Iron Ore (Channar Joint Venture) Agreement Act 1987 (WA)

Western Australia Iron Ore (Channar Joint Venture) Agreement Act 1987 Western Australia Iron Ore (Channar Joint Venture) Agreement Act 1987 Contents 1. Short title 1 2. Commencement 1 3. Interpretation 1 4. Ratification and authorisation 2 5. By‑laws 2 Schedule 1 — Iron Ore (Channar Joint Venture) Agreement Schedule 2 — 2017 variation agreement Notes Compilation table 62 Defined terms Western Australia Iron Ore (Channar Joint Venture) Agreement Act 1987 An Act to ratify an agreement on behalf of the State with CMIEC (Channar) Pty. Ltd. and Channar Mining Pty. Limited and Hamersley Iron Pty. Limited relating to the development and treatment of iron ore and for incidental and other purposes. 1. Short title This Act may be cited as the Iron Ore (Channar Joint Venture) Agreement Act 1987 1. 2. Commencement This Act shall come into operation on the day that it receives the Royal Assent 1. 3. Interpretation In this Act unless the contrary intention appears — 2017 variation agreement means the agreement a copy of which is set out in Schedule 2; the Agreement means the agreement a copy of which is set out in Schedule 1 and, except in section 4(1), includes that agreement as varied from time to time in accordance with its provisions and by the 2017 variation agreement; the Joint Venturers has the same meaning as that expression has in and for the purposes of the Agreement. [Section 3 amended: No. 13 of 2017 s. 4.] 4. Ratification and authorisation (1) The Agreement is hereby ratified. (1A) The 2017 variation agreement is ratified. (2) The implementation of the Agreement is authorised. (3) Without affecting the Government Agreements Act 1979, the Agreement has effect notwithstanding any other Act or law. [Section 4 amended: No. 13 of 2017 s. 5.] 5. By‑laws (1) The Governor may, on the recommendation of the Joint Venturers, make by‑laws in accordance with and for the purposes referred to in the Agreement. (2) By‑laws made pursuant to this section — (a) are not subject to section 42 of the Interpretation Act 1984 but shall be laid before each House of Parliament within 6 sitting days of such House next following publication of the by‑laws in the Government Gazette; (b) may provide that contravention of or failure to comply with a by‑law constitutes an offence and provide penalties not exceeding $100 for offences against the by‑laws. Schedule 1 — Iron Ore (Channar Joint Venture) Agreement [Heading inserted: No. 13 of 2017 s. 6.] THIS AGREEMENT made this 27th day of October 1987 BETWEEN THE HONOURABLE BRIAN THOMAS BURKE, Premier of the State of Western Australia, acting for and on behalf of the said State and its instrumentalities from time to time (hereinafter called "the State") of the first part CMIEC (CHANNAR) PTY. LTD. a company incorporated in Western Australia and having its registered office at 140 St. George's Terrace, Perth and CHANNAR MINING PTY. LIMITED a company incorporated in Western Australia and having its registered office at 191 St. George's Terrace, Perth (hereinafter together called the "Joint Venturers" in which term shall be included their respective successors and permitted assigns) of the second part and HAMERSLEY IRON PTY. LIMITED a company incorporated in Victoria and having its registered office in the State of Western Australia at 191 St George's Terrace, Perth (hereinafter called "Hamersley") of the third part. WHEREAS: (a) the Joint Venturers, having established the economic viability thereof, desire to recover and market to the People's Republic of China iron ore from the land shown bordered green on the plan marked "A" (which has been initialled by or on behalf of the parties hereto for the purpose of identification) through a joint venture in which CMIEC (Channar) Pty. Ltd. will hold an undivided 40% Participating Interest and Channar Mining Pty. Limited will hold an undivided 60% Participating Interest; and (b) the Joint Venturers intend to provide such facilities and services as may be necessary for their operations under this Agreement and for the accommodation and welfare of their workforce at or in the vicinity of the land referred to in recital (a) hereof or elsewhere within the Pilbara region. NOW THIS AGREEMENT WITNESSETH: Definitions 2 1. In this Agreement subject to the context — "advise", "apply", "approve", "approval", "consent", "certify", "direct", "notify", "request", or "require", means advise, apply, approve, approval, consent, certify, direct, notify, request, or require in writing as the case may be and any inflexion or derivation of any of those words has a corresponding meaning; "approved proposal" means any proposal approved under this Agreement; "associated company" means CMIEC and Hamersley; "Clause" means a clause of this Agreement; "CMIEC" means China Metallurgical Import and Export Corporation a corporation existing under the laws of the People's Republic of China; "commencement date" means the date the Bill referred to in Clause 3 comes into operation as an Act; "Commonwealth" means the Commonwealth of Australia and includes the Government for the time being thereof; "Dampier" includes East Intercourse Island and Parker Point; "direct shipping ore" means iron ore which has an average pure iron content of not less than 60% which will not pass through a 6 millimetre mesh screen and which is sold without concentration or other beneficiation other than crushing and screening; "fine ore" means iron ore which has an average pure iron content of not less than 60% which will pass through a six millimetre mesh screen and which is sold without concentration or other beneficiation other than crushing and screening; "fines" means iron ore (not being direct shipping ore or fine ore) which will pass through a six millimetre mesh screen; "f.o.b. revenue" means the price for iron ore the subject of any shipment or sale which is payable by the purchaser thereof to the Joint Venturers or either of them as the case may be or, where there is no price paid for iron ore the subject of any shipment or where the Minister is not satisfied that a price paid for iron ore the subject of a shipment or sale represents a fair and reasonable price therefor, such amount as is agreed between the Joint Venturers or the relevant Joint Venturer and the State or, failing agreement, as determined by the Minister, after deducting all export duties and export taxes payable to the Commonwealth on the export of the iron ore and all costs and charges reasonably and properly incurred and payable by the Joint Venturers or the relevant Joint Venturer to the State or a third party from the time the iron ore shall be placed on ship at the point of loading to the time the same is delivered to the port of discharge, including: (1) ocean freight; (2) marine insurance; (3) weighing, sampling, assaying, inspection and representation costs incurred on discharge or delivery; (4) shipping agency charges; and (5) such other costs and charges as the Minister may in his discretion consider reasonable in respect of any shipment or sale. For the purposes of this definition — (a) the Minister may (in respect of costs or charges as set out in items (1) to (4) inclusive of this definition) notify the Joint Venturers or either of them as the case may require in writing that in respect of any shipment or sale he does not regard a cost or charge as having being reasonably and properly incurred and in such case the Joint Venturers or the relevant Joint Venturer may refer the matter to arbitration hereunder and unless and until such matter is resolved in favour of the Joint Venturers or the relevant Joint Venturer, such cost or charge shall not be deemed to have been reasonably and properly incurred; (b) notwithstanding anything contained in this definition to the contrary, a cost or charge as set out in items (1) to (4) inclusive of this definition shall not (unless the Minister so determines in accordance with the provisions of paragraph (c) of this definition) be deemed to be reasonably and properly incurred if such charge is directly or indirectly imposed upon or incurred by the Joint Venturers or either of them pursuant to an arrangement entered into between the Joint Venturers or either of them and the State: (c) costs or charges other than those set out in Items (1) to (4) inclusive of this definition and costs and charges to which paragraph (b) of this definition applies shall be deemed to be reasonably and properly incurred if the Minister in his discretion so determines and in making his determination the Minister shall have regard to such matters as the parties to and the bona fide nature of the transaction resulting in the cost or charge. "Joint Venturers' workforce" means the persons (and dependants of those persons) connected directly with the Joint Venturers' activities under this Agreement, whether or not such persons are employed by the Joint Venturers; "Land Act" means the Land Act 1933; "local authority" means the council of a municipality that is a city, town or shire constituted under the Local Government Act 1960; "Mining Act" means the Mining Act 1978; "mining lease" means the mining lease granted pursuant to Clause 15 and according to the requirements of the context shall describe the area of land demised as well as the instrument by which it is demised; "Minister" means the Minister in the Government of the State for the time being responsible (under whatsoever title) for the administration of the Act to ratify this Agreement and pending the passing of that Act means the Minister for the time being designated in a notice from the State to the Joint Venturers and includes the successors in office of the Minister; "Minister for Minerals and Energy" means the Minister in the Government of the State for the time being responsible for the administration of the Mining Act; "month" means calendar month; "notice" means notice in writing; "person" or "persons" includes bodies corporate; "private road" means a road which is either constructed by the Joint Venturers in accordance with approved proposals or agreed by the State and the Joint Venturers to be a private road for the purposes of this Agreement; "said State" means the State of Western Australia; "State Energy Commission" means The State Energy Commission of Western Australia as described in section 7 of the State Energy Commission Act 1979; "subclause" means subclause of the Clause in which the term is used; "this Agreement" "hereof" and "hereunder" refer to this Agreement whether in its original form or as from time to time added to varied or amended; "tonne" means a tonne of one thousand kilograms net dry weight; "wharf" includes any jetty structure. Interpretation 2 2. In this Agreement — (a) monetary references are references to Australian currency unless otherwise specifically expressed; (b) power given under any clause other than Clause 38 to extend any period or date shall be without prejudice to the power of the Minister under Clause 38; (c) marginal notes do not affect the interpretation or construction 2; (d) words in the singular shall include the plural and words in the plural shall include the singular according to the requirements of the context; (e) reference to an Act includes the amendments to that Act for the time being in force and also any Act passed in substitution therefor or in lieu thereof and the regulations for the time being in force thereunder; and (f) any covenant or agreement on the part of the Joint Venturers hereunder shall be deemed to be a joint and several covenant or agreement as the case may be. Initial obligations of the State 2 3. The State shall — (a) 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 31 December 1987; and (b) to the extent reasonably necessary for the purposes of this Agreement allow the Joint Venturers to enter upon Crown Lands (including, if applicable, land the subject of a pastoral lease). Ratification and operation 2 4. (1) The provisions of this Agreement other than this Clause and Clauses 1, 2 and 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 before 31st December 1987 the said Bill has not commenced to operate as an Act this Agreement will, unless the parties hereto otherwise agree, then cease and determine. (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 the Joint Venturers 2 5. (1) The Joint Venturers shall continue their field and office engineering, environmental, market and finance studies and other matters necessary to enable them to finalise and to submit to the Minister the detailed proposals referred to in Clause 7 and their proposed marketing arrangements pursuant to Clause 6. (2) The Joint Venturers shall keep the State fully informed in writing quarterly as to the progress and results of their operations under subclause (1). The first quarterly report shall be lodged during the month of April 1988 and shall be in respect of the quarter ending on the last day of March 1988 and thereafter the quarterly reports shall be in respect of the quarter ending on the last day of the month preceding the month in which they are lodged. (3) The Joint Venturers shall cooperate with the State and consult with the representatives or officers of the State regarding matters referred to in subclause (1) and any other relevant studies in relation to that subclause that the Minister may wish to undertake. Marketing arrangements 2 6. Prior to or at the time of the submission of the proposals required pursuant to subclause (1) of Clause 7 the Joint Venturers shall furnish to the State's satisfaction evidence that contracts are in place for the sale or supply by the Joint Venturers severally of iron ore from the land referred to in recital (a) hereof to the People's Republic of China together with details of the tonneages involved and the duration of the respective contracts and of the proposed marketing arrangements (including the provision of marketing services) relative thereto and such other details as the Minister may require. Joint Venturers to submit proposals 2 7. (1) The Joint Venturers shall on or before 30th June 1988 (or by such extended date as the Minister may allow as hereinafter provided) and subject to the provisions of this Agreement, submit to the Minister to the fullest extent reasonably practicable their detailed proposals (including plans where practicable and specifications where reasonably required by the Minister) with respect to the mining of iron ore from the land referred to in recital (a) hereof and the transport and shipment of iron ore mined which proposals shall make provision for the necessary workforce and associated population required to enable the Joint Venturers to mine and recover iron ore from the land referred to in recital (a) hereof. Use of existing infrastructure 2 (2) The said proposals may, with the approval of the Minister and Hamersley, or any third parties concerned, as the case may be, provide for the use by the Joint Venturers upon reasonable terms and conditions of any existing works installations facilities equipment and services belonging to Hamersley, wherever possible, or to any third party instead of providing for the construction of new facilities. (3) The said proposals shall include the location, area, layout, design, quantities, materials and time programme for the commencement and completion of construction or the provision (as the case may be) of each of the following matters, namely — (a) the mining and recovery of iron ore including mining crushing screening handling transport and storage of iron ore and plant facilities; (b) roads; (c) housing and accommodation for the Joint Venturers' workforce including the provision of utilities, services and associated facilities; (d) water supply; (e) power supply; (f) any other works, services or facilities desired by the Joint Venturers; (g) use of local labour professional services manufacturers suppliers contractors and materials and measures to be taken with respect to the engagement and training of employees by the Joint Venturers their agents and contractors; (h) any leases licences or other tenures of land required from the State; and (i) an environmental management programme as to measures to be taken, in respect of the Joint Venturers' activities under this Agreement, for the protection and management of the environment. Order of proposals 2 (4) The proposals pursuant to subclause (3) may with the approval of the Minister or if so required by him be submitted separately and in any order as to the matter or matters mentioned in one or more of paragraphs (a) to (i) of subclause (3). (5) At the time when the Joint Venturers submit the said proposals they shall — (a) submit to the Minister — Work outside Australia 2 (i) details of those elements of the project engineering design and management, equipment procurement and installation, materials, fabrication, services and construction that they propose to consider obtaining from or having carried out or permitting to be obtained from or carried out outside Australia other than work concerning internal organisational activities and services to be commissioned by CMIEC in the People's Republic of China together with their reasons therefor and shall, if required by the Minister, consult with the Minister with respect thereto; Iron ore reserves 2 (ii) a summary of measured, indicated and inferred reserves of iron ore within the land referred to in recital (a) hereof; and (b) furnish to the State's satisfaction evidence of — Financial arrangements 2 (i) the availability of finance necessary for the fulfilment of the operations to which the said proposals refer; Readiness to proceed 2 (ii) the readiness of the Joint Venturers to embark upon and proceed to carry out the operations referred to in the said proposals. (6) If the Joint Venturers do not submit the said proposals by 30th June 1988 or such extended date as aforesaid this Agreement shall on such date or such extended date as the case may be cease and determine. Effect of early determination 2 8. If this Agreement shall cease and determine by virtue of the provisions of Clause 4 or subclause (6) of Clause 7 none 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. Consideration of proposals 2 9. (1) On receipt of the said proposals pursuant to subclause (1) of Clause 7 the Minister shall — (a) approve of the said proposals either wholly or in part without qualification or reservation; or (b) defer consideration of or decision upon the same until such time as the Joint Venturers submit a further proposal or proposals in respect of some other of the matters mentioned in subclause (3) of Clause 7 not covered by the said proposals; or (c) require as a condition precedent to the giving of his approval to the said proposals that the Joint Venturers make such alteration thereto or comply with such conditions in respect thereto as he (having regard to the circumstances including the overall development of and the use by others as well as the Joint Venturers of all or any of the facilities proposed to be provided) thinks reasonable and in such a case the Minister shall disclose his reasons for such conditions. Advice of Minister's decision 2 (2) The Minister shall within two months after receipt of the said proposals pursuant to subclause (1) give notice to the Joint Venturers of his decision in respect to the same. Consultation with Minister 2 (3) If the decision of the Minister is as mentioned in either of paragraphs (b) or (c) of subclause (1) the Minister shall afford the Joint Venturers full opportunity to consult with him and should they so desire to submit new or revised proposals either generally or in respect to some particular matter. Minister's decision subject to arbitration 2 (4) If the decision of the Minister is as mentioned in either of paragraphs (b) or (c) of subclause (1) and the Joint Venturers consider that the decision is unreasonable the Joint Venturers within two months after receipt of the notice mentioned in subclause (2) may elect to refer to arbitration in the manner hereinafter provided the question of the reasonableness of the decision. Arbitration award 2 (5) An award made on an arbitration pursuant to subclause (4) shall have force and effect as follows — (a) if by the award the dispute is decided against the Joint Venturers then unless the Joint Venturers within 3 months after delivery of the award give notice to the Minister of their acceptance of the award this Agreement shall on the expiration of that period of 3 months cease and determine; or (b) if by the award the dispute is decided in favour of the Joint Venturers the decision shall take effect as a notice by the Minister that he is so satisfied with and approves the matter or matters the subject of the arbitration. Effect of non-approval of proposals 2 (6) Notwithstanding that under subclause (1) any detailed proposals of the Joint Venturers are approved by the Minister or determined by arbitration award, unless each and every such proposal and matter is so approved or determined by 30th June 1989 or by such extended date if any as the Joint Venturers shall be granted pursuant to the provision of this Agreement then the Minister may give to the Joint Venturers 12 months notice of intention to determine this Agreement and unless before the expiration of the said 12 months period all the detailed proposals and matters are so approved or determined this Agreement shall cease and determine subject however to the provisions of Clause 40. Implementation of proposals 2 (7) The Joint Venturers shall implement the approved proposals in accordance with the terms thereof. Additional proposals 2 10. If the Joint Venturers at any time during the continuance of this agreement desire to significantly modify expand or otherwise vary their activities carried on pursuant to this Agreement beyond those specified in any approved proposals they shall give notice of such desire to the Minister and within 2 months thereafter shall submit to the Minister detailed proposals in respect of all matters covered by such notice and such of the other matters mentioned in paragraphs (a) to (i) of subclause (3) of Clause 7 as the Minister may require. The provisions of Clause 7 (other than subclause (6)) and Clause 9 (other than subclauses (5) and (6)) shall mutatis mutandis apply to detailed proposals submitted pursuant to this subclause with the proviso that the Joint Venturers may withdraw such proposals at any time before approval thereof or, where any decision of the Minister in respect thereof is referred to arbitration, within 3 months after the award by notice to the Minister that they shall not be proceeding with the same. The Joint Venturers shall implement the approved proposals in accordance with the terms thereof. Protection and management of the environment 2 11. (1) The Joint Venturers shall in respect of the matters referred to in paragraph (i) of subclause (3) of Clause 7 and which are the subject of approved proposals under this Agreement, carry out a continuous programme including monitoring and the study of sample areas to ascertain the effectiveness of the measures they are taking pursuant to such approved proposals for rehabilitation and the protection and management of the environment and shall as and when reasonably required by the Minister from time to time submit to the Minister a detailed report thereon. (2) Whenever as a result of their monitoring under subclause (1) or otherwise information becomes available to the Joint Venturers which in order to more effectively rehabilitate, protect or manage the environment may necessitate or could require any changes or additions to any approved proposals or require matters not addressed in approved proposals to be addressed the Joint Venturers shall forthwith notify the Minister thereof and with such notification shall submit a detailed report thereon. (3) The Minister may within 2 months of the receipt of a detailed report pursuant to subclauses (1) or (2) notify the Joint Venturers that he requires additional detailed proposals to be submitted in respect of all or any of the matters the subject of the report and such other matters as the Minister may require. (4) The Joint Venturers shall within 2 months of the receipt of a notice given pursuant to subclause (3) submit to the Minister additional detailed proposals as required and the provisions of Clause 7 (other than subclause (6)) and Clause 9 (other than subclauses (5) and (6)) where applicable shall mutatis mutandis apply in respect of such proposals. (5) The Joint Venturers shall implement the decision of the Minister or an award made on arbitration as the case may be in accordance with the terms thereof. Use of local labour services and materials 2 12. (1) The Joint Venturers shall, for the purposes of this Agreement — (a) except in those cases where the Joint Venturers can demonstrate it is impracticable so to do, use labour available within the said State: (b) as far as it is reasonable and economically practicable so to do use the services of engineers surveyors architects and other professional consultants, project managers manufacturers suppliers and contractors resident and available within the said State; (c) when preparing specifications calling for tenders and letting contracts for works materials plant equipment and supplies ensure that suitably qualified Western Australian suppliers manufacturers and contractors are given fair and reasonable opportunity to tender or quote; and (d) give proper consideration and where possible preference to Western Australian manufacturers suppliers and contractors when letting contracts or placing orders for works materials plant equipment and supplies where performance price quality delivery and service are equal to or better than that obtainable elsewhere. (2) Except as otherwise agreed by the Minister the Joint Venturers shall in every contract entered into with a third party for the supply of services labour works materials plant equipment and supplies for the purposes of this Agreement require as a condition thereof that such third party shall undertake the same obligations as are referred to in subclause (1) and shall report to the Joint Venturers concerning such third party's implementation of that condition. (3) The Joint Venturers shall submit a report to the Minister at quarterly intervals commencing from the date of this Agreement or such longer periods as the Minister may from time to time determine concerning their implementation of the provisions of this Clause and the performance of third parties in relation thereto pursuant to subclause (2) together with a copy of any report received by the Joint Venturers pursuant to that subclause during that quarter. Roads — Private roads 2 13. (1) The Joint Venturers shall — (a) be responsible for the cost of the construction and maintenance of all private roads which shall be used in their operations hereunder; (b) ensure that all private roads (other than any such roads specified in approved proposals as not for use by the public) are constructed and maintained in accordance with the requirements from time to time of the Commissioner of Main Roads; and (c) at any place where such private roads cross any roads or railways used by the public provide at their cost such reasonable protection as may be required by the Railways Commission or the Commissioner of Main Roads as the case may be. Maintenance of public roads 2 (2) The State shall maintain or cause to be maintained those public roads under the control of the Commissioner of Main Roads or a local authority which may be used by the Joint Venturers to a standard similar to comparable public roads maintained by the Commissioner of Main Roads or a local authority as the case may be. Upgrading of public roads 2 (3) In the event that for or in connection with the Joint Venturers' operations hereunder the Joint Venturers or any person engaged by the Joint Venturers uses or wishes to use a public road referred to in subclause (2) which is inadequate for the purpose, or any use by the Joint Venturers or any person engaged by the Joint Venturers of any such public road results in excessive damage thereto or deterioration thereof (other than fair wear and tear) the Joint Venturers shall pay to the State the whole or an equitable part of the total cost of any upgrading required or of making good the damage or deterioration as may be reasonably required by the Commissioner of Main Roads having regard to the use of such public road by others. Liability 2 (4) The State and the Joint Venturers further covenant and agree with each other that — (a) for the purposes of determining whether and if so the extent to which — (i) the Joint Venturers are liable to any person or body corporate (other than the State); or (ii) 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 such roads for the maintenance of which the Joint Venturers are responsible hereunder and for no other purpose the Joint Venturers 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 Joint Ventures; and (b) for the purposes of this Clause the terms "municipality" "street" and "care control and management" shall have the meaning which they respectively have in the Local Government Act 1960. Airport 2 14. In the event that any upgrading of the existing airport facilities and services at Paraburdoo are necessary for the Joint Venturers' operations hereunder, the Joint Venturers shall confer with Hamersley and/or the Shire of West Pilbara as the case may require with a view to reaching agreement on that upgrading. Mining lease 2 15. (1) Notwithstanding the provisions of the Mining Act the State shall, on application made by the Joint Venturers not later than 3 months after all their proposals submitted pursuant to subclause (1) of Clause 7 have been approved or determined and the Joint Venturers have complied with the provisions of Clause 6 and subclause (5) of Clause 7 for a mining lease of the land referred to in recital (a) hereof for the mining of iron ore but subject to the surrender to the State by the holder of Mineral Lease 252SA of so much of the land within that Mineral Lease as is within the land referred to in recital (a) hereof and subject also to the surrender to the State by Hamersley of so much of the land within Mineral Lease 4SA as is within the land referred to in recital (a) hereof, cause to be granted to the Joint Venturers at a rental of 86.5 cents per hectare per annum (payable in advance) a mining lease of such land (notwithstanding that the survey in respect thereof has not been completed but subject to such corrections to accord with the survey when completed at the Joint Venturers' expense) for the mining of iron ore only such mining lease to be granted under and, except as otherwise provided in this Agreement, subject to the Mining Act but in the form of the Schedule hereto. Term 2 (2) Subject to the performance by the Joint Venturers of their obligations under this Agreement and the Mining Act and notwithstanding any provisions of the Mining Act to the contrary the term of the mining lease shall be for a period of 30 years commencing from the date of approval of the proposals made pursuant to Clause 7. The provisions of section 78 of the Mining Act shall not apply to the mining lease. Exemption from expenditure conditions 2 (3) The State shall ensure that during the currency of this Agreement and subject to compliance with their obligations hereunder the Joint Venturers shall not be required to comply with the expenditure conditions imposed by or under the Mining Act in regard to the mining lease. Access over mining lease 2 (4) The Joint Venturers shall at all times permit the State and third parties with the consent of the State (with or without stock vehicles and rolling stock) to have access to and to pass over the mining lease (by separate route, road or railway) so long as that access and passage does not unduly prejudice