Iron Ore (Marillana Creek) Agreement Act 1991 (WA)

Western Australia Iron Ore (Marillana Creek) Agreement Act 1991 Western Australia Iron Ore (Marillana Creek) Agreement Act 1991 Contents 1. Short title 1 2. Commencement 1 3. Terms used 1 4. Agreement ratified 2 4A. Variation Agreement 2 5. Second Variation Agreement 2 6. Variation of Agreement to increase rates of royalty 3 7. Variation of Agreement about size of ore products and applicable royalties 4 8. Third Variation Agreement 6 9. State empowered under clause 14C(9)(a) 6 10. Fourth Variation Agreement 6 Schedule 1 — Iron Ore (Marillana Creek) Agreement Schedule 2 — First Variation Agreement Schedule 3 — Second Variation Agreement Schedule 4 — Third Variation Agreement Schedule 5 — Fourth Variation Agreement Notes Compilation table 148 Defined terms Western Australia Iron Ore (Marillana Creek) Agreement Act 1991 An Act to ratify an agreement between the State and BHP Minerals Limited relating to the development and mining of iron ore deposits, the processing of iron ore, and for incidental and other purposes. 1. Short title This Act may be cited as the Iron Ore (Marillana Creek) Agreement Act 1991 1. 2. Commencement This Act shall come into operation on the day on which it receives the Royal Assent 1. 3. Terms used In this Act, unless the contrary intention appears — Agreement means the agreement a copy of which is set out in Schedule 1 and includes that agreement as varied from time to time in accordance with its provisions; First Variation Agreement means the agreement a copy of which is set out in Schedule 2; Fourth Variation Agreement means the agreement a copy of which is set out in Schedule 5; Second Variation Agreement means the agreement a copy of which is set out in Schedule 3; Third Variation Agreement means the agreement a copy of which is set out in Schedule 4. [Section 3 amended: No. 29 of 1994 s. 12; No. 57 of 2000 s. 9; No. 61 of 2010 s. 46; No. 62 of 2011 s. 19.] 4. Agreement ratified (1) The Agreement is ratified. (2) The implementation of the Agreement is authorised. (3) Without limiting or otherwise affecting the application of the Government Agreements Act 1979, the Agreement shall operate and take effect notwithstanding any other Act or law. (4) To avoid doubt, it is declared that the provisions of the Public Works Act 1902 section 96 do not apply to a railway constructed under the Agreement. [Section 4 amended: No. 61 of 2010 s. 47.] 4A. Variation Agreement (1) The First Variation Agreement is ratified. (2) The implementation of the First Variation Agreement is authorised. (3) Without limiting or otherwise affecting the application of the Government Agreements Act 1979, the First Variation Agreement shall operate and take effect notwithstanding any other Act or law. [Section 4A inserted: No. 29 of 1994 s. 13; amended: No. 8 of 2009 s. 80.] 5. Second Variation Agreement (1) The Second Variation Agreement is ratified. (2) The implementation of the Second Variation Agreement is authorised. (3) Without limiting or otherwise affecting the application of the Government Agreements Act 1979, the Second Variation Agreement is to operate and take effect despite any other Act or law. [Section 5 inserted: No. 57 of 2000 s. 10.] 6. Variation of Agreement to increase rates of royalty (1) In this section — Agreement means the agreement a copy of which is set out in Schedule 1 — (a) as varied from time to time in accordance with its provisions; and (b) as varied by these agreements — (i) the First Variation Agreement; (ii) the Second Variation Agreement. (2) Clause 1 of the Agreement is varied by inserting in alphabetical order — "fine ore" means iron ore excluding beneficiated ore which is nominally sized minus six millimetres; "lump ore" means iron ore excluding beneficiated ore which is nominally sized plus six millimetres minus thirty millimetres; (3) Clause 13(1) of the Agreement is varied — (a) in paragraph (a) by deleting "3.25%" and inserting — 5% (b) in paragraph (aa)(i) by deleting "5.625%" and inserting — 7.5% (c) after paragraph (aa) by inserting — (ab) on lump ore at the rate of 7.5% of the f.o.b. value; (ac) on fine ore at the rate of 5.625% of the f.o.b. value; (4) Clause 13(1)(a) and (aa)(i) of the Agreement as varied, and clause 13(1)(ab) and (ac) as inserted in the Agreement, by subsection (3) operate and take effect despite — (a) any other provision of the Agreement; and (b) any other agreement or instrument; and (c) any other Act or law. (5) Nothing in this section affects the amount of royalty payable under clause 13 of the Agreement in respect of any period before the commencement of the Iron Ore Agreements Legislation Amendment Act 2010 Part 4 1. [Section 6 inserted: No. 34 of 2010 s. 9.] 7. Variation of Agreement about size of ore products and applicable royalties (1) In this section — Agreement means the agreement a copy of which is set out in Schedule 1 — (a) as varied in accordance with its provisions before 1 July 2010; and (b) as varied by these agreements — (i) the First Variation Agreement; (ii) the Second Variation Agreement; and (c) as varied by the Iron Ore Agreements Legislation Amendment Act 2010 Part 4. (2) Clause 1 of the Agreement is varied — (a) by deleting the definitions of "fine ore" and "lump ore"; (b) by inserting in alphabetical order — "fine ore" means iron ore (not being beneficiated ore or pisolite fine ore) which is screened and will pass through a 6.3 millimetre mesh screen; "lump ore" means iron ore (not being beneficiated ore or pisolite fine ore) which is screened and will not pass through a 6.3 millimetre mesh screen; "pisolite fine ore" means iron ore (not being beneficiated ore) derived from channel iron ore deposits that appear to be chemically precipitated sedimentary deposits comprised of a pisolitic texture of hematite grains rimmed with goethite in a goethitic matrix and: (a) having a product gross loss on ignition of 8.5% or greater; and (b) which is screened and will pass through a 9.5 millimetre mesh screen; (3) Clause 13(1) of the Agreement is varied — (a) in paragraph (ab) after "lump ore" by inserting — and on fine ore and pisolite fine ore where such fine ore and pisolite fine ore is not sold or shipped separately as such (b) in paragraph (ac) after "fine ore" by inserting — and on pisolite fine ore sold or shipped separately as such (4) Clause 13(1)(ab) and (ac) of the Agreement as varied by subsection (3) operate and take effect despite — (a) any other provision of the Agreement; and (b) any other agreement or instrument; and (c) any other Act or law. (5) Nothing in this section affects the amount of royalty payable under clause 13 of the Agreement in respect of any period before 1 July 2010. [Section 7 inserted: No. 61 of 2010 s. 45.] 8. Third Variation Agreement (1) The Third Variation Agreement is ratified. (2) The implementation of the Third Variation Agreement is authorised. (3) Without limiting or otherwise affecting the application of the Government Agreements Act 1979, the Third Variation Agreement is to operate and take effect despite any other Act or law. [Section 8 inserted: No. 61 of 2010 s. 48.] 9. State empowered under clause 14C(9)(a) The State has power in accordance with clause 14C(9)(a) of the Agreement. [Section 9 inserted: No. 61 of 2010 s. 48.] 10. Fourth Variation Agreement (1) The Fourth Variation Agreement is ratified. (2) The implementation of the Fourth Variation Agreement is authorised. (3) Without limiting or otherwise affecting the application of the Government Agreements Act 1979, the Fourth Variation Agreement is to operate and take effect despite any other Act or law. [Section 10 inserted: No. 62 of 2011 s. 20.] Schedule 1 — Iron Ore (Marillana Creek) Agreement [s. 3] [Heading amended: No. 29 of 1994 s. 14; No. 19 of 2010 s. 4.] THIS AGREEMENT is made this 20th day of December 1990 BETWEEN THE HONOURABLE CARMEN MARY LAWRENCE, B.Psych., Ph.D., M.L.A., Premier of the State of Western Australia, acting for and on behalf of the said State and its instrumentalities from time to time (hereinafter called "the State") of the one part and BHP MINERALS LIMITED a company incorporated in the State of Western Australia and having its registered office at Level 18, 200 St George's Terrace, Perth (hereinafter called "the Company" in which term shall be included its successors and permitted assigns) of the other part. WHEREAS: (a) the Company has established within the lands the subject of Exploration Licences Nos. 47/294, 47/71 and 47/23 iron ore of tonneages and grades sufficient to warrant economic recovery and marketing; (b) the said Exploration Licence No. 47/294 comprises the land within Temporary Reserve No. 3359H which (with other land) has hitherto been reserved by the State under the provisions of clause 23(4)(g) of the Agreement defined in section 2 of the Iron Ore (The Broken Hill Proprietary Company Limited) Agreement Act 1964 (hereinafter called "the 1964 Agreement"); (c) by an assignment dated the 18th day of March 1966 the benefit of the said clause 23(4)(g) and certain other clauses of the 1964 Agreement was assigned with the consent of the State to the Company; (d) The Broken Hill Proprietary Company Limited and Australian Iron & Steel Proprietary Limited also hold interests under the 1964 Agreement and by an agreement of even date herewith they the State and the Company have agreed to the cancellation of the 1964 Agreement to take effect on the coming into operation of this Agreement; (e) the Company has put forward a project outline for an initial mining operation which will produce approximately 5,500,000 tonnes of iron ore per annum for transportation from the mining lease and have capacity to produce up to 10,000,000 tonnes of iron ore per annum for transportation from the mining lease as markets develop and which will provide accommodation for the mine workforce by way of temporary facilities established in the vicinity of the mining lease; and (f) the State and Company have agreed to enter into this Agreement for the purpose of assisting the establishment of the initial mining operation as described above and providing a framework for managing future changes to the project, particularly in relation to production and workforce increases and changes in workforce accommodation arrangements. NOW THIS AGREEMENT WITNESSES: Definitions 1. In this Agreement subject to the context — "accommodation area" means an area or areas on or in the vicinity of the mining lease for accommodation and ancillary facilities for the mine workforce; "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; "agreed or determined" means agreed between the Company and the Minister or, failing agreement within three months of the Minister giving notice to the Company that he requires the value of a quantity of iron ore to be agreed or determined, as determined by the Minister and in agreeing or determining a fair and reasonable market value of such iron ore assessed at an arm's length basis the Company and/or the Minister as the case may be shall have regard to prevailing markets and prices for iron ore not including beneficiated ore or beneficiated ore as the case may require both outside and within the Commonwealth and where prices beyond the deemed f.o.b. point are being considered the deductions mentioned in the definition of f.o.b. value; "approved proposal" means a proposal approved or determined under this Agreement; "beneficiated ore" means iron ore which has been concentrated or upgraded otherwise than by washing drying crushing or screening or a combination thereof by the Company in a plant constructed pursuant to an approved proposal; "Clause" means a clause of this Agreement; "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; "Company's workforce" means the persons (and the dependants of those persons) connected directly with the Company's activities under this Agreement, whether or not such persons are employed by the Company; "deemed f.o.b. point" means on ship at the loading port; "deemed f.o.b. value" means an agreed or determined value of the iron ore as if the iron ore was sold f.o.b. at the deemed f.o.b. point as at — (i) in the case of iron ore the property of the Company which is shipped out of the said State, the date of shipment; (ii) in any other case, the date of sale, transfer of ownership, disposal or use as the case may be; "EP Act" means the Environment Act 1986; "f.o.b. value" means — (i) in the case of iron ore shipped and sold by the Company, the price which is payable for the iron ore by the purchaser thereof to the Company or, where the Minister is not satisfied that the price payable in respect of the iron ore represents a fair and reasonable market value for that iron ore assessed at an arm's length basis, such amount as is agreed or determined, less all export duties and export taxes payable to the Commonwealth on the export of the iron ore and all costs and charges properly incurred and payable by the Company from the time the iron ore shall be placed on ship at the loading port to the time the same is delivered and accepted by the purchaser including — (1) ocean freight; (2) marine insurance; (3) port and handling charges at the port of discharge; (4) all costs properly incurred in delivering the iron ore from port of discharge to the smelter and evidenced by relevant invoices; (5) all weighing sampling assaying inspection and representation costs; (6) all shipping agency charges after loading on and departure of ship from the loading port; (7) all import taxes by the country of the port of discharge; and (8) such other costs and charges as the Minister may in his discretion consider reasonable in respect of any shipment or sale; (ii) in all other cases, the deemed f.o.b. value. For the purpose of subparagraph (i) of this definition, it is acknowledged that the consideration payable in an arm's length transaction for iron ore sold solely for testing purposes may be less than the fair and reasonable market value for that iron ore and in this circumstance where the Minister in his discretion is satisfied such consideration represents the entire consideration payable, the Minister shall be taken to be satisfied that such entire consideration represents the fair and reasonable market value; "iron ore" includes beneficiated ore; "Land Act" means the Land Act 1933; "loading port" means the port of Port Hedland or if iron ore is not shipped, or is not shipped from that port, then such port (which may include the port of Port Hedland) as the Minister may determine for the purpose of this definition; "local authority" means the council of a municipality that is a city, town or shire constituted under the Local Government Act 1960; "mine site" means the mining lease the accommodation area and other areas provided for the facilities of the Company in the vicinity of the mining lease; "mine workforce" means the Company's workforce engaged for the Company's activities on the mine site but shall not include persons visiting the mine site in connection with the Company's mining activities on a short term basis only or employed for a specific task of limited duration; "Mining Act" means the Mining Act 1978; "mining lease" means the mining lease granted pursuant to Clause 12 and includes any renewal thereof 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 for the administration of the Act to ratify this Agreement and pending the passing of that Act means the Minister for the time being designated in a notice from the State to the Company and includes the successors in office of the Minister; "Minister for Mines" means the Minister in the Government of the State for the time being responsible for the administration of the Mining Act; "month" means calendar month; "Mount Newman Participants" means the parties (or party) for the time being constituting "the Company" under the agreement defined in section 2 of the Iron Ore (Mount Newman) Agreement Act 1964; "notice" means notice in writing; "person" or "persons" includes bodies corporate; "private roads" means the roads referred to in subclause (1) of Clause 16 and any other roads (whether within or outside the mining lease) constructed by the Company in accordance with an approved proposal or agreed by the parties to be a private road for the purposes of this Agreement; "public road" means a road as defined by the Road Traffic Act 1974; "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; "ultimate holding company" bears the same meaning as in section 7(6) of the Companies (Western Australia) Code (as enacted at the date of execution of this Agreement); "washing" means a process of separation by water using only size as a criterion. Interpretation 2. (1) In this Agreement — (a) monetary references are references to Australian currency unless otherwise specifically expressed; (b) power given under any clause other than Clause 33 to extend any period or date shall be without prejudice to the power of the Minister under Clause 33; (c) clause headings do not affect the interpretation or construction; (d) words in the singular shall include the plural and words in the plural shall include the singular according to the requirements of the context; and (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. (2) For the purposes of subclause (3) of Clause 7 and subclause (5) of Clause 23 the Company shall be deemed to be associated with the Mount Newman Participants in the following events — (a) when one party only constitutes "the Company" under this Agreement and one party only constitutes the Mount Newman Participants and — (i) those parties are the same party; or (ii) each of those parties has an ultimate holding company which is the same company; or (b) when more than one party constitutes "the Company" under this Agreement and more than one party constitutes the Mount Newman Participants and each of the parties constituting "the Company" under this Agreement — (i) is a Mount Newman Participant; (ii) has an ultimate holding company which is also the ultimate holding company of a Mount Newman Participant; (iii) is the ultimate holding company of a Mount Newman Participant; or (iv) has a Mount Newman Participant as its ultimate holding company AND either — (v) all the parties constituting the Mount Newman Participants are related to the parties constituting "the Company" under this Agreement in a manner mentioned in subparagraphs (i)‑(iv) of this paragraph; or (vi) if any parties constituting the Mount Newman Participants are not so related each of those parties has an ultimate holding company which is also an ultimate holding company of a Mount Newman Participant which is so related. Initial obligations of the State 3. The State shall — (a) introduce and sponsor a Bill in the State Parliament of Western Australia to ratify this Agreement and endeavour to secure its passage as an act prior to 30 June 1991; and (b) subject to the adequate protection of the environment (including flora and fauna) and the land affected (including improvements thereon) allow the Company to enter upon Crown lands (including, if applicable, land the subject of a pastoral lease) to the extent reasonably necessary for the purposes of undertaking its obligations under subclause (1) of Clause 6. Ratification and operation 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 30 June 1991 the said Bill has not commenced to operate as an Act then unless the parties hereto otherwise agree this Agreement shall then cease and determine and no party hereto shall have any claim against any other party hereto with respect to any matter or thing arising out of, done, performed, or omitted to be done or performed under this Agreement. (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. Cancellation of 1964 Agreement 5. The parties hereto acknowledge that pursuant to the agreement referred to in recital (d) hereof the 1964 Agreement has on the coming into operation of this Agreement been cancelled and the rights and obligations of the parties thereunder terminated (but without affecting the variations made to the agreement ratified by the Broken Hill Proprietary Steel Industry Agreement Act 1952 and the agreement ratified by the Broken Hill Proprietary Company's Integrated Steel Works Agreement Act 1960 (each as amended from time to time) by clauses 20 and 24 of the 1964 Agreement). Initial obligations of the Company 6. (1) The Company shall continue its field and office engineering, environmental, market and finance studies and other matters necessary to enable it to finalise and to submit to the Minister the detailed proposals referred to in Clause 7. (2) The Company shall keep the State fully informed in writing quarterly as to the progress and results of its operations under subclause (1). (3) The Company shall co‑operate with the State and consult with the representatives or officers of the State regarding matters referred to in subclauses (1) and (2) and any other relevant studies in relation to those subclauses that the Minister may wish to undertake. Company to submit proposals 7. (1) Subject to and in accordance with the EP Act and any approvals and licences required under that Act the Company shall on or before 31 October 1991 and subject to the provisions of this Agreement submit to the Minister to the fullest extent reasonably practicable its detailed proposals (including plans where practicable and specifications where reasonably required by the Minister) with respect to the production of up to 5,500,000 tonnes of iron ore per annum for transportation from the land to be the subject of the mining lease and the transport and shipment of iron ore produced which proposals shall make provisions for the Company's workforce and associated population required to enable the Company to mine and recover iron ore from the mining lease and transport and ship the iron ore and shall include the location, area, lay‑out, 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 and any processing of iron ore proposed to be carried out; (b) roads within the mining lease and roads serving the mining lease; (c) temporary accommodation and ancillary facilities for the mine workforce on or in the vicinity of the mining lease and housing or other appropriate accommodation and facilities elsewhere for the Company's workforce; (d) management of vehicles on the mine site; (e) water supply; (f) power supply; (g) transportation of iron ore by rail; (h) storage and ship loading of iron ore; (i) mine aerodrome on or in the vicinity of the mining lease and any other aerodrome facilities and services; (j) any other works, services or facilities desired by the Company; (k) use of local labour professional services manufacturers suppliers contractors and materials and measures to be taken with respect to the engagement and training of employees by the Company, its agents and contractors; (l) any leases, licences or other tenures of land required from the State; and (m) an environmental management programme as to measures to be taken, in respect of the Company's activities under this Agreement, for rehabilitation and the protection and management of the environment. Order of proposals (2) Each of the proposals pursuant to subclause (1) 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 (m) of subclause (1). Use of existing infrastructure (3) Each of the proposals pursuant to subclause (1) may with the consent of the Minister and that of any other parties concerned instead of providing for the construction of new facilities or equipment or the provision of new services of the kind therein mentioned provide for the use by the Company of any existing facilities equipment or services of such kind belonging to the Company or the Mount Newman Participants during any period when the Company is associated with the Mount Newman Participants, or upon reasonable terms and conditions of any other existing facilities equipment or services of such kind. Additional submissions (4) At the time when the Company submits the said proposals it shall submit to the Minister details of any services (including any elements of the project investigations design and management) and any works materials plant equipment and supplies that it proposes to consider obtaining from or having carried out or permitting to be obtained from or carried out outside Australia together with its reasons therefor and shall, if required by the Minister, consult with the Minister with respect thereto. Consideration of proposals 8. (1) Subject to the EP Act, in respect of each proposal pursuant to subclause (1) of Clause 7 the Minister shall — (a) approve of the proposal without qualification or reservation; or (b) defer consideration of or decision upon the same until such time as the Company submits a further proposal or proposals in respect of some other of the matters mentioned in subclause (1) of Clause 7 not covered by the said proposal; or (c) require as a condition precedent to the giving of his approval to the said proposal that the Company make such alteration thereto or comply with such conditions in respect thereto as he (having regard to the circumstances including the overall development of and the use by others as well as the Company of all or any of the facilities proposed to be provided) thinks reasonable and in such a case the Minister shall disclose his reasons for such conditions, PROVIDED ALWAYS that where implementation of any proposals hereunder have been approved pursuant to the EP Act subject to conditions or procedures, any approval or decision of the Minister under this Clause shall if the case so requires incorporate a requirement that the Company make such alterations to the proposals as may be necessary to make them accord with those conditions or procedures. Advice of Minister's decision (2) The Minister shall within two months after receipt of proposals pursuant to subclause (1) of Clause 7 or where the proposals are to be assessed under section 40(1)(b) of the EP Act then within two months after service on him of an authority under section 45(7) of the EP Act give notice to the Company of his decision in respect to the proposals. Consultation with Minister (3) If the decision of the Minister is as mentioned in either of paragraphs (b) or (c) of subclause (1) the Minister shall afford the Company full opportunity to consult with him and should it so desire to submit new or revised proposals either generally or in respect to some particular matter. Minister's decision subject to arbitration (4) If the decision of the Minister is as mentioned in either of paragraphs (b) or (c) of subclause (1) and the Company considers that the decision is unreasonable the Company within 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 PROVIDED THAT any requirement of the Minister pursuant to the proviso to subclause (1) shall not be referable to arbitration hereunder. Arbitration award (5) An award made on an arbitration pursuant to subclause (4) shall have force and effect as follows — (a) if by the award the dispute is decided against the Company then unless the Company within 3 months after delivery of the award give notice to the Minister of its acceptance of the award this Agreement shall on the expiration of that period of 3 months cease and determine; or (b) if by the award the dispute is decided in favour of the Company the decision shall take effect as a notice by the Minister that he is so satisfied with and approves the matter or matters the subject of the arbitration. Effect of non‑approval of proposals (6) Notwithstanding that under subclause (1) any proposals of the Company are approved by the Minister or determined by arbitration award, unless each and every such proposal and matter is so approved or determined by 31 October 1992 or by such extended date or period if any as the Company shall be granted pursuant to the provisions of this Agreement then the Minister may give to the Company 12 months notice of intention to determine this Agreement and unless before the expiration of the said 12 months period all the detailed proposals and matters are so approved or determined this Agreement shall cease and determine subject however to the provisions of Clause 35. Implementation of proposals (7) Subject to and in accordance with the EP Act and any approvals and licences required under that Act the Company shall implement the approved proposals in accordance with the terms thereof. Overall development 9. (1) Having regard to the geographical relationship and physical association of the mining lease with other iron ore deposits in and to the general development of the central Hamersley Range area, the Company in its initial proposals under Clause 7 and any subsequent proposals pursuant to Clause 10 (other than a proposal under that Clause to increase production of iron ore where the total production after such increase will not exceed 10,000,000 tonnes of iron ore per annum for transportation from the mining lease and the proposal does not involve any significant variation to the mine infrastructure) or Clause 11 shall take into account and make provision where it is reasonably practicable so to do for: — (a) the economic and orderly overall development of the lands the subject of this Agreement and those other iron ore deposits; (b) appropriate infrastructure development in the central Hamersley Range area having regard to then existing iron ore operations and facilities and other existing developments; and (c) an open town or other appropriate housing and accommodation arrangements to service the iron ore mines and other developments in the central Hamersley Range area. (2) The Company and the State shall co‑operate and consult with each other regarding the matters referred to in subclause (1), State Government policies and development objectives, the Company's commercial requirements and any other relevant matters that the Minister or the Company may wish to consider. Additional proposals 10. (1) Subject to Clause 11 if the Company at any time during the continuance of this Agreement desires to produce more than 5,500,000 tonnes of iron ore per annum for transportation from the mining lease or to significantly modify expand or otherwise vary its activities carried on pursuant to this Agreement beyond those activities specified in any approved proposals it 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 (m) of subclause (1) of Clause 7 as the Minister may require. (2) The provisions of Clause 7 and Clause 8 (other than subclause