Western Australian Consolidated Acts Western Australian Consolidated Acts[s. 2]
[Heading amended by No. 19 of 2010 s. 4.]
THIS AGREEMENT made this Third day of September one thousand nine hundred and
seventy-six BETWEEN THE HONOURABLE SIR CHARLES WALTER MICHAEL COURT, O.B.E.,
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 one part and WESTERN SELCAST (PTY) LIMITED a
company incorporated under the Companies Act 1961 of the State of New
South Wales and registered in the State of Western Australia as a foreign
company and having its registered office at 50 St George’s Terrace Perth
and MOUNT ISA MINES LIMITED a company incorporated under the Companies
Act 1961 of the State of Queensland and registered in the State of
Western Australia as a foreign company and having its registered office at 220
St George’s Terrace Perth (hereinafter collectively called “the
Joint Venturers” in which term shall be included their respective
successors and permitted assigns and appointees) of the other part.
WHEREAS the parties are the parties to and desire to amend the agreement
between them dated the 21st day of November, 1974 referred to in
section 2 of the Nickel (Agnew) Agreement Act 1974 (which agreement
is hereinafter referred to as “the principal agreement”).
NOW THIS AGREEMENT WITNESSETH —
Interpretation 3
1. Subject to the context the words and
expressions used in this Agreement have the same meanings respectively as they
have in and for the purposes of the principal agreement.
Initial obligations of the State 3
2. The State shall introduce and sponsor a Bill in
the Parliament of Western Australia to ratify this Agreement and endeavour to
secure its passage as an Act prior to the 31st day of December, 1976.
Ratification and operation 3
3. The provisions of this Agreement shall not come
into operation unless and until a Bill to approve and ratify this Agreement is
passed by the Legislature of the State and comes into operation as an Act.
4. The principal agreement is hereby varied as
follows —
(1)
Recital (b) is amended by adding after the words “in the
Agnew area” in line two, the passage “(or at such other site or
sites as the parties hereto may agree)”;
(2)
Clause 1 is amended as to the definition of “mining
areas” by substituting for the passage “plan marked
“A” ” in lines two and three, the passage “plan
marked “A1” ”;
(3)
Clause 6 is amended as to subclause (1) —
(a) by
substituting for the passage “1975” in line one, the passage
“1976”; and
(b) by
substituting for the passage “one million (1 000 000)”
in line nine, the passage “three hundred thousand (300 000)”;
(4)
by adding after Clause 6 a new Clause 6A as
follows —
Increased capacity of project 3
6A. (1)
The Joint Venturers shall continue to investigate their field
and office engineering studies and market and finance studies as to the
feasibility of increasing the annual capacity of the mining and treatment
plant referred to in subclause (1) of Clause 6 from three hundred
thousand (300 000) tonnes of ore to one million (1 000 000)
tonnes of ore.
(2) The Joint
Venturers shall keep the State fully informed in writing at least annually as
to the progress and results of their operations under subclause (1) of
this Clause.
(5)
by substituting for subclause (2) of Clause 11 the
following subclause —
Public Roads to be constructed by the State 3
(2) The State shall
construct or cause to be constructed new public roads suitable for the Joint
Venturers’ operations hereunder in accordance with the requirements of
the Commissioner of Main Roads as follows —
(a) an
unsealed road from Leonora extending to a point (to be agreed between the
parties) near the Yakabindi Homestead (in this subclause called “the
Leonora-Yakabindie road”). That part of the Leonora-Yakabindie road from
Leonora to the turn-off to the minesite (in this subclause called “the
turn-off”) shall be sealed by the State to a width of not less than
seven decimal four (7.4) metres. That part of the Leonora-Yakabindie road from
the turn-off to the Yakabindie Homestead shall be constructed to a standard
similar to the existing Leonora-Wiluna main road. The Joint Venturers shall
pay to the State at the times and in the manner required by the State one half
of the cost of the construction (including investigation survey and design) of
the Leonora-Yakabindie road and one half of the cost of the sealing referred
to in this paragraph. The State shall use its best endeavours to complete the
construction of the section between the turn-off and the connecting point
referred to in paragraph (c) of this subclause prior to the date that the
Joint Venturers’ mining and treatment plant comes into operation. The
balance of the construction and sealing referred to in this paragraph shall be
completed within such periods as the Commissioner of Main Roads determines,
after consultation with the Joint Venturers, but not earlier than five (5)
years after the date of approval of the roads proposal under Clause 7
unless the parties otherwise agree.
(b) an
unsealed road connecting the turn-off with the townsite. The State shall use
its best endeavours to complete the construction of such road prior to the
date that the Joint Venturers’ mining and treatment plant comes into
operation. Such road shall be sealed by the State to a width of not less than
seven decimal four (7.4) metres within such periods as the Commissioner of
Main Roads determines, after consultation with the Joint Venturers, but not
earlier than five (5) years after the date of approval of the roads proposal
under Clause 7 unless the parties otherwise agree. The Joint Venturers
shall pay to the State at the times an in the manner required by the State one
half of the cost of the construction (including investigation survey and
design) and sealing of such road.
(c) an
unsealed road connecting a point to be agreed on the Leonora-Yakabindie road
to a point to be agreed on the existing Leonora-Wiluna road. Such road shall
be constructed to a standard similar to the existing Leonora-Wiluna road. The
State shall use its best endeavours to complete the construction of such road
prior to the date that the Joint Venturers’ mining and treatment plant
comes into operation. The Joint Venturers shall pay to the State at the times
and in the manner required by the State one half of the cost of the
construction (including investigation survey and design) of such road.
(6)
Clause 12 is amended as follows —
(a) as
to subclause (1) by substituting for subclause (1) the following
subclause —
Railway 3
(1) Subject to the
by-laws made under the Government Railways Act 1904 (insofar as those
by-laws are not inconsistent with this Agreement) and subject to the
provisions of this Clause the Joint Venturers shall in accordance with their
approved proposals consign at their own risk, and the State shall cause the
Railways Commission to transport by rail —
(a)
(i) all the Joint
Venturers’ production of nickel-containing products from the railhead at
Leonora to any processing plant, port, or ports, in a location approved by the
Minister;
(ii) all the Joint Venturers’
nickel-containing products produced at any such processing plant to a port or
ports in a location approved by the Minister;
(b) all
the Joint Venturers’ production of nickel-containing products from the
mining areas to Leonora in the event of a railway being constructed between
those places; and
(c)
insofar as practicable all other bulk commodities required for the Joint
Venturers’ operations hereunder. ;
(b) as
to subclause (4) by substituting for subclause (4) the following
subclause —
Advance payment of freight 3
(4) The Joint
Venturers shall pay to the State as advance payment of freight rates payable
under subclause (10) of this Clause the amount of one million five
hundred thousand dollars ($1 500 000) in three (3) instalments as
follows —
(i)
an amount of four hundred thousand dollars
($400 000) on the 30th day of June next following the production date;
(ii)
an amount of five hundred thousand dollars
($500 000) not later than one (1) year after the date for payment
referred to in (i) above; and
(iii)
an amount of six hundred thousand dollars ($600 000)
not later than two (2) years after the date for payment referred to in (i)
above.
(c) as
to subclause (6) by substituting for subclause (6) the following
subclause —
Improvement of railway line 3
(6) The State shall
improve the existing railway line between Leonora and Kalgoorlie to achieve a
capacity to enable the Railways Commission to transport nickel-containing
products at a quantity of up to but not exceeding one hundred and fifty
thousand (150 000) tonnes per annum in accordance with the Joint
Venturers’ relevant approved proposal and all other bulk commodities as
required by the Joint Venturers for their operations
hereunder. ;
(d) as
to subclause (8) by substituting for the words “adequate notice of
any change” in lines six and seven, the passage “not less than
eighteen (18) months notice of any substantial change”;
(7)
by substituting for Clause 14 the following
Clause —
Water 3
14 (1) The State
recognises —
Joint Venturers’ water requirements 3
(a) that
the Joint Venturers have an indicated annual average daily water requirement
of twenty thousand (20 000) cubic metres, comprising both potable and non
potable water for their purposes (which amount or such other amounts as shall
from time to time be agreed between the parties to be reasonable are
hereinafter called “the Joint Venturers’ daily water
requirements”);
(b) that
it has been established at the Joint Venturers’ cost that an underground
water resource of an indicated capacity adequate to meet the Joint
Venturers’ daily water requirements exists outside and at a considerable
distance from the mining areas in the Depot Springs Water Reserve (gazetted on
the 15th day of June, 1973) (hereinafter called “the Depot Springs Water
Reserve”);
(c) that
the Joint Venturers desire to continue to search for alternative underground
water sources within and near the mining areas in accordance with the
provisions of this Clause to meet the Joint Venturers’ daily water
requirements.
Search in mining areas 3
(2) The Joint
Venturers shall at their cost and in collaboration with the State continue to
search for underground water within the mining areas. Where appropriate the
Joint Venturers shall employ and retain experienced groundwater consultants.
The Joint Venturers shall furnish to the Minister details of the results of
their investigations and copies of the reports of such consultants as they
become available.
Search outside mining areas 3
(3) If in the opinion
of the Minister, the details and reports of the consultants pursuant to
subclause (2) of this Clause indicate that any source of underground
water in the mining areas is likely to be inadequate to supply the Joint
Venturers’ daily water requirements, and the Joint Venturers have not
applied for a licence to draw water from the Depot Springs Water Reserve
pursuant to subclause (5) of this Clause the parties hereto shall agree
on a programme which shall be carried out by the State at the cost of the
Joint Venturers to search for water inside and outside the mining areas. The
State may at its discretion extend such water search to provide a quantity of
water greater than that required to supply the Joint Venturers’ daily
water requirements, but in that event, the cost of such search shall be shared
by the parties hereto in such a manner as may be agreed to be fair in all the
circumstances.
Grant of licence 3
(4) If the
investigations referred to in subclauses (2) and (3) of this Clause prove
to the satisfaction of the Minister the availability of any suitable
underground water source in or near the mining areas which can continue to be
drawn on by the Joint Venturers without seriously affecting the water pressure
in that water source beneath the mining areas or adjacent areas or the
availability of water in the adjacent areas, (and the Joint Venturers’
daily water requirements are not being met from the Depot Springs water
Reserve pursuant to subclause (5) of this Clause) the State shall grant
to the Joint Venturers a licence to develop and draw from that source without
cost, the Joint Venturers’ daily water requirements on such terms and
conditions as are necessary to ensure good water resource management as the
Minister may from time to time require and during the continuance of this
Agreement grant renewals of any such licence PROVIDED HOWEVER that should that
source prove hydrologically inadequate to meet the Joint Venturers’
daily water requirements, the State may on at least six (6) months prior
notice to the Joint Venturers (or on at least forty eight (48) hours prior
notice if in the opinion of the Minister an emergency situation exists) limit
the amount of water which may be taken from that source at any one time or
from time to time to the maximum which that source is hydrologically capable
of meeting as aforesaid.
Depot Springs Water Reserve 3
(5) Notwithstanding
any other provision in this Clause the State shall, on application made by the
Joint Venturers not later than the 31st day of December, 1984, grant to the
Joint Venturers a licence to develop and draw water for all or part of the
Joint Venturers’ daily water requirements (as the Joint Venturers may
elect) from the Depot Springs Water Reserve without cost to the Joint
Venturers and on such terms and conditions as are necessary to ensure good
water resource management as the Minister may from time to time require and
during the continuance of this Agreement grant renewals of such licence
PROVIDED HOWEVER that should the Depot Springs Water Reserve prove
hydrologically inadequate to meet the Joint Venturers’ daily water
requirements, the State may on at least six (6) months prior notice to
the Joint Venturers (or on at least forty-eight (48) hours prior notice if in
the opinion of the Minister an emergency situation exists) limit the amount of
water which may be taken from the Depot Springs Water Reserve at any one time
or from time to time to the maximum which that Reserve is hydrologically
capable of meeting.
Development of water sources 3
(6) The Joint
Venturers shall provide at their cost or with finance arranged by them and
construct to standards and in accordance with designs approved by the State in
accordance with the relevant approved proposal all necessary bores valves
pipelines meters tanks equipment and appurtenances necessary to draw transport
use and dispose of water drawn from sources licensed to the Joint Venturers
under this Clause.
Alternative water source 3
(7) Should the State
at any time pursuant to the proviso to subclause (4) and/or (5) of this
Clause limit the amount of water to be taken from any water source or if
otherwise the Joint Venturers’ daily water requirements cannot be met
from any water source on a continuous basis the State shall with all
reasonable expedition and in conjunction with and upon the request of the
Joint Venturers search for new or additional underground water sources with a
view to restoring or ensuring the full quantity of the Joint Venturers’
daily water requirements. The Joint Venturers shall pay to the State a fair
and reasonable proportion of the cost of investigating and developing such new
and additional water sources as agreed between the Joint Venturers and the
State.
State’s water supply obligation 3
(8) The State shall
use its best endeavours to supply the Joint Venturers with sufficient water
(subject to availability of supply from other sources and to prior commitments
if any to third parties) to meet that portion of the Joint Venturers’
daily water requirements not obtainable from the water sources referred to in
subclauses (4) and (5) of this Clause pending the establishment of new
and additional water sources pursuant to subclause (7) of this Clause on
such terms and conditions as the Minister may determine.
Investigation of surface water 3
(9) In the event of
water supplies from available underground sources proving insufficient to meet
the Joint Venturers’ daily water requirements the Joint Venturers shall
notwithstanding the provisions of subclauses (4) and (5) of this Clause
collaborate with the State in an investigation of surface water catchments and
storage dams. The Joint Venturers shall if they propose to utilise such
surface water, water catchments and storage dams pay to the State a sum or
sums to be agreed towards the cost of such investigation and towards the cost
of constructing any water storage dam or dams and reticulation facilities
required.
State’s acquisition of water facilities 3
(10) If during the
currency of any licence granted under the provisions of this Clause the
Minister is of the opinion that it would be desirable for water conservation
purposes or water management purposes that sources of water licensed to the
Joint Venturers be controlled and operated by the State as part of a regional
water supply scheme the Minister may on giving six (6) months prior notice to
the Joint Venturers of his intention revoke that licence and acquire the Joint
Venturers’ water supply facilities for a monetary consideration to be
determined by the Minister. Immediately from the revocation of that licence
the State shall, subject only to the continued hydrological availability of
water from such sources, commence and thereafter continue to supply water to
an amount and at a rate required by the Joint Venturers being the amount and
rate to which the Joint Venturers were entitled under that revoked licence and
the proviso to subclause (4) and/or (5) of this Clause and the provisions
of subclause (7) of this Clause shall in like manner apply to this
subclause.
Enlarged water capacity 3
(11) The State, after
first having due regard to the Joint Venturers’ daily water requirements
and to the hydrological adequacy of existing water sources, may in its
discretion develop all or any of the surface and/or underground water
resources referred to in this Clause or construct any works in connection
therewith to a greater capacity than that required to supply the Joint
Venturers’ daily water requirements but in that event the Joint
Venturers’ shall pay to the State a share of the cost of the system as
so enlarged as may be agreed between the parties to be fair in all the
circumstances.
Third party use 3
(12) The State may
after first having due regard to the Joint Venturers’ daily water
requirements and to the hydrological adequacy of the applicable water source,
upon not less than three (3) months prior notice to the Joint Venturers
specifying the identity of the third party including where applicable the
State and the estimated maximum daily and total quantity of water to be drawn
by that third party and the period over which such drawing is to occur, grant
to a third party rights to draw water or itself draw water from that water
source PROVIDED HOWEVER that —
(a)
where the Joint Venturers have paid (in whole or in part) any moneys in
respect of the investigation development and utilisation of that water source
the State shall require as a condition of the grant that where the third party
is or will be a substantial drawer of water from that water source prior to
the 31st day of December 1984 the third party (but not the State) shall
reimburse to the Joint Venturers prior to the third party exercising its
rights to draw water, a proportion of such moneys as the Minister determines
is fair and reasonable; and
(b)
where the Joint Venturers draw water from that water source the State shall
ensure that it is a condition of the grant to third parties that in the event
that the capacity of that water source is reduced, such reduction shall be
first applied to the third parties and thereafter if further reduction is
necessary the State’s and the Joint Venturers’ requirements shall
be reduced in such proportion as may be agreed.
Payment for water 3
(13) The Joint
Venturers shall pay to the State for water supplied by the State pursuant to
subclauses (9) or (10) of this Clause a fair price to be agreed between
the parties hereto having regard to the actual cost of operating and
maintaining the supply and provision for replacement of the water supply
facilities. Notwithstanding the foregoing provisions of this subclause, in
respect of water supplied by the State to the Joint Venturers as aforesaid for
domestic purposes the Joint Venturers shall pay to the State therefor charges
as levied from time to time pursuant to the provisions of the Country Areas
Water Supply Act 1947 .
Design of plant 3
(14) The Joint
Venturers shall to the extent that it is practical and economical design
construct and operate all plant hereunder so as —
(a) to
make use of brackish or saline water;
(b) to
recycle all water; and
(c) to
prevent loss of water by leakages, spillage or evaporation.
State to restrict adverse grants 3
(15) The State shall
ensure that no rights to mine minerals petroleum or other substances are
granted over the area of any water source from which the Joint Venturers are
drawing water or from time to time have the right to draw water hereunder
unless the Minister reasonably determines that such grant is not likely to
unduly prejudice or to interfere with the operations of the Joint Venturers
hereunder and is not likely to render the water source incapable of supplying
the Joint Venturers’ daily water requirements on a continuous basis.
Joint Venturers’ priority for pipeline
facilities 3
(16) Nothing herein
contained or implied (and in particular the provisions of subclause (10)
of this Clause) shall derogate from or curtail the absolute priority of the
Joint Venturers to utilise for the purpose of their operations under this
Agreement any surplus capacity which might from time to time exist in any
pipeline facilities constructed at the cost of the Joint Venturers for the
transportation of water from a water source to any treatment plant operated by
or for the Joint Venturers pursuant to this Agreement or to the townsite
PROVIDED ALWAYS that the Joint Venturers shall not unreasonably withhold their
approval to the use of such surplus capacity by the State and third parties on
terms and conditions to be agreed between the parties hereto.
Charges for supply of water to third parties 3
(17) The Joint
Venturers may supply water to third parties including the State at a charge to
be approved by the Minister after consultation with the Joint Venturers. The
Joint Venturers shall have all the powers and authorities with respect to such
water as are determined by the Minister which may include all or any of the
powers of a water board under the Water Boards Act 1904 and, with the
consent of the Minister for Local Government, a local authority under the
Local Government Act 1960 .
Rights in Water and Irrigation Act 3
(18) Any reference in
the foregoing provisions of this Clause to a licence is a reference to a
licence under the Rights in Water and Irrigation Act 1914 and the
provisions of that Act relating to water rights and licences shall except
where inconsistent with the provisions of this Agreement apply to any water
source developed for the Joint Venturers’ purposes under this Agreement.
(8)
by substituting for Clause 16 the following
Clause —
Mineral Claims in the yellow areas 3
16. (1)
The following provisions shall apply in respect of mineral
claims which the Joint Venturers hold over the yellow areas (in this Clause
called “yellow mineral claims”) at the date application is made
for a mineral lease pursuant to subclause (1) of Clause 15 (in this
Clause called “the application date”) —
Exemption from labour conditions 3
(a) The
State shall ensure that subject to compliance with their obligations under
this Agreement the Joint Venturers shall not be required to comply with the
labour conditions imposed by the Mining Act.
Exploration of the yellow areas 3
(b) The
Joint Venturers shall continue to carry out a programme of exploration in
respect of the yellow mineral claims and report on the results of such
exploration to the Minister for Mines at yearly intervals after the
application date.
Surrender of mineral claims 3
(c)
Subject to the provisions of paragraphs (d), (e) and (f) of this
subclause the Joint Venturers may surrender all or any of the yellow mineral
claims at any time.
(d) On
the expiration of the fourth year next following the application date the
Joint Venturers shall surrender yellow mineral claims which (together with any
yellow mineral claims previously surrendered pursuant to paragraph (c) of
this subclause) total in area at least one third of the total area of the
yellow mineral claims held by them at the application date.
(e) On
the expiration of the fifth year next following the application date the Joint
Venturers shall surrender such of the yellow mineral claims which (together
with any yellow mineral claims previously surrendered pursuant to
paragraphs (c) and (d) of this subclause) will result in there having
been surrendered a total in area of at least two thirds of the total area of
the yellow mineral claims held by them at the application date.
(f) On
the expiration of the sixth year next following the application date the Joint
Venturers shall surrender all other yellow mineral claims held by them.
Incorporation of yellow mineral claims in the
mineral lease 3
(2) The Joint
Venturers shall have the right in respect of yellow mineral claims surrendered
at the respective times of surrender referred to in paragraphs (d), (e)
and (f) of subclause (1) of this Clause to apply for and have included in
the mineral lease such of the areas of those surrendered yellow mineral claims
as the Joint Venturers elect.
(3) If the Joint
Venturers desire to surrender any yellow mineral claims at any time other than
the times specified in paragraphs (d), (e) and (f) of subclause (1)
of this Clause and to have the areas of those yellow mineral claims included
in the mineral lease, the Joint Venturers shall make application to the
Minister who may if he is satisfied as to the justification therefor, include
those areas in the mineral lease.
(4) Any land included
in the mineral lease pursuant to subclause (2) or subclause (3) of
this Clause shall be upon and subject to the same terms covenants and
conditions as apply to the mineral lease (with such apportionment of rents as
is necessary) and shall be deemed to be included in the mineral lease as and
from the date of surrender of the applicable yellow mineral claim
notwithstanding that the survey of such additional land has not been completed
(but subject to correction to accord with the survey when made at the Joint
Venturers’ expense).
(5) The provisions of
this Clause shall take effect notwithstanding the provisions of the Mining
Act.
(9)
by adding after Clause 30 a new Clause 30A as
follows —
Substituted securities 3
30A. Where the Joint
Venturers or either of them whether before or after the execution of this
Agreement execute and have registered in the Department of Mines a mortgage
over a mineral claim or a mineral lease in the mining areas or any interest
therein, and the land the subject of that mineral claim or mineral lease, on
the surrender of such claim or lease, becomes incorporated in the mineral
lease, then provided the consent of the mortgagee is first obtained, the
mineral lease shall notwithstanding the provisions of the Mining Act be deemed
to be the subject of such mortgage as if the mineral lease had been referred
to in the mortgage. A memorandum of any such mortgages shall be endorsed on
the mineral lease in the order in which they appeared registered against any
such mineral claim or mineral lease at the time of its surrender and shall be
noted in the appropriate registers of the Department of Mines by the Principal
Registrar who shall also endorse on the original and duplicate copies of such
mortgages the fact of their having been registered as an encumbrance against
the mineral lease.
(10)
by adding after Clause 46 a new Clause 47 as
follows —
Consultation 3
47. The Joint
Venturers shall during the currency of this Agreement consult with and keep
the State fully informed on a confidential basis concerning any action that
they propose 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.
(11)
by substituting for the First Schedule the
following —
THE FIRST SCHEDULE
Nickel concentrates ex Leonora
1. The freight rates for the haulage of dry nickel
concentrates by rail from a loading point to be agreed between the parties at
Leonora to the Western Mining Corporation Limited Smelter at Hampton shall be:
In this Schedule the expression “dry nickel concentrates” means
nickel concentrates having not more than 0.3% by weight of moisture, and the
expression “wet nickel concentrates” means all nickel concentrates
having more than 0.3% by weight of moisture.
Matte (ex Hampton)
2. The freight rate for the haulage by rail of
matte from the Western Mining Corporation Limited Smelter at Hampton to North
Fremantle wharf shall be fixed by the Railways Commission after consultation
with the Joint Venturers.
3. The freight rates set out in paragraph 1 of
this Schedule are subject to the following additional conditions:
(i)
Subject to subparagraph (ii) of this paragraph
trains shall operate up to a maximum of six days per week commencing 12.01
a.m. Monday and ceasing 12.00 midnight on Saturday. The Railways Commission
shall arrange a train operating pattern between Monday and Saturday (both days
inclusive) consistent with the requirements of the Joint Venturers as advised
from time to time under Clause 12(8). The train operating pattern shall
be based as far as is practicable on the utilisation of the maximum number of
wagons possible per train and the least number of trains per week required to
meet the haulage programme of the Joint Venturers and such trains shall be
tabled at the time most convenient to the operational requirements of the
Railways Commission.
(ii)
If the needs of the Joint Venturers reasonably require
operation on Sunday the Railways Commission shall use its best endeavours to
so operate. The Joint Venturers shall reimburse the Railways Commission for
any additional expenses which are payable as a consequence.
4. The freight rates set out in paragraphs 1 and 2
of this Schedule are subject to the following additional conditions:
(i)
The Joint Venturers shall ensure that all wagons are
loaded within the authorised axle load capacity and shall be subject to such
minimum load per wagon and per train as may be defined by the Railways
Commission.
(ii)
The Joint Venturers shall ensure that all wagons are
properly trimmed and secured to permit safe transport at all times.
(iii)
Unless otherwise determined by the Railways Commission
the Joint Venturers shall be responsible for the movement of wagons at the
loading and unloading points. The Joint Venturers shall ensure that the
loading rate is not less than 750 tonnes per hour and the unloading rate
is not less than 250 tonnes per hour. If such rates are not regularly
adhered to the Railways Commission reserves the right to review the freight
rates.
(iv)
Freight rates shall be paid by monthly payments in the
month next following the month of haulage on the basis of the tonneages hauled
charged at the rate or rates applicable to the anticipated annual tonneage and
subject to annual adjustment after the expiration of each year with regard to
the tonneage actually carried at the rate or rates applicable thereto.
(v)
In ascertaining the actual number of tonnes carried the
method of measurement shall be agreed between the parties.
5. The Railways Commission shall provide wagons
for nickel concentrates and/or matte haulage to meet the anticipated
requirements of the Joint Venturers given to the State pursuant to the
provisions of Clause 12(8). If the Joint Venturers do not in any year
provide a tonneage equivalent to the said anticipated requirements the Joint
Venturers shall compensate the Railways Commission for loss of wagon usage to
an amount determined by the Railways Commission.
Escalation 3
6. (i)
dry nickel concentrates up to 100 000 tonnes per
annum
The freight rates for
dry nickel concentrates up to 100 000 tonnes annually as set out in
paragraph 1 of this Schedule shall be subject to variation in proportion to
any variation of rail freight rates gazetted pursuant to By-law 55 made
under the Government Railways Act .
(ii)
dry nickel concentrates over 100 000 tonnes per
annum
The freight rates for
dry nickel concentrates over 100 000 tonnes per annum as set out in
paragraph 1 of this Schedule are based on costs prevailing on the first day of
July 1975 and shall be adjusted on the first day of January and July of each
year (each such date in this paragraph referred to as “the date of
adjustment”) with the changes becoming effective on and from such date
of adjustment in accordance with the following formula —
WHERE:
F1 = New freight rate.
F = The existing
freight rate.
HR = The average
hourly rate payable as at 1st July, 1975.
HR1 = The average
hourly rate payable as at the date of adjustment.
D = The list price
(duty free) of bulk distillate sold to commercial users in Perth by BP
Australia Limited as at 1st July, 1975.
D1 = The list price
(duty free) of bulk distillate sold to commercial users in Perth by BP
Australia Limited as at the date of adjustment.
SR = Price of heavy
steel rails per tonne c.i.f. Port of Fremantle as ascertained from price
schedule covering despatches from Broken Hill Proprietary Company Limited as
at 1st July, 1975.
SR1 = The price of
heavy steel rails per tonne c.i.f. Port of Fremantle ascertained as
aforementioned as at the date of adjustment.
The rates applicable at the 1st July, 1975,
are —
Price of distillate per litre 6.390 cents. Price
of heavy steel rails per tonne c.i.f. Port of Fremantle $175.00.
PROVIDED ALWAYS that if at any time there is a
change in —
(a) the
average hourly rate by the operation of any award or other wage determination;
or
(b) the
list price (duty free) of distillate in Perth; or
(c) the
price of heavy steel rails per tonne c.i.f. Port of Fremantle (as ascertained
aforesaid),
and such change is effective from a date prior to
the last date of adjustment a new freight rate or freight rates as the case
may be shall be calculated and shall apply from the date of adjustment next
following the date from which any such change as aforesaid is effective and
such new freight rate or freight rates shall be substituted for the freight
rate that would have applied but for the application of the provisions of this
paragraph.
Adjustments made in accordance with this formula
shall be expressed in a figure of dollars per tonne and calculated to
4 decimal places of a dollar and in doing so the fifth decimal place
shall also be calculated so that if the fifth decimal place is .5 or above,
the fourth decimal place shall be increased by 1.
This formula shall be subject to review by the
Railways Commission after consultation with the Joint Venturers on the first
July 1980 and thereafter at five-yearly intervals.
(iii)
matte ex Hampton
The freight rate to be
fixed by the Railways Commission as referred to in paragraph 2 of this
Schedule for matte ex Hampton shall be subject to escalation in accordance
with the formula set out in subparagraph (ii) of this paragraph.
Nickel containing products ex Leonora 3
7. In the event that the Joint Venturers require
the Railways Commission to transport wet nickel concentrates, matte or nickel
metal from Leonora to a port or ports in a location approved by the Minister
the freight rate applicable shall be fixed by the Railways Commission after
consultation with the Joint Venturers.
Freight rate rebates 3
8. Subject to the Joint Venturers making the
advance payments of freight rates pursuant to Clause 12(4): —
(a) the
freight rates for nickel concentrates (whether dry or wet) will be reduced by
a sum of $2.70 per tonne for the first 935 000 tonnes railed from Leonora
for the Joint Venturers;
(b) if
the Joint Venturers transport nickel containing products other than those
referred to in subparagraph (a) of this paragraph then the rebate in
respect of those other nickel containing products will be fixed by the
Railways Commission after consultation with the Joint Venturers on the basis
that the Joint Venturers will receive a total rebate of $2 524 500
on all nickel containing products transported by them from Leonora but in no
event shall the rebate on such other nickel containing products be lower than
$5 per tonne.
Other commodities 3
9. All commodities not mentioned in this Schedule
shall unless otherwise determined by the Railways Commission be carried
subject to By-law 55 made under the Government Railways Act.
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 said THE HONOURABLE SIR CHARLES WALTER MICHAEL COURT, O.B.E.,
M.L.A., in the presence of ANDREW MENSAROS |
|
CHARLES COURT |
|
THE OFFICIAL SEAL of WESTERN SELCAST (PTY) LIMITED was hereunto affixed by
authority of the Directors and in the presence of Director P. M. WREFORD Secretary S. J. LEWIS |
|
[C.S.] |
[Second Schedule inserted by No. 98 of 1976
s. 5.]
