AMLIB United Minerals Inc has the right to extend the term of this contract for 25 additional years and not more. It should notify the government one year prior to the termination of the original term in case of renewal. It should provide the government with a feasibility report detailing the type and quantity of minerals that are estimated to exist in the contract area and a detailed production plan, financing arrangements, cost estimates etc.
Environmental impact assessment and management plan
The parties recognize that operations could result in pollution, contamination and other environmental damage to land, water and the atmosphere. AMLIB United Minerals Inc should submit an environmental impact statement to the minister before commencing exploration and production. The statement should show the adverse effects the operations will have on the environment and review plans to mitigate such effects.
AMLIB United Minerals Inc should submit detailed plans concerning protection, correction and restoration of water, land and the atmosphere. It should conduct periodic environment assessments to ensure compliance with the environment impact statement and the plans.
AMLIB United Minerals Inc should take reasonable preventive and restorative measures to limit pollution, contamination or damage to streams, water bodies, dry land surfaces and the atmosphere as a result of operations. In case of damage, it should restore the terrain to a usable state for economically and socially desirable purposes. AMLIB United Minerals Inc should level the surface wherever possible, or contour, grade and terrace the surface if leveling is not possible. It should reopen all natural water courses and engage in reforestation if operations caused large scale felling of trees.
AMLIB United Minerals Inc and its associates are entitled to use and provide water in accordance with law regulating such use as required for operations. In case it purchases water from the government for its operations, it shall be charged at the lowest rates applicable to industrial users.
AMLIB United Minerals Inc has the right to remove, extract, and use water provided that no person is deprived of a constant and reasonable supply of usable water. AMLIB United Minerals Inc cannot interfere with anyone s right to water granted previously by the government.
AMLIB United Minerals Inc should have its books of account audited within 3 months or within the period approved by the minister, after the close of each financial year by an independent auditor selected by AMLIB United Minerals Inc. It should furnish a copy of the annual financial statement to the government within 20 days after its receipt. The government has the right to freely discuss with the auditor the result of audits and certifications, and AMLIB United Minerals Inc should cooperate with such discussions. If the government audits the books of accounts, it must give AMLIB United Minerals Inc a copy of the audit report within 45 days of receipt. In case a review of records or books outside of Liberia is required, AMLIB United Minerals Inc should cooperate to provide the government with copies of the information, books and records needed to complete the audit. If the government deems it necessary for any part of the audit to be performed outside Liberia, the cost of associated travel should be borne by the government.
AMLIB United Minerals Inc is liable to pay taxes on its net taxable income, which includes capital gains. The rte of tax applicable to the net taxable income should not exceed 30%. In computing taxable income, losses from the previous year to the extent not used to offset taxable income in the previous year, can be used as deductions from gross income. This should not exceed 5 years. all costs incurred and paid for by AMLIB United Minerals Inc prior to the effective date shall be capitalized and amortized over 5 years from the effective date and can be deducted from gross income.
Within 180 days after the expiration of the final term of the exploration license, AMLIB United Minerals Inc should notify the minister if 10% shares of its stock is offered to any other person. The license should be available for purchase by liberian citizens at fair market value and upon reasonable terms and should remain open for 120 days.
AMLIB United Minerals Inc should pay the government a royalty from the sale of minerals from the production area at 3% rate for gold and not more than 5% for other minerals. The royalty is to be determined on a net smelter return basis for gold and in the event of non-smelting, on an f.o.b monrovia basis. For other minerals, it should be on a gross revenue basis.
AMLIB United Minerals Inc should consult with the government to mutually establish plans to achieve the objective of carrying out operations in a economic and socially viable manner. It should cooperate with the government and make the efforts to realize such plans and programs.
AMLIB United Minerals Inc should employ and give preference to employing qualified Liberian citizens for skilled technical, administrative and managerial positions and should not import unskilled labor. It can employ expatriates in accordance with labour practices and upon the government issuing permits to allow such expatriates to enter and work in the country.
AMLIB United Minerals Inc should give preference to local goods and services that are equal in quality, terms, delivery, service, quantity and price in comparison to goods and services obtainable outside Liberia.
AMLIB United Minerals Inc has the right ti acquire, construct and operate infrastructure required for its operations. It also has the right to use public infrastructure, owned by the government or by a third party under government license to meet its needs with respect to operations. AMLIB United Minerals Inc has the right to integrate its infrastructure with public infrastructure with prior permission from the government.
AMLIB United Minerals Inc agrees that in each contract year of the initial term of the license, it will incur exploration costs and expenses of at least US$ 2.40 per acre. The obligation for each contract year will be calculated at the beginning of each contract year concerned on the basis of the size of the exploration area. If, AMLIB United Minerals Inc does not fulfill the above obligation, it should, in the next succeeding contract year, incur additional costs and expenses for an amount equal to the shortfall. It will not be in breach of this contract unless and until it fails to do so.
Any dispute between the Government and AMLIB United Minerals Inc in relation to this contract, its validity, interpretation, termination, enforceability or breach of this contract, for which resolution by submission to an independent expert is not provided in this should be settled by arbitration, pursuant to the rules of UNCITRAL. The arbitral tribunal should consist of 1 arbitrator to be appointed by the Government and 1 arbitrator to be appointed by AMLIB United Minerals Inc and one 1 arbitrator appointed jointly by the first two arbitrators and cannot be a citizen of Liberia or United States of America and should not have an interest in the matter in dispute. The arbitration proceedings should beheld in Washington D.C, or any other mutually agreed location, and shall be conducted in the English Language.
All information exchanged between the parties under this contract will be considered and treated as confidential information. The parties agree to not share the information with any other person without prior consent of the other party, whose consent will not be unreasonably withheld. This obligation is not applicable to information exchanged between the parties which was in public domain or to information exchanged between the parties which AMLIB United Minerals Inc is required to reveal as per law.
This contract should be interpreted in accordance with generally accepted principles of international law applicable to investments by nationals of one country in another country. In case of conflict between this contract and applicable international law, the provisions of this contract will govern the rights and obligations of the parties.