Mine Development Adjustable Amount Clause Samples

Mine Development Adjustable Amount. 20.3.1 [Upon commencement of development of the Mines by the Mine Operator in accordance with the terms of this Agreement, as certified by the Engineer in charge and measured by the Engineer in charge during the monthly measurement, the Authority shall be liable to pay to the Mine Operator in respect of each month prior to the occurrence of Coal production during which the development of the Mines is done by the Mine Operator, an adjustable sum calculated at a fixed rate of: (a) [Rs. 1,50,000 (Rupees one lakh fifty thousand only)] per meter of development length with adequately supported inclines with finished cross section (includes adits, drifts and declines); and (b) [Rs.300,000 (Rupees three lakh only)] per meter of development length with adequately lined shafts (“Mine Development Adjustable Amount”)16. The Mine Development Adjustable Amount shall be paid against the submission of bank guarantee(s) from a Bank by the Mine Operator. The value of such bank guarantee(s) shall, at no point of time, be less than 110% (one hundred and ten per cent) of the amount disbursed or due to be adjusted. Such bank guarantee(s) shall be valid till the full adjustment is made. It is hereby clarified that the aforesaid bank guarantees against the payment of Mine Development Adjustable Amount is separate and in addition to the Mine Operator’s obligation to furnish the Performance Security under Article 9. 20.3.2 The Mine Development Adjustable Amount paid by the Authority shall be adjusted against the Mining Charge payable by the Authority to the Mine Operator, in equal instalments spread over a period of 60 (sixty) months beginning from the month in which the first Monthly Invoice is raised by the Mine Operator. In case of any shortfall in recovery, it shall be adjusted against the subsequent Monthly Invoices.]17