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Western Australia



Evaporites (Lake MacLeod) Agreement Act

1967



As at 11 Sep 2010



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Western Australia



Evaporites (Lake MacLeod) Agreement Act

1967

Contents

1.

2.

3.

3A.

3B.

4.

5.



Short title

Interpretation

Approval of Agreement

Ratification of Variation Agreement

Ratification of Second Variation Agreement

Provisions of certain Acts not to apply

By-laws



1

1

1

2

2

2

2



First Schedule — Evaporites (Lake

MacLeod) Agreement

Second Schedule — Variation

Agreement

Third Schedule — Second Variation

Agreement

Notes

Compilation table



58



Defined terms



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Western Australia



Evaporites (Lake MacLeod) Agreement

Act 1967

An Act to approve, and give effect, to an agreement between the

State of Western Australia and Texada Mines Pty. Limited relating

to the production of evaporites at or near Lake MacLeod.

1.



Short title

This Act may be cited as the Evaporites (Lake MacLeod)

Agreement Act 1967 1.



2.



Interpretation

In this Act —

the Agreement means the agreement of which a copy is set out

in the First Schedule and, if that agreement is varied in

accordance with its provisions, or as ratified by Parliament,

includes the agreement as so varied;

the Company has the same meaning as it has in the Agreement;

the Variation Agreement means the agreement of which a copy

is set out in the Second Schedule;

the Second Variation Agreement means the agreement of

which a copy is set out in the Third Schedule.

[Section 2 amended: No. 29 of 1973 s. 2; No. 5 of 1979 s. 2.]



3.



Approval of Agreement

(1)



The Agreement is approved.



(2)



Notwithstanding any other Act of the State, the State has, and

any Ministers of the State therein mentioned or referred to have,



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Evaporites (Lake MacLeod) Agreement Act 1967



s. 3A



all the powers, discretions and authorities necessary or requisite

to enable it or them to discharge the undertakings given by the

State in the Agreement, in a manner wholly consistent with the

terms of the Agreement; and anything done in the exercise of

those powers, discretions or authorities shall be lawful,

notwithstanding the provisions of any other Act.

3A.



Ratification of Variation Agreement

The Variation Agreement is ratified.

[Section 3A inserted: No. 29 of 1973 s. 3.]



3B.



Ratification of Second Variation Agreement

The Second Variation Agreement is ratified.

[Section 3B inserted: No. 5 of 1979 s. 3.]



4.



Provisions of certain Acts not to apply

(1)



Section 96 of the Public Works Act 1902 does not apply to any

railway constructed by the Company pursuant to the Agreement.



(2)



The provisions of section 277(5) of the Mining Act 1904 2 do

not apply to any renewal of the rights of occupancy granted

pursuant to paragraph (a) of clause 2 of the Agreement.



5.



By-laws

The Governor may, on the recommendation of the Company,

make, alter and repeal by-laws in accordance with, and for the

purposes of, the Agreement, and the by-laws —

(a) shall be published in the Gazette;

(b) shall take effect and have the force of law from the date

they are so published, or from a later date fixed by the

order making the by-laws;

(c) may describe penalties not exceeding $100 for a breach

of any of the by-laws; and



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Evaporites (Lake MacLeod) Agreement Act 1967



s. 5



(d)



are not subject to section 36 of the Interpretation

Act 1918 3, but shall be laid before each House of

Parliament within the 6 sitting days of such House next

following the publication of the by-laws in the Gazette.



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Evaporites (Lake MacLeod) Agreement Act 1967

First Schedule

Evaporites (Lake MacLeod) Agreement



First Schedule — Evaporites (Lake MacLeod) Agreement

[s. 2]

[Heading inserted: No. 29 of 1973 s. 4; amended: No. 19 of 2010

s. 4.]

AN AGREEMENT under seal made the 16th day of February One thousand

nine hundred and sixty-seven BETWEEN THE HONOURABLE CHARLES

WALTER MICHAEL COURT O.B.E. M.L.A. Acting Premier and Minister for

Industrial Development of the State of Western Australia acting for and on

behalf of the said State and its instrumentalities (the State of Western Australia

and its instrumentalities being hereinafter referred to as “the State”) of the one

part AND TEXADA MINES PTY. LIMITED a company incorporated under

the Companies Act 1961, of the State of Western Australia and having its

registered office at 97 Saint George’s Terrace Perth in the State of Western

Australia (hereinafter referred to as “the Company” which term shall include the

successors and assigns of the Company including where the context so admits

the assignees and appointees of the Company under clause 14 hereof) of the

other part.

WHEREAS the parties hereto enter into this Agreement with the object of

establishing and carrying on in the vicinity of Carnarvon works for the mining

of potash and other evaporites and such other allied mining and ancillary

industries as may conveniently be carried on in conjunction therewith and such

other industries as may be approved by the Minister and doing all acts matters

and things to attain and to facilitate the abovementioned objects.

NOW THIS AGREEMENT WITNESSETH and the parties hereto

COVENANT AND AGREE with one another as follows: —

Definitions 4

1.



In this Agreement subject to the context —

“associated company” means —

(a) any company notified in writing by the Company to the

Minister and which is incorporated in the United Kingdom the

United States of America or any State or Territory of the

Commonwealth of Australia and which:



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(i) is a subsidiary of the Company within the meaning of

the term “subsidiary” in section 6 of the Companies

Act 1961;

(ii) holds directly or indirectly not less than twenty per

centum (20%) of the issued ordinary share capital of the

Company;

(iii) is promoted by the Company or by any company that

holds directly or indirectly not less than twenty per

centum (20%) of the issued ordinary share capital of the

Company for all or any of the purposes of this

Agreement and in which the Company or such other

company holds not less than twenty percentum (20%)

of the issued ordinary share capital; or

(iv) is related within the meaning of that term in the

aforesaid section to the Company or to any company in

which twenty per centum (20%) of the issued ordinary

share capital; and

(b) any company approved in writing by the Minister for the

purposes of this Agreement which is associated directly or

indirectly with the Company in its business or operations

hereunder;

“commencement date” means the date referred to as the commencement

date in clause 7(3) hereof;

“common salt” means the evaporite sodium chloride;

“Commonwealth” means the Commonwealth of Australia and includes

the Government for the time being thereof;

“evaporites” means minerals chemicals elements salts and substances

which are or have been deposited from aqueous solutions as a result

of extensive or total evaporation of the solvent or changes in

temperature of the solvent and includes all products derived from the

evaporation of sea water sea water concentrates or brine including

but not limited to the chlorides sulphates carbonates bromides and

iodides of any of sodium potassium magnesium lithium and boron

and any double or complex salts that can be obtained therefrom and

any substances that develop through metamorphism of other



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evaporites and any elements gases or organic substances contained in

evaporite salts;

“f.o.b. revenue” means the price for evaporites from the mineral lease

held by the Company in the said State the subject of any shipment or

sale and payable by the purchaser or purchasers thereof to the

Company or an associated company less any export duties export

taxes and export fees payable to the Commonwealth on export of the

evaporites and all costs and charges properly incurred and payable

by the Company from the time the evaporites are shipped to the time

the same are delivered and accepted by the purchaser or purchasers

including —

(a) freight;

(b) insurance;

(c) port and handling charges at the port or place of discharge;

(d) costs of delivery from the port or place of discharge to the

purchaser and evidenced by relevant invoices;

(e) all weighing sampling assaying inspection and representation

costs;

(f) all shipping and forwarding agency charges after shipment;

and

(g) all import taxes by the country of the port of discharge;

“Land Act” means the Land Act 1933;

“lease” includes a special lease;

“mineral lease” means any lease under the Mining Act referred to in

clause 8(1)(a) hereof and includes any renewal thereof;

“Mining Act” means the Mining Act 1904;

“mining areas” means —

(1) an area the boundaries of which shall be agreed by the

Minister for Mines and the Company and which shall enclose

an area not exceeding 550,000 acres within the boundaries of

Temporary Reserve 3491H which latter area shall be defined

by the Company prior to the commencement date; and

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Evaporites (Lake MacLeod) Agreement Act 1967

First Schedule

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(2) if either the stockpile area or the wharf is beyond the

boundaries of the aforesaid area defined by the Company

pursuant to paragraph (1) above then in the location as agreed

or determined hereunder —

(a) the stockpile area, and

(b) a corridor area of four chains in width or such

additional width as may reasonably be required

connecting the area defined by the Company pursuant

to paragraph (1) above and the stockpile area and/or the

wharf;

“Minister” means the Minister of the Crown to whose administration the

ratifying Act is for the time being committed of if there is no such

committal the Minister for Industrial Development;

“month” means calendar month;

“notice” means notice in writing;

“person” or “persons” includes bodies corporate;

“potash” means the evaporites potassium chloride and/or potassium

sulphate;

“quarter” means each of the periods of three months expiring respectively

on the last day of March June September and December;

“ratifying Act” means the Act referred to in subclause (b) of clause 2

hereof;

“shipped” includes removal from the work sites by ship or any other

means;

“special lease” means a special lease or licence to be granted in

accordance with the terms of this Agreement under the ratifying Act

the Land Act or the Jetties Act 1926, and includes any renewal

thereof;

“stockpile area” means such part of the mining areas having an area of

not less than thirty acres adjoining the wharf as hereinafter defined

and shall be located at such place and have such area and

configuration as defined by the Company and approved by the



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Minister and may be located either inside or outside of Temporary

Reserve 3491 H;

“this Agreement” “hereof” and “hereunder” include this Agreement as

from time to time added to varied or amended;

“ton” means a ton of two thousand two hundred and forty (2240) lbs. net

dry weight;

“wharf” includes jetty and means the existing wharf at the port of

Carnarvon as the same may be reconstructed or such other wharf

which may be constructed by the Company at such other site as may

be agreed by the Minister and the Company;

“work sites” includes the mining areas and the land comprised in or the

subject of any lease license or easement granted or given hereunder

other than any grant or lease under clause 10(a) hereof;

reference in this Agreement to an Act shall include the amendments to

such 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;

marginal notes shall not affect the interpretation or the construction of

this Agreement 4.

It is contemplated that this Agreement will operate in two phases

namely: —

(a) Phase 1 — the period from the execution hereof by the parties hereto

until the commencement date; and

(b) Phase 2 — the period thereafter.

Obligations of the State during Phase 1 4

2.



The State shall —

(a) upon application by the Company at any time prior to the 16th day of

June, 1967, (and surrender of the then existing rights of occupancy

already granted in respect of Temporary Reserve 3491 H) cause to

be granted to the Company rights of occupancy for the purposes of

this Agreement (including the sole right to search and prospect for

evaporites and make prototype constructions) over the whole of the

area comprised in Temporary Reserve 3491 H under section 276 of



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Evaporites (Lake MacLeod) Agreement Act 1967

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the Mining Act at the same fee as the last current renewal of said

Temporary Reserve 3491 H and shall then and thereafter subject to

the continuance of this Agreement cause to be granted to the

Company successive renewals of the last-mentioned rights of

occupancy as the Company requires (each renewal for a period of

twelve (12) months at the same fee and on the same terms) the last of

which renewals notwithstanding its currency shall expire —

(i) on the date of granting the mineral lease after application by

the Company under clause 8(1)(a) hereof;

(ii) on the determination of this Agreement pursuant to its terms;

or

(iii) on the day of the receipt by the State of a notice from the

Company to the effect that the Company abandons and

cancels this Agreement,

whichever shall first happen;

(b) introduce and sponsor a Bill in the Parliament of Western Australia

to ratify this Agreement and endeavour to secure its passage prior to

the 31st day of December, 1967, and such Bill shall provide that

notwithstanding the provisions of any other Act the State and any

Ministers of the State herein mentioned or referred to shall have all

the powers discretions and authorities necessary or requisite to

enable them to discharge the undertakings given by them

respectively in this Agreement and in a manner wholly consistent

with the terms of this Agreement and that anything done in the

exercise of such powers discretions or authorities shall be lawful

notwithstanding the provisions of any other Act;

(c) to the extent reasonably necessary for the purposes of clauses 4 and

5 hereof allow the Company to enter upon Crown Lands (including

land the subject of a pastoral lease) and survey possible work sites

(both in or near proposed wharf sites and on or near the areas

comprised in Temporary Reserve 3491 H) processing and other areas

required for the purposes of this Agreement and engage in prototype

constructions and production having all of the rights as are set forth

for the Company during Phase 2 as are reasonably necessary for such

prototype constructions and production;



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(d) notify the Company not later than 31st December, 1967, or such

other date as mutually agreed if the State desires the wharf to be

utilised not only by the Company but also be available for the inward

and outward shipment of cargo for third persons and in case of such

notification the State shall within two (2) months agree with the

Company on design criteria for the wharf terms and conditions of

user and the respective financial participation of the State and the

Company in the cost of constructing and maintaining the wharf and

failing agreement within such two (2) months the matter shall be

determined by arbitration in the manner set forth for proposals under

clause 6 hereof; and

(e) at the request and cost of the Company co-operate with the Company

in the discharge of its obligations under clause 4 hereof.

Ratification and operation 4

3.

(1) If the Bill to ratify this Agreement is not passed before the thirty-first

of December, 1967, or such later date if any as the parties hereto may mutually

agree upon (as the case may be) this Agreement will then cease and determine

and neither of the parties hereto will have any claim against the other of them

with respect to any matter or thing arising out of done performed or omitted to

be done or performed under this Agreement except as hereinafter provided in

paragraphs (r) and (s) of clause 10 hereof.

(2) If the Bill to ratify this Agreement is passed as an Act before the date

or later date if any referred to in subclause (1) of this clause the following

provisions of this clause shall notwithstanding the provisions of any Act or law

thereupon operate and take effect namely —

(a) the provisions of this Agreement shall take effect as though the same

had been brought into force and had been enacted by the Ratifying

Act;

(b) no future Act of the said State will operate to increase the

Company’s liabilities or obligations hereunder with respect to rents

or royalties; and

(c) the State may be agreement acquire or compulsorily take or resume

as for a public work within the meaning of the Public Works

Act 1902, any land or any estate or interest in land which in the

opinion of the Minister is reasonably required for the objects of this

Agreement and may thereafter dispose of or deal with the same in

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First Schedule

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accordance with or for the purposes of this Agreement apart from the

provisions of that Act or any other Act AND when any land is to be

so compulsorily taken or resumed under the powers conferred by this

paragraph the provisions of subsections (2) to (7) inclusive of

section 17 and section 17A of the Public Works Act 1902, shall not

apply to or in respect of the land or to the taking thereof or in any

other manner whatsoever.

Obligations of Company during Phase 1 4

4.

(1) The Company at an estimated total cost as from the 17th June, 1965,

of three hundred thousand dollars ($300,000) shall with all reasonable diligence

continue to do or shall carry out and by the 30th June, 1969, or such later date as

provided for in clause 5(2) hereof (or such extended date if any as the Minister

and the Minister for Mines may approve) shall complete the matters hereinafter

in this subclause mentioned and everything necessary to enable it to finalise and

to submit to the Minister the detailed proposals and other matters referred to in

clause 5(1)(a) hereof.

The matters first referred to in this subclause are —

(a) a thorough geological and (as necessary) geophysical investigation

and proving of the evaporite deposits in the area comprised in

Temporary Reserve 3491H and the testing and sampling of such

deposits;

(b) a general reconnaissance of the various sites of proposed operations

pursuant to the Agreement;

(c) an engineering investigation of the route for a road from the

beneficiation plant in the mining areas to the stockpile area and the

wharf;

(d) in the event of the Company deciding to construct a new wharf an

engineering investigation of a site for the wharf and design criteria

for the wharf and in the event of the Company deciding to utilise the

existing wharf at Carnarvon an engineering investigation and design

criteria for such additions and modifications to the existing structure

as are thought desirable and in either case having regard not only to

the use of the wharf by the Company but also to the possible

development and use of the wharf by persons other than the

Company;



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(e) an investigation of suitable water supplies for the proposed mining

areas;

(f) the planning of a suitable stockpile area in consultation with the

State;

(g) metallurgical and market research; and

(h) prototype construction and production as deemed suitable by the

Company.

(2) The Company shall keep the Minister fully informed at least

quarterly after the execution hereof as to the progress and results of the

Company’s operations under subclause (1) of this clause.

(3) If the State concurrently carries out its own investigations and

reconnaissances in regard to all or any of the matters mentioned in subclause (1)

of this clause or in regard to any alternative wharf or wharf site the Company

shall co-operate with the State therein and so far as reasonably practicable will

consult with the representatives or officers of the State and make full

disclosures and expressions of opinion regarding matters referred to in this

subclause.

(4) The Company will employ and retain expert consultant engineers to

investigate report upon and me recommendations in regard to the design of the

wharf (including areas for installations stockpiling and other purposes)

reasonably required by the Company under this Agreement and in such matters

the Company will require the consultant engineers to have full regard for the

possible development of the wharf and land adjacent thereto and the dredged

approaches thereto with a view to possible use by others of such approaches and

land and the Company will furnish to the State copies of such report and

recommendations. When submitting to the Minister detailed proposals as

referred to in clause 5(1)(a) hereof in regard to the matters mentioned in this

subclause the Company will so far as reasonably practicable ensure that the

detailed proposals —

(a) do not materially depart from the report and recommendations of the

consultant engineers;

(b) provide for the best overall development of the wharf dredged

approaches thereto and the land adjacent thereto; and

(c) disclose any conditions of user and where alternative proposals are

submitted the Company’s preferences in regard thereto.

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Company to submit proposals 4

5.

(1) By the 30th day of June, 1969, or such later date determined in

accordance with subclause (2) of this clause (or such extended date if any as the

Minister and the Minister for Mines may approve) the Company will submit to

the Minister —

(a) to the fullest extent reasonably practicable detailed proposals

(including plans where practicable and specifications where

reasonably required by the Minister) and including the location area

lay-out design general dimension number materials and time

programme for the commencement and completion of construction

or the provision (as the case may be) for each of the following

matters namely —

(i) the plant for the mining extraction and loading of potash

referred to in clause 9(1)(a);

(ii) the wharf and adjacent work site areas including any proposed

corridor to the stockpile area and wharf;

(iii) the berth or berths at the wharf and dredged channel or

channels and turning basin and deposit of spoil therefrom and

other facilities and services for shipping all of which shall be

such as to permit the use of the wharf by vessels suitable for

the Company’s purposes;

(iv) the road between the beneficiation plant areas in the mining

areas and the stockpile area and the wharf and its proposed use

including fencing (if any) crossing places and warning and

safety devices to be employed at crossing places;

(v) housing and facilities in relation thereto;

(vi) water and brine supply;

(vii) other roads (including details of roads in respect of which it is

not intended that the provisions of clause 9(2)(b) shall

operate) with particulars of warning and safety devices to be

employed at crossing places; and

(viii) any other works services or facilities proposed or desired by

the Company;

and

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(b) satisfactory evidence of the availability of finance necessary for the

fulfilment of the Company’s proposals hereunder relating to Phase 2

of this Agreement.

(2) The parties recognise that abnormal weather conditions including

dust cyclones and rain may impede the carrying out of the obligations of the

Company during Phase 1 and accordingly there shall be substituted for the date

of 30th June, 1969, wherever it occurs in this Agreement such later date as is

determined by adding to 30th June, 1969, the number of days in which

operations of the Company were interrupted or impeded by abnormal weather

the number of such days to be as mutually agreed by the parties or failing

agreement as determined by the Commissioner of Main Roads.

(3) The Company shall have the right to submit to the Minister its

detailed proposals aforesaid in regard to a matter or matters the subject of any of

the subparagraphs numbered (i) to (viii) inclusive of paragraph (a) of

subclause (1) of this clause as and when the detailed proposals become finalised

by the Company PROVIDED THAT where any such matter is the subject of a

subparagraph which refers to more than one subject matter the detailed

proposals will relate to and cover each of the matters mentioned in the

subparagraph PROVIDED FURTHER that the first detailed proposals

submitted to the Minister relate to and cover the matters mentioned in

subparagraph (ii) of the said paragraph (a) of the said subclause (1).

(4) If the Company should in writing and within the time later in this

subclause mentioned request the Minister and the Minister for Mines to grant an

extension or any further extension of time beyond the 30th day of June, 1969,

(or such later date if any provided in subclause (2) or previously granted or

approved by the Minister) within which to obtain the necessary finance and then

demonstrates to the satisfaction of the Minister and the Minister for Mines that

the Company has duly complied with its other obligations hereunder and has

genuinely and actively but unsuccessfully endeavoured to obtain finance on a

reasonable basis and reasonably requires an additional period for the purpose of

obtaining finance the Minister and the Minister for Mines will grant such

extension as is warranted in the circumstances as follows —

(a) for up to six (6) months on request made within one month of the

30th day of June, 1969, or such later date if any provided in

subclause (2);

(b) if an extension is granted under paragraph (a) of this subclause then

further for up to three (3) years on request made within one month of



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the expiration of the period of extension granted under the said

paragraph (a);

(c) if an extension is granted under paragraph (b) of this subclause then

further for up to two (2) years on request made within one month of

the expiration of the period of extension granted under the said

paragraph (b) unless the Minister and the Minister for Mines show to

the Company satisfactory evidence that some third party is able and

willing if made the lessee of the mining areas or some major part of

the area comprised in Temporary Reserve 3491 H on terms from the

State not more favourable on the whole (having regard inter alia to

initial expenditure) to that party than those applicable to the

Company hereunder to produce the same amount of potash as the

Company hereby undertakes to produce within the same limitations

and requirements as to time and capital expenditure;

subject always and in every case to the condition that the Company duly

complies (or complies to the satisfaction of the Minister) with its other

obligations hereunder including its obligation to submit proposals in accordance

with clause 5(1)(a) hereof.

Consideration of proposals under clause 5 4

6.

Within two (2) months after receipt of the detailed proposals of the

Company in regard to any of the matters mentioned in clause 5(1)(a) hereof the

Minister shall give to the Company notice either of his approval of the proposals

or of alterations desired thereto and in the latter case shall afford to the

Company opportunity to consult with and to submit new proposals to the

Minister. The Minister may make such reasonable alterations to or impose such

reasonable conditions on the proposals or new proposals (as the case may be) as

he shall think fit having regard to the circumstances including the overall

development and use by others as well as the Company of the wharf land

adjacent and seaward approaches thereto but the Minister shall in any notice to

the Company disclose his reasons for any such alteration or condition. Within

two (2) months of the receipt of the notice the Company may elect by notice to

the State to refer to arbitration and within two (2) months thereafter shall refer

to arbitration as hereinafter provided any dispute as to the reasonableness of any

such alteration or condition. If by the award on arbitration the dispute is decided

against the Company then unless the Company within three (3) months after

delivery of the award satisfies and obtains the approval of the Minister as to the

matter or matters the subject of the arbitration this Agreement shall on the

expiration of that period of three (3) months cease and determine (save as

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provided in paragraphs (r) and (s) of clause 10 hereof) but if the question is

decided in favour of the Company the decision will 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.

Extension of time 4

7.

(1) The arbitrator arbitrators or umpire (as the case may be) on any

submission to arbitration hereunder is or are hereby empowered upon

application by either party hereto to grant any interim extension of time or date

referred to herein which having regard to the circumstances may reasonably be

required in order to preserve the rights of either or both parties hereunder and an

award in favour of the Company may in the name of the Minister and the

Minister for Mines grant any further extension of time for that purpose.

(2) Notwithstanding that under clause 6 hereof any detailed proposals of

the Company are approved by the State or the Minister or determined by

arbitration unless each and every such proposal required by clause 5(1)(a) is so

approved or determined by the 30th day of June, 1970, or by such later or

extended date if any as the Company shall be entitled to or shall be granted

pursuant to the provisions hereof then at any time after the said 30th day of

June, 1970, or an such later or extended date as aforesaid the Minister may give

to the Company twelve (12) months notice of intention to determine this

Agreement and unless before the expiration of the said twelve (12) months

period all the detailed proposals are so approved or determined this Agreement

shall cease and determine subject however to the provisions of paragraphs (r)

and (s) of clause 10 hereof.

Commencement date 4

(3) Subject to the approval by the Minister or determination by

arbitration as herein provided of each and every of the detailed proposals

referred to in clause 5(1)(a) hereof the date which is the later of the date upon

which the last of those proposals of the Company shall have been so approved

or determined and the date upon which the Company has submitted satisfactory

evidence of the availability of finance shall be the commencement date for the

purposes of this Agreement.

(4) If under any arbitration under clause 6 hereof the dispute is decided

against the Company and subsequently but before the commencement date this

Agreement ceases and determines the State will not for a period of three (3)

years after such determination enter into a contract with any other party for the

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production mining transport and shipment of evaporites from the areas

comprised in Temporary Reserve 3491H on terms more favourable on the

whole to the other party than those which would have applied to the Company

hereunder if the question had been determined in favour of the Company.

Phase 2 — Obligations of State 4

8.

(1) As soon as conveniently may be after the commencement date the

State shall —

Mineral Lease 4

(a) after application is made by the Company cause the mining areas to

be leased to the Company under the provisions of the Mining Act

relating to mineral leases and that Act shall notwithstanding any of

the provisions thereof be deemed to be so amended varied and

modified as to enable the lease to be granted on the following terms

and conditions namely: —

(i) for a term specified by the Company not exceeding

twenty-one (21) years commencing from a day to be agreed

upon by the parties hereto;

(ii) at a rental computed at the rate of $4 per one hundred (100)

acres per annum;

(iii) subject to the payment by the Company of royalties

hereinafter mentioned and to the due and punctual

performance by the Company of its obligations hereunder;

(iv) subject to the condition that the company shall be entitled

(provided the right of re-entry contained in the lease has not

been exercised) to the option —

(A) to renew the lease for a further term specified by the

Company not to exceed twenty-one (21) years and on

the expiry thereof;

(B) to further renew the lease for further terms specified

by the Company each not to exceed twenty-one (21)

years

on the same terms and conditions as are contained in

subparagraphs (ii) (iii) (v) (vi) and (vii) of this paragraph and

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provided that the aggregate number of years comprised in the

original term and all renewal terms shall not exceed

sixty-three (63) years;

(v) that the cost of any survey required by the State be paid by the

Company;

(vi) subject to the reservations required in Crown Leases pursuant

to the Petroleum Act 1936; and

(vii) otherwise on such terms and conditions as are reasonably

required to give effect to the provisions and objects of this

Agreement;

Special Leases 4

(b) in accordance with the Company’s proposals as finally approved or

determined as hereinbefore provided and as otherwise reasonably

required by the Company to facilitate the carrying out of its

operations as envisaged by this Agreement grant to the Company for

such terms or periods coterminous with the terms of the mineral

lease (including renewals) and on such other terms and conditions as

shall be reasonable —

at peppercorn rental — special leases of Crown lands for the

wharf and area to be dredged by the Company;

and at rentals as prescribed by law or are otherwise reasonable —

leases rights mining tenements easements reserves and

licenses in on or under Crown lands

under the Mining Act the Jetties Act 1926, or under the provisions of

the Land Act modified as in subclause (5) of this clause provided as

the Company reasonably requires for its works and operations

hereunder including the construction or provision of the railway

wharf bulk loading facilities roads airstrip water supplies and for the

provision of stone and soil for construction purposes; and

(c) in respect of inward and outward cargoes of the Company permit the

Company to operate the said wharf with its own personnel.

State’s Obligations 4

(2) After the commencement date the State shall:



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Construction of general purpose wharf 4

(a) if it is agreed between the Company and the State that the wharf may

be utilised by third persons for the shipment of general cargo

contribute to such construction the funds as agreed or determined in

accordance with the provisions of paragraph (d) of clause 2 hereof;

Dredging 4

(b) grant the Company such licenses or leases as may be required to

enable the Company from time to time during the continuance of this

Agreement to dredge the berth at the wharf turning basin seabed and

passages between the same so as to reach and maintain such depths

as deemed suitable by the Company;

Priority to ships loading potash and evaporites 4

(c) unless the parties agree otherwise in connection with a contribution

of funds by the State for construction of the wharf or unless the

wharf is located at the existing jetty at Carnarvon ensure that all

ships requiring the berth at the wharf for the purpose of loading

potash common salt and other evaporites produced from the mining

areas shall be entitled at all times to the use of the wharf in priority

to all other ships;

(d) grant permission for the Company to construct a flood protection

levee within or without the mining lease in accordance with plans

and specifications first approved by the Minister; and

(e) at the reasonable request of the Company recommend that the

Governor in Executive Council make alter and repeal by-laws in

respect to the management or use of any of the Company’s facilities

that have been constructed pursuant to this Agreement.

License to pump evaporite 4

(3) Upon the written request of the Company for the grant of a license to

permit the Company to pump evaporite in the form of slurry the State will at the

cost of the Company cause the route to be surveyed which the State (after

consultation with the officers of the Company) considers most practicable and

convenient for the purpose of so pumping without prejudicing or interfering

with the use of public roads in the area the route traverses and will as soon as

practicable after the commencement date cause a license over the surveyed

route to be granted to the Company on such terms and conditions as are

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reasonably required to give effect to the objects and provisions of this

Agreement.

The license will be enjoyed by the Company for so long as the Company

is the lessee of the mining areas (including renewals) and for these purposes the

Company shall have the right —

(a) to enter (by its servants agents and contractors) upon the surveyed

route —

(i) to lay all such necessary pipes and construct all much

necessary apparatus as will enable the Company to pump the

evaporite in the form of slurry;

(ii) to renew from time to time and at all times to maintain those

pipes in good order and condition and do all acts and things

incidental to all or any of the said purposes and

(b) to use those pipes for the passage of evaporite in the form of slurry.

Other rights 4

(4) On application by the Company the State shall after the

commencement date cause to be granted to the Company such machinery and

tailings leases (including leases for the dumping of overburden) and such other

leases licenses reserves and tenements under the Mining Act or under the

provisions of the Land Act modified as in subclause (5) of this clause provided

as the Company may reasonably require and request for its purposes under this

Agreement on or near the mineral lease.

(5) For the purposes of this clause the Land Act shall be deemed to be

modified by —

(a) the substitution for subsection (2) of section 45A of the following

subsection:

(2) Upon the Governor signifying approval pursuant to

subsection (1) of this section in respect of any such land the

same may subject to this section be sold or leased;

(b) the deletion of the proviso to section 116;

(c) the deletion of section 135;

(d) the deletion of section 143;

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(e) the inclusion of a power to offer for sale or leasing land within or in

the vicinity of any townsite notwithstanding that the townsite has not

been constituted a townsite under section 10; and

(f) the inclusion of a power to offer for sale or grant leases or licenses

for terms or periods and on such terms and conditions (including

renewal rights) and in forms consistent with the provisions of this

Agreement in lieu of the terms or periods and the terms and

conditions and the forms referred to in the Act.

(6) The provisions of subclause (5) of this clause shall not operate so as

to prejudice the rights of the State to determine any lease license or other right

or title in accordance with the other provisions of this Agreement.

(7) The State further covenants with the Company that the State —

Non-interference with Company’s rights 4

(a) shall not during the currency of this Agreement register any claim or

grant any lease or other mining tenement under the Mining Act or

any lease under the Land Act or otherwise by which any person

other that the Company or an associated company will obtain under

the laws relating to mining or otherwise any rights to mine or take

the natural substances (other than petroleum as defined in the

Petroleum Act 1936) or otherwise obtain surface rights within the

mineral lease unless the Minister for Mines reasonably determines

that such rights are not likely to unduly prejudice or to interfere with

the operations of the Company hereunder assuming the taking by the

Company of all reasonable steps to avoid the interference;

No Resumption 4

(b) subject to the performance by the Company of its obligations under

this Agreement shall not during the currency hereof without the

consent of the Company resume nor suffer nor permit to be resumed

by any State instrumentality or by any local or other authority of the

said 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 purposes of this Agreement nor any of the

lands the subject of any lease or license granted to the Company in

accordance with the terms of this Agreement AND without the

consent of the Company (which shall not be unreasonably withheld)

the State will not create or grant or permit or suffer to be created or

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granted by any instrumentality or authority of the State as aforesaid

any road right-of-way or easement of any nature or kind whatsoever

over or in respect of any such lands;

Labour requirements 4

(c) shall if so requested by the Company and so far as its powers and

administrative arrangements permit use reasonable endeavours to

assist the company to obtain adequate and suitable labour for the

construction and the carrying out of the works and operations

referred to in this Agreement including suitable immigrants for that

purpose;

No discriminatory rates 4

(d) except as provided in this Agreement shall not impose nor permit nor

authorise any of its agencies or instrumentalities or any local 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 operations of the Company in the conduct of the

Company’s business hereunder nor will the State take or permit to be

taken by any such State authority any other discriminatory action

which would deprive the Company of full enjoyment of the rights

granted and intended to be granted under this Agreement;

Rights to other minerals 4

(e) shall where and to the extent reasonably practicable on application

by the Company from time to time grant or assist in obtaining the

grant to the Company of prospecting rights and mining leases with

respect to other minerals reasonably required by the Company for its

purposes under this Agreement;

Consents to improvements on leases 4

(f) shall as and when required by the Company (but without prejudice to

the foregoing provisions of this Agreement relating to the detailed

proposals and matters referred to in clause 5(1)(a) hereof) consent in

writing where and to the extent that the Minister considers to be

reasonably justified to the Company’s making improvements for the

purpose of this Agreement on the land comprised in any lease

granted by the State to the Company pursuant to this Agreement

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PROVIDED THAT the Company shall also obtain any other

consents legally required in relation to such improvements;

Upgrading of roads 4

(g) after the commencement date shall at the request of the Company

widen upgrade or realign any public road over which the State has

control subject to the prior approval of the Commissioner of Main

Roads to the proposed work on the basis that the State shall bear

one-third and the Company two-thirds of the cost of such work in the

case of roads to be utilised by the Company for haulage of products

of its mining operations and that the State shall bear two-thirds and

the Company one-third of such cost in the case of other public roads

where such work is requested by the Company;

Rating 4

(h) notwithstanding the provisions of any Act or anything done or

purported to be done under any Act ensure that the valuation of all

lands (whether of a freehold or leasehold nature) the subject of this

Agreement (except as to any part upon which a permanent residence

shall be erected or which is occupied in connection therewith) shall

for rating purposes be deemed to be on the unimproved value thereof

and no such lands shall be subject to any discriminatory rate; and

Labour conditions 4

(i) during the currency of this Agreement and subject to compliance

with its obligations hereunder ensure that the Company shall not be

required to comply with the labour conditions imposed by or under

any Act in regard to any lease of any land within the work sites.

Phase 2 — Obligations of Company 4

9.



(1) The Company shall:

(a) not later than the 30th day of the sixth month after the commencement

date commence to construct and thereafter will diligently proceed with

the construction and establishment on the work sites of a plant for the

mining and extraction of potash from brine and the loading thereof into

ships at the wharf and such plant and other necessary works shall within

three years after the commencement date be capable of producing and

loading into ships at the wharf not less than 75,000 tons of potash per



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annum and within five years after the commencement date be capable

of producing and loading into ships at the wharf not less than

200,000 tons of potash per annum and by this latter date the Company

shall have expended on the project a sum of not less than $13,000,000;

Expansion 4

(b) progressively increase the capacity of its plant and other necessary

works until by the end of the eighth year after the commencement

date they shall be capable of producing and loading into ships in a

form suitable for sale not less than one million tons of evaporites

(including potash) per annum;

Wharf and dredging 4

(c) construct the wharf in accordance with plans and specifications

previously approved or determined hereunder on the site previously

approved or determined for the purpose and dredge the berth at the

wharf turning basin and the channel and approaches to the wharf to a

depth suitable for the purposes of the company;

Carry out proposals 4

(d) carry into effect all the detailed proposals agreed or determined

hereunder;

Design of the wharf 4

(e) at all reasonable times at the request of the State whilst the wharf is

being designed and the specifications being drawn make available on

the Company’s behalf a person for consultation with the officers

servants or agents of the State in respect of the design of the wharf or

of the specifications therefor;

To make roads 4

(f) subject to the State having assured to the Company all necessary

rights in or over Crown lands or reserves available for the purpose

construct such new roads as the Company reasonably requires for its

purposes hereunder of such widths with such materials gates

crossings and passovers for cattle and for sheep and along such

routes and crossing such public roads at such places and in such

manner as the parties hereto shall mutually agree after discussion

with the respective Shire Councils through whose districts any such

roads may pass and subject to prior agreement with the appropriate

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controlling authority (being a Shire Council or the Commissioner of

Main Roads) as to terms and conditions the Company may at its own

expense and risk except as otherwise so agreed upgrade or realign

any existing road but nothing in this paragraph (f) provided shall

derogate from the provisions of clause 8(7)(g) hereof;

Future expansion 4

(g) unless the Minister prior to the expiration of the respective terms firstly

mentioned in subparagraphs (A) and (B) advises the Company that he

does not require the submission of the programmes hereinafter

mentioned then the Company shall submit to the Minister —

(A) within the term of ten years following the commencement

date —

(i) a firm programme for expansion of production during

the period from the beginning of the eleventh year to

the end of the twentieth year after the commencement

date (hereinafter called “the first programme”) and

(ii) a tentative programme for expansion of production

during the period from the beginning of the

twenty-first year to the end of the thirtieth year after

the commencement date (hereinafter called “the

tentative programme”) and

(B) within the term of twenty years following the commencement

date a firm programme for expansion of production during the

period from the beginning of the twenty-first year to the end

of the thirtieth year after the commencement date (hereinafter

called “the second programme”)

and if in the opinion of the Minister —

(i) the Company in carrying out its first programme will not by

the end of the twentieth year achieve an annual production as

shall make use of at least sixty seven per centum of the annual

capacity of the mineral lease having regard to the then

reasonably estimated quantity of brines and the area then

suitable and available for evaporation pans or

(ii) the Company in carrying out its second programme will not by

the end of the thirtieth year achieve an annual production as

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shall make use of approximately one hundred per centum of

the annual capacity of the mineral lease having regard to the

factors aforesaid and if the Minister having due regard to

known anticipated market conditions availability of finance

and physical factors relevant to the practicability of increased

production is of the opinion that the particular programme

does not assure that the resources of the mineral lease will be

exploited to the fullest extent reasonably practicable he may

within three months of his receipt of that programme give

notice to the company of the extent of the alleged inadequancy

and unless within six months of such notice a programme is

agreed either the Minister or the Company may within a

further period of three months refer the matter to arbitration

and the arbitrator shall take into account all factors which

would by likely to affect the economics of expansion and if —

(i) where the matter is not submitted to arbitration a

programme is not agreed within three months of the

expiration of the last mentioned period of six months

or

(ii) the arbitration results in a finding that the Ministers

particular opinion is justified and a programme is not

agreed within three months of the date of the award

and in accordance with the terms thereof

then the Minister may —

(i) in the event of there being no agreement as to the first

programme require the Company as from the end of

the eleventh year or such later time as shall be

reasonable having regard to the date of any award as

mentioned above to reduce the area of that part of the

mineral lease from which brines and evaporites are

being mined but so as not to reduce the reserves of

brines and evaporites to an extent that would prevent

the Company from ultimately expanding its capacity

for production to a level one and one half times the

maximum indicated in the tentative programme;

(ii) in the event of there being no agreement as to the

second programme require the Company as from the



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end of the twenty-first year or such later time as shall

be reasonable having regard to the date of any award

as mentioned above to reduce the area of that part of

the mineral lease from which brines and evaporites are

being mined but so as not to reduce the reserves of

brines and evaporites to an extent that would prevent

the Company ultimately expanding its capacity for

production to a level one and one half times the

maximum indicated in the second programme;

(h) agree that the extent and manner of any such reduction of the

mineral lease shall be decided by agreement between the Minister

for Mines and the Company but failing any such agreement within

two months of the Minister notifying the Company of his intention

to effect such reduction the matter shall be referred to arbitration and

the mineral lease shall be reduced to the extent and in the manner

agreed or determined by arbitration;

(i) agree to the State leasing any area subtracted from the Company’s

lease as aforesaid to any person for the purpose of producing

evaporites thereon but so that the terms of such lease and other

arrangements between the State and the other person shall not

unduly interfere with or jeopardise the established works operations

or markets of the Company and shall not be more favourable on the

whole than those granted to the Company having regard to the area

made available to such other person; and

(j) implement any expansion of production as set forth in the first or

second programmes of the Company as are agreed between the

Minister and the Company or programmes proposed by the

Company as are determined by arbitration as aforesaid as being

programmes which assure that the resources of the mineral lease will

be exploited to the fullest extent reasonably practicable provided that

if the Company is unable to implement the programmes because

changed world conditions make finance unavailable or other

unforeseen circumstances cause the Company to be unable to make

such implementation the Company may submit to the Minister a

proposal for revised programmes and if within three (3) months of

such submission the Minister and the Company do not agree on

revised programmes the matter shall be submitted to arbitration as

herein provided but so that nothing in this clause provided will be



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deemed to limit the right of the Company to make expansions

whether or not the same are set forth in such programmes.

Use of wharf and facilities 4

(2) Throughout the continuance of this Agreement the Company shall —

(a) subject to and in accordance with by-laws (which shall include

provision for reasonable charges) from time to time to be made and

altered as provided in paragraph (e) of subclause (2) of clause 8 and

subject thereto or if no such by-laws are made or are in force then upon

reasonable terms and at reasonable charges (having regard to the cost

thereof to the Company) allow the State and third parties to use the

Company’s wharf wharf machinery and equipment and wharf services

and (subject to paragraphs (w) (x) and (y) of clause 10) approaches to

the wharf PROVIDED THAT such use shall not unduly prejudice or

interfere with the Company’s operations hereunder and that the entire

control of and all personnel for or in respect of such use shall be

provided by or with the approval of the Company;

Use of roads by others 4

(b) except to the extent that the Company’s proposals as finally

approved or determined hereunder otherwise provide allow the

public to use free of charge any roads constructed or upgraded under

this clause PROVIDED THAT such use shall not unduly prejudice

or interfere with the Company’s operations hereunder;

Compliance with laws 4

(c) in the construction operation maintenance and use of any work

installation plant machinery equipment service or facility provided

or controlled by the Company comply with and observe the

provisions hereof and subject thereto the laws for the time being in

force in the said State;

Maintenance 4

(d) at all times keep and maintain in good repair and working order and

condition and where necessary replace all such works installations

plant machinery and equipment and the roads (other than the public

roads referred to in clauses 8(7)(g) and 10(b) hereof) for the time

being the subject of this Agreement;

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Royalties 4

(e) pay to the State royalties:

(i) on all potash from the mineral lease shipped or sold (other

than such as shipped solely for testing purposes) in the amount

of fifty cents (50c) per ton;

(ii) on all common salt from the mineral lease shipped or sold

(other than such as shipped solely for testing purposes)

computed as set out hereunder: —

On the first 500,000 tons in any year .........

On the second 500,000 tons in any year .....

On all tonnages in excess of 1,000,000

tons in any year .....................................



Rate per ton.

5 cents

6.25 cents

7.5 cents;



(iii) on all other evaporites from the mineral lease shipped or sold

(other than such as shipped solely for testing purposes) at the

rate of two per centum (2%) of the f.o.b. revenue received

therefor (computed at the rate of exchange prevailing on date

of receipt by the Company of the purchase price in respect of

such evaporites shipped or sold hereunder); and

(iv) tonnages shall be ascertained in such a manner as the parties

hereto may from time to time agree upon;

Payment of royalties 4

(f) within fourteen days after the quarter days being the last days of

March June September and December in each year commencing

with the quarter day next following the first commercial shipment of

potash or common salt furnish to the Minister for Mines a return

showing the quantity of all potash common salt and other evaporites

the subject of royalty hereunder and shipped during the quarter

immediately preceding the due date of the return and shall not later

than two (2) months after such due date pay to the Minister for

Mines on account of the royalty payable hereunder a sum calculated

on the basis of tonnage or f.o.b. revenue derived from invoices or

provisional invoices (as the case may be) rendered by the Company

to the purchaser (which invoices the Company shall render without

delay simultaneously furnishing copies thereof to the Minister for

Mines if requested) of such potash or common salt or other

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evaporites and shall from time to time in the next following

appropriate return and payment make (by the return and by cash) all

such necessary adjustments (and give to the Minister for Mines full

details thereof) when the actual tonnage or f.o.b. revenue realized (as

the case may be) in respect of the shipments shall have been

ascertained;

Inspection of records 4

(g) permit a nominee of the Minister for Mines to inspect at all

reasonable times the books of account and records of the Company

relative to the mining of evaporites and any sale or shipment thereof

and to take copies or extracts therefrom so far as is necessary for the

purpose of determining the revenue payable in respect of potash

common salt and other evaporites shipped or sold hereunder and the

Company will take reasonable steps to satisfy the State either by the

certificate of a competent independent party acceptable to the State

or otherwise to the reasonable satisfaction of the Minister for Mines

as to all relevant weights and analyses and will give due regard to

any objection or representation made by the Minister for Mines or

his nominee as to any particular weight or assay of potash common

salt or other evaporite which may affect the amount of royalty

payable hereunder; and

Sale price 4

(h) use its best endeavours to obtain for the potash common salt and

other evaporites the best price possible having regard to market

conditions form time to time prevailing.

Mutual covenants 4

10.



The parties hereto covenant and agree with each other as follows: —

Housing 4

(a) that subject to the provisions of this paragraph the State will on the

written application made from time to time by the Company for land

for housing purposes grant to the Company after the commencement

date a lease of such lots as are vacant and available and as the

Company and the Minister for Lands agree are suitable on the

following terms and conditions namely: —



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(i) for a term of five years commencing from a day to be agreed

upon by the parties hereto;

(ii) at a rental sufficient to reimburse a reasonable proportion of

the costs (if any) incurred by the State in the preparation of the

land for subdivision;

(iii) that the Company will within eighteen months of the

commencement of the term of each lease complete on the land

the subject of that lease the erection of living accommodation

for occupation by a family or single persons at a cost of not

less than $7,000 for each lot;

(iv) that on the expiration of the term of the lease and subject to

the due and punctual observance and performance of all the

covenants agreements and conditions on the Company’s part

therein contained then on the request of the Company grant to

it an estate in fee simple in the land the subject of the lease at

a price not exceeding two hundred dollars ($200) plus Crown

Grant and survey fees;

(v) that the Company will not sell transfer assign sub-let or

mortgage charge or encumber any such lease without the

consent of the State first had and obtained PROVIDED THAT

the consent of the State shall not be required to the transfer

assignment or sub-lease of a lot to an employee of the

Company nor to any mortgage where the Company has

complied with subparagraph (iii) of this paragraph in relation

to that lot;

(vi) that the Company will pay to the relevant local authority

(when requested by the local authority so to do) such amount

as the local authority reasonably requires at the time of the

grant of the lease to enable it to supply or make available the

usual services;

(vii) otherwise on such terms and conditions as are reasonably

required to give effect to the provisions and objects of this

Agreement; and

(viii) the State shall not be required to lease to the Company during

the currency of this Agreement more than one hundred and

fifty lots nor more than twenty-five lots in any one year and

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the request for each lot shall be made by the Company at least

three months before the Company requires the lease of that lot

to be granted to it and in the event of the State consenting

under the provisions of subparagraph (v) of paragraph (a) of

this clause to a transfer or an assignment of the lot the State

shall not be required to lease another lot in lieu of the lot so

transferred or assigned;

Road Transport 4

(b) that it shall be lawful for the Company to use for the carriage of

potash common salt and other evaporites on any Company road or

any specified public road as approved by the Minister for Traffic

between any part of the mining areas stockpile area and the wharf an

articulated vehicle and trailer the combined length of which shall not

exceed ninety-five (95) feet;

Railway 4

(c) that the Company shall be entitled to construct and operate a railway

within the mining areas and upon the written request of the Company

for the grant of a lease outside the mining areas to enable the

Company to construct and operate a railway from any part of the

mining areas to any other part and to the stockpile area and/or the

wharf the State will at the cost of the Company cause a route to be

surveyed which the State (after consultation with the officers of the

Company) considers most practicable and convenient therefor and

will as soon as practicable after the completion of that survey at the

cost and expense of the Company in all things (including the

acquisition and resumption of the lands over which the route passes)

and without regard to the provisions of the Public Works Act 1902,

relating to the construction of railways cause a lease (including

renewals) of the surveyed route (other than any part thereof declared

dedicated or proclaimed as a public road) to be granted to the

Company for so long as the Company is the lessee of the mining

areas for the sole purpose of the Company constructing and

operating a railway on the leased land and on such terms and

conditions as are reasonably required to give effect to the objects and

provisions of this Agreement and the State shall permit the Company

during she period of such lease (including renewals) to construct and

operate a private railway on the leased area for the purpose of

carrying the products and requirements of the Company and in

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respect of any part of a public road over which the railway operates

the State will cause the Company to be granted a license to operate

its railway over that part of the public road on such terms and

conditions as are reasonably required to give effect to the provisions

and objects of this Agreement and the provisions of the

Private Railways (Level Crossings) Act 1966, shall apply to any such

crossings;

Sea Water 4

(d) that the Company may without charge draw sea water from the

Indian Ocean for all or any one or more of its operations in respect

of the mining extraction and production of potash common salt and

other evaporites on the work sites and the Company may store at

such place as may be convenient or discharge at high water mark at

points near to the mining areas residual brines resulting from those

operations and the State shall grant to the Company and necessary

easement or license for these purposes over Crown lands upon such

terms and conditions as shall be reasonable having regard to the

requirements of the Company under this clause and the overall

development and use by others of those Crown lands and subject to

the Company’s compliance with the Mining Act and all other

relevant statutes and regulations for the time being in force the

Company if and when it becomes economical so to do shall have to

right to the exclusion of any other person to mine and recover any

chemicals in the brines;

Rights of Ingress and Egress 4

(e) that the State shall from time to time after the commencement date

on the written application of the Company grant to the Company a

license or licenses over Crown lands for the purpose of the Company

by its servants agents contractors invitees and customers enjoying

the right of ingress to and egress from all or any one or more part or

parts of the work sites for a term or terms respectively concurrent

with the term (including renewals) of the mining lease and on such

terms and conditions as shall be reasonable having regard to the

requirements of the Company in respect of its obligations to

construct maintain operate and inspect the improvements from time

to time constructed or installed on the work sites and to the overall

development and use by others of those Crown lands;



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Export License 4

(f) that if at any time or times under Commonwealth law an export

license is required by the Company for the export of any potash

common salt or other evaporites then on written request by the

Company the State shall make representation to the Commonwealth

for the grant to the Company of a license or licenses under

Commonwealth law for such export in such quantities and at such

rate or rates as shall be reasonable having regard to the tonnage

being produced by the Company at such time or times as a license is

so required and to all contracts made or likely to be made by the

Company for the export or supply of potash common salt and other

evaporites from the work sites;

Water and power 4

(g) that subject to and in accordance with proposals approved or

determined hereunder the Company for its purposes hereunder and

for domestic and other purposes in relation to any housing

established by the Company in the mining areas may to the extent

determined by the responsible Minister but notwithstanding any Act

bore for water construct catchment areas store (by dams or

otherwise) take and charge for water from any Crown lands available

for the purpose and generate transmit supply and charge for

electrical energy and the Company shall have all such powers and

authorities with respect to such water and electrical energy as are

determined by the Minister for the purposes hereof which may

include the powers of a water board under the Water Boards

Act 1904, and of a supply authority under the Electricity Act 1945;

Diversion of fresh water 4

(h) that to enable the Company to successfully operate it will be

necessary to prevent fresh or rain water from entering the

concentrating and crystallising areas and accordingly the Company

desires the right to divert from time to time the fresh or rain water

flowing into Lake MacLeod from their respective normal courses

and the State acknowledges the necessity of such diversions and will

so far as practicable having regard to the users of the surrounding

land permit the Company to make such diversions subject to and in

accordance with the provisions set out in paragraphs (i) and (j) of

this clause;



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(i) that when and as often as the Company desires to make a diversion

for the purpose aforesaid and where such diversion may affect lands

outside the work sites it shall before commencing any such diversion

immediately submit to the Minister in duplicate its proposals (which

shall include all plans and specifications) in respect of the diversion

it is desirous of making and shall also give to the Minister such

further information and plans in respect of the diversion as the

Minister from time to time reasonably requires in respect of the

diversion and as soon as reasonably possible after the Minister has

been given the Company’s proposals and such further information

and plans which he may require the Minister shall either inform the

Company in writing —

(i) that he has approved of the Company’s proposals as submitted

by the Company or as amended by him whereupon the

company shall be at liberty (subject to the provisions of

paragraph (j) of this clause) to proceed with the making of the

diversion in the manner submitted or as amended by the

Minister (as the case may be); or

(ii) that he has disapproved of the Company’s proposals as

originally submitted or as amended or qualified by any further

information and plans (as the case may be) whereupon within

the month next following the receipt of this disapproval the

Company may elect by notice to the Minister to refer to

arbitration the dispute as to the reasonableness of the

Minister’s disapproval and within the month following such

election shall refer such dispute to arbitration and if by the

award on arbitration the dispute is decided against the

Company then the Company shall not be at liberty to proceed

to make such diversion but if the question is decided in favour

of the Company the award will take effect as an approval by

the Minister and the Company shall be at liberty (subject to

the provisions of paragraph (j) of this clause) to proceed to

make such diversion in accordance with the terms of the

award;

(j) that before the Company proceeds with the making of the diversion

referred to in the immediately preceding paragraph the Company

shall enter into a Deed of Covenant with the State in such form as

the Minister in his absolute discretion determines covenanting to

indemnify the Crown in right of the State against all claims costs and

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expenses which may at any time or times be made against the Crown

in right of the State in respect of that diversion or arising out of or

incidental to or in consequence of that diversion;

Zoning 4

(k) that the mineral lease and the lands the subject of any Crown Grant

lease license or easement granted to the Company under this

Agreement shall be and remain zoned for use or otherwise protected

during the currency of this Agreement so that the operations of the

Company hereunder may be undertaken and carried out thereon

without any interference or interruption by the State or by any State

agency or instrumentality or by any local or other authority of the

State on the ground that such operations are contrary to any zoning

or building by-law or regulation;

Housing rentals 4

(l) that any State legislation for the time being in force in the said State

relating to the fixation of rentals shall not apply to any houses

belonging to the Company and that in relation to each such house the

Company shall have the right to include as a condition of its letting

or occupancy thereof that the Company may take proceedings for

eviction of the occupant if the latter shall fail to abide by and observe

the terms and conditions of occupancy or if the occupant shall cease

to be employed by the Company;

Subcontracting 4

(m) that without affecting the liabilities of the parties under this

Agreement either party shall have the right from time to time to

entrust to third parties the carrying out of any portions of the

operations which it is authorised or obliged to carry out hereunder;

Extraction of brine 4

(n) that the Company may within the mining areas construct utilise and

abandon evaporation pans and or may bore for and construct ditches

pipelines tunnels and channels flumes and catchment areas to take

and store brine sea water and sea water concentrates in such

quantities as required by the Company in any of its operations

permitted hereunder and regardless of whether such taking depletes

reserves of these substances outside of the mining areas;



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Liability for road use 4

(o) that —

(i) for the purposes of determining whether and the extent to

which —

(A) the Company is liable to any person or body corporate

(other than the State)

or

(B) an action is maintainable by any such person or body

corporate

in respect of the death or injury of any person or damage to

any property arising out of the use of any of the roads for the

construction or maintenance of which the Company is

responsible hereunder and for no other purpose the Company

shall be deemed to be a municipality and the said roads shall

be deemed to be streets under the care control and

management of the Company and

(ii) for the purposes of this paragraph the terms “municipality”

“street” and “care control and management” shall have

the meanings which they respectively have in the

Local Government Act 1960;

Employees 4

(p) that the parties hereto acknowledge the principle that in the operation

of a solar evaporation plant all employees during their respective

normal working hours are not continuously or fully engaged in the

performance or discharge of their respective duties and hence from

time to time there is or could be a surplus in the number of

employees required by the Company and to avoid this so happening

and to maintain so far as practicable full employment for all its

employees at all times the Company proposes to use employees

whilst not engaged in the performance or discharge of their

respective duties to assist in the loading of ships at the wharf with

potash common salt and other evaporites produced from the mining

areas and in the supervision thereof and to perform or discharge such

other duties as may be assigned to them from time to time by the

Company and to enable the foregoing objectives to be put into

practice the State will at the request of the Company made to it from

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time to time use reasonable endeavours to assist in the

implementation and achievement of these objectives but nothing

contained in this paragraph is intended to interfere with the

jurisdiction of the Industrial Arbitration Commission or the

operation of any award made under the Industrial Arbitration

Act 1912;

Default 4

(q) that in any of the following events namely if the Company fails in

any year after the eighth anniversary of the commencement date to

ship at least 200,000 tons of potash (or at the option of the Company

at least 200,000 tons of potash and/or evaporites other than common

salt) and furthermore the average of the tonnage shipped in that year

and in the previous three years is less than 200,000 tons a year or if

the Company makes default in the due and punctual performance of

any of the covenants agreements or obligations to the State herein or

in any lease sublease easement license or other title or document

granted or assigned under this Agreement on its part to be performed

or observed and shall fail to remedy that default within reasonable

time after notice specifying the default is given to it by the State (or

if the alleged default is contested by the Company and promptly

submitted to arbitration within a reasonable time fixed by the

arbitration award where the question is decided against the Company

the arbitrator finding that there was a bona fide dispute and that the

Company had not been dilatory in pursuing the arbitration) or if the

Company abandons or repudiates its operations under this

Agreement or if the Company goes into liquidation (other than a

voluntary liquidation for the purpose of reconstruction) or if the

Company gives the notice referred to in clause 22 hereof then and in

any of such events the State may by notice given to the Company

determine this Agreement and the rights of the Company hereunder

and under any lease license easement or right granted or demised

hereunder or pursuant hereto and upon receipt by the Company of

that notice this Agreement and the rights of the Company hereunder

and under any lease license easement or right granted or demised

hereunder or pursuant hereto shall determine PROVIDED

HOWEVER that if the Company falls to remedy any default after

notice is given to the Company specifying the default or within the

time fixed by the arbitration award as aforesaid and the Company

has not given notice to the State under clause 22 hereof the State

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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 its agents workmen or

otherwise shall have full power to enter upon lands occupied by the

Company and to make use of all plant and machinery equipment and

installations thereon) and the costs and expenses incurred by the

State remedying or causing to be remedied such default shall be a

debt payable by the Company to the State on demand made by the

State and shall be recoverable by action taken in any court of

competent jurisdiction;

Effect of determination of Agreement 4

(r) that on the cessation or determination of this Agreement: —

(i) 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 assignee of the Company or any mortgagee

to in or under any lease license easement or right granted or

demised hereunder or pursuant hereto shall thereupon cease

and determine but without prejudice to the liability of either of

the parties hereto in respect of any antecedent breach or

default under this Agreement AND the Company shall without

further consideration but otherwise at the request and cost of

the State transfer or surrender to the State or the Crown all

land the subject of any lease license easement or right granted

or demised hereunder or pursuant hereto AND the Company

hereby irrevocably constitutes and appoints the Minister or

such person as he may from time to time nominate the true

and lawful attorney of the company to execute the transfer or

surrenders aforesaid;

(ii) the Company shall forthwith pay to the State all moneys

which may then have become payable or accrued due; and

(iii) save as aforesaid neither of the parties hereto shall have any

claim against the other with respect to any matter or thing in

or arising out of this Agreement;

(s) that on the cessation or determination of any lease license easement

or right granted or demised hereunder or pursuant hereto by the State

to the Company or (except as otherwise agreed by the Minister) to an

associated company or other assignee of the Company under

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clause 14 hereof the improvements and things other than

locomotives rolling stock plant equipment and removable buildings

erected on the relevant land and provided for in connection therewith

shall remain or become the absolute property of the State without

compensation and freed and discharged from all mortgages and

encumbrances and the Company will do and execute such documents

and things (including surrenders) as the State may reasonably require

to give effect to this provision AND the Company hereby

irrevocably constitutes and appoints the Minister or such person as

he may from time to time nominate the true and lawful attorney of

Company to execute those documents and things (including

surrenders) and in the event of the Company prior to such expiration

or determination or subsequent thereto deciding to remove its

locomotives rolling stock plant equipment and removable buildings

or any of them form any land the Company shall not do so without

first notifying the State in writing of its decision and thereby

granting to the State the right or option exercisable within three (3)

months thereafter to purchase at valuation in situ the said

locomotives rolling stock plant equipment or removable buildings or

any of them and such valuation will be mutually agreed or in default

of agreement shall be made by such competent valuer as the parties

hereto may appoint or failing agreement as to such appointment then

by two competent valuers one to be appointed by each party or by an

umpire appointed by such valuers should they fail to agree;

(t) that the provisions of paragraphs (q) (r) and (s) of this clause shall

not apply to any land or the improvements thereon the subject of a

grant of an estate in fee simple granted to the Company pursuant to

the provisions of paragraph (a) of clause 10 hereof nor to any land or

the improvements thereon the subject of a lease granted under the

provisions of such paragraph to which the Company at the date of

cessation or determination of this Agreement is entitled to a grant of

an estate in fee simple under the provisions of paragraph (a) of this

clause;

Escalation 4

(u) that notwithstanding anything herein contained it is hereby agreed by

and between the parties hereto in order to provide for the equitable

performance of this Agreement in the event of the price (as

hereinafter defined) of potash or common salt on the 14th 21st 28th

35th 42nd 49th and 56th anniversary of the commencement date

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exceeding the price of potash or common salt respectively on the

7th anniversary day of the commencement date then the percentage

by which the price of potash or common salt respectively on the

relevant anniversary day exceeds the price of potash or common salt

respectively on the 7th anniversary day of the commencement date

shall be calculated and the several amounts mentioned herein and

payable by the Company to the State as —

(i) rental under clause 8(1)(a)(ii)

(ii) royalty under clause 9(2)(e)(i) and

(iii) royalty under clause 9(2)(e)(ii)

shall be increased in the case of rental under clause 8(1)(a)(ii) and

royalty under clause 9(2)(e)(i) by the percentage calculated for

potash and in the case of royalty under clause 9(2)(e)(ii) by the

percentage so calculated for common salt and such increased

amounts in respect of those items shall be payable by the Company

to the State during the seven (7) years next following the relevant

anniversary day;

(v) that for the purposes of paragraph (u) of this clause the price of

potash or common salt on the 7th anniversary day of the

commencement date and on each of the aforesaid anniversary days

means the average price of potash or common salt as the case may be

shipped from the mining areas to places within or without the

Commonwealth during the previous year payable by the purchaser or

purchasers thereof to the Company less all export duties export taxes

and export fees payable to the Commonwealth on the said export and

all costs and expenses properly incurred and payable by the

Company from the time the potash or common salt as the case may

be is shipped to the time the said potash or common salt is delivered

to and accepted by the purchaser or purchasers including —

(i) freight;

(ii) insurance;

(iii) port and handling charges at the port or place of discharge;

(iv) costs of delivery from the port or place of discharge to the

purchaser as evidenced by relevant invoices;



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(v) all weighing sampling analysis inspection and representation

costs;

(vi) all shipping and forwarding agency charges after shipment;

and

(vii) all import taxes imposed or levied by the country of the port of

discharge

provided that if the State is not satisfied that the prices obtained by

the Company have been negotiated on a normal commercial basis

the State may refer the matter to arbitration;

Use of wharf and channel by third parties 4

(w) that the State and the Company acknowledge that some party other

than the Company may utilise the wharf or approaches to the wharf;

(x) that the State and the Company acknowledge the principle that the

Company should be paid a fair and reasonable charge for use of the

channel approach and the wharf as may be set forth in schedules

provided by the Company and approved by the Minister and in the

case of regular use by a shipper of bulk commodities by reimbursed

by the other party of a fair and reasonable proportion of the capital

outlay and operation and maintenance costs respectively for the

wharf and the channel approach as may be determined by mutual

agreement between the parties concerned or failing agreement then

as determined by the Minister;

(y) that the State agrees not to permit vessels of the other party or

vessels engaged in any of its operations or for any of its purposes of

which notice is given to the State by the Company to enter the

channel approach and use the wharf unless and until the other party

pays the charges or makes the arrangements as the case may be as set

forth in paragraph (x) PROVIDED THAT the Company shall have

no right of action against the State by reason of its failure to

discharge the duty placed upon it in this subclause;

Temporary housing 4

(z) that notwithstanding the provisions of any Act by-law or regulation

the Company shall be entitled to erect maintain and remove such

temporary housing as it requires within the area comprised in

Temporary Reserve 3491H provided that the same shall conform to

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any reasonable requirement of the local authority as to health and

sanitation;

(aa) that the State shall have the right at any time during the currency of

this Agreement to grant to a person other than the Company any of

the Rights mentioned in clause (8)(7)(a) hereof but subject to the

restrictions therein mentioned; and

(bb) that the State shall have the right at any time during the currency of

this Agreement to make a declaration pursuant to the terms of the

Ports and Harbours Act 1917, that the wharf site and surrounding

area shall be a port or harbour for the purpose of the Shipping and

Pilotage Consolidation Ordinance 1855.

No charge for the handling of cargoes 4

11. That subject to the Company at its own expense providing all works

buildings dredging and things of a capital nature reasonably required for its

operations hereunder at or in the vicinity of the wharf no charge or levy shall be

made by the State or by any State authority in relation to the loading of outward

or the unloading of inward cargoes at the Company’s wharf whether such

cargoes shall be the property of the Company or of any other persons but the

State accepts no obligation to undertake such loading or unloading and may

make the usual charges from time to time prevailing in respect of services

rendered by the State or by any State agency or instrumentality or other local or

other authority of the State and may charge vessels using the Company’s wharf

ordinary light conservancy and tonnage dues.

Limitation of Liability 4

12. Where the Company from time to time constructs a levee or other works

on the mining areas for or incidental to the production of potash common salt or

other evaporites and thereafter a third party makes improvements to lands or

becomes the owner of improvements so made on lands adjacent to the mining

areas and subsequent to those improvements being made the Company removes

(either wholly or partly) or fails to maintain or to repair that levee or other

works and in consequence thereof the third party suffers sustains or incurs

damage to those improvements or any part thereof then notwithstanding any Act

or any rule of law or equity to the contrary the Company shall not be liable for

those damages to any person or persons whatsoever.



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Potash for use in Australia 4

13. The Company acknowledges the desire of the State to have available a

constant and reliable source of supply of potash for use in Western Australia

and the Commonwealth and to attain this object the Company subject to the

fulfilment of its overseas contracts will after the commencement of production

use its best endeavours to have such quantities of potash available at all times

during the currency of this Agreement for sale for use in Western Australia and

the Commonwealth as will meet reasonable demands therefor made on the

Company from time to time at a price which is competitive in the Australian

market provided that such price is not less than that which the Company is

receiving or able to receive for similar quantities of potash sold on similar terms

and conditions for use outside Australia.

Assignment 4

14. (1) Subject to the provisions of this clause and of paragraph (a) of

clause 10 hereof the Company may at any time —

(a) assign mortgage charge sublet or dispose of to any associated

company as of right and to any other company or person with the

consent in writing the Minister the whole or any part of the rights of

the Company hereunder (including its rights to or as the holder of

any lease license easement grant or other title) and of the obligations

of the Company hereunder; and

(b) appoint as of right an associated company or with the consent in

writing of the Minister any other company or person to exercise all

or any of the powers function and authorities which are or may be

conferred on the Company hereunder

subject however to the assignee or the appointee executing in favour of the State

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 so

assigned or the subject of the appointment.

(2) Notwithstanding anything contained in or anything done under or

pursuant to subclause (1) of this clause the Company unless the Minister

otherwise agrees shall 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 herein and in any lease license



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easement grant or other title the subject of an assignment under the said

subclause (1).

Arbitration 4

15. Any dispute or difference between the parties arising out of or in

connection with this Agreement or any agreed amendment or variation thereof

or agreed addition thereto or as to the construction of this Agreement or any

such amendment variation or addition as to the rights duties or liabilities of

either party hereunder or as to any matter to be agreed upon between the parties

under this Agreement shall in default of agreement between the parties 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 Arbitration Act 1895.

Variation 4

16. The parties hereto may from time to time by mutual agreement in writing

add to vary or cancel all or any of the provisions of this Agreement or any lease

license easement or right granted or demised hereunder or pursuant hereto for

the purpose of more efficiently or satisfactorily implementing or facilitating any

of the objects of this Agreement.

Force Majeure 4

17. This agreement shall be deemed to be made subject to any delays in the

performance of obligations under this Agreement and to the temporary

suspension of continuing obligations hereunder which may be occasioned by or

arise from circumstances beyond the power and control of the party responsible

for the performance of such obligations including delays or any such temporary

suspension as aforesaid caused by or arising from Act of God force majeure

floods storms tempests washaways fire (unless caused by the actual fault or

privity of the Company) act of war act of public enemies riots civil commotions

strikes lockouts stoppages restraint of labour or other similar acts (whether

partial or general) shortages of labour or essential materials reasonable failure to

secure contractors delays of contractors and inability (common in the potash

export industry) to profitably sell potash or factors due to overall world

economic conditions or export control requirements or factors which could not

reasonably have been foreseen PROVIDED ALWAYS that the party whose

performance of obligations is affected by any of the said causes shall minimise

the effect of the said causes as soon as possible after their occurrence.



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Evaporites (Lake MacLeod) Agreement



Continuance of Agreement 4

18. (1) If the Company is desirous of a further continuance of this

Agreement (whether in the same or any varied or modified form) and if the

parties hereto have not at least fifteen (15) months prior to the expiration of the

last term of renewal of the mining lease agreed upon the terms and conditions in

respect of a further agreement for the mining and shipment of potash common

salt and other evaporites from the mining areas then the State shall at least

fourteen (14) months prior to the expiration of the last renewal make the

Company such written offer (hereinafter called “the offer”) of the terms and

conditions of a further agreement as it deems reasonable and unless the

Company has —

(i) within the month next following the receipt of the offer accepted it

(either in the form so offered or as modified or varied by negotiation

between the parties hereto) or

(ii) within the fourteen days next following the receipt of the offer

elected to refer that offer or the part or parts thereof which the

Company considers unreasonable to arbitration (as provided in

subclause (2) hereof)

the State may at the expiration of that month proceed as in manner set out in

subclause (3) of this clause.

(2) Within the fourteen (14) days next following the receipt of the offer

the Company may elect by notice to the Minister to refer to arbitration any

dispute concerning the reasonableness of the State’s offer or any part or parts

thereof and will within fourteen (14) days next following such election refer to

arbitration that dispute and unless the Company within the fourteen (14) days

next following the receipt by it of the award on arbitration by notice to the State

accepts the offer as varied or modified by the award on arbitration the State may

proceed as in manner set out in subclause (3) of this clause.

(3) If the Company does not accept the offer or does not elect to refer

the offer to arbitration or does not accept the offer as varied or modified by the

award on arbitration in accordance with the provisions set out in subclause (1)

or (2) of this clause as the case may be then the State may enter into an

agreement for the mining and shipment of potash common salt and other

evaporites from the mining areas with any other person on terms and conditions

more favourable on the whole than the offer made by the State or in the event of

the offer having been submitted to arbitration provided the State has first



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Evaporites (Lake MacLeod) Agreement



offered to the Company the right of first refusal of such terms and conditions

and such offer is not accepted by the Company within a reasonable time.

Notices 4

19. Any notice consent request or other writing authorised or required by this

Agreement to be given or sent shall be deemed to have been duly given or sent

by the State if signed by the Minister or by any senior officer of the Civil

Service of the said State acting by the direction of the Minister and forwarded

by pre-paid registered post to the Company at its registered office for the time

being in the said State and by the Company if signed on its behalf by an officer

of the Company or by any person or persons authorised by the Company in that

behalf or by its solicitors as notified to the Minister from time to time and

forwarded by prepaid registered post to the Minister AND 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.

Relevant Law 4

20. (1) This Agreement shall be interpreted according to the law for the time

being in force in the said State.

(2) All payments made or to be made under this Agreement shall be

made in the State of Western Australia in Australian currency unless otherwise

agreed and all sums mentioned herein are in Australian currency.

Expiration of Agreement 4

21. This Agreement shall expire on the expiration or sooner determination of

the mining lease (including the respective renewals thereof) of the mining areas

but without prejudice to the right of action of either party hereto in respect of

any breach of the covenants agreements and conditions herein contained.

Determination by Company 4

22. Notwithstanding anything herein contained the Company may at any time

give notice to the State that matters have arisen which make the completion or

continuance of the works impracticable or uneconomic and desires to determine

this Agreement whereupon this Agreement will then cease and determine and

the State may enforce all or any one or more of its rights remedies or powers set

out in paragraphs (r) and (s) of clause 10 hereof.



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Power to extend periods 4

23. Notwithstanding any provision hereof the Minister may at the request of

the Company from time to time extend any period or date referred to in this

Agreement for such period or to such later date as the Minister thinks fit and the

extended period or later date when advised to the Company by notice from the

Minister shall be deemed for all purposes hereof substituted for the period or

date so extended.

Provided that where any such extension of period or date would have the

effect either directly or indirectly of extending the term of any lease license

temporary reserve or other concession granted under the Mining Act the consent

of the Minister shall not operate until the Company has also obtained the like

consent of the Minister for Mines.

Application of Private Railway (Level Crossings) Act 4

24. The provisions of the Private Railways (Level Crossings) Act 1966, shall

apply to all crossings by those private roads of the Company used for

transportation of its products by heavy haulage vehicles with a “road” within the

meaning of that term as used in the said Act as though every such Company

road is a “private railway” within the meaning of that term as used in the said

Act.

Exemption from Stamp Duty 4

25. The State shall exempt from any stamp duty which but for the operation

of this clause would or might be chargeable on —

(a) this Agreement;

(b) any instrument executed by the State pursuant to this Agreement

granting to or in favour of the Company or any permitted assignee of

the Company any lease license easement or right granted or demised

hereunder or pursuant hereto;

(c) any assignment sublease or disposition (other than by way of

mortgage or charge) or any appointment made in conformity with

the provisions of subclause (1) of clause 14 hereof; and

(d) any assignment sublease or disposition (other than by way of

mortgage or charge) or any appointment to or in favour of the

Company or an associated company of any interest right obligation

power function or authority which has already been the subject of an

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Evaporites (Lake MacLeod) Agreement



assignment sublease disposition or appointment executed pursuant to

subclause (1) of clause 14 hereof.

PROVIDED THAT this clause shall not apply to any instrument or

other document executed or made more than seven years from the date hereof.



IN WITNESS WHEREOF THE HONOURABLE CHARLES WALTER

MICHAEL COURT O.B.E. M.L.A. has hereunder set his hand and seal and the

COMMON SEAL of the Company has hereunto been affixed the day and year

first hereinbefore mentioned.



SIGNED SEALED AND DELIVERED

BY THE HONOURABLE CHARLES

WALTER MICHAEL COURT O.B.E.

M.L.A., in the presence of: —



C. W. COURT

[L.S.]

ARTHUR GRIFFITH,

....................................................

Minister for Mines.



THE COMMON SEAL OF TEXADA

MINES PTY. LIMITED was hereunto

affixed by the authority of the Directors

and this instrument signed and

countersigned by:



[C.S.]



K. NICHOLSON,

....................................................

Director.

RONALD F. SULLIVAN,

....................................................

Secretary.



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Evaporites (Lake MacLeod) Agreement Act 1967

Second Schedule Variation Agreement



Second Schedule — Variation Agreement

[s. 2]

[Heading amended: No. 19 of 2010 s. 4.]

AN AGREEMENT made the 15th day of November, One thousand nine

hundred and seventy two BETWEEN THE HONOURABLE JOHN TREZISE

TONKIN, M.L.A., THE PREMIER AND TREASURER OF THE STATE OF

WESTERN AUSTRALIA acting for and on behalf of the said State and its

instrumentalities (the State of Western Australia and its instrumentalities being

hereinafter referred to as “the State”) of the one part and Texada Mines Pty.

Limited a company incorporated under the Companies Act 1961 of the State of

Western Australia and having its registered office at 266 Hay Street Subiaco in

the State of Western Australia (hereinafter referred to as “the Company”) of the

other part.

WHEREAS:

(a) The parties to this Agreement are the parties to the agreement

between them as defined in Section 2 of the Evaporites (Lake

MacLeod) Agreement Act 1967 (which agreement is hereinafter

referred to as “the principal Agreement”)

(b) The parties desire to vary the provisions of the principal Agreement.

NOW THIS AGREEMENT WITNESSETH:

1.

In this Agreement, subject to the context words and phrases to which

meanings are given under clause 1 of the principal Agreement (other than words

and phrases to which meanings are given in this Agreement) shall have the same

respective meanings in this Agreement as are given to them in clause 1 of the

principal Agreement.

2.

(1) The provisions of this Agreement other than clause 3 and clause 4(4)

shall not come into operation until the Bill referred to in clause 3 has been

passed by the Parliament of Western Australia and comes into operation as an

Act.

(2) If the said Bill is not passed this Agreement shall then cease and

determine and neither of the parties hereto shall have any claim against the other

of them with respect to any matter or thing arising out of, done, performed, or

omitted to be done or performed under this Agreement.



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Variation Agreement Second Schedule



(3) On the said Bill commencing to operate as an Act all the provisions

of this Agreement shall operate and take effect notwithstanding the provisions

of any Act or law.

3.

The State shall introduce and sponsor a Bill in the Parliament of Western

Australia to ratify this Agreement and endeavour to secure its passage an Act

prior to the 31st day of December, 1973.

4.



The principal Agreement is hereby varied as follows:

(1) by adding after clause 6 a new clause 6A as follows —

Additional proposals 4

6A. Should the company at any time during the first ten

years next following the commencement date desire to

substantially modify expand or otherwise substantially vary its

activities to produce products other than those specified in any

approved proposals hereunder the Company shall give notice of

such desire to the Minister and thereupon or within such time

thereafter as the Minister shall fix shall submit to the Minister

for approval detailed proposals to the fullest extent reasonably

practicable in respect of all matters covered by such notice and

such of the other matters mentioned in subclause (1) of clause 5

as the minister may reasonably require. The provisions of

clauses 5 and 6 shall mutatis mutandis apply to detailed

proposals submitted pursuant to this subclause. ;

(2) by deleting the word “and” in the last line of paragraph (g) of

clause 9(2);

(3) by substituting for the passage “prevailing.” in the last line of

paragraph (h) of clause 9(2) the passage “prevailing;”;

(4) by inserting after paragraph (h) of clause 9(2) the following new

paragraphs —

Utilisation of brines and evaporites 4

(i) in respect of potash produced pursuant to this Agreement,

ensure that the potassium content of the brine and evaporites

produced in on or under the land the subject of the mineral

lease is, as far as is practicable, fully utilised in the



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Second Schedule Variation Agreement



production of potash and/or other evaporites in accordance

with its approved proposals;

Reports 4

(j) furnish to the Minister quarterly such reports as the Minister

may reasonably require concerning the mining and

utilisation of the brines in connection with the Company’s

operations hereunder; and

Limitation of salt exports 4

(k) limit its sales of common salt for delivery to Japan to

1,750,000 tons during each of the years ending 31st March,

1973, 1974 and 1975.

(5) by substituting for the passage “(8)(7)(a)” in line four of

clause 10 (aa) the passage “8(7)(a)”; and

(6) by adding to clause 17 of the principal Agreement after the word

“shall” in line twenty the words “promptly give notice to the other

party of the event or events and shall”.



IN WITNESS WHEREOF this Agreement has been executed the day and year

first hereinbefore written.

SIGNED by the said THE HONOURABLE

JOHN TREZISE TONKIN, M.L.A. in the

presence of —



JOHN T. TONKIN.



H. E. GRAHAM,

Minister for Development

and Decentralisation.



THE COMMON SEAL OF TEXADA MINES

PTY. LIMITED was hereunto affixed by the

authority of the Directors and this instrument

signed and countersigned by —

Director



[C.S.]



ALLEN D. CHRISTENSEN.



Secretary RONALD F. SULLIVAN.

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Variation Agreement Second Schedule



[Second Schedule inserted: No. 29 of 1973 s. 5.]



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Evaporites (Lake MacLeod) Agreement Act 1967

Third Schedule

Second Variation Agreement



Third Schedule — Second Variation Agreement

[s. 2]

[Heading amended: No. 19 of 2010 s. 4.]

AN AGREEMENT made the Fifteenth day of November, 1978 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 (the State of Western Australia and its

instrumentalities being hereinafter referred to as “the State”) of the one part and

TEXADA MINES PTY. LIMITED a company incorporated under the

Companies Act 1961 of the State of Western Australia and having its registered

office at 37 St. George’s Terrace, Perth in the State of Western Australia

(hereinafter referred to as “the Company”) of the other part.

WHEREAS:

(a) The parties to this Agreement are the parties to the agreement

between them as defined in section 2 of the Evaporites (Lake

MacLeod) Agreement Act 1967 (which agreement is hereinafter

referred to as “the principal Agreement”).

(b) The parties desire to vary the provisions of the principal Agreement.

NOW THIS AGREEMENT WITNESSETH:

1.

In this Agreement, subject to the context words and phrases to which

meanings are given under clause 1 of the principal Agreement (other than words

and phrases to which meanings are given in this Agreement) shall have the same

respective meanings in this Agreement as are given to them in clause 1 of the

principal Agreement.

2.

(1) The provisions of this Agreement other than clause 3 shall not come

into operation until the Bill referred to in clause 3 has been passed by the

Parliament of Western Australia and comes into operation as an Act.

(2) If the said Bill is not passed within 12 months after the date hereof

this Agreement shall then cease and determine at the expiration of the said

12 months period and neither of the parties hereto shall have any claim against

the other of them with respect to any matter or thing arising out of, done,

performed, or omitted to be done or performed, under this Agreement.



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Evaporites (Lake MacLeod) Agreement Act 1967

Third Schedule

Second Variation Agreement



(3) On the said Bill commencing to operate as an Act all the provisions

of this Agreement shall operate and take effect notwithstanding the provisions

of any Act or law.

Initial obligations of State 4

3.

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 30th day of June, 1979.

4.



Notwithstanding the provisions of the principal Agreement —

Upgrading of salt installations 4

(1) The company shall, in accordance with a programme approved by

the Minister, not later than the 31st day of December, 1979 and at an

additional cost of $2 500 000, upgrade the Company’s common salt

installations to improve both their efficiency and their security

against the elements and have such work completed by the 31st day

of December, 1980 to the satisfaction of the Minister.

Shipment of common salt 4

(2) The Company shall during the continuance of this Agreement

produce from the mineral lease and ship common salt at a rate of

not less than 700 000 tons during each of the years ending

31st March, 1980, 1981 and 1982 and thereafter at a rate of not less

than 500 000 tons per annum

Relief from potash obligations 4

(3) The Company is relieved from its obligations under the principal

Agreement in respect of potash, subject to compliance with each of

the following conditions —

Investigation and report on utilisation of resource 4

(a) The Company shall during the currency of this Agreement

continue to investigate the full utilisation of the resource the

subject of the mineral lease and shall report thereon to the

reasonable satisfaction of the Minister at intervals of three

years, the first report being due on the 31st day of

December, 1981.



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Evaporites (Lake MacLeod) Agreement Act 1967

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Second Variation Agreement



Third party participation 4

(b) In the event that the State notifies the Company that a third

party wishes to utilise any part of the said resource (other

than common salt) the Company shall, if it does not wish to

proceed with the utilisation of such part of the said resource,

consult and co-operate with the Minister and the third party

on fair and reasonable conditions of usage of such part of the

said resource and of access to the Company’s established

facilities by the third party. If any dispute arises as to the

terms and conditions under which such use shall take place,

the Minister shall determine the position on the basis that the

terms of any arrangement between the State, the Company

and such third party shall not unduly interfere with or

jeopardise the established works operation or markets of the

Company and shall not be more favourable on the whole

than those granted to the Company having regard to the area

or part of the said resource made available to such third party

PROVIDED THAT the decision of the Minister as aforesaid

may at the option of the Company be referred to arbitration

hereunder. The parties hereto agree to enter into any

variation of this Agreement or the principal Agreement that

may be necessary to give effect to the decision of the

Minister or to an award made on an arbitration.

Maintenance of Langbeinite plant 4

(c) The Company shall continue to maintain its plant referred to

in paragraph (a) of subclause (1) of clause 9 of the principal

Agreement until such time as the Minister is satisfied that

such plant is unsuitable for use by either the Company or a

third party under this subclause.

Interpretation 4

5.

The provisions of the principal Agreement shall be read and construed

subject to the provisions of this Agreement.



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Evaporites (Lake MacLeod) Agreement Act 1967

Third Schedule

Second Variation Agreement



IN WITNESS WHEREOF this Agreement has been executed the day and year

first hereinbefore written.



SIGNED by the said THE HONOURABLE SIR

CHARLES WALTER MICHAEL COURT,

O.B.E., M.L.A., in the presence of



CHARLES COURT.



ANDREW MENSAROS,

Minister for Industrial

Development.



THE COMMON SEAL OF TEXADA MINES

PTY. LIMITED was hereunto affixed by the

authority of the Directors and this instrument

signed and countersigned by



[C.S.]



Director Ian H. CARNE.

Secretary R. DICKINSON.

[Third Schedule inserted: No. 5 of 1979 s. 4.]



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Evaporites (Lake MacLeod) Agreement Act 1967



Notes

1



This is a compilation of the Evaporites (Lake MacLeod) Agreement Act 1967 and

includes the amendments made by the other written laws referred to in the

following table. The table also contains information about any reprint.



Compilation table

Short title



Number

and year



Assent



Commencement



Evaporites (Lake MacLeod) 3 of 1967

Agreement Act 1967



5 Oct 1967



5 Oct 1967



Evaporites (Lake MacLeod) 29 of 1973

Agreement Act Amendment

Act 1973



6 Jun 1973



6 Jun 1973



Evaporites (Lake MacLeod) 5 of 1979

Agreement Act Amendment

Act 1979



17 May 1979 17 May 1979



Reprint of the Evaporites (Lake MacLeod) Agreement Act 1967 as at 20 Dec 2002

(includes amendments listed above)

Standardisation of

19 of 2010

28 Jun 2010 11 Sep 2010 (see s. 2(b) and

Formatting Act 2010 s. 4

Gazette 10 Sep 2010 p. 4341)

2

3

4



Repealed by the Mining Act 1978.

Repealed by the Interpretation Act 1984.

Marginal notes in the agreement have been represented as bold headnotes in this

reprint but that does not change their status as marginal notes.



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Evaporites (Lake MacLeod) Agreement Act 1967



Defined terms



Defined terms

[This is a list of terms defined and the provisions where they are defined.

The list is not part of the law.]



Defined term

Provision(s)

the Agreement ....................................................................................................... 2

the Company ......................................................................................................... 2

the Second Variation Agreement .......................................................................... 2

the Variation Agreement ....................................................................................... 2



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