Port of not less than 55 million tonnes of
iron ore products per annum from the Railway.
(3) If the date by
which the Company must submit detailed proposals under clause 10(1) is
extended or varied by the Minister pursuant to clause 27, any agreement made
pursuant to subclause (1) before such date is extended or varied shall unless
the Minister notifies the Company otherwise be deemed to be at an end and
neither party shall have any claim against the other in respect of it.
(4) Notwithstanding
any agreement (including for the avoidance of doubt pursuant to clauses 8(1)
or 10(1)), representation or understanding between the Company and any one or
more of the Minister, the Port Authorities Minister, the State or the Port
Authority in connection with the vesting of the Boodarie multi-user stockyard
area, none of the Minister, the Port Authorities Minister, the State or the
Port Authority:
(a)
has any obligation, whether under this Agreement
or otherwise, to ensure that the vesting is pursued, completed or completed
without delay; or
(b)
is liable to any person (including the Company)
for any loss or damage of any kind whatsoever and howsoever arising out of or
in connection with any failure or refusal to vest the land (or part thereof)
or any delay in vesting the land (or part thereof) for any reason whatsoever.
(5) Nothing in this
Agreement, including any agreement between the Company and the Minister
pursuant to subclause (1), shall be construed to oblige the State or any
Minister in the Government of the said State to cause the Port Authority to
grant to the Company or any other person tenure or other rights including the
Port Facilities Lease and Licence or the Port Railway Lease and Licence.
(6) The provisions of
clause 32 shall not apply to this clause.
Community development plan
9. (1) In this clause,
the term “community and social benefits” includes:
(a)
training and guaranteed employment for indigenous
and non-indigenous persons living in the Pilbara region of the said State;
(b)
regional development and local procurement of
goods and services;
(c)
contribution to community services and facilities;
and
(d)
a regionally based workforce.
(2) The Company
acknowledges the need for community and social benefits flowing from this
Agreement.
(3) The Company agrees
that, prior to the time at which it submits any proposals pursuant to clause
10, and, if required by the Minister, prior to the time at which it submits
any additional proposals pursuant to clause 12, it shall:
(a)
consult with the relevant local government or
local governments with respect to the need for community and social benefits
in relation to the developments proposed;
(b)
following such consultation, prepare a plan which
describes the Company’s proposed strategies for achieving community and
social benefits in connection with the developments proposed, and such plan
shall include a process for regular consultation by the Company with the
relevant local government or local governments in respect of the strategies;
and
(c)
submit to the Minister the plan prepared pursuant
to subclause (3)(b) and confer with the Minister in respect of the plan.
(4) The Minister shall
within one month after receipt of a plan submitted under subclause (3)(c),
either notify the Company that the Minister approves the plan as submitted or
notify the Company of changes which the Minister requires be made to the plan.
If the Company is unwilling to accept the changes which the Minister requires
it shall notify the Minister to that effect and either party may refer to
arbitration hereunder the question of the reasonableness of the changes
required by the Minister.
(5) The effect of an
award made on an arbitration pursuant to subclause (4) shall be that the plan
submitted by the Company pursuant to subclause (3)(c) shall, with such changes
required by the Minister under subclause (4) as the arbitrator determines to
be reasonable (with or without modification by the arbitrator), be deemed to
be the plan approved by the Minister under this clause.
(6) During the
currency of this Agreement, the Company shall implement the plan approved or
deemed to be approved by the Minister under this clause.
(7) The Company shall
report to the Minister about the results of its periodic ongoing consultation
with the relevant local government or local governments in accordance with the
plan approved or deemed to be approved by the Minister under this clause and
as soon as practicable after each such consultation takes place.
(8) At the request of
either of them made at any time and from time to time, the Minister and the
Company shall confer as to any amendments desired to any plan approved or
deemed to be approved by the Minister under this clause and may agree to
amendment of the plan or adoption of a new plan. Any such amended plan or new
plan will be deemed to be the plan approved by the Minister under this clause.
Company to submit proposals
10. (1) The Company
shall, subject to the EP Act, the provisions of this Agreement, agreement at
that time subsisting in respect of the matters required to be agreed pursuant
to clauses 7(1) and 8(1), approval of a plan as referred to in clause 9 and,
unless otherwise agreed with the State during the currency of this Agreement,
the vesting of the Boodarie multi-user stockyard area in the Port Authority,
submit to the Minister by 31 December 2011 to the fullest extent reasonably
practicable its detailed proposals (including plans where practicable and
specifications where reasonably required by the Minister and any other details
normally required by a local government in whose area any works are to be
situated) with respect to undertaking of the Project, which proposals shall
include the location, area, layout, design, materials and time program for the
commencement and completion of construction or the provision (as the case may
be) of each of the following matters namely:
(a)
the SRL Railway including fencing (if any) and
crossing places within the Railway Corridor and the matters referred to in
subclause (2)(a);
(b)
temporary accommodation and ancillary temporary
facilities for the railway workforce on, or in the vicinity of, the Railway
Corridor and housing and other appropriate facilities elsewhere for the
Company’s workforce;
(c)
water supply;
(d)
energy supplies;
(e)
access roads within the Railway Corridor and
Lateral Access Roads both along the routes for those roads agreed between the
Minister and the Company pursuant to clause 7(1);
(f)
any other works, services or facilities desired by
the Company; and
(g)
use of local labour, professional services,
manufacturers, suppliers contractors and materials and measures to be taken
with respect to the engagement and training of employees by the Company, its
agents and contractors.
(2) (a)
Proposals as to the matters specified in subclause
(1)(a) must provide for the SRL Railway to have:
(i) a
design capacity which enables the transport of not less than 55 million tonnes
of iron ore products per annum over the SRL Railway; and
(ii) a
railway track configuration which enables:
(A) rail operations of the kind
carried out on the Pilbara Iron Ore Railways to be carried out on the Railway,
and vice versa; and
(B) connection of the SRL Railway
outside the Port to any one or more of the Pilbara Iron Ore Railways.
(b)
Proposals pursuant to subclause (1) must specify
the matters agreed for the purpose pursuant to clauses 7(1) and must not be
contrary to or inconsistent with such agreed matters.
(3) Each of the
proposals pursuant to subclause (1) may with the approval of the Minister, or
must if so required by the Minister, be submitted separately and in any order
as to the matter or matters mentioned in one or more of paragraphs (a) to (g)
of subclause (1), and until all of its proposals under this clause have been
approved the Company may withdraw and may resubmit any proposal but the
withdrawal of any proposal shall not affect the obligations of the Company to
submit a proposal under this clause in respect of the subject matter of the
withdrawn proposal.
(4) The Company shall,
whenever any of the following matters referred to in this subclause are
proposed by the Company (whether before or during the submission of proposals
under this clause), submit to the Minister details of any services (including
any elements of the project investigations, design and management) and any
works, materials, plant, equipment and supplies that it proposes to consider
obtaining from or having carried out or permitting to be obtained from or
carried out outside Australia, together with its reasons therefor and shall,
if required by the Minister consult with the Minister with respect thereto.
(5) At the time when
the Company submits the last of the said proposals pursuant to this clause, it
shall:
(a) furnish to the
Minister’s reasonable satisfaction evidence of:
(i)
the financial capability of the Company to
undertake the operations to which the said proposals refer;
(ii)
all accreditations under the Rail Safety Act which
are required to be held by the Company or any other person for the
construction of the SRL Railway;
(iii)
the readiness of the project proponent for the
mining of iron ore from the Roy Hill mining area to embark upon and to proceed
to carry out that project in a timeframe consistent with the commencement of
the undertaking of the Project;
(iv)
the Company having a binding agreement for the
transport upon the Railway and ship loading at the Port Facilities over the
term of this Agreement of the iron ore to be mined after the date of this
Agreement from the Roy Hill mining area;
(v)
all other arrangements and agreements it has at
that time made or proposes to make in respect of access (as defined in clause
15) to the Railway, in respect of transport of any iron ore products, freight
goods or other products over the Railway; and
(vi)
the readiness of the Company to embark upon and
proceed to carry out the operations referred to in the said proposals; and
(b) furnish to the Minister
the written consents referred to in clause 7(3)(b) and 7(3)(c); and
(c) furnish to the
Minister’s reasonable satisfaction evidence that the Port Authority has
granted to the Company the Port Facilities Lease and Licence (which includes
terms as agreed by the Company and the Port Authority relating to access to
the Port Facilities, including use by persons of the services provided by the
Port Facilities) and the Port Railway Lease and Licence each of which may be
conditional upon the grant of the Special Railway Licence and that the term of
each of those titles will commence within 3 months after approval under clause
11 of all of the Company’s proposals submitted under subclause (1).
Consideration of proposals
11. (1) In respect of
each proposal pursuant to clause 10(1) the Minister shall subject to the EP
Act:
(a)
approve of the proposal without qualification or
reservation; or
(b)
defer consideration of or decision upon the same
until such time as the Company submits a further proposal or proposals in
respect of some other of the matters mentioned in clause 10(1) not covered by
the said proposal or until such time as clause 10(5) has been complied with by
the Company; or
(c)
require as a condition precedent to the giving of
his approval to the said proposal that the Company make such alteration
thereto or comply with such conditions in respect thereto as he (having regard
to the circumstances including the overall development of and the use by
others as well as the Company of all or any of the facilities proposed to be
provided) thinks reasonable and in such a case the Minister shall disclose his
reasons for such conditions,
PROVIDED ALWAYS that
where implementation of any proposals hereunder have been approved pursuant to
the EP Act subject to conditions or procedures, any approval or decision of
the Minister under this clause shall if the case so requires incorporate a
requirement that the Company make such alterations to the proposals as may be
necessary to make them accord with those conditions or procedures.
(2) The Minister shall
within 2 months after the later of:
(a)
receipt of proposals pursuant to clause 10(1);
(b)
where the proposals are to be assessed under Part
IV of the EP Act, service on the Minister of an authority under section 45(7)
of the EP Act; and
(c)
where a proposal will or may require the State to
do any act which affects any native title rights and interests, completion of
all processes required by laws relating to native title to be undertaken by
the State before that act may be done by the State,
give notice to the
Company of his decision in respect to the proposals.
(3) If the decision of
the Minister is as mentioned in either of paragraphs (b) or (c) of subclause
(1) the Minister shall afford the Company full opportunity to consult with him
and should it so desire to submit new or revised proposals either generally or
in respect to some particular matter.
(4) If the decision of
the Minister is as mentioned in either of paragraphs (b) or (c) of subclause
(1) and the Company considers that the decision is unreasonable the Company
within 2 months after receipt of the notice mentioned in subclause (2) may
elect to refer to arbitration in the manner hereinafter provided the question
of the reasonableness of the decision PROVIDED THAT any requirement of the
Minister pursuant to the proviso to subclause (1) shall not be referable to
arbitration hereunder.
(5) An award made on
an arbitration pursuant to subclause (4) shall have force and effect as
follows:
(a)
if by the award the dispute is decided against the
Company then unless the Company within 3 months after delivery of the award
gives notice to the Minister of its acceptance of the award this Agreement
shall on the expiration of that period of 3 months cease and determine; or
(b)
if by the award the dispute is decided in favour
of the Company the decision shall take effect as a notice by the Minister that
he is so satisfied with and approves the matter or matters the subject of the
arbitration.
(6) Notwithstanding
any provision of this Agreement (other than clause 27) or that any matter
required to be agreed pursuant to clauses 7(1) and 8(1) has not been agreed,
or that the plan required to be approved pursuant to clause 9 has not been
approved, or that the Boodarie multi-user stockyard area has not been vested
in the Port Authority, or that under this clause any proposals of the Company
are approved by the Minister or determined by arbitration award, unless each
and every proposal and matter required pursuant to clause 10 is so approved or
determined by 30 June 2012:
(a)
subject to paragraph (b), the Minister may give
the Company 12 months notice of intention to determine this Agreement and
unless before the expiration of the said 12 months period all the detailed
proposals and matters are so approved or determined this Agreement shall on
the expiration of that period cease and determine; or
(b)
if the State has determined or determines that it
will not vest or complete the vesting of the Boodarie multi-user stockyard
area (or part thereof) in the Port Authority for any reason whatsoever and the
Company’s right to submit proposals pursuant to clause 10(1) is still
subject to such vesting having first occurred, the Minister may give the
Company notice of intention to determine this Agreement immediately and this
Agreement shall cease and determine on the date the notice is given to the
Company,
subject to the
provisions of clause 29.
(7) Subject to and in
accordance with the EP Act and any approvals and licences required under that
Act the Company shall implement the approved proposals in accordance with the
terms thereof so that the SRL Railway, access roads and the Lateral Access
Roads are constructed and operational within 3 years of the approval of the
proposals.
(8) Notwithstanding
clause 25, the Minister may during the implementation of approved proposals
approve variations to those proposals.
(9) The Minister may
extend the periods set forth in clause 10(1) and subclause (7) of this clause
(in addition to any extension granted under clauses 26 and 27) upon request of
the Company for such reasonable period or periods as the Minister considers
appropriate to enable the Company to comply with laws relating to native
title.
Expansion of Project outside the Port
12. (1) If the Company
at any time during the currency of this Agreement desires to construct outside
the Port an SRL Railway spur line or desires to significantly modify, expand
or otherwise vary its activities that are the subject of this Agreement and
that may be carried on by it pursuant to this Agreement (other than by the
construction of a spur line) beyond those activities specified in any approved
proposals, it shall give notice of such desire to the Minister and furnish to
the Minister with that notice an outline of its proposals in respect thereto
(including such matters mentioned in clause 10(1) as are relevant or as the
Minister otherwise requires and in the case of the proposed construction of a
SRL Railway spur line the proposed capacity of such spur line).
(2) If the notice
relates to a SRL Railway spur line, the Minister shall within one month of
receipt of such notice advise the Company whether or not he approves
in-principle the proposed construction of such spur line. If the Minister
gives in-principle approval the Company may (but not otherwise) submit
detailed proposals in respect thereof provided that the provisions of clauses
4, 5, 7 and 9 shall mutatis mutandis apply prior to submission of detailed
proposals in respect thereof.
(3) Subject to the EP
Act, the provisions of this Agreement and agreement at that time subsisting in
respect of any matters required to be agreed pursuant to clause 7(1) as
referred to in subclause (2), and approval of a plan as referred to in clause
9, the Company shall submit to the Minister within a reasonable timeframe, as
determined by the Minister after receipt of the notice referred to in
subclause (1) (or in the case of a notice referred to in subclause (2) the
giving of the Minister’s in-principle consent as referred to in that
subclause), detailed proposals in respect of the proposed construction of such
spur line or the proposed modification, expansion or variation of its
activities including such of the matters mentioned in clause 10(1) as the
Minister may require.
(4) The provisions of
clause 10 (other than subclause (2)(a) and with the reference in subclause
5(b) to clause 7(3)(b) being read as a reference to clause 7(3)(d)) and clause
11 (other than subclauses (5)(a), (6) and (7) of clause 11) shall mutatis
mutandis apply to detailed proposals submitted pursuant to this clause
provided that the Company may withdraw such proposals at any time before
approval thereof or, where any decision of the Minister in respect thereof is
referred to arbitration, within 3 months after the award by notice to the
Minister that it shall not be proceeding with the same. Subject to and in
accordance with the EP Act and any approvals or licences required under that
Act, the Company shall implement approved proposals pursuant to this clause in
accordance with the terms thereof.
Grant of Tenure
13. (1) On application
made by the Company to the Minister in such manner as the Minister may
determine, not later than 3 months after all its proposals submitted pursuant
to clause 10(1) have been approved or deemed to be approved and the Company
has complied with the provisions of clause 10(5), the State notwithstanding
the Mining Act shall cause to be granted to the Company:
(a)
a miscellaneous licence to conduct within the
Railway Corridor and in accordance with its approved proposals all activities
(including the taking of stone, sand, clay and gravel, the provision of
temporary accommodation facilities for the railway workforce and, subject to
the Rights in Water and Irrigation Act 1914 (WA), the operation of water
bores) necessary for the planning, design, construction, commissioning,
operation and maintenance within the Railway Corridor of the SRL Railway and
access roads (“ the Special Railway Licence ”) such licence to be
granted under and subject to, except as otherwise provided in this Agreement,
the Mining Act in the form of Schedule 1 hereto and subject to such terms and
conditions as the Minister for Mines may from time to time consider reasonable
and at a rental calculated in accordance with the Mining Act:
(i)
prior to the Railway Operation Date, as if the width of the Railway Corridor
were 100 metres; and
(ii) on
and from the Railway Operation Date, at the rentals from time to time
prescribed under the Mining Act; and
(b)
a miscellaneous licence or licences to allow the
construction, use and maintenance of Lateral Access Roads within the routes
agreed for those Lateral Access Roads under clause 7(1) (each a “
Lateral Access Road Licence ”), each such licence to be granted under
and subject to, except as otherwise provided in this Agreement, the Mining Act
in the form of Schedule 2 hereto and subject to such terms and conditions as
the Minister for Mines may from time to time consider reasonable and at the
rentals from time to time prescribed under the Mining Act.
(2) On application
made by the Company to the Minister in such manner as the Minister may
determine, not later than 3 months after its proposals submitted pursuant to
clause 12(1) for the construction of Lateral Access Roads for access to the
Railway Corridor to construct a SRL Railway spur line have been approved or
deemed to be approved and the Company has complied with the provisions of
clause 10(5)(b) (as applying pursuant to clause 12(4)), the State
notwithstanding the Mining Act shall cause to be granted to the Company a
miscellaneous licence or licences to allow the construction, use and
maintenance of Lateral Access Roads within the routes agreed for those Lateral
Access Roads under clause 7(1) (as applying pursuant to clause 12(2) (each a
“ Lateral Access Road Licence ”), each such licence to be granted
under and subject to, except as otherwise provided in this Agreement, the
Mining Act in the form of Schedule 3 hereto and subject to such terms and
conditions as the Minister for Mines may from time to time consider reasonable
and at the rentals from time to time prescribed under the Mining Act.
(3) Subject to the
performance by the Company of its obligations under this Agreement and the
Mining Act and notwithstanding any provisions of the Mining Act to the
contrary the term of the Special Railway Licence shall be for a period of 30
years commencing on the date of grant thereof (subject to sooner determination
thereof upon the determination of this Agreement) with the right as provided
herein for the Company to take during the currency of this Agreement 2
successive renewals each of 10 years (subject to sooner determination thereof
upon the determination of this Agreement) upon the same terms and conditions,
such right to be exercised by the Company making application for such renewal
not later than one month before the expiration of the then current term of the
Special Railway Licence. For the avoidance of doubt the Company acknowledges
that the term of the Special Railway Licence may only be renewed twice.
(4) Notwithstanding
the Mining Act, the term of any Lateral Access Road Licence shall, subject to
the sooner determination thereof on the cessation or sooner determination of
this Agreement, be for a period of 4 years commencing on the date of grant
thereof.
(5) Notwithstanding
the Mining Act, and except as required to do so by the terms of the Special
Railway Licence, the Company shall not be entitled to surrender the Special
Railway Licence or any Lateral Access Road Licence or any part or parts of
them without the prior consent of the Minister.
(6) (a)
The Company may in accordance with approved
proposals take stone, sand, clay and gravel from the Railway Corridor (for the
avoidance of doubt including any area of land included in the Special Railway
Licence pursuant to subclause (8)) for the construction, operation and
maintenance of the SRL Railway (including any SRL Railway spur line)
constructed within or approved for construction within the Railway Corridor.
(b)
Notwithstanding the Mining Act no royalty shall be
payable under the Mining Act in respect of stone, sand, clay and gravel which
the Company is permitted by subclause (6) to obtain from the land the subject
of the Special Railway Licence.
(7) For the purposes
of this Agreement and without limiting the operation of subclauses (1) to (6)
above and subclause (6), the application of the Mining Act and the regulations
made thereunder are specifically modified;
(a)
in section 91(1) by:
(i)
deleting “the mining registrar or the warden, in accordance with section
42 (as read with section 92)” and substituting “the
Minister”;
(ii)
deleting “any person” and substituting “the Company (as
defined in the agreement made on 22 June 2010 between The Honourable Colin
James Barnett, Premier of the State of Western Australia acting for and on
behalf of the said State and its instrumentalities from time to time, Roy Hill
Infrastructure Pty Ltd ACN 130 249 633, Roy Hill Holdings Pty Ltd ACN 123 721
077 and Roy Hill Iron Ore Pty Ltd ACN 123 722 038 as varied from time to
time)”;
(iii)
deleting “for any one or more of the purposes prescribed” and
substituting “for the purpose specified in clause 13(1)(a), clause
13(1)(b) or clause 13(2), of the agreement made on 22 June 2010 between The
Honourable Colin James Barnett, Premier of the State of Western Australia
acting for and on behalf of the said State and its instrumentalities from time
to time, Roy Hill Infrastructure Pty Ltd ACN 130 249 633 Roy Hill Holdings Pty
Ltd ACN 123 721 077 and Roy Hill Iron Ore Pty Ltd ACN 123 722 038, and as
varied from time to time”;
(b)
in section 91(3)(a), by deleting “prescribed
form” and substituting “form required by the agreement made on 22
June 2010 between The Honourable Colin James Barnett, Premier of the State of
Western Australia acting for and on behalf of the said State and its
instrumentalities from time to time, Roy Hill Infrastructure Pty Ltd ACN 130
249 633, Roy Hill Holdings Pty Ltd ACN 123 721 077 and Roy Hill Iron Ore Pty
Ltd ACN 123 722 038, as varied from time to time”;
(c)
by deleting sections 91(6), 91(9), 91(10) and 91B;
(d)
in section 92, by deleting “Sections 41, 42,
44, 46, 46A, 47 and 52 apply,” and inserting “Section 46A
(excluding in subsection (2)(a) “the mining registrar, the warden
or”) applies,” and by deleting “in those provisions”
and inserting “in that provision”;
(e)
by deleting the full stop at the end of the
section 94(1) and inserting, “except to the extent otherwise provided
in, or to the extent that such terms and conditions are inconsistent with, the
agreement made on 22 June 2010 between The Honourable Colin James Barnett,
Premier of the State of Western Australia acting for and on behalf of the said
State and its instrumentalities from time to time, Roy Hill Infrastructure Pty
Ltd ACN 130 249 633, Roy Hill Holdings Pty Ltd ACN 123 721 077 and Roy Hill
Iron Ore Pty Ltd ACN 123 722 038, as varied from time to time.”;
(f)
by deleting sections 94(2), (3) and (4);
(g)
in section 96(1), by inserting after
“miscellaneous licence” the words “(not being a
miscellaneous licence granted pursuant to the agreement made on 22 June 2010
between The Honourable Colin James Barnett, Premier of the State of Western
Australia acting for and on behalf of the said State and its instrumentalities
from time to time, Roy Hill Infrastructure Pty Ltd ACN 130 249 633, Roy Hill
Holdings Pty Ltd ACN 123 721 077 and Roy Hill Iron Ore Pty Ltd ACN 123 722
038, as varied from time to time”;
(h)
by deleting mining regulations 37(2), 37(3), 42
and 42A; and
(i) by
inserting at the beginning of mining regulations 41(c) and (f) the words
“subject to the agreement made on 22 June 2010 between The Honourable
Colin James Barnett, Premier of the State of Western Australia acting for and
on behalf of the said State and its instrumentalities from time to time, Roy
Hill Infrastructure Pty Ltd ACN 130 249 633, Roy Hill Holdings Pty Ltd ACN 123
721 077 and Roy Hill Iron Ore Pty Ltd ACN 123 722 038, as varied from time to
time.”.
(8) If additional
proposals are approved in accordance with clause 12 for the construction of a
SRL Railway spur line outside the then Railway Corridor, the Minister for
Mines shall include the area of land within which such construction is to
occur in the Special Railway Licence by endorsement. The area of such land may
be included notwithstanding that the survey of the land has not been completed
but subject to correction to accord with the survey when completed at the
Company’s expense.
Construction and operation of Railway and retention of Port Facilities
14. (1) Subject to and
in accordance with approved proposals, the Rail Safety Act and the State
having assured to the Company all necessary rights over Crown land (as defined
in the LAA) available for the purpose the Company shall in a proper and
workmanlike manner and in accordance with recognised standards for railways of
a similar nature operating under similar conditions construct the SRL Railway
and associated access roads within the Railway Corridor and shall also
construct inter alia any necessary sidings, crossing points, bridges,
signalling switches and other works and appurtenances and provide for
crossings and (where appropriate and required by the Minister) grade
separation or other protective devices including flashing lights and boom
gates at places where the SRL Railway crosses or intersects with major roads
or existing railways.
(2) The Company shall
during the currency of this Agreement:
(a)
keep the Railway in an operable state;
(b)
ensure that the Railway is operated in a safe and
proper manner in compliance with all applicable laws from time to time; and
(c)
without limiting subclause (2)(b) or clause 17,
ensure that the obligations imposed under the Rail Safety Act on an owner and
an operator (as those terms are therein defined) are complied with in
connection with the Railway and (from such time as the Access Act and the
Access Code apply to the Railway) ensure that the obligations imposed under
the Access Act and the Access Code on a railway owner (as that term is therein
defined) are complied with in connection with the Railway.
Nothing in this
Agreement shall be construed to exempt the Company or any other person from
compliance with the Rail Safety Act and (from and during such time as they
apply as referred to in clause 15(2)) the Access Act and the Access Code, or
limit their application to the Company’s operations generally.
(3) The Company shall
provide crossings for livestock and also for any roads, other railways,
conveyors, pipelines and other utilities which now exist and the Company shall
on reasonable terms and conditions allow such crossings for roads, railways,
conveyors, pipelines and other utilities which may be constructed for future
needs and which may be required to cross the SRL Railway.
(4) In relation to its
use of the Railway when transporting passengers or carrying iron ore products,
freight goods or other products, the Company shall not be deemed to be a
common carrier at law or otherwise.
(5) The Company shall
at all times be the holder of the Special Railway Licence and Lateral Access
Road Licences and (without limiting clause 31) shall at all times own manage
and control the use of the Railway.
(6) The Company shall
not be entitled to exclusive possession of the land the subject of the Special
Railway Licence or any Lateral Access Road Licence to the intent that the
State, the Minister, the Minister for Mines and any persons authorised by any
of them from time to time shall be entitled to enter upon the land or any part
of it at all reasonable times and on reasonable notice with all necessary
vehicles, plant and equipment and for purposes related to this Agreement or
such other purposes as they think fit but in doing so shall be subject to the
reasonable directions of the Company so as not to unreasonably interfere with
the Company’s operations.
(7) The
Company’s ownership of the SRL Railway shall not give it an interest in
the land underlying it.
(8) The Company shall
not at any time without the prior consent of the Minister dismantle, sell or
otherwise dispose of any part or parts of the Railway, or permit this to
occur, other than for the purpose of maintenance, repair, upgrade or renewal.
(9) The Company shall
use all reasonable endeavours to ensure that, during the currency of this
Agreement, the SRL Railway has a railway track configuration which enables:
(a)
rail operations of the kind carried out on the
Pilbara Iron Ore Railways to be carried out on the Railway, and vice versa;
and
(b)
connection of the SRL Railway to any one or more
of the Pilbara Iron Ore Railways.
(10) The Company shall
at all times be the holder of the Port Facilities Lease and Licence and
(without limiting clause 31) shall at all times manage and control the use of
the Port Facilities.
(11) The Company shall
not at any time without prior consent of the Minister (acting with the
concurrence of the Port Authorities Minister) dismantle, sell or otherwise
dispose of any part or parts of the Port Facilities, or permit this to occur
other than for the purpose of maintenance, repair, upgrade or renewal.
(12) The Company shall
not be entitled to surrender the Port Facilities Lease and Licence or the Port
Railway Lease and Licence or any part or parts of them without the prior
consent of the Minister.
(13) The Company
shall, subject to and in accordance with approved proposals, in a proper and
workmanlike manner, construct any access roads, Lateral Access Roads and other
works approved for construction under this Agreement.
(14) The Company
shall:
(a)
be responsible for the cost of construction and
maintenance of all Private Roads;
(b)
at its own cost erect signposts and take other
steps that may be reasonable in the circumstances to prevent any persons and
vehicles (other than those engaged upon the Company’s activities and its
invitees and licensees and persons who have rights under the Access Act and
the Access Code to use those roads) from using the Private Roads; and
(c)
at any place where any Private Roads are
constructed by the Company so as to cross any railways or public roads provide
at its cost such reasonable protection and signposting as may be required by
the Commissioner of Main Roads or the Public Transport Authority as the case
may be.
(15) During the
currency of this Agreement the Company shall not trade in iron ore products.
Access Obligations for Railway
15. (1) For the
purposes of this clause:
(a)
“ access ” includes use by persons of
the Railway and, in connection with such use, use by persons of the
Company’s access roads within the Railway Corridor and within the Port
Railway Area but does not, for the purposes of subclause (5)(c) or (7)(a)
include use of the Company’s rolling stock, rolling stock maintenance
facilities, office buildings, housing, freight centres, terminal yards and
depots or other facilities which are not railway infrastructure (as that term
is defined in the Access Act) and, for the avoidance of doubt, does not
include use of unloading facilities and the associated railway track loop
constructed under this Agreement;
(b)
“ Access Date ” means the date on
which all of the documents and matters referred to in subclause (8)(c) are
approved or determined under the relevant section of the Access Act or of the
Access Code;
(c)
“ agreement ” includes an agreement,
commitment or arrangement which is binding or takes effect when made and an
agreement, commitment or arrangement which becomes binding or takes effect
during the currency of this Agreement with the giving of notice, lapse of
time, occurrence of any event, passing of any date or for any other reason;
(d)
“ Expansion Access Date ” in relation
to an expansion or extension (including any spur line) of the Railway means
the date on which all of the documents and matters referred to in subclause
(8)(d) are approved or determined under the relevant section of the Access Act
or of the Access Code in connection with the expansion or extension of the
Railway;
(e)
“ railway owner ” has the same meaning
as in the Access Act;
(f)
“ Regulator ” has the same meaning as
in the Access Act;
(g)
“ TPA Undertaking Acceptance Date ”
means the date on which, under section 44ZZBA of the Trade Practices Act, the
decision of the Commission (as defined in section 4(1) of the
Trade Practices Act) to accept under Division 6 of Part IIIA of the
Trade Practices Act the Company’s proposed undertaking for the provision
of haulage services referred to in subclause (6)(b) comes into operation; and
(h)
“ year ” means the period of 12 months
commencing on the Railway Operation Date or any subsequent period of 12 months
during the currency of this Agreement.
(2) (a)
The State and the Company intend that, until the
TPA Undertaking Acceptance Date, the Access Act and the Access Code shall
apply:
(i) to
the Railway as soon as possible after the Railway is constructed and
commissioned but before the Railway Operation Date; and
(ii) to
any expansion or extension thereof (including a spur line) as soon as possible
after such expansion or extension is constructed.
(b)
The Company shall from the date occurring 6 months
before the date for completion of construction of the SRL Railway specified in
its time program for the commencement and completion of construction of that
SRL Railway submitted under clause 10(1), keep the Minister fully informed as
to:
(i) the
progress of that construction and its likely completion and commissioning; and
(ii) the
likely Railway Operation Date.
(c)
The Company shall on the Railway Operation Date
notify the Minister that the first carriage of iron ore products, freight
goods or other products as the case may be over the Railway (other than for
construction or commissioning purposes) has occurred.
(d)
The Company shall from the date occurring 6 months
before the date for completion of construction of a SRL Railway spur line
specified in its time program for the commencement and completion of
construction of that spur line submitted under clause 12(1) keep the Minister
fully informed as to:
(i) the
progress of that construction and its likely completion and commissioning; and
(ii) in
respect of it, the likely date SRL Railway spur line Operation Date.
(e)
The Company shall on the SRL Railway spur line
Operation Date in respect of any SRL Railway spur line notify the Minister
that the first carriage of iron ore products, freight goods or other products
as the case may be over such spur line (other than for construction or
commissioning purposes) has occurred.
(3) The Company
acknowledges that one of the intentions of the State and the Company in
entering into this Agreement is that the Access Act and the Access Code apply,
until the TPA Undertaking Acceptance Date, to and in respect of the Railway
(but not to the Company’s rolling stock, rolling stock maintenance
facilities, office buildings, housing, freight centres, terminal yards and
depots and any other facilities which are not railway infrastructure (as that
term is defined in the Access Act)) and access roads of the Company within the
Railway Corridor and within the Port Railway Area. The Company:
(a)
acknowledges that the State shall from time to
time be entitled to make such legislative changes as are necessary to achieve
that purpose; and
(b)
shall do all such things as the Minister
reasonably requests for the purposes of the Access Code applying and
continuing to apply to and in respect of the Railway which are not
inconsistent with this Agreement.
(4) During the period
prior to the Access Date:
(a)
subject to subclause (4)(b), no agreement for
access to the Railway or provision of rail transport services over the Railway
(including for purposes of transport of iron ore products, freight goods or
other products) shall be made without the prior consent of the Minister; and
(b)
one or more agreements for access to the Railway
or provision of rail transport services over the Railway for the purposes of
the transport of iron ore products may be made without the prior consent of
the Minister, but such agreements:
(i)
shall only be entered into by the Company;
(ii)
shall not, either alone or when taken together, allow or provide for the
transport (whether by the Company or any other person using the Railway) of
more than 55 million tonnes of iron ore products over the Railway in any year
during the currency of this Agreement; and
(iii)
shall comply with subclause (5).
(5) The Company shall
ensure that each agreement for access to the Railway or provision of rail
transport services over the Railway entered into prior to the Access Date:
(a)
does not and will not in any way prevent
alteration of practices or methods of operation in relation to control and
management of the Railway and its use (including in respect of allocation and
management of the use of train paths on the Railway and management of train
control and operating standards for the Railway) to the extent necessary to
comply with obligations of a railway owner in connection with the Railway
under the Access Act and the Access Code after the Access Date (including
obligations to comply with train management guidelines in connection with the
Railway from time to time approved or determined under section 43 of the
Access Code and directions given under that section, statements of policy in
connection with the Railway from time to time approved or determined under
section 44 of the Access Code and an arrangement from time to time approved,
and directions from time to time given, under section 29 of the Access Act for
or to the railway owner in respect of the Railway);
(b)
without limiting subclause (5)(a):
(i) does
not and will not in any way limit the discretion of the Regulator in
approving, determining or giving a direction in respect of train management
guidelines in connection with the Railway under section 43 of the Access Code
or approving or determining a statement of policy in connection with the
Railway under section 44 of the Access Code or under section 29 of the Access
Act approving an arrangement for or issuing a direction to the railway owner
in respect of the Railway; and
(ii)
provides that, if any provision of the agreement is inconsistent with a
provision of the Access Act or the Access Code in effect as at the Access Date
(other than a provision in Schedule 4 of the Access Code), or inconsistent
with any statement, document, determination or other requirement issued, made,
approved or determined under either or both of the Access Act and the Access
Code as at the Access Date, the relevant provision of the Access Act or the
Access Code or the statement, document, determination or other requirement (as
the case may be) shall prevail over the provision of the agreement to the
extent of that inconsistency;
(c)
does not impose on the Company obligations, or
create in favour of any other person any interest, in relation to use of the
Railway (including in relation to allocation of train paths on the Railway and
management of train control for the Railway) which may in effect preclude
other entities from access to the Railway in accordance with the Access Act
and the Access Code;
(d)
would, if that agreement were an “access
agreement” within the meaning of the Access Code, comply with sections
17(1)(a), 17(1)(c) and 36(2)(c) of the Access Code; and
(e)
is, with effect from the Access Date, altered to
comply with and to be consistent with the Access Act and the Access Code
(except Schedule 4 of the Access Code) as at that time and with each
statement, document, determination and other requirement at that time issued,
made, approved or determined under the Access Act or the Access Code as if the
agreement were an access agreement (as that term is defined in the Access
Code).
The above provisions
of this subclause (5) shall apply mutatis mutandis in respect of any expansion
or extension (including any spur line) of the Railway on the basis that
references in the above provisions of this subclause (5) to
“Railway” are to be read as including the relevant expansion or
extension and to “Access Date” are to be read as references to
“Expansion Access Date”.
(6) (a)
Without limiting clause 33, the Company must,
during the currency of this Agreement, consult with and keep the State fully
informed concerning any steps that the Company proposes to take or is taking,
or concerning any steps which the Company is aware any other person proposes
to take or is taking, to have the Railway made subject to Part IIIA of the
Trade Practices Act .
(b)
The Company has advised the State that it intends
to give a written undertaking to the Commission under Division 6 of Part IIIA
of the Trade Practices Act for the provision of haulage services (including
of iron ore) over the Railway and to obtain the Commission’s acceptance
of the undertaking by the Railway Operation Date.
(c)
Without limiting its obligation under paragraph
(a) the Company must consult with and keep the State fully informed with
respect to the proposed provisions of such access undertaking.
(d)
From and including the TPA Undertaking Acceptance
Date the Company shall be released from any outstanding obligation it may have
under subclauses (3)(b), (4), (5) or (8) or to promote under (7)(a) use by
persons of the Railway as formerly proposed by the application of the Access
Act and the Access Code.
(e)
Nothing in this clause shall be taken to limit
rights of the State to make under the Trade Practices Act or otherwise such
submissions as it thinks fit in respect of any such access undertaking
application by the Company.
(f)
The Company must from and including the TPA
Undertaking Acceptance Date have in place during the currency of this
Agreement an undertaking under Division 6 of Part IIIA of the
Trade Practices Act for the provision of
haulage services (including of iron ore) over the Railway.
(7) The Company shall:
(a)
after the Railway Operation Date use all
reasonable endeavours to promote access to, and attract customers for, the
Railway; and
(b)
not without the prior consent of the Minister
enter into or allow to be entered into any agreement or arrangement, or
otherwise adopt any practice, whereby the Railway is connected to another
railway for the purpose of running rolling stock in a circuit over them, or
whereby the Railway otherwise does not or cannot accommodate traffic moving in
both directions.
(8) The Company shall:
(a)
ensure that the publication referred to in Part 2A
of the Access Code is prepared and made available for purchase no later than 7
days after the Access Act and the Access Code apply to the Railway;
(b)
ensure the submission to the Regulator of the
arrangement for the railway owner in respect of the Railway required to be
approved by the Regulator under section 29 of the Access Act, each of the
statements in connection with the Railway required to be prepared and
submitted to the Regulator under sections 43(3), 44(2), 46(1) and 47(1) of the
Access Code and any other document the subject of a notice from the Minister
to the Company, being a document which the Access Act or the Access Code
requires to be submitted by a railway owner to the Regulator, no later than 7
days after the Access Act and the Access Code apply to the Railway or such
earlier date specified in the Access Act or the Access Code (as the case may
be) for preparation and submission of such arrangement or statements;
(c)
conduct itself in such a manner as to, and do all
such things as are reasonable to, facilitate the approval or determination of:
(i)
train management guidelines in connection with the Railway under section 43 of
the Access Code;
(ii)
statements of policy in connection with the Railway under section 44 of the
Access Code;
(iii)
costing principles in connection with the Railway under section 46 of the
Access Code;
(iv)
over-payment rules in connection with the Railway under section 47 of the
Access Code;
(v) an
arrangement referred to in section 29(1) of the Access Act for the railway
owner in respect of the Railway; and
(vi) any
other document or matter the subject of a notice from the Minister to the
Company, being a document or matter which the Access Act or the Access Code
requires be approved or determined in connection with a railway owner,
as soon as possible after the Access Act and the Access Code apply to
the Railway; and
(d)
ensure the submission to the Regulator within 3
months of the Access Act and the Access Code applying to any expansion or
extension (including any spur line) of the Railway of new or amended
guidelines, statements of policy, principles, rules, arrangements and other
documents and matters referred to in this subclause (8) as may be required by
the Access Act and the Access Code in respect of the relevant expansion or
extension of the Railway and conduct itself in such manner as to, and do all
such things as are reasonable to, facilitate the approval or determination of
new or amended document and matters.
(9) Nothing in this
clause shall be taken to exempt the railway owner in respect of the Railway
from any obligation or requirement of the railway owner under the Access Act
or the Access Code.
(10) Nothing in this
Agreement shall be taken to limit the rights of the State to regulate access
to the Port and to the Port Facilities in the future, or the Company’s
obligations to comply in respect of any such regulation.
Compliance with Laws
16. (1) In the
construction operation maintenance and use of any work installation plant
machinery equipment service or facility provided or controlled by the Company,
the Company shall throughout the currency of this Agreement comply with and
observe the provisions hereof and subject thereto the laws for the time being
in force in the said State.
(2) Except as
otherwise provided in this Agreement, the Company shall be responsible for
obtaining such leases, authorities, permits and licences as it shall require
for the obtaining of stone, sand, clay and gravel for the construction of the
Railway and the Lateral Access Roads.
Maintenance
17. Throughout the currency of this Agreement the
Company shall at all times keep and maintain in good repair and working order
and condition (which obligation includes, where necessary, replacing or
renewing all parts which are worn out or in need of replacement or renewal due
to their age or condition) the Railway, access roads, and all such other works
installations plant machinery and equipment for the time being the subject of
this Agreement.
Use of local labour professional services and materials
18. (1) Except as
otherwise agreed by the Minister the Company shall, for the purposes of this
Agreement:
(a)
except in those cases where the Company can
demonstrate it is not reasonable and economically practicable so to do, use
labour available within the said State (using all reasonable endeavours to
ensure that as many as possible of the workforce be recruited from the Pilbara
region) or if such labour is not available then, except as aforesaid, use
labour otherwise available within Australia;
(b)
as far as it is reasonable and economically
practicable so to do, use the services of engineers, surveyors, architects and
other professional consultants experts and specialists, project managers,
manufacturers, suppliers and contractors resident and available within the
said State, or if such services are not available within the said State, then,
as far as practicable as aforesaid, use the services of such persons otherwise
available within Australia;
(c)
during design and when preparing specifications,
calling for tenders and letting contracts for works, materials, plant,
equipment and supplies (which shall at all times, except where it is
impracticable so to do, use or be based upon Australian Standards and Codes)
ensure that suitably qualified Western Australian and Australian suppliers,
manufacturers and contractors are given fair and reasonable opportunity to
tender or quote;
(d)
give proper consideration and, where possible,
preference to Western Australian suppliers, manufacturers and contractors when
letting contracts or placing orders for works, materials, plant, equipment and
supplies where price, quality, delivery and service are equal to or better
than that obtainable elsewhere or, subject to the foregoing, give that
consideration and, where possible, preference to other Australian suppliers,
manufacturers and contracts; and
(e)
if, notwithstanding the foregoing provisions of
this subclause, a contract is to be let or an order is to be placed with other
than a Western Australian or Australian supplier, manufacturer or contractor,
give proper consideration and, where possible, preference to tenders,
arrangements or proposals that include Australian participation where price,
delivery and service are otherwise equal or better.
(2) Except as
otherwise agreed by the Minister, the Company shall, in every contract entered
into with a third party for the supply of services, labour, works, materials,
plant, equipment or supplies for the purposes of this Agreement require as a
condition thereof that such third party shall undertake the same obligations
as are referred to in subclause (1) and shall report to the Company concerning
such third party’s implementation of that condition.
(3) The Company shall:
(a)
in respect of developments the subject or to be
the subject (as the case may be) of proposals submitted under clause 10,
submit a report to the Minister at quarterly intervals from the date specified
in clause 3(4) to the date of the first submission of proposals under clause
10 and thereafter at monthly intervals until commissioning of the Railway and
thereafter as requested by the Minister from time to time; and
(b)
in respect of developments the subject or to be
the subject (as the case may be) of proposals submitted under clause 12,
submit a report to the Minister at quarterly intervals from the date on which
it gives notice under clause 12(1) to the date of the first submission of
proposals in connection with that notice under clause 12 and thereafter at
monthly intervals until commissioning of the developments the subject of the
proposals approved pursuant to clause 12 and thereafter as requested by the
Minister from time to time,
concerning its
implementation of the provisions of this clause, together with a copy of any
report received by the Company pursuant to subclause (2) during that month or
longer period as the case may be PROVIDED THAT the Minister may agree that any
such reports need not be provided in respect of contracts of such kind or
value as the Minister may from time to time determine.
(4) The Company shall
keep the Minister informed on a regular basis as determined by the Minister
from time to time or otherwise as reasonably required by the Minister during
the currency of this Agreement of any services (including any elements of the
project investigations, design and management) and any works, materials,
plant, equipment and supplies that it may be proposing to obtain from or have
carried out or permit to be obtained from or carried out outside Australia,
together with its reasons therefor and shall, as and when required by the
Minister, consult with the Minister with respect thereto.
No discriminatory charges
19. Except as provided in this Agreement the State
must not impose, nor shall it permit or authorise any local government or any
agency, instrumentality or other authority of the State to impose,
discriminatory taxes, rates or charges of any nature whatsoever on or in
respect of the titles, property or other assets, products, materials or
services used or produced by or through the activities of the Company in the
conduct of the Project nor will the State take or permit to be taken by any
such State agency, instrumentality or other authority any other discriminatory
action which would deprive the Company of full enjoyment of the rights granted
or intended to be granted under this Agreement. In the application of this
clause the conferral of rights upon parties to other Government agreements
shall be disregarded.
Taking of land for the purposes of this Agreement
20. (1) The State is
hereby empowered, as and for a public work under Parts 9 and 10 of the LAA and
the Public Works Act 1902 , to take for the purposes of this Agreement any
land (other than any part of the Port) which in the opinion of the Company is
necessary for the Project and which the Minister determines is appropriate to
be taken for the Project (except any land the taking of which would be
contrary to the provisions of a Government agreement entered into before the
submission of the proposals relating to the proposed taking) and
notwithstanding any other provisions of those Acts may license that land to
the Company.
(2) In applying Parts
9 and 10 of the LAA and the Public Works Act 1902 for the purposes of this
Clause -
(a)
“ land ” in those Acts includes a
legal or equitable estate or interest in land;
(b)
sections 170, 171, 172, 173, 174, 175 and 184 of
the LAA do not apply; and
(c)
the LAA applies as if it were modified in section
177(2) by inserting -
(i)
after “railway” the following -
“or land is being taken pursuant to a
Government agreement as defined in section 2 of the Government Agreements Act
1979 ”; and
(ii)
after “that Act” the following -
“or that Agreement as the case may
be”.
(3) The Company shall
pay to the State on demand the costs of or incidental to any land taken at the
request of and on behalf of the Company including but not limited to any
compensation payable to any holder of native title or of native title rights
and interests in the land.
No taking of land
21. Subject to the performance by the Company of
its obligations under this Agreement, but without limiting clause 14(3) the
State shall not, during the currency of this Agreement, without the consent of
the Company, take or suffer or permit to be taken by any local government or
by any agency, instrumentality or other authority of the State any of the
works, installations, plant, equipment or other property for the time being
belonging to the Company and the subject of or used for the purpose of this
Agreement or any of the works on the lands the subject of the Special Railway
Licence and, without such consent (which shall not be unreasonably withheld),
the State shall not create or grant or permit or suffer to be created or
granted by any agency, instrumentality or other authority of the State any
road, right-of-way, water right or easement of any nature or kind whatsoever
over or in respect of any such lands which may unduly prejudice or interfere
with the Company’s activities under this Agreement.
Commonwealth licences and consents
22. (1) The Company
shall from time to time make application to the Commonwealth or to the
Commonwealth constituted agency, authority or instrumentality concerned for
the grant to it of any licence or consent under the laws of the Commonwealth
necessary to enable or permit the Company to enter into this Agreement and to
perform any of its obligations hereunder.
(2) On request by the
Company the State shall make representations to the Commonwealth or to the
Commonwealth constituted agency, authority or instrumentality concerned for
the grant to the Company of any licence or consent mentioned in subclause (1).
Zoning
23. The State shall ensure after consultation with
the relevant local governments that the lands the subject of the Special
Railway Licence or a Lateral Access Road Licence shall be and remain zoned for
use or otherwise protected during the currency of this Agreement so that the
activities of the Company hereunder may be undertaken and carried out thereon
without any interference or interruption by the State, by any agency,
instrumentality or other authority of the State or by any local government on
the ground that such activities are contrary to any zoning by-law, regulation
or order.
Assignment
24. (1) Subject to the
provisions of this clause the Company may at any time with the consent of the
Minister assign, mortgage, charge, sublet or dispose of to any person the
whole or any part of the rights of the Company hereunder (including to
ownership of the Railway and its right to or as the holder of the Special
Railway Licence or a Lateral Access Road Licence) and of the obligations of
the Company hereunder subject however in the case of an assignment or
disposition to the assignee or disponee (as the case may be) executing in
favour of the State (unless the Minister otherwise determines) a deed of
covenant in a form to be approved by the Minister to comply with observe and
perform the provisions hereof on the part of the Company to be complied with,
observed or performed in regard to the matter or matters the subject of such
assignment or disposition.
(2) Notwithstanding
anything contained in or anything done under or pursuant to subclause (1) the
Company will at all times during the currency of this Agreement be and remain
liable for the due and punctual performance and observance of all the
covenants and agreements on its part contained in this Agreement PROVIDED THAT
the Minister may agree to release the Company from such liability where the
Minister considers such release will not be contrary to the interests of the
State.
(3) Notwithstanding
the provision of the Mining Act insofar as the same may apply:
(a)
no assignment, mortgage, charge, sublease or
disposition made or given of or over the Special Railway Licence or any other
licence granted pursuant to this Agreement in accordance with the provisions
of subclause (1) and the terms of consent thereunder; and
(b)
no transfer, assignment, mortgage or sublease made
or given in exercise of any power contained in any such mortgage or charge,
shall require any
approval or consent other than such consent as may be necessary under
subclause (1) and no equitable mortgage or charge shall be rendered
ineffectual by the absence of any approval or consent (otherwise than as
required by this clause) or because the same is not registered under the
provisions of the Mining Act.
Variation or determination
25. (1) The parties to
this Agreement may from time to time by agreement in writing add to,
substitute for, cancel or vary all or any of the provisions of this Agreement
for the purpose of more efficiently or satisfactorily implementing or
facilitating any of the objects of this Agreement.
(2) The Minister shall
cause any agreement made pursuant to subclause (1) to be laid on the Table of
each House of Parliament within 12 sitting days next following its execution.
(3) Either House may,
within 12 sitting days of that House after the agreement has been laid before
it, pass a resolution disallowing the agreement, but if after the last day on
which the agreement might have been disallowed neither House has passed such a
resolution the agreement shall have effect from and after that last day.
(4) The parties may at
any time by mutual agreement determine this Agreement, PROVIDED THAT no matter
in connection with a failure by the parties to agree under this subclause (4)
shall be referable to arbitration hereunder.
Force majeure
26. This Agreement shall be deemed to be made
subject to any delays in the performance of the obligations under this
Agreement and to the temporary suspension of continuing obligations under this
Agreement that may be caused by or arise from circumstances beyond the power
and control of the party responsible for the performance of those obligations
including (without limiting the generality of the foregoing) delays or any
such temporary suspension as aforesaid caused by or arising from act of God,
force majeure, earthquakes, floods, storms, tempest, washaways, fire (unless
caused by the actual fault or privity of the party responsible for such
performance) act of war, act of public enemies, riots, civil commotions,
strikes, lockouts, stoppages, restraint of labour or other similar acts
(whether partial or general), acts or omissions of the Commonwealth, shortages
of labour or essential materials, reasonable failure to secure contractors,
delays of contractors, factors due to overall world economic conditions or
factors due to action taken by or on behalf of any government or governmental
authority (other than the State or any agency, instrumentality or other
authority of the State) or factors that could not reasonably have been
foreseen PROVIDED ALWAYS that the party whose performance of obligations is
affected by any of the said causes must promptly give notice to the other
party or parties of the event or events and shall use its best endeavours to
minimise the effects of such causes as soon as possible after the occurrence.
Power to extend periods
27. (1)
Notwithstanding any provision of this Agreement but subject to subclause (2),
the Minister may at the request of the Company from time to time extend or
further extend any period or vary or further vary any date referred to in this
Agreement for such period or to such later date as the Minister thinks fit,
whether or not the period to be extended has expired or the date to be varied
has passed.
(2) The date specified
in clause 10(1) for the submission of proposals under it may only be extended
once pursuant to this clause and for a period not exceeding:
(a)
subject to paragraph (b), 6 months; or
(b)
if the reason for the Company’s request is a
delay in vesting the Boodarie multi-user stockyard area in the Port Authority,
2 years.
Determination of Agreement
28. (1) If:
(a)
(i)
the Company makes default which the State considers material in the due
performance or observance of any of the covenants or obligations of the
Company in this Agreement or in the Special Railway Licence or in a Lateral
Access Road Licence; or
(ii) the
Company abandons or repudiates this Agreement or abandons or repudiates its
activities under this Agreement,
and such matter is not remedied within a period of 180 days after
notice is given by the State as provided in subclause (2) or if the matter is
referred to arbitration, then within the period mentioned in subclause (3); or
(b)
the Company goes into liquidation (other than a
voluntary liquidation for the purpose of reconstruction) and unless within 3
months from the date of such liquidation the interest of the Company is
assigned to an assignee approved by the Minister under clause 24; or
(c)
the mining of iron ore from the Roy Hill mining
area as referred to in clause 10(5)(a)(iii) has not commenced within 12 months
after the SRL Railway is constructed and commissioned; or
(d)
the mining of iron ore from the Roy Hill mining
area has been abandoned for a period of 12 months (or with the
Minister’s approval such longer period not exceeding 5 years); or
(e)
the mining of iron ore from the Roy Hill mining
area has been suspended for a continuous period of 5 years; or
(f)
the iron ore mined from the Roy Hill mining area
is not transported upon the Railway to, and shipped from, the Port Facilities
excluding any period during which the operation of the SRL Railway is
suspended for maintenance, repair, upgrade or renewal permitted by this
Agreement,
the State may by
notice to the Company determine this Agreement.
(2) The notice to be
given by the State to the Company in terms of subclause (1)(a) must specify
the nature of the default or other ground so entitling the State to exercise
such right of determination and where appropriate and known to the State the
party or parties responsible therefor and shall be given to the Company and
all such assignees, mortgagees, chargees and disponees for the time being of
the Company’s said rights to or in favour of whom or by whom an
assignment, mortgage, charge or disposition has been effected in terms of
clause 24, whose name and address for service of notice has previously been
notified to the State by the Company or, any such assignee, mortgagee, chargee
or disponee.
(3) (a)
If the Company contests the alleged default or
other ground referred to in subclause (1)(a) the Company shall within 60 days
after notice given by the State as provided in subclause (2) refer the matter
in dispute to arbitration.
(b)
If the question is decided against the Company,
the Company must comply with the arbitration award within a reasonable time to
be fixed by that award PROVIDED THAT if the arbitrator finds that there was a
bona fide dispute and that the Company was not dilatory in pursuing the
arbitration, the time for compliance with the arbitration award shall not be
less than 90 days from the date of such award.
(4) If the default
referred to in subclause (1)(a) has not been remedied within a period of 180
days after receipt of the notice referred to in that subclause or within the
time fixed by the arbitration award as aforesaid the State instead of
determining this Agreement as aforesaid because of such default may itself
remedy such default or cause the same to be remedied (for which purpose the
State by agents workmen or otherwise shall have full power to enter upon lands
occupied by the Company and to make use of all plant, machinery, equipment and
installations thereon) and the actual costs and expenses incurred by the State
in remedying or causing to be remedied such default shall be a debt payable by
the Company to the State on demand.
Effect of cessation or determination of Agreement
29. (1) On the
cessation or determination of this Agreement:
(a)
except as otherwise agreed by the Minister the
rights of the Company to, in or under this Agreement and the rights of the
Company or any mortgagee or chargee to or in the Railway, access roads and
other works constructed under this Agreement or to, in or under the Special
Railway Licence or Lateral Access Road Licences (if still current), shall
thereupon cease and determine but without prejudice to the liability of any of
the parties hereto in respect of any antecedent breach or default under this
Agreement or in respect of any guarantee or indemnity given under this
Agreement;
(b)
the Company shall forthwith pay to the State all
money which may then have become payable or accrued due; and
(c)
save as aforesaid and as otherwise provided in
this Agreement none of the parties shall have any claim against the other of
them with respect to any matter or thing in or arising out of this Agreement.
(2) Upon the cessation
or determination of this Agreement;
(a)
the Minister may by notice to the Company require
the Company to, at the Company’s cost, remove the SRL Railway and any
other works constructed under this Agreement from the Railway Corridor and
return the land in the Railway Corridor to a condition as near as possible to
the condition that land was in prior to the grant of authority under the LAA
in respect of the land as contemplated by clause 4;
(b)
unless the Minister gives notice under subclause
(2)(a), the SRL Railway and the works constructed under this Agreement shall
become and remain the absolute property of the State without the payment of
any compensation or consideration to the Company or any other party and freed
and discharged from all mortgages and other encumbrances and the Company shall
do and execute all such deeds, documents and other acts, matters and things
(including surrenders) as the State may reasonably require to give effect to
the provisions of this subclause.
Indemnity
30. The Company shall indemnify and keep
indemnified the State and its servants agents and contractors in respect of
all actions suits claims demands or costs of third parties arising out of or
in connection with any work carried out by or on behalf of the Company
pursuant to this Agreement or relating to its activities hereunder or arising
out of or in connection with the construction maintenance or use by the
Company or its servants agents contractors or assignees of the Company’s
works or services the subject of this Agreement or the plant apparatus or
equipment installed in connection therewith PROVIDED THAT subject to the
provisions of any relevant Act such indemnity will not apply in circumstances
where the State, its servants, agents, or contractors are negligent in
carrying out work for the Company pursuant to this Agreement.
Subcontracting
31. Without affecting the liabilities of the
parties under this Agreement each of the State and the Company will have the
right from time to time to entrust to third parties the carrying out as their
agent of any portions of the activities which it is authorised or obliged to
carry out hereunder.
Arbitration
32 (1) Except as
provided in this Agreement, any dispute or difference between the State and
the Company arising out of or in connection with this Agreement, the
construction of this Agreement or as to the rights duties or liabilities of
either of them under this Agreement or as to any matter to be agreed upon
between them under this Agreement must, in default of agreement between them
and in the absence of any provision in this Agreement to the contrary, be
referred to and settled by arbitration under the provisions of the
Commercial Arbitration Act 1985 (WA) and each party may be represented before
the arbitrator by a duly qualified legal practitioner or other representative.
(2) Except where
otherwise provided in this Agreement, the provisions of this clause will not
apply to any case where the State, the Minister or any other Minister in the
Government of the State is by this Agreement given either expressly or
impliedly a discretionary power.
(3) The arbitrator of
any submission to arbitration under this Agreement is hereby empowered upon
the application of either the State or the Company, to grant in the name of
the Minister any interim extension of any period or variation of any date
referred to herein which having regard to the circumstances may reasonably be
required in order to preserve the rights of that party or of the parties to
the arbitration and an award may in the name of the Minister grant any further
extension or variation for that purpose.
Consultation
33. (1) The Company
must during the currency of this Agreement consult with and keep the State
fully informed on a confidential basis concerning any action that the Company
proposes to take with any third party (including the Commonwealth or any
Commonwealth constituted agency, authority, instrumentality or other body)
which might significantly affect the overall interest of the State under this
Agreement.
(2) The Company must
during the currency of this Agreement consult with and keep the State fully
informed with respect to the transport or proposed transport (of which it
becomes aware) of the iron ore mined from the Roy Hill mining area other than
on the Railway or the shipment of such iron ore other than from the Port
Facilities.
Notices
34. Any notice consent or other writing authorised
or required by this Agreement to be given or sent by the State to the Company
or to a Guarantor will be deemed to have been duly given or sent if signed by
the Minister or by any senior officer of the Public Service of the State
acting by the direction of the Minister and forwarded by prepaid post or
handed to the Company or to the Guarantor as the case may be at its address
hereinbefore set forth or other address in Western Australia nominated by the
Company, or by the Guarantor as the case may be, to the Minister and by the
Company or by the Guarantor to the State if signed on its behalf by any person
or persons authorised by the Company or by its solicitors, or by the Guarantor
or by its solicitors as the case may be, as notified to the State from time to
time and forwarded by prepaid post or handed to the Minister and except in the
case of personal service any such notice consent or writing shall be deemed to
have been duly given or sent on the day on which it would be delivered in the
ordinary course of post.
Guarantee of the Company’s performance
35. Notwithstanding any addition to or deletion or
variation of the provisions of this Agreement or any time or other indulgence
granted by the State or by the Minister to the Company whether or not notice
thereof is given to the Guarantors by the State, the Guarantors hereby
guarantee to the State the due performance by the Company of all of the
Company’s obligations to be performed hereunder. The Minister may agree
to release the Guarantors from this guarantee where the Minister is reasonably
satisfied that the Company has the financial capacity to perform its
obligations under this Agreement. Except as provided in a release given under
this clause, the guarantee given under this clause shall continue
notwithstanding the cessation or determination of this Agreement.
Term of Agreement
36. (1) Subject to the
provisions of clause 11(6) and clauses 28 and 29, this Agreement shall expire
on the expiration or sooner determination or surrender of the Special Railway
Licence.
(2) (a)
As soon as practicable after:
(i) the
expiration of the 27th year of the initial term of the Special Railway
Licence; and
(ii) the
expiration of the 7th year of the first renewal (if made) of that initial
term,
the Minister is to carry out a review of the operation of this
Agreement and in undertaking that review the Minister is to consider:
(iii)
the need for the operation of this Agreement to so continue from the
perspective of both the State and of the Company;
(iv) the
ability for the Company’s activities under this Agreement to be
undertaken under the general laws of the State if the Agreement was to be
determined;
(v) then
Government policies in relation to the benefits conferred by this Agreement;
and
(vi)
such other matters as appear to the Minister to be relevant to the operation
of this Agreement.
The Minister is also to consult with the Port Authorities Minister.
(b)
The Minister is to prepare a report based on the
Minister’s review under this subclause and provide the report to the
State for the State’s consideration within 18 months of commencement of
the review.
(c)
The Minister shall afford the Company and the
Guarantors full opportunity to make submissions to the Minister for the
Minister’s consideration in undertaking that review and to consult with
the Minister in respect of the Minister’s proposed report under this
subclause.
(d)
If following a review pursuant to paragraph (a)(i)
or (a)(ii) the State forms the view that this Agreement should not continue
the parties to this Agreement may by mutual agreement determine this
Agreement.
(e)
The provisions of clause 32 shall not apply to the
undertaking of a review under this clause (including the preparation and
provision of the Minister’s report), to any forming by the State under
this clause of the view that this Agreement should not continue or to any
matter in connection with a failure by the parties to agree under paragraph
(d) to determine this Agreement.
(f)
Nothing in this subclause (including any
negotiations as contemplated by subclause (d) to determine this Agreement)
shall prejudice rights of the State under clause 28.
Applicable law
37. This Agreement is to be interpreted according
to the law for the time being in force in the State of Western Australia.
SCHEDULE 1
WESTERN AUSTRALIA
RAILWAY (ROY HILL INFRASTRUCTURE PTY LTD)
AGREEMENT ACT [ ]
MISCELLANEOUS LICENCE FOR A RAILWAY AND OTHER PURPOSES
No. MISCELLANEOUS LICENCE [ ]
WHEREAS by the Agreement (hereinafter called “the Agreement”)
ratified by the Railway (Roy Hill Infrastructure Pty Ltd) Agreement Act [date]
the State agreed to grant to Roy Hill Infrastructure Pty Ltd ACN 130 249 633
of Level 3, Hppl House, 28-42 Ventnor Avenue, West Perth, Western Australia
(hereinafter with its successors and permitted assigns called “the
Company”) a miscellaneous licence for the construction operation and
maintenance of the SRL Railway (as defined in the Agreement and otherwise as
provided in the Agreement) and, if applicable, other purposes AND WHEREAS the
Company pursuant to clause 13(1) of the Agreement has made application for the
said licence;
NOW in consideration of the rents reserved by and the provisions of the
Agreement and in pursuance of the Railway (Roy Hill Infrastructure Pty Ltd)
Agreement Act [date] the Company is hereby granted by this licence authority
to conduct on the land the subject of this licence as more particularly
delineated and described from time to time in the Schedule hereto all
activities (including the taking of stone, sand, clay and gravel, the
provision of temporary accommodation facilities for the railway workforce in
accordance with the Agreement and, subject to the
Rights in Water and Irrigation Act 1914 (WA), the operation of water bores)
necessary for the planning, design, construction, commissioning, operation and
maintenance on the land the subject of this licence of the SRL Railway and
access roads to be located on the land the subject of this licence in
accordance with the provisions of the Agreement and proposals approved under
the Agreement, for the term of 30 years from the date hereof (subject to the
sooner determination of the term upon the determination of the Agreement) and
upon and subject to the terms covenants and conditions set out in the
Agreement and the Mining Act 1978 as it applies to this licence, and any
amendments to the Agreement and the Mining Act 1978 from time to time and to
the terms and conditions (if any) now or hereafter endorsed hereon and the
payment of rentals in respect of this licence in accordance with clause
13(1)(a) of the Agreement with the right as provided in the Agreement for the
Company during the currency of the Agreement to take 2 successive renewals of
the term each for a further period of 10 years upon the same terms and
conditions (subject to the sooner determination of the term upon the
determination of the Agreement) PROVIDED ALWAYS that this licence shall not be
determined or forfeited otherwise than in accordance with the Agreement.
In this licence:
- If the Company be more than one the liability of
the Company hereunder shall be joint and several.
- Reference to an Act includes all amendments to
that Act for the time being in force and also any Act passed in substitution
therefor or in lieu thereof and to the regulations and by-laws of the time
being in force thereunder.
- Reference to “the Agreement” means
such agreement as varied from time to time.
- The terms “approved proposals”,
“Port Facilities”, “Railway”, “Railway Operation
Date”, “Roy Hill mining area”, “SRL Railway” and
“SRL Railway spur line” have the meanings given in the Agreement.
ENDORSEMENTS AND CONDITIONS
Endorsements
1. This licence is granted in accordance with
proposals submitted on [ ] , and approved by the Minister (as defined in the
Agreement) on [ ] , under the Agreement.
2. The Company is permitted to, in accordance with
approved proposals, take stone, sand, clay and gravel from the land the
subject of this licence (including for the avoidance of doubt any area of land
included in this licence pursuant to clause 13(8) of the Agreement) for the
construction, operation and maintenance of the SRL Railway (including any SRL
Railway spur line) constructed within or approved for construction within the
area of land the subject of this licence.
3. Notwithstanding the Mining Act 1978 , no
royalty shall be payable under the Mining Act 1978 in respect of stone, sand,
clay and gravel which the Company is permitted by the Agreement to obtain from
the land the subject of this licence.
4. [Any further endorsement which the Minister for
Mines may, consistent with the provisions of the Agreement, determine and
thereafter impose in respect of this licence including during the term of the
Agreement.]
Conditions
1. (a)
Except as provided in paragraph (b), the Company shall within 2 years after
the Railway Operation Date surrender in accordance with the provisions of the
Mining Act 1978 the area of this licence down to a maximum of 100 metres width
or as otherwise approved by the Minister (as defined in the Agreement) for the
safe operation of the SRL Railway then constructed or approved for
construction under approved proposals.
(b)
Paragraph (a) shall not apply to land the subject of this licence that was
included in this licence pursuant to clause 13(8) of the Agreement.
2. The Company shall as soon as possible after the
construction of a SRL Railway spur line or of an expansion or extension
thereof as the case may be surrender in accordance with the Mining Act 1978
the land the subject of this licence that was included in this licence
pursuant to clause 13(8) of the Agreement for the purpose of such construction
down to a maximum of 100 metres in width or as otherwise approved by the
Minister (as defined in the Agreement) for the safe operation of that SRL
Railway spur line or expansion or extension thereof as the case may be then
constructed or approved for construction under approved proposals.
3. [Any further conditions which the Minister for
Mines may, consistent with the provisions of the Agreement, determine and
thereafter impose in respect of this licence including during the term of the
Agreement.]
SCHEDULE
Land description
Locality:
Mineral Field
Area:
DATED at Perth this day of
MINISTER FOR MINES
SCHEDULE 2
WESTERN AUSTRALIA
RAILWAY (ROY HILL INFRASTRUCTURE PTY LTD)
AGREEMENT ACT [ ]
MISCELLANEOUS LICENCE FOR A LATERAL ACCESS ROAD
No. MISCELLANEOUS LICENCE [ ]
WHEREAS by the Agreement (hereinafter called “the Agreement”)
ratified by the Railway (Roy Hill Infrastructure Pty Ltd) Agreement Act [date]
the State agreed to grant to Roy Hill Infrastructure Pty Ltd ACN 130 249 633
of Level 3, Hppl House, 28-42 Ventnor Avenue, West Perth, Western Australia
(hereinafter with its successors and permitted assigns called “the
Company”) a miscellaneous licence for the construction use and
maintenance of the Lateral Access Roads (as defined in the Agreement) AND
WHEREAS the Company pursuant to clause 13(1) of the Agreement has made
application for the said licence;
NOW in consideration of the rents reserved by and the provisions of the
Agreement and in pursuance of the Railway (Roy Hill Infrastructure Pty Ltd)
Agreement Act [date] the Company is hereby authorised to construct use and
maintain a road on the land more particularly delineated and described from
time to time in the Schedule hereto in accordance with the provisions of the
Agreement and proposals approved under the Agreement for a term of 4 years
commencing on the date hereof (subject to the sooner determination of the term
upon the cessation or determination of the Agreement) and for the purposes and
upon and subject to the terms covenants and conditions set out in the
Agreement and the Mining Act 1978 as it applies to this licence, and any
amendments to the Agreement and the Mining Act 1978 from time to time and to
the terms and conditions (if any) now or hereafter endorsed hereon and the
payment of rentals in respect of this licence in accordance with clause
13(1)(b) of the Agreement PROVIDED ALWAYS that this licence shall not be
determined or forfeited otherwise than in accordance with the Agreement.
In this licence:
- If the Company be more than one the liability of
the Company hereunder shall be joint and several.
- Reference to an Act includes all amendments to
that Act for the time being in force and also any Act passed in substitution
therefor or in lieu thereof and to the regulations and by-laws of the time
being in force thereunder.
- Reference to “the Agreement” means
such agreement as varied from time to time.
ENDORSEMENTS AND CONDITIONS
Endorsements
1. This licence is granted in accordance with
proposals submitted on [ ] , and approved by the Minister (as defined in the
Agreement) on [ ] , under the Agreement.
2. [Any further endorsement which the Minister for
Mines may, consistent with the provisions of the Agreement, determine and
thereafter impose in respect of this licence including during the term of the
Agreement.]
Conditions
[Such conditions which the Minister for Mines may, consistent with the
provisions of the Agreement, determine and thereafter impose in respect of the
licence, including during the term of the Agreement.]
SCHEDULE
Description of land
Locality:
Mineral Field:
Area:
DATED at Perth this day of
MINISTER FOR MINES
SCHEDULE 3
WESTERN AUSTRALIA
RAILWAY (ROY HILL INFRASTRUCTURE PTY LTD)
AGREEMENT ACT [ ]
MISCELLANEOUS LICENCE FOR A LATERAL ACCESS ROAD
No. MISCELLANEOUS LICENCE [ ]
WHEREAS by the Agreement (hereinafter called “the Agreement”)
ratified by the Railway (Roy Hill Infrastructure Pty Ltd) Agreement Act [date]
the State agreed to grant to Roy Hill Infrastructure Pty Ltd ACN 130 249 633
of Level 3, Hppl House, 28-42 Ventnor Avenue, West Perth, Western Australia
(hereinafter with its successors and permitted assigns called “the
Company”) a miscellaneous licence for the construction use and
maintenance of the Lateral Access Roads (as defined in the Agreement) AND
WHEREAS the Company pursuant to clause 13(2) of the Agreement has made
application for the said licence;
NOW in consideration of the rents reserved by and the provisions of the
Agreement and in pursuance of the Railway (Roy Hill Infrastructure Pty Ltd)
Agreement Act [date] the Company is hereby authorised to construct use and
maintain a road on the land more particularly delineated and described from
time to time in the Schedule hereto in accordance with the provisions of the
Agreement and proposals approved under the Agreement for a term of 4 years
commencing on the date hereof (subject to the sooner determination of the term
upon the cessation or determination of the Agreement) and for the purposes and
upon and subject to the terms covenants and conditions set out in the
Agreement and the Mining Act 1978 as it applies to this licence, and any
amendments to the Agreement and the Mining Act 1978 from time to time and to
the terms and conditions (if any) now or hereafter endorsed hereon and the
payment of rentals in respect of this licence in accordance with clause 13(2)
of the Agreement PROVIDED ALWAYS that this licence shall not be determined or
forfeited otherwise than in accordance with the Agreement.
In this licence:
- If the Company be more than one the liability of
the Company hereunder shall be joint and several.
- Reference to an Act includes all amendments to
that Act for the time being in force and also any Act passed in substitution
therefor or in lieu thereof and to the regulations and by-laws of the time
being in force thereunder.
- Reference to “the Agreement” means
such agreement as varied from time to time.
ENDORSEMENTS AND CONDITIONS
Endorsements
1. This licence is granted in accordance with
proposals submitted on [ ] , and approved by the Minister (as defined in the
Agreement) on [ ] , under the Agreement.
2. [Any further endorsement which the Minister for
Mines may, consistent with the provisions of the Agreement, determine and
thereafter impose in respect of this licence including during the term of the
Agreement.]
Conditions
[Such conditions which the Minister for Mines may, consistent with the
provisions of the Agreement, determine and thereafter impose in respect of the
licence, including during the term of the Agreement.]
SCHEDULE
Description of land
Locality:
Mineral Field:
Area:
DATED at Perth this day of
MINISTER FOR MINES
IN WITNESS WHEREOF this Agreement has been executed by or on behalf of the
parties hereto the day and year first hereinbefore mentioned.
SIGNED by THE HONOURABLE
)
COLIN JAMES BARNETT
) [Signature]
in the presence of:
)
Witness: [Signature]
Name: JOSEPH MATT OSTOJICH
THE COMMON SEAL of ROY HILL )
INFRASTRUCTURE PTY
LTD ACN 130 249 )
[C.S.]
633 was hereunto affixed in accordance with its
)
constitution in the presence of:
Director: [Signature]
Name: TADEUSZ J WATROBA
Director /Secretary: [Signature]
Name: JAY NEWBY
THE COMMON SEAL of ROY HILL )
HOLDINGS PTY LTD ACN
123 721 077 ) [C.S.]
was hereunto affixed in accordance with its )
constitution in the presence of:
Director: [Signature]
Name: TADEUSZ J WATROBA
Director /Secretary: [Signature]
Name: JAY NEWBY
THE COMMON SEAL of ROY HILL )
IRO N ORE PTY LTD
ACN 123 722 038 )
[C.S.]
was hereunto affixed in accordance with its
)
constitution in the presence of:
Director: [Signature]
Name: TADEUSZ J WATROBA
Director /Secretary: [Signature]
Name: JAY NEWBY
By Authority: JOHN A. STRIJK, Government
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