Common use of Pre-Feasibility Studies Clause in Contracts

Pre-Feasibility Studies. The Pre-Feasibility Study must: (a) be conducted based on customary economic assumptions agreed by the Owners’ Council (other than in respect of the assumptions listed in paragraphs (a)(i), (ii) and (iii)) or, in the absence of such agreement (or in the case of paragraphs (a)(i), (ii) and (iii)), selected by the Manager, including in relation to: (i) iron ore prices; (ii) current and projected demand and supply conditions in the global market; (iii) foreign exchange; (iv) cost of capital; and (v) inflation; and (b) include the overall scope, direction and timing of the Contemplated Project, including: (i) detailed technical information, plans, specifications, maps and any other information which may reasonably be considered relevant to the Contemplated Project (including those items referred to in item 2(b) of this schedule and which are relevant to a Pre-Feasibility Study); (ii) a preliminary engineering study capital cost estimate (+/- 20-25%) of the cost to bring the Contemplated Project to Operational Completion and reasonable details of the major categories of expenditure, including: (A) direct; (B) indirect; (C) owner’s; and (D) contingent costs; (iii) details of the associated execution strategy required to implement the Contemplated Project, including Authorisations, third party approvals, commercial, contract and risk management strategies; and (iv) consideration of alternatives that deliver Pilbara System Capacity (eg, mine, infrastructure and ancillary assets) sufficient to meet the requirements of the Project; and (v) a detailed financial evaluation of the results of the Pre-Feasibility Study and the Manager’s assessment of the Contemplated Project, including ranking of the options considered by the Pre-Feasibility Study.

Pre-Feasibility Studies. The Pre-Feasibility Study must: (a) be conducted based on customary economic assumptions agreed by the Owners’ Council (other than in respect of the assumptions listed in paragraphs (a)(i), (ii) and (iii)) or, in the absence of such agreement (or in the case of paragraphs (a)(i), (ii) and (iii)), selected by the Manager, including in relation to: (i) iron ore prices; (ii) current and projected demand and supply conditions in the global market; (iii) foreign exchange; (iv) cost of capital; and (v) inflation; and (b) include the overall scope, direction and timing of the Contemplated Project, including: (i) detailed technical information, plans, specifications, maps and any other information which may reasonably be considered relevant to the Contemplated Project (including those items referred to in item 2(b) of this schedule and which are relevant to a Pre-Feasibility Study);; West Australian Iron Ore Production Joint Venture Agreement (ii) a preliminary engineering study capital cost estimate (+/- 20-25%) of the cost to bring the Contemplated Project to Operational Completion and reasonable details of the major categories of expenditure, including: (A) direct; (B) indirect; (C) owner’s; and (D) contingent costs; (iii) details of the associated execution strategy required to implement the Contemplated Project, including Authorisations, third party approvals, commercial, contract and risk management strategies; and (iv) consideration of alternatives that deliver Pilbara System Capacity (eg, mine, infrastructure and ancillary assets) sufficient to meet the requirements of the Project; and (v) a detailed financial evaluation of the results of the Pre-Feasibility Study and the Manager’s assessment of the Contemplated Project, including ranking of the options considered by the Pre-Feasibility Study.