Exmouth Gulf Solar Salt Industry Agreement Act 1969 (WA)

Case
No judgment structure available for this case.

No. 65.]

Exmouth Gulf Solar Salt

[1969.

Industry Agreement.

EXMOUTH GULF SOLAR SALT INDUSTRY AGREEMENT

No. 65 of 1969.

AN ACT to approve an Agreement between the State

of Western Australia and Exmouth Salt Pty.

Ltd. relating to the establishment and carrying

on of a solar salt industry and other allied

mining and ancillary industries.

[Assented to 14th October 1969.]

RE it enacted by the Queen's Most Excellent

Majesty, by and with the advice and consent

of the Legislative Council and the Legislative

Assembly of Western Australia, in this present

Parliament assembled, and by the authority of the

same, as follows:-

Short title.

1.

This Act may be cited as the Exmouth Gulf Solar Salt Industry Agreement Act, 1969.

Interpre-

2. In this Act

tation.

"the Agreement" means the Agreement a copy

of which is set forth in the Schedule to this

Act, and if the Agreement is amended in

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Industry Agreement.

accordance with the provisions of the Agreement, includes the Agreement as so amended from time to time.

Agreement

3.

The Agreement is approved.

approved

4.    By-laws may be made for the purposes of, By-laws.

and in accordance with clause 9 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 them;

(c)

may prescribe penalties not exceeding one hundred dollars for a breach of any of the by-laws;

(d)

are not subject to section 36 of the Inter- pretation Act, 1918, but shall be laid before each House of Parliament within six sitting days of such House next following the publication of the by-laws in the Gazette;

and

(e)

may be altered or repealed in accordance with that clause.

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Exmouth. Gulf Solar Salt

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Industry Agreement.

8. 2.

SCHEDULE.

AN AGREEMENT under seal made the Second day of May One thousand nine hundred and sixty nine BETWEEN THE HONOURABLE DAVID BRAND, M.L.A., Premier and Treasurer of the State of Western Australia acting for and on behalf of the Government of the said State and instru- mentalities thereof from time to time (hereinafter referred to as "the State") of the one part and EXMOUTH SALT PTY. LTD. a company incorporated under the provisions of the statutes of Western Australia and having its registered office at 98 St. George's Terrace, Perth, in the said State (hereinafter called "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 28 hereof) of the other part.

WHEREAS the parties hereto desire to enter into this Agree- ment with the object of the establishment and carrying on at and in the vicinity of Exmouth Gulf of a solar salt industry and such other allied mining and ancillary indus- tries as may conveniently be carried on in conjunction therewith and to do all acts matters and things to attain and to facilitate the abovementioned object.

NOW THIS AGREEMENT WITNESSETH and the parties hereto COVENANT AND AGREE with one another as fol- lows:—

Definitions.

1. In this Agreement subject to the context

"Commencement Date" means the date on which the Company submits written application for the pro- duction site lease pursuant to subclause (1) of Clause 5 hereof;

"Land Act" means the Land Act, 1933;

"Mining Act" means the Mining Act, 1904;

"Minister" means the Minister of the Crown to whose

administration the ratifying Act is for the time being committed or 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;

"production site" means any land leased to and held by the Company pursuant to the provisions of Clause 5 hereof;

"production site lease" means the lease of the produc- tion site granted pursuant to subclause (1) of Clause 5 hereof;

"ratifying Act" means the Act referred to in subclause

(1) of Clause 3 hereof;

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Industry Agreement.

"shipped" includes removal from the work site by ship or any other means;

"stockpile site" means the land for the time being leased from the State pursuant to subclause (5) of Clause 6 or held by the Company under any other tenure for the purpose of being used for stockpiling salt;

"the said State" means the State of Western Australia;

"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;

"ton" means a ton of two thousand two hundred and forty (2240) lbs. net dry weight;

"work site" includes the production site, stockpile site (whether or not leased from the State) 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 16 hereof;

"year" means a year commencing on the 1st day of July;

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.

2. Upon the execution of this Agreement the State shall

This

Agreement

be obliged to introduce and sponsor the Bill mentioned in

Conditional.

Clause 3 (1) hereof and if so requested by the Company shall be obliged to grant the right of occupancy provided for in Clause 4 hereof but no other provision hereof shall be of any effect unless and until the Company at some time prior to the 31st day of December, 1969, establishes to the reasonable satisfaction of the Minister, and the Minister signifies in writing that he is so satisfied, that:

(a)

the Company has entered into or intends to enter into contracts or arrangements satisfactory to the Company and the State for the sale by the Company of salt; and

(b)

the Company has made or is about to make arrange- ments satisfactory to the Company and the State for financing the works referred to in Clause 11 hereof and that the Company proposes to proceed with such works.

3. (1) The State shall introduce and sponsor a Bill in Ratifying

the Parliament of Western Australia to ratify this Agree- Act.

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Industry Agreement.

ment and endeavour to ensure its passage as an Act prior to the 30th day of June, 1969, or such later day as the parties hereto may agree upon. If the Bill is not so passed as an Act before the 30th day of June, 1969 (or such later day as the parties hereto may agree upon) this Agreement shall be of no force or effect 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.

(2) If the Bill to ratify this Agreement is passed as an Act before the 30th day of June, 1969 (or such later day as aforesaid) the following provisions of this clause shall not- withstanding the provisions of any Act or law thereupon operate and take effect namely:

(a)

the State may by Agreement acquire or compul- sorily 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 State is reasonably required for the objects of this Agreement and may thereafter dispose or deal with the same in accordance with or for the purposes of this Agreement apart from the provi- sions 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 provi- sions 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 except that notice of intention to take or resume the land shall be given in accord- ance with the provisions of paragraph (b) of sub- clause (2) of Section 17 of the said Act;

(b)

all land the subject of any lease hereunder shall for the purposes of the Mining Act, 1904, be deemed to be "Private Land" for the purposes of that Act.

Temporary

4. (1) The State shall

Reserve.

(a)

upon application by the Company at any time prior to the 31st day of December, 1969, (and surrender of the then existing rights of occupancy already granted in respect of Temporary Reserve 355811) cause to be granted to the Company for the pur- poses of this Agreement (including the sole right to search and prospect for evaporites and make prototype constructions) rights of occupancy under Section 276 of the Mining Act over the whole of the area comprised in Temporary Reserve 3558H for a period of twelve months and at the same rental as the last current renewal of the said rights of occupancy and shall then and thereafter subject

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to the continuance of this Agreement and para- graphs (b) (c) (d) and (e) of this subclause cause to be granted to the Company successive renewals of such rights of occupancy (each renewal for a period of twelve months at the same rental and on the same terms) the last of which renewals not- withstanding its currency shall expire-

(i)    on the 30th day of June, 1979;

(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)

upon the granting of the production site lease pur- suant to subclause (1) of Clause 5 hereof reduce the area of the said Temporary Reserve by such amount as is comprised in the said production site lease;

(c)

upon the granting of such other leases as the Minis- ter may consider appropriate especially those granted pursuant to Clause 6 hereof reduce the area of the said Temporary Reserve by such amount as is comprised in the said leases if the Minister considers such reduction to be reasonable;

(d)

after the 31st day of December, 1974, or upon the Company sooner identifying to the full extent per- mitted by subclause (2) of Clause 5 hereof an area or areas of Temporary Reserve 3558H which it wishes reserved for the purposes of the Company and the Minister agreeing that all of such area or areas be so reserved (whichever shall first happen) the said Temporary Reserve shall be reduced to coincide with the area or areas which the Minister has agreed should be so reserved;

(e)

after the 31st day of December, 1978, or upon the Company sooner securing to the full extent per- mitted the addition to the production site lease of such additional area or areas as the Minister has agreed should be reserved for the purposes of the Company pursuant to the provisions of subclause (2) of Clause 5 hereof (whichever shall first hap- pen) Temporary Reserve 355811 shall be reduced to coincide with the area of the production site lease as so enlarged.

into operation of the ratifying Act and the signification by s ite Lease.

5. (1) As soon as conveniently may be after the co i

mag Production

the Minister of his being satisfied as to the matter men-

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tioned in Clause 2 hereof the State shall on the written application of the Company cause all that land edged in red in the Plan initialled on behalf of the parties hereto for the purpose of identification and comprising approxi- mately thirty thousand (30,000) acres or so much of it as the Company in that application specifies to be leased to the Company under the prcrisions of the Mining Act, 1904, which shall be deemed to be so amended varied and modified as to enable the lease to be granted on the following terms and conditions namely:—

(a)

for a term of twenty-one (21) years from the com- mencement date;

(b)

at a rental computed at the rate of four dollars ($4) per one hundred (100) acres per annum;

(c)

subject to the payment by the Company of the royalties hereinafter mentioned and to the due and punctual performance by the Company of its obligations hereunder;

(d)

that the Company shall be entitled (provided the right of re-entry contained in the lease or the renewal thereof (as the case may be) has not been exercised) to the options to renew the lease for a further term of twenty-one (21) years and on the expiry thereof to further renew the lease for a further term of twenty-one (21) years on the same terms and conditions as are contained in paragraphs (b) (c) (f) and (g) of this subclause;

(e)

that the cost of any survey required by the State be paid by the Company;

(f)

subject to the reservations required in Crown Leases pursuant to the Petroleum Act, 1936 or required for the purpose of preserving rights that have been or may be granted under the Petroleum (Sub- merged Lands) Act 1967; and

(g)

otherwise on such terms and conditions as are reasonably required to give effect to the provisions and objects of this Agreement.

The Company on demand shall pay to the State a sum sufficient to reimburse the State for the cost of resuming or taking any land required for the production site.

(2) The Company may at any time and from time to time but in no case later than the 31st day of December, 1974 (or such later date as the Minister in his absolute discretion may allow) request that any area or areas of Temporary Reserve 3558H not included in the production site lease granted pursuant to subclause (1) of this Clause

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but not exceeding in aggregate sixty thousand (60,000) acres be reserved for the purposes of the Company and the Minis- ter shall indicate whether or not he agrees that such area or areas should be so reserved.

(3) The Company may at any time and from time to time, but in no case later than the 31st day of December, 1978, submit to the Minister proposals for its use of any such additional area or areas as the Minister has agreed should be reserved for the purposes of the Company and the Minister may thereupon and at his absolute discretion add any such area or areas to the production site lease on such terms Q.nd conditions as he shall think fit.

(4) The exercise of any discretion conferred on the

Minister by this clause shall not give rise to any dispute or

difference referable to arbitration under Clause 29 hereof.

(5)

If the State should ever require any such additional area or areas as mentioned in subclauses (2) and (3) of this clause for any public purpose or for lease to any other business enterprise then it may notify the Company accord- ingly and thereafter in respect of the area or areas notified the date by which the Company may apply to the Minister pursuant to subclause (3) of this clause will be two (2) years from the date of the State's notice if the State's notice be given within five (5) years of the date of the production site lease or otherwise one year.

6. (1) If the Company notifies the Minister that it wishes

Lease for

Shiploading

to construct a jetty dredged channel and turning basin

Facilities.

with berthing and loading facilities in the vicinity of Burn- side Harbour and if having regard for the general develop- ment of the vicinity with a view to the reasonable use thereof by others there is available to the State land sufficient for the Company's requirements then the State shall grant the Company an appropriate lease at a peppercorn rental of the area reasonably necessary for the Company's requirements for the same term and rights of renewal as apply in respect of the production site lease and a license therefor on pay- ment of the appropriate fee under the provisions of the "Jetties Act, 1926", and the Company shall thereupon con- struct and maintain said jetty dredged channel and turning basin with berthing and loading facilities provided that the Minister has approved of the plans and specifications

therefor.

-

(2) If the Company notifies the Minister that it wishes to construct an offshore loading terminal and berthing and

OffshoreLoading

Terminal.

loading facilities for transhipment from barges to bulk

carriers beyond the six (6) fathom line within Exmouth

Gulf and if having regard for the general development of

the vicinity with a view to the reasonable use thereof by

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Industry Agreement.

others there is available to the State an area sufficient for the Company's requirements then the State shall grant the Company an appropriate lease at peppercorn rental of the area reasonably necessary for the Company's requirements for the same term and rights of renewal as apply in respect of the production site lease and a license therefor shall be issued and the Company shall thereupon construct and maintain such offshore terminal and berthing and loading facilities, provided that the Minister has approved of the plans and specifications therefor, and the Company's pro- posals for the development and operation thereof.

Transfer

If the Company notifies the Minister that it wishes based on "Y" Island and if having regard for the general development of the vicinity with a view to the reasonable use thereof by others there is available to the State land suffici- ent for the Company's requirements then the State shall grant the Company an appropriate lease at a rental of five dollars ($5) per acre per annum of the area reasonably necessary for the Company's requirements for the same term and rights of renewal as apply in respect of the production site lease and a license therefor on payment of the appro- priate fee under the provisions of the "Jetties Act, 1926", and the Company shall thereupon construct and maintain such jetty and berthing and loading facilities provided that the Minister has approved the plans and specifications therefor and the Company's proposals for the development and operation of such berthing and loading facilities and any harbour area associated therewith.

Terminal

(3)

at "Y"

to construct a jetty with berthing and loading facilities

Island.

The Minister shall not be obliged to grant any of the leases provided for under subclauses (1) (2) and (3) of this clause unless he is satisfied that the Company has taken such steps as are necessary for the Company to com- ply with the laws of the said State and the Commonwealth relating to navigation and the Minister may make it a condition of any of the said leases that the Company shall comply with the said laws throughout the continuance of this Agreement.

(4)

If the Company notifies the Minister that it requires into barges or ships of salt produced at the production site and if having regard for the general development of the vicinity with a view to the reasonable use thereof by others there is available to the State land sufficient for the Com- pany's requirements (which as presently estimated would be twenty (20) acres) then the State shall grant to the Company a lease thereof subject to the same term and rights of renewal as apply in respect of the production site lease at a rental of five dollars ($5) per acre per annum provided the Minister has approved of the plans and specifications for the development thereof.

(5)

Lease for

Stockpile

a stockpile site in the vicinity of a jetty used for the loading

Site.

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Industry Agreement.

Lease for

If the Company notifies the Minister that it requires a site for bulk fuel tanks to supply the operating plant and

Bull: Fuel

Site.

power station in the vicinity of a jetty used for the loading into barges or ships of salt produced at the production site and if, having regard for the general development of the vicinity with a view to the reasonable use thereof by others, there is available to the State land sufficient for the Com- pany's requirements then the State shall grant to the Company a lease subject to the same term and options of renewal as applied in respect of the production site lease at a rental of five dollars ($5) per acre per annum provided the Minister has approved of the plans and specifications for the development thereof.

Airstrip.

(6)

If the Company notifies the Minister that it wishes to construct an airstrip in the vicinity of the production site and if having regard for the general development of the vicinity with a view to the reasonable use thereof by others there is available to the State land sufficient for the Com- pany's requirements then the State shall grant the Company an appropriate lease at a peppercorn rental of the area reasonably necessary for the Company's requirements and sufficient to comply with the provisions of the "Department of Civil Aviation's Regulations", and subject to any necessary consents the Company may thereupon construct such air- strip and facilities provided that the Minister has approved of the plans and specifications therefor.

(7)

Water

7. (1) The State shall not unreasonably refuse applications by the Company for licenses to establish and maintain a fresh water supply from surface or underground sources on Crown lands adjacent to the production site, provided that the Company first obtains the written approval of the Minis- ter for the plans and specifications of the works involved.

Supply.

Flood

(2) The State shall not unreasonably refuse applica- tions by the Company for licenses to establish and maintain levees, channels or other like works on Crown Lands adjacent to the production site for the purpose of diverting the flow of ground waters away from the Company's production facilities provided that the Company first obtains the writ- ten approval of any lessee of the lands and provided also that the Company submits to the Minister and receives his written approval of the plans and specifications of the works involved.

Protection.

8. (1) If the Company notifies the State that it wishes to construct and operate between the production site and the

Road Rail

or Conveyor

Transport.

stockpile site or jetty used by the Company for loading salt into barges or ships, or, between the stockpile site and such jetty a railway, a private roadway or an apparatus for conveying salt by other mechanical means (including with- out limitation pumping in slurry or transferring by conveyor

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Industry Agreement.

or aerial ropeway) and if the Company's notice gives a general description of a proposed route and of the intended railway, roadway or apparatus, then subject to subclause (4) of this clause the State after consulting with the Com- pany will cause to be surveyed at the cost of the Company the route which the State considers would be most practi- cable and convenient.

As soon as practicable after the completion of that survey and subject to the payment by the Company of all incidental costs and expenses including the cost and expense of any necessary acquistion or resumption of lands over which the route passes the State shall cause to be granted to the Company a lease easement or license (whichever is most appropriate in the circumstances) over the surveyed route (exclusive of any part which is a public road) on such terms as are reasonably required to give effect to the objects and provisions of this Agreement and thereafter the Company shall be entitled to construct and use the particu- lar railway (with or without compliance with the require- ments of Section 96 of the Public Works Act, 1902) roadway or apparatus in accordance with the terms of the said lease easement or license.

(2)

The lease easement or license will continue for so long as the Company is the lessee of the production site and will enable the Company to use the surveyed route for the purposes only of constructing, operating, repairing and renewing the railway, private roadway or apparatus as the case may be.

(3)

(4) Notwithstanding anything hereinbefore contained the State shall have no obligations to cause a survey to be made or grant a lease, easement or license under this Clause insofar as to do so would be inconsistent with obligations of the State or would unreasonably prejudice or interfere with the general requirements of the State in regard to the use of the area for public purposes or industrial development.

By-Laws.

9. At the reasonable request of the Company from time to time the Minister shall recommend to the Governor in Executive Council that he make alter or repeal as may be desirable by-laws in respect of the management or use of any of the Company's facilities that have been constructed pursuant to this Agreement.

10. (1) On application by the Company the State shall cause to be granted to the Company such machinery and

tailings leases and such other leases, licenses, reserves and

tenements under the Mining Act or under the provisions of

the Land Act modified as in subclause (2) of this Clause

provided as the Company may reasonably require and re-

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quest for its purposes under this Agreement on or near the production site provided land is available. Without limiting the generality of the foregoing the State shall grant to the Company appropriate rights either by lease or license enabling the Company to take without royalty stone, gravel, sand, or earth, for the purpose of making improvements to the work site.

(2) For the purposes of the preceding subclause the Land Act shall be deemed to be modified by

(a)

of the following subsection:

the substitution for subsection (2) of Section 45A ant 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;

(e)

the inclusion of a power to offer for sale or leasing land within or in the vicinity of any townsite not- withstanding that the townsite has not been con- stituted 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.

(3) The provisions of subclause (2) 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 accord- ance with the other provisions of this Agreement.

11. The Company shall not later than three (3) months 8==.

after the commencement date commence and thereupon

diligently proceed with the construction and establishment

on the work site of a solar salt plant designed to have the

capacity to produce and to load into barges or ships not

less than five hundred thousand (500,000) tons of salt per

annum, and estimated with its equipment and staff housing

to cost not less than three million (3,000,000) dollars pro-

vided that plans and specifications of such solar salt plant

have first been submitted to and approved by the Minister.

The Company shall complete the construction and

establishment of the plant not later than the 31st day of

December, 1972.

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Industry Agreement.

12. (1) The Company shall reimburse the State for the capital cost of establishing any services of the State at or near the work site and for the cost of the maintenan r^ and operation thereof where the need for such services as reasonably attributable to or results from the Company's project and operations, except that the Company shall not be obliged to meet the cost of operating any education, hos- pital or police services.

If the State and the Company are unable to agree upon the necessity for such facilities or the standard or cost thereof then the matter shall be determined by arbitration.

(2)

(3) The obligation of the Company under this Clause shall extend to reimbursing the State for the cost of estab- lishing and maintaining any residential or other accommo- dation which in the opinion of the Minister is required for officers of the State.

The Company shall also meet any request by the Government of the Commonwealth of Australia for the provision of any residential or other accommodation for the officers of that Government at or near the work site where the need for such accommodation is reasonably attri- butable to or results from the Company's project and operations.

(4)

Royalty. 13. (1) Throughout the continuance of this Agreement the Company shall pay to the State a royalty on all salt produced at the work site and shipped computed as set out here- under:

Rate per ton

On the first 500,000 tons in any year

5 cents

On the second 500,000 tons in any year

6.25 cents

On all tonnages in excess of 1,000,000 tons

in any year 7.5 cents Tonnages shall be ascertained at Burnside in such manner as the parties hereto may from time to time agree upon.

Within twenty-one (21) days after the quarter days being the last days of March, June, September and Decem- ber in each year commencing with the quarter day next following the first shipment of salt produced at the work site the Company shall furnish to the Minister for Mines a return showing the quantity of all salt the subject of royalty hereunder shipped during the quarter ending on the respective quarter day and shall not later than one (1) month after the date on which such return is due pay to the State the royalty in respect of all salt shipped during that quarter.

Returns.

(2)

Inspection

Throughout the continuance of this Agreement the Company shall permit a nominee of the Minister for Mines

of Records

(3)

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to inspect at all reasonable times the books of account and records of the Company relative to the production of salt on the work site and any sale or shipment thereof and to take copies or extracts therefrom so far as is necessary for the purpose of determining the royalty payable in respect of salt shipped hereunder. The Company will take reasonable steps to satisfy the State either by the certificate of a com- petent independent party acceptable to the State or other- wise to the reasonable satisfaction of the Minister for Mines as to all relevant weights and will give due regard to any objection or representation made by the Minister for Mines or his nominee as to any particular weight of salt which may affect the amount of royalty payable hereunder.

14. The State may make or cause to be made against vessels using any jetty or offshore loading terminal constructed by

Other

Charges.

the Company the usual charges from time to time prevailing in respect of services rendered to vessels by the State or any agency instrumentality or other authority of the State and may charge vessels using any such jetty or offshore loading terminal such conservancy and pilotage charge or dues as are payable from time to time pursuant to the pro- visions of any Act. In respect of inward and outward cargoes of the Company, the State shall permit the Company to operate any jetty erected by the Company with its own personnel. No wharfage shall be payable by the Company during the currency of this Agreement.

15. (1) Notwithstanding anything herein contained it is Escalation.

hereby agreed by and between the parties hereto in order to provide for the equitable performance of this contract that in the event of the price of salt (as hereinafter defined) on the 14th, 21st, 28th, 35th, 42nd, 49th or 56th anniversaries of the commencement date exceeding the price of salt on the 7th anniversary of the commencement date, then the per- centage by which the price of salt on the relevant anniver- sary exceeds the price of salt on the 7th anniversary of the commencement date shall be calculated and the several amounts mentioned herein and payable by the Company to the State as

(a)

rental under paragraph (b) of subclause (1) of Clause 5;

(b)

rental under subclauses (3) (5) and (6) of Clause 6;

(c)

royalty under subclause (1) of Clause 13;

shall be increased by the percentage so calculated 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.

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Industry Agreement.

(2) For the purposes of this Clause the price of salt on the 7th anniversary of the commencement date and on each of the aforesaid anniversaries means the average price of salt shipped from the work site during the previous year payable by the purchaser or purchasers thereof to the Com- pany less all export duties taxes and fees payable to the Commonwealth on the export of salt and the costs and expenses properly incurred and payable by the Company in respect of that sale from the time it is shipped to the time it is delivered to and accepted by the purchaser or purchasers including

(a) ocean freight;

(b) marine insurance;

(c)

port and handling charges at the port of discharge;

(d)

all costs properly incurred in delivering the salt from the port of discharge to the purchaser as evidenced by relevant invoices;

(e)

all weighing, sampling, analysis, inspection and representation costs;

(f)

all shipping agency charges after shipment; and

(g)

all import taxes imposed or levied by the country or the port of discharge.

(3) Throughout the continuance of this Agreement the Company shall use its best endeavours to obtain for the salt produced at the production site the best price possible having regard to market conditions from time to time prevailing.

Housing.

16. (1) Subject to the provisions of this Clause the State will on the written application made from time to time by the Company for land for housing or staff amenity purposes grant to the Company in such locality as land is available therefor a lease of such vacant lots as the Company requests on the following terms and conditions namely:

(a)

for a term of five (5) years commencing from a day to be agreed upon by the parties hereto;

(b)

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;

(c)

that the Company will within eighteen (18) months of the commencement of the term of each lease granted for housing purposes complete on the land the subject of that lease the erection of a building for the accommodation of a family or single persons at a cost of not less than ten thousand dollars ($10,000) or such other figure as the Minister may approve;

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Industry Agreement.

(d)

that on the expiration of the term of the lease and subject to the due and punctual observance and performance by the Company of all the covenants agreements and conditions on its part therein con- tained, on the request of the Company the State will 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 sur- vey fees;

(e)

that the Company will not sell transfer assign sub- let or mortgage charge or encumber any lease with- out the consent of the Minister first had and obtained PROVIDED THAT the consent of the Minister shall not be required to the transfer assign- ment or sub-lease to an employee of the Company of a lot leased for housing purposes nor to any mortgage of a lot in respect of which the Company has complied with paragraph (c) of this Clause

relation to that lot;

(f)

that the Company will pay to the relevant local authority or any other authority of the said State which will be responsible for providing services to houses on the leased area (when requested by the authority so to do) such amount as the authority reasonably requires at the time of the grant of the lease to enable it to supply or make availab l e the usual services;

(g)

otherwise on such terms and conditions as are reasonably required to give effect to the provisions and objects of this Agreement.

The State shall not be required to lease to the Com- pany pursuant to this Clause more than one hundred (100) lots. The request for each lot shall be made by the Company at least six (6) months before the Company requires the lease of that lot to be granted to it. In the event of the Minister consenting under the provisions of paragraph (e) of sub-clause (1) of this Clause to a transfer assignment or sub-letting of the lot the State shall not be required to lease another lot in lieu of the lot so transferred assigned or sub-let.

(2)

(3) Notwithstanding the provisions of any Act by-law or regulation the Company shall be entitled to erect main-

Temporary

Housing.

tain and remove such temporary housing as it requires within the area of the production site lease provided that the same shall conform to any reasonable requirement of the local authority as to health and sanitation and provided any such temporary housing shall be removed from the production site lease by the 30th day of June, 1972 or such

later date as the parties hereto may agree.

No. 65.]

Exmouth Gulf Solar Salt

[1969.

Industry Agreement.

Sea

Water

17. The Company may without charge draw, take and use sea water for all or any one or more of its operations in respect of the mining extraction and production of salt on the work site and the Company may store at such place within the work site as may be convenient or discharge at or below high water mark at such points near to the work site as are approved by the State residual brines resulting from those operations. If requested by the Company the State shall grant to the Company any 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. 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 the right to the exclusion of any other person to mine and recover any other minerals, substances or chemicals in the said residual brines.

Rights of

Ingress

18. The State shall from time to time on the written

and

application of the Company grant to the Company a license

Egress.

or licenses over Crown Lands to permit the Company by its servants agents contractors invitees and customers the right of ingress and egress from all or any one or more part or parts of the work site on such terms and conditions as shall be reasonable having regard to the requirements of the Com- pany in respect of the construction maintenance operation and inspection of the improvements from time to time constructed or installed on the work site and to the overall development and use by others of those Crown Lands.

Export

19.

If at any time or times under Commonwealth law an export license is required by the Company for the export of salt then on written request by the Company the State shall make representation to the Government of the Com- monwealth of Australia for the grant to the Company of a license or licenses under Commonwealth law for the export of salt in such quantities and at such rate or rates as shall be reasonable having regard to the tonnage of salt 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 salt from the work site.

License.

Limitation

of

20. Where the Company from time to time constructs a

Liability.

levee or other works on the production site for or incidental to the production and shipping of salt and thereafter a third party makes improvements to lands or becomes the owner of improvements so made on lands adjacent to the produc- tion site 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 con-

1969.

]

Exmouth Gulf Solar Salt

[No. 65.

Industry Agreement.

sequence 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.

21. For the purposes of determining whether and the extent

to which—

road use.

(a)

the Company is liable to any person (other than the State); or

(b)

an action is maintainable by any such person;

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 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.

Ilse of

22. (1) The facilities to be provided by the Company under this Agreement are being established primarily for the pro-

facilities

by third

parties.

duction and export of salt but it may be desired from time to time for the State or others to make use of the jetties, harbour, off-shore loading or other shipping facilities, access roads, railway or other transport facilities, airstrip, fueling facilities, water supply, power supply or other facilities so provided and in this event such use shall not be withheld providing that it will not unreasonably prejudice the Com- pany's operations and providing that arrangements therefor can be made which will result in a reasonable return to the Company for such user having regard to the cost to the Company of establishing and maintaining the facilities con- cerned.

(2) In the event of a third party and the Company failing to agree on terms for the use of any such facilities as are mentioned in subclause (1) of this Clause the dispute shall be determined by the Minister and in the event of any dispute between the State and the Company as to the former's proposed use of any such facilities the dispute shall be referred to arbitration in accordance with the provisions of this Agreement.

23. The State shall not permit a third party to establish its own facilities at Burnside Harbour and use the Com- pany's dredged channel and/or other facilities if such use could be unreasonably prejudicial to the Company's opera-

No. 65.]

Exmouth Gulf Solar Salt

[1969.

Industry Agreement.

tions especially for reason of contamination of the salt

products.

Non-

interference

24.

The State shall not during the currency of this Agree- tenement under the Mining Act or any lease under the Land Act or otherwise by which any person other than 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 the Petroleum (Submerged Lands) Act, 1967) or otherwise obtain surface rights within the production site unless the Minister for Mines 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.

with

Company's

ment register any claim or grant any lease or other mining

rights.

Default.

25.

The parties hereto covenant and agree with each other

as follows:—

(a)

that in any of the following events namely if the Company fails in any year after the 30th day of June, 1977 to ship at least three hundred and fifty thousand (350,000) tons of salt and furthermore the average of the tonnage shipped in that year and in the previous three (3) years is less than three hundred and fifty thousand (350,000) 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 sub-lease easement license or other right or title granted 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 by the State to the Company and also to any Mortgagee approved pur- suant to Clause 28 hereof if it has a registered office in Perth (or if the alleged default is contested by the Company and promptly submitted to arbitra- tion 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 re-construction) 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 here-

1969.]

Exmouth Gulf Solar Salt

[No. 65.

Industry Agreement.

under or pursuant hereto PROVIDED HOWEVER that if the Company fails 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 the State 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, machinery, equipment and installations thereon) and the costs and expenses incurred by the State remedying or caus- ing to be remedied such default shall be a debt payable by the Company to the State on demand made by the State;

Effect of

(b) that on the cessation or determination of this

determina-

Agreement:

tion of

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 Com- pany or any assignee of the Company or any mortgagee to in or under any lease license easement or right granted or de- mised 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 sub- ject of any lease license easement or right granted or demised hereunder or pursuant hereto AND the Company hereby irrevoc- ably 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 be- come payable or accrued due;

(iii)   save as aforesaid and as provided in para- graph (c) of this Clause 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;

(c)

that on the cessation or determination of any lease

licensed easement or right granted or demised here-

No. 65.]

Exmouth Gulf Solar Salt

[1969.

Industry Agreement.

under or pursuant hereto by the State to the Com- pany or (except as otherwise agreed by the Minis- ter) to an assignee of the Company under Clause 28 hereof the improvements and things erected or constructed on the relevant land other than machinery equipment and removable buildings shall remain or become the absolute property of the Crown without compensation and freed and dis- charged from all mortgages and encumbrances and the Company will do such things and execute such documents (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 the Company to do those things and to execute those documents (including surrenders). In the event of the Company immediately prior to such expiration or determination or subsequent thereto deciding to remove its machinery equipment and removable buildings or any of them from the work site 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 machinery equipment and removable buildings or any of them. 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;

(d)

the provisions of this Clause shall not apply to any land which at or prior to the date of cessation or termination of this Agreement had been the subject of a lease granted to the Company pursuant to Clause 16 and which at that date is held for an estate in fee simple by any person, or is held for an estate in leasehold by any person other than the Company, or is held for an estate in leasehold by the Company and in respect of which the Company has effected some improvements and has not failed to observe any obligation on its part under the lease.

Salt tor

use In

26. The Company acknowledges the desire of the State to

Australia.

have available a constant and reliable source of supply of salt for use in Australia. To attain this object the Com- pany, subject to the fulfilment of its overseas contracts will use its best endeavours to have such quantities of salt avail- able at all times during the currency of this Agreement for sale for use in Australia as will meet reasonable demands therefor made on the Company from time to time at a

1969.]

Exmouth Gulf Solar Salt

[No. 65.

Industry Agreement.

price which is competitive in the Australian market pro- vided that such price is not less than that which the Com- pany is receiving or able to receive for similar quantities of salt sold on similar terms and conditions for use outside Australia.

27. The State further covenants with the Company that the Restrictions

on

State—

resumption.

(a)

having regard to the particular nature of the industry proposed to be established by the Com- pany under this Agreement and subject to the per- formance by the Company of its obligations hereunder shall not resume or suffer or permit to be resumed by any State instrumentality or by any local or other authority of the said State any portion of the work site the resumption of which would unreasonably impede the Company's activities nor shall the State create grant or permit or suffer to be created or granted by an instrumentality or authority of the said State as aforesaid any road right of way or easement of any nature or kind whatsoever over or in respect of the work site which may unduly prejudice or interfere with the Com- pany's operations hereunder without the consent in writing of the Company first having been obtained which consent shall not be arbitrarily or unreason- ably withheld;

(b)

except as provided in this Agreement shall not ntgrirat

impose or permit or authorise any of its agencies or charges.

or instrumentalities or any local or other authority of the said 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 shall the State take or permit to be taken by any such agency instrumentality or authority any other discrimi- natory action which would deprive the Company of full enjoyment of the rights granted and intended to be granted under this Agreement;

(c)

shall at the request and cost of the Company (except gritdr Main Roads agrees to bear the whole or part of the cost involved) widen upgrade or realign any public road over which the State has control subject to the prior approval of the said Commissioner to the proposed work;

Rating.

(d)

shall ensure that notwithstanding the provisions of any Act or anything done or purported to be done under any Act the valuation of all lands (whether of a freehold or leasehold nature) the subject of

No. 65.]

Exmouth Gulf Solar Salt

[1969.

Industry Agreement.

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;

Labour

Condition.

(e) shall ensure that during the currency of this Agree- ment and subject to compliance with its obligations hereunder 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 site.

Assignment.

28. (1) Subject to the provisions of this Clause and of paragraph (e) of subclause (1) of Clause 16 hereof the Company may at any time with the prior written consent of the Minister

(a)

assign mortgage charge sub-let or dispose of to any company or person the whole or any part of the rights of the Company hereunder (including its rights to or as the holder of any lease license ease- ment grant or other title) and of the obligations of the Company hereunder; and

(b)

appoint any other company or person to exercise all or any of the powers functions 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 per- form 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 appoint- ment.

(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 easement grant or other title the subject of an assignment under the said subclause (1).

Arbitration. 29. 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

1969.]

Exmouth Gulf Solar Salt

[No. 65.

Industry Agreement.

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.

30.   The parties hereto may from time to time by mutual Variation.

agreement in writing add to, vary or cancel all or any of the provisions of the Agreement or any lease license ease- ment 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.

31. This Agreement shall be deemed to be made subject to any delays in the performance of obligations under this

Force

Maieure.

Agreement and to the temporary suspension of continuing obligations hereunder and to relief from forfeiture for failure to produce the annual and average tonnages referred to in paragraph (a) of Clause 25 which may be occasioned by or arise from circumstances beyond the power and control of the party responsible for the performance of such obliga- tions including delays or any such temporary suspension or failure as aforesaid caused by or arising from Act of God force majeure floods storms tempests washaways abnormal tides and waves 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 salt export industry) to profitably sell salt or factors due to overall world economic conditions 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.

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

of this Agreement (whether in the same or any varied or Agreement.

modified form) and if the parties hereto have not at least fifteen (15) months prior to the expiration of the second term of renewal of the lease of the production site (herein- after referred to as "the expiration of the second renewal") agreed upon the terms and conditions in respect of a further agreement for the production at and shipment of salt from the work site then the State shall at least fourteen (14) months prior to the expiration of the second renewal make the Company such written offer (hereinafter called "the offer") of the terms and conditions of the further agree- ment as it deems reasonable and unless the Company has-

No. 65.]

Exmouth Gulf Solar Salt

[1969.

Industry Agreement.

(1) 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 (14) days next following the receipt of the offer referred that offer or the part or parts thereof which the Company considers un- reasonable to arbitration as provided in subclause (2) of this Clause;

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 State 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. 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.

If the Company has not accepted the offer or the offer as varied or modified by the award on arbitration subject to and in accordance with the provisions set out in subclause (1) or (2) respectively of this Clause then the State may enter into an agreement for the production and shipment of salt from the sites previously leased to the Company 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 the offer as varied or modified by the award on arbitration provided the State has first offered to the Com- pany the right of first refusal of such terms and conditions and such offer is not accepted by the Company within a reasonable time.

(3)

Indemnity.

33. The Company will indemnify and keep indemnified the State and its servants agents (including all Ministers of the Crown in right of the State of Western Australia) and con- tractors in respect of all actions suits claims demands or costs arising out of or in connection with the construction maintenance or use by the Company or its servants agents contractors or assignees of the Company's solar salt plant, jetty, berthing or loading facilities, roads, railways or other works or services the subject of this Agreement or any plant apparatus or equipment associated therewith.

Compliance

with Laws.

34. Subject to this Agreement the Company in the con- struction operation maintenance and use of any work

1969.]

Exmouth Gulf Solar Salt

[No. 65.

Industry Agreement.

installation plant machinery equipment service or facility provided or controlled by it shall comply with and observe the laws for the time being in force in the State of Western Australia.

35.    Any notice consent request or other writing authorised Notices.

or required by this Agreement to be given shall be deemed to have been duly given by the State or the Minister 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 or an approved mortgagee or assignee as the case may require at its registered office for the time being in the said State and by the Company if signed on its behalf by any person or persons for the time being appointed by it for the purposes of this Clause and forwarded by pre-paid registered post to the Minister at his office in Perth AND any such notice consent or writing shall be deemed to have been duly given on the day on which it would be delivered in the ordinary course of post.

36. (1) This Agreement shall be interpreted according to the law for the time being in force in the said State;

Ltrant

(2) All payments made or to be made under this Agree- ment shall be made in the State of Western Australia in Australian currency unless otherwise agreed. All sums men- tioned herein are in Australian currency.

Expiration

37. This Agreement shall expire on the expiration or sooner determination of the lease of the production site (including

of

Agreement.

the respective renewals thereof) 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.

38. Notwithstanding anything herein contained the Com- Determine-

pany may at any time give notice to the State that matters t;gmityny.

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 Clause 25 hereof.

39.   The Company shall have the right at any time and Right of

from time to time to surrender to the Crown in right of the Surrender.

State any reasonably substantial part of the work site which

is no longer required by the Company.

No. 65.]

Exmouth Gulf Solar Salt

[1969.

Industry Agreement.

Power to

extend

40. Notwithstanding any provision hereof the Minister may

Periods.

at the request of the Company from time to time extend any period or alter any date referred to in this Agreement for such period or to such other date as the Minister thinks fit and the extended period or other 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 or altered.

Provided that where any such extension of period or alteration of date would have the effect either directly or indirectly of extending the term of any lease license tem- porary 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.

Stamp duty

exemption.

41. The State shall exempt from any stamp duty which but for the operation of the Clause would or might be charge- able 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;

PROVIDED THAT this Clause shall not apply to any instrument or other document executed or made more than seven ('7) years from the date hereof.

IN WITNESS whereof this Agreement has been executed by or on behalf of the parties hereto the day and year first hereinbefore mentioned.

SIGNED SEALED AND DELIVERED by

THE HONOURABLE DAVID BRAND, DAVID BRAND.

M.L.A., in the presence of—

[L.S.]

C.

W. COURT,

Minister for Industrial Development.

ARTHUR GRIFFITH,

Minister for Mines.

The common seal of EXMOUTH SALT

PTY. LTD. was hereunto affixed by the

Authority of the Directors, in the pres-

[C.S.]

ence of

JOHN G. LEWIS,

Director.

J. BOER,

Secretary.

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